Midwich ends year in line with expectations
By Josh White
Date: Tuesday 20 Jan 2026
(Sharecast News) - Midwich Group reported a full-year performance in line with expectations for 2025 on Tuesday, with a return to revenue growth in the second half of the year helping to stabilise performance amid subdued conditions across the global audio visual market.
The AIM-traded distributor said revenue for the year was expected to be around £1.3bn, broadly unchanged from 2024, while gross margins were resilient and adjusted profit before tax is forecast to be in line with the board's previous guidance of £30m.
Continuing revenue on a constant currency basis finished slightly below the prior year, with organic revenue around 1.5% lower overall, reflecting a decline of approximately 3% in the first half followed by growth of around 0.5% in the second half.
Midwich said its proactive focus on growth initiatives and customer and vendor relationships continued to support market share gains in several key regions.
The UK and Ireland business returned to growth, with revenue up about 7% year on year, driven by new vendor launches and share gains.
The region accounted for around 40% of group revenue.
Revenue headwinds in both EMEA and North America also eased during the second half.
In EMEA, full-year revenue declined by around 5.5% on a constant currency basis, improving from a 7% fall in the first half to a 4% decline in the second.
The group said performance was weighed down by weakness in the German corporate end-user market and delays to education spending ahead of new federal funding approvals.
Excluding Germany, which represents around a third of regional revenue, EMEA delivered full-year growth of 9%, supported by demand for more technical and higher-margin products.
North American revenue fell by around 5% on a constant currency basis, reflecting tariff uncertainty and a planned transition to new technical vendors.
Midwich said it expected the region to return to growth as trade negotiations concluded and new vendors came on stream, with strong medium-term profitability potential.
The group delivered strong cash generation during the year, exceeding 100% of adjusted EBITDA, well ahead of its long-term target range of 70% to 80%.
Adjusted net debt as at 31 December stood at £130m, slightly lower than a year earlier and equivalent to around 2.3 times adjusted EBITDA.
Midwich added that its review of the ongoing ERP deployment remained under way and was expected to conclude by the time full-year results were published.
Stephen Fenby, group managing director, said 2025 had been "challenging for our industry" but that the group had been proactive in driving improved future performance through new vendor and customer relationships, additional revenue streams and cost-saving initiatives, including exploring AI-led productivity solutions.
He said the return to second-half revenue growth and strong cash generation left the group well positioned for the year ahead.
Midwich said it would announce its final results for the year ended 31 December on 17 March.
At 1340 GMT, shares in Midwich Group were up 2.49% at 185p.
Reporting by Josh White for Sharecast.com.
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