By Joe Hope
Midwich Group PLC said Tuesday that it expects adjusted pretax profit and revenue to significantly rise in the first half, and raised its full-year expectations conditional on economic conditions remaining relatively stable.
The UK-based audiovisual distributor said it expects first-half adjusted pretax profit–which strips out exceptional and other one-off items–to rise to more than 19 million pounds ($22.7 million) from GBP13.0 million a year prior.
Revenue is expected to increase more than 45% to exceed GBP560 million. Organic growth was around 27%, with strong performances from the Nimans and DVS businesses, both acquired early in the first half.
Midwich said its overall gross margin was around 15%, in-line with the first half of 2021, and it has seen a partial return of live events and in-person activities in a number of markets. If these conditions continue it expects stronger gross margins in the second half.
The company said its order book was very strong, and unless economic conditions deteriorated significantly it expects first-half momentum to continue throughout the rest of the year.
As a result, it now expects full-year performance to exceed its previous expectations, though it didn’t provide a figure.
Shares at 0741 GMT were up 29.0 pence, or 5.1%, at 594.0 pence.
Write to Joe Hoppe at [email protected]
Credit: www.marketwatch.com /