Midwich Group, a global specialist audio visual distributor to the trade market, has reported record financial performance and market share gains in 2023.
Unaudited full year results for the year ended 31 December 2023 show a 7.1% growth in revenue to £1,289.1m, and the distributor’s highest ever gross profit margin of 16.8%, driven by stronger technical product sales, especially in the audio market.
Adjusted operating profit increased 16.6% to £59.6m, or 16.8% on a constant currency basis.
Most of the distributor’s revenue growth came from seven acquisitions in the period, with just 0.8% organic revenue growth, compared to total revenue growth of 6.8% (at constant currency).
Stephen Fenby, Managing Director of Midwich Group plc, said: “The Group had another strong year, both operationally and financially, improving all key metrics in a highly challenging market. Our performance reflects the fundamental strength of the business, our customer and vendor relationships, our geographic and technical solution diversity and, most of all, the skills and dedication of our team.
“Despite lower demand for mainstream products, stronger technical product sales led to our highest ever gross margin percentage. A strong increase in adjusted operating profit of 17% helped us to achieve adjusted profit before tax in excess of £50 million for the first time.
“Although still early into the new financial year, and being mindful of the continued challenging general economic conditions, we remain confident that 2024 will see yet another year of growth in excess of the overall market.”
Midwich Group’s management remains optimistic about a strong acquisition pipeline spanning key geographies and technological sectors, signalling promising future prospects.
Last year, Midwich sealed a distribution agreement with Crestron for its unified communications and collaboration products.
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