Midwich Group plc (LSE:MIDW) expects adjusted profit before tax for the first half of 2026 to increase around 10% year on year to £10.6 million, supported by revenue growth of approximately 3% to £640 million. Excluding the impact of its Middle East operations and businesses that have since been exited, adjusted profit growth reached 20%, demonstrating the strength of the group’s core operations despite a modest decline in gross margins and disruption in conflict-affected markets.
Performance varied across regions during the period. The UK and Ireland, together with Australia and New Zealand, delivered revenue growth of more than 10%, while North America recorded a 5% increase. These gains were partly offset by a 5% decline across EMEA, reflecting weaker trading conditions in the Middle East and Germany. Cash generation remained in line with expectations, and leverage improved to 2.3 times adjusted EBITDA, with management targeting a reduction to around 2.0 times by year end. The company also continues to expand relationships with technology vendors, improve operational efficiency and introduce AI-driven productivity initiatives, while maintaining guidance that full-year performance will be broadly in line with market expectations for 2025.
Management said uncertainty surrounding the global economic environment and the ongoing conflict in the Middle East could continue to affect trading during the remainder of 2026. Even so, Midwich remains focused on expanding its presence in higher-margin specialist audiovisual markets, protecting and growing market share in key regions, and pursuing both organic growth opportunities and strategic acquisitions to support its long-term development plans.
The company’s outlook is tempered by weaker financial quality, following a period of negative profitability and relatively high leverage, although revenue growth and cash generation remain resilient. Technical indicators also continue to suggest a cautious market outlook, with the shares trading below key moving averages. While the dividend yield offers some valuation support, the absence of positive earnings limits the company’s overall valuation appeal.
About Midwich Group plc
Midwich Group plc is a specialist distributor of professional audiovisual technology, supplying equipment and services to trade customers across more than 50 countries through a network of 23 locations. The company works with over 24,000 customers, including AV integrators, event production companies and IT resellers serving sectors such as education, corporate, retail and live events.
Its services extend beyond product distribution to include system design, marketing support, financing solutions, industry events and investment in emerging technology businesses. Employing around 1,700 people across the UK and Ireland, EMEA, Asia-Pacific and North America, Midwich focuses on specialist, higher-margin audiovisual products while promoting sustainable business practices.
The company combines long-standing relationships with leading global technology vendors and a strategy of targeted acquisitions to expand its international footprint and product offering. This approach supports Midwich’s ambition to strengthen its position in the growing professional audiovisual market while delivering sustainable long-term growth.
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