Midwich Group (MIDW) Q2 2026 TU earnings summary

Executive summary

• Adjusted profit before tax for H1 2026 expected to be around 10% higher year-over-year, despite challenges in the Middle East market.

• Revenue for H1 2026 anticipated at approximately £640 million, up 3% from H1 2025.

• Growth in UK & Ireland, North America, and Iberia offset declines in EMEA and Middle East.

• Continued focus on higher margin, specialist product areas and operational efficiencies.

Financial highlights

• Adjusted profit before tax expected at £10.6 million, up from £9.6 million in H1 2025.

• Revenue increased by 3% year-over-year; constant currency revenue up 2%.

• Underlying gross margins slightly lower due to Middle East revenue reduction and UK sales mix.

• Adjusted net debt increased by £12 million to £138 million due to working capital seasonality.

• Leverage at 2.3x adjusted net debt to adjusted EBITDA, expected to reduce to 2.0x by year end.

Outlook and guidance

• Board expects full year results to be broadly in line with 2025, assuming challenging macroeconomic conditions persist.

• Positive momentum in most regions expected to partially mitigate Middle East conflict impact.

• Initiatives underway to drive future performance, including new vendor/customer relationships and AI solutions.