Midwich sees 4.3% drop in interim revenue, maintains full-year outlook
Midwich Group PLC on Monday said revenue declined in the first half of 2025, hurt by weakness in the German market and North American uncertainty, but it kept its full-year outlook unchanged.
The Norfolk-based audiovisual technology company expects revenue of around £620 million for the six months to June 30, down 4.3% from a year before. On a constant currency basis, revenue fell 2.7%, while organic revenue was 3.5% lower.
The company cited ‘challenging’ global market conditions, particularly in Europe and North America.
Revenue in the Europe, Middle East & Africa region fell 7.3% year-on-year, impacted by soft demand from German corporate customers and delayed education sector spending tied to government funding timelines.
North American sales dropped 8.5%, with the company pointing to tariff uncertainty and a transition to new vendors.
By contrast, UK & Ireland sales rose 5%, driven by new vendor launches and market share gains. That region now accounts for 40% of total group revenue.
Adjusted earnings before interest and tax fell 29% to £15.4 million, with a margin of 2.5% compared to 3.4%. Adjusted pretax profit dropped to around £9.5 million from £17.2 million.
The group expects leverage to reduce to around 2.2 times adjusted earnings before interest, tax, depreciation, and amortisation by year-end, from 2.6 times at the end of June. Adjusted net debt rose by £17 million year-on-year to £148 million, reflecting deferred acquisition payments and normal working capital movements.
Chief Executive Officer Stephen Fenby said: ‘There is no doubt that the first half of 2025 has been tough,’ but added that the group continues to maintain or grow market share in key regions and remains confident in its strategic initiatives.
Looking ahead, Midwich said it still expects 2025 to be second-half weighted and continues to assume macroeconomic conditions will remain challenging for the rest of the year. It will report half-year results on September 9.
Shares in the company were 2.4% higher at 212.00 pence in London on Monday morning.
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