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Midwich records 27.5% revenue growth for 2017

Midwich has announced its final results for the financial year, recording a 27.5% increase in revenue growth.

From 31 December, 2016 to 31 December, 2017, the Norfolk-based company saw an increase in revenue from £370.1m to £471.9m.

In addition to top line growth, gross profit margin increased by 0.2% to 15.5% driven by growth in the specialist audio visual and technical product categories.

Managing director Stephen Fenby (pictured) said: “We have delivered another year of strong profitable growth in 2017 across the Group. The underlying business has performed very well, resulting in significant increases in revenue and profit while improving gross margins. I am also pleased with the successful integration of the three earnings enhancing acquisitions that we made in the year, all of which have contributed positively to the Group result.”

Profit margins show improvement and adjusted profit before tax grew by 35.7% to £24.3 million.

In December last year, Midwich announced the acquisition of Sound Technology. It also acquired Earpro S.A. and the Gebroeders van Domburg B.V. Group of companies in 2017.

“During 2017 we were successful in further expanding the reach of the Group through acquisitions, adding businesses covering the Iberian and Benelux markets and enhancing our position further in the UK,” commented chairman Andrew Herbet. “These businesses are already contributing to both sales and profit and have added to our capabilities, in particular in the audio and lighting markets, both of which provide future growth opportunities.”

The company’s board has recommended a final dividend payment of 9.65 pence per share (2016: 7.09p) taking the total annual dividend payment to 13.82 pence per share, an increase of 36.2% on a like-for-like basis.

Fenby added: “We continue to develop industry leading businesses across the geographies in which we operate and there remain substantial growth opportunities, both organic and inorganic, in these regions and further afield. We have continued to strengthen our central management team to help pursue and execute on our growth strategy and our strong balance sheet provides the necessary firepower to take advantage of the right opportunities.

“Trading in the first few months of 2018 has built on the good growth achieved in the prior year giving the Board confidence in delivering results in 2018 in line with its expectations.”