Midwich : Full Year Results 2024 Document - 18 Mar 2025

18 March 2025

Midwich Group plc

("Midwich" or the "Group")

2024 Full Year Results

Record revenue and gross margins achieved in FY24, reflecting robust performance despite a continuing

challenging market

Midwich Group (AIM: MIDW), a global specialist audio visual ("AV") distributor to the trade market, today announces its audited full year results for the year ended 31 December 2024.

Statutory financial highlights
	Year to	Year to	Total
	31	31	growth
	December	December	%
	2024	20231
	£m	£m
Revenue	1,317.0	1,295.1	1.7%
Gross profit	234.3	226.1	3.6%
Gross margin	17.8%	17.5%
Operating profit	24.1	41.6	(42.0%)
Profit before tax	22.3	36.5	(39.0%)
Basic EPS - pence	15.69p	27.98p	(43.9%)
Total Dividend - pence per share3	13.0	16.5
Adjusted financial highlights2
	Year to	Year to	Total	Growth at
	31	31	growth %	constant
	December	December		currency
	2024	2023		%
	£m	£m
Revenue	1,317.0	1295.1	1.7%	3.5%
Gross profit	234.3	226.1	3.6%	5.5%
Gross margin	17.8%	17.5%
Adjusted operating profit	48.3	59.6	(19.0%)	(17.4%)
Adjusted operating profit margin %	3.7%	4.6%
Adjusted profit before tax	38.3	50.0	(23.5%)	(21.6%)
Adjusted EPS - pence	26.24p	37.46p	(30.0%)
Adjusted cash flow conversion	97%	114%
Adjusted net debt ratio	2.0x	1.1x

1. Restated - see note 17 for details
2. See note 1 of the Group financial statements for definitions of non-GAAP measures and note 16 for the reconciliations of non-GAAP measures to statutory reported results.
3. Total of interim and final dividends

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Financial highlights

• Record revenue and gross margins, despite continued challenging macro conditions
• Revenue increased 1.7% to £1,317.0m (2023: £1,295.1m) and up 3.5% on a constant currency basis
• Highest ever gross profit margins of 17.8%, substantially ahead of the prior year (2023: 17.5%)
• Adjusted operating profit of £48.3m (2023: £59.6m) reflects a resilient performance in a tough market, with strong Adjusted cash flow conversion of 97%
• Net debt to adjusted EBITDA at the period end was 2.0x, in line with Board expectations
• Proposed final dividend of 7.5p, bringing the 2024 full year dividend to 13.0p (2023: 16.5p) and dividend cover to 2.0x

Operational highlights

• Strong performance in strategic product categories, reflecting the Group's strategy to focus on higher margin product areas
• Group market share generally stable or increasing, despite the tough market conditions
• Strong performance in North America with sales +28% and organic revenue up 7%
• Cost mitigation actions undertaken in H2 2024, resulting in c.£5m of annualised savings achieved
• Four small bolt-on acquisitions completed during the period, with integration progressing well
• Compound annual growth in revenue and adjusted operating profit since IPO in 2016 of 17% and 13% respectively, with a strong return on capital. Testament to the strength of our long-term strategy and the quality of our teams
• No M&A opportunities currently in late stages, but appetite for M&A remains in the medium term

Stephen Fenby, Managing Director of Midwich Group plc, commented:

"After three years of strong growth, 2024 was a challenging period for the Group. The business continued to be impacted by subdued investment in the education and corporate end user markets, along with significant price erosion in some mainstream product areas due to over-supply by manufacturers. Despite these factors, our strategy of focusing on technical product areas resulted in the business remaining robust, with revenue and gross profit growing to record levels.

Our relative 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. I believe that the Group is very well placed to benefit from an improvement in market conditions.

In the short term, continued price deflation in mainstream product areas is expected to cause challenges to the growth of the business. In the meantime, the Group continues to develop new revenue sources, and ensure we operate as efficiently as possible.

Our expected trading performance for the 2025 full year remains unchanged, with a higher weighting anticipated for the second half of the year."

Analyst meeting/webinar

There will be a meeting and webinar for sell-side analysts at 9.30am GMT today, 18 March 2025, the details of which can be obtained from FTI Consulting: [e-mail].

For further information:
Midwich Group plc	+44 (0)	1379 649200
Stephen Fenby, Managing Director
Stephen Lamb, Finance Director
Investec Bank plc (NOMAD and Joint Broker to Midwich)	+44 (0)	20 7597 5970
Carlton Nelson / Ben Griffiths
Berenberg (Joint Broker to Midwich)	+44 (0)	20 3207 7800
Ben Wright / Richard Andrews

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FTI Consulting	[phone]
Alex Beagley / Tom Hufton / Matthew Young	[e-mail]
About Midwich Group
Specialisation at scale

Midwich Group is a network of businesses which partner with the world's leading technology companies to accelerate their growth. Selling into over 50 countries from 23 global locations, the Group specialises in audiovisual technology - whether in state-of-the-art meeting rooms or on a festival main stage, our solutions help the world connect, communicate, or experience wow moments.

Taking technology further

With services ranging from product distribution to complex system design, focused marketing campaigns to flexible financing solutions, and showcase events to seed funding for startups, the Group's ever-expanding offering is designed to add value and solve its partners' biggest challenges.

This has enabled the Group to maintain strong relationships with global manufacturers and a diverse customer base of over 24,000, including professional integrators, event production companies and IT resellers in sectors such as education, corporate, retail and live events.

Enabling tomorrow

With over 1,800 employees across the UK and Ireland, EMEA, Asia Pacific and North America, the company is committed to being a responsible employer.

The Group wants to do the right thing and actively works to limit its impact on the environment and communities, and recognises the importance of giving back - find out more about our sustainability activities here.

For further information, please visit www.midwichgroupplc.com

Chair's Statement

Our presence, product diversification, and specialist Pro AV focus delivered strong gross margin improvement.

Midwich Group demonstrated resilience against a challenging market backdrop and I am pleased to be able to report further progress in 2024, including record revenue and gross margins, increased specialisation, further strategic investments and continued development of our leadership team.

After an exceptional period of growth following the pandemic, which saw Group revenue in 2022 almost double the level in 2019, growth in the last two years has been characterised by strong demand for live events and entertainment solutions offset by challenging corporate and education end user markets.

Our industry-leading position and diversity of geographies and technical solutions enabled the Group to respond to this changing market backdrop. Record revenue and gross margins in 2024 is testament to our team's exceptional resilience, knowledge and commitment.

Whilst the Pro AV market has consistently grown above GDP, there were a number of unprecedented challenges that continued throughout 2024. The pressures of macroeconomic slowdowns, the impact of election cycles, higher interest rates and labour inflation continued to moderate demand for our mainstream products. An element of over-supply, as manufacturers struggled to accurately anticipate demand, also resulted in unprecedented levels of discounting in the displays market. The Group responded to this by focusing on value- added technical solutions and, as a result, achieved both gross margin improvements and further market share gains in many of our markets.

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At constant currency, Group revenue increased by 3.5% (organic -1.4%) to £1.32bn whilst a gross margin of 17.8% (2023: 17.5%) was a record. Overhead growth reflected the on-boarding of the eleven acquisitions completed in the last two years combined with the impact of inflation on the core cost base. Despite a tight focus on cost control, and some targeted restructuring during the year, which has delivered c.£5m in annualised savings, adjusted operating profit reduced to £48.3m (2023: £59.6m).

In the face of extensive cost inflation in recent years, the Group has achieved compound annual growth in revenue and adjusted operating profit over the last five years of 14% and 8%, respectively, which is down to the strength of our long-term strategy and the quality of our teams.

Looking to the future, the Group remains well placed to benefit from its global scale to develop and deploy digital solutions such as e-commerce and artificial intelligence ("AI"). These will position the Group well to deliver positive operating leverage and net margin improvements as demand across all markets returns to normal levels.

With the start of 2025, the wider economic backdrop continues to remain challenging. Nevertheless, the Board believes that the structural increase in the use of AV solutions will see robust demand in the years ahead, with Midwich a provider of choice for our customer base. Over the longer term, the Pro AV market is forecast to grow by an average of 5.4%1 per annum for the next five years and the Group is well placed to benefit from this. Despite the Group's significant revenue, our market share represents less than 4% of our estimated target addressable market value for the global Pro AV market. The Group continues to have ambitious growth plans and will continue to execute its strategy to deliver on this sizable market opportunity.

Alongside record revenue, I am pleased that the Group was also able to complete four small strategically important acquisitions in the year.

In January 2024, the Group acquired The Farm North West LLC and The Farm Norcal LLC ("The Farm"), which acts as an exclusive value-added sales agent to its vendor partners, primarily in the audio and technical video segments. Based in Silicon Valley, The Farm, which has now been integrated into the Group's US operation, Starin Marketing, expands the Group's US footprint and enhances its levels of customer and manufacturer support.

In the second half of the year, the Group completed three specialist acquisitions in the UK for a total combined cash consideration of £12m. These higher-margin technical businesses operate primarily in the live events and fire security markets.

These acquisitions bring new capabilities, technologies, customers and vendor relationships, further delivering on the Group's strategy to grow margins and earnings, both organically and through selective acquisitions of strong complementary businesses.

The integration of these businesses is largely complete, and we have thoroughly enjoyed welcoming them to the Group.

Over the medium term, we anticipate a continuation of our expansion strategy through both organic growth and acquisition of complementary businesses and believe that our balance sheet and bank facilities position us well to achieve this. The medium term acquisition pipeline remains healthy, and the management team continues to review attractive opportunities.

Dividend

The Board understands the importance of dividends for many of our investors and is pleased to recommend a final dividend of 7.5p per share which, if approved, will be paid on 4 July 2025 to all shareholders on the register as on 23 May 2025. The last day to elect for dividend reinvestment ("DRIP") is 13 June 2025. Coupled with the interim dividend of 5.5p per share, this represents a total dividend for the year of 13.0p per share (2023: 16.5p). The combined value of the interim and proposed final dividends is covered two times by adjusted earnings (2023: 2.3 times).

Given the challenging market backdrop, the Board believes that the full year dividend represents an appropriate balance between continuing to reward shareholders and maintaining a strong balance sheet.

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Over the medium term the Board continues to support a progressive dividend policy to reflect the Group's planned growth and cash generation.

Corporate governance

Membership of the Board comprises individual directors with significant and complementary skills and experience. Board composition is kept under review to ensure it meets ongoing governance requirements, including independence and diversity, and that board members collectively have appropriate skills and experience to guide the future development and growth of the business. The Board met ten times during the year and received regular updates from senior leadership.

In line with the Board's succession planning, and the evolving governance environment, I was delighted to welcome Alison Seekings to the Board in March 2024. A fourth independent Non-executive Director, Alison brings a wealth of experience in accounting, governance and technology companies. Alison became Audit Committee Chair in May 2024 and is a member of the other Board sub-Committees.

Having joined the Board in May 2016, Mike Ashley is expected to retire from his Non-executive Director role later this year and a search is currently underway for his successor. Hilary Wright is expected to become Chair of the Remuneration Committee when Mike retires.

I have been Chair of the Board since IPO in May 2016 and it is proposed that I continue in the role for a limited further period. The Board considers continuity in the Chair role important through a period of integrating new Board members and in supporting executive management in returning the business to profitable growth. Planning for the succession of the Chair role will commence in 2025 with a view to my standing down in due course once a suitable replacement is found.

In December 2024, Andrew Garnham, formerly deputy Company Secretary, was appointed as Group Company Secretary. The Board remains satisfied that it has a suitable balance between independence and knowledge of the business to allow it to discharge its duties and responsibilities effectively.

In line with prior years, the Board completed a self-evaluation exercise during 2024, reinforcing our commitment to, and success in, establishing a strong corporate governance framework. We took the opportunity of this review to confirm our strong and effective governance and reaffirmed the role of the Board and its individual members in monitoring compliance with the revised QCA code.

The Nominations Committee has reviewed the skills and experience of Board members individually and collectively. There were no major issues or concerns raised about the effectiveness of the Board or its individual members and concluded that the size and composition of the Board remain appropriate at this stage of the Group's development.

Sustainability

The Board continues to take a lead in social responsibility. Having introduced Task Force on Climate-related Financial Disclosures ("TCFD") aligned reporting last year, we have made further progress in 2024. In February, a new Board Sustainability sub-Committee was established, chaired by Hilary Wright, to further increase our focus on this area and we have included our inaugural Sustainability Committee Report in this year's report.

The Group has a broad international footprint with the majority of its revenue coming from outside the UK and Ireland and the Board welcomes the cultural diversity that this brings. The Midwich culture is an open and welcoming one and we have been recognised for this. The Board understands the importance of diversity of gender and ethnicity and is committed to ensuring that diversity and inclusion will be key considerations in the appointment of future directors and senior leaders.

The Group is committed to doing the right thing for the wider society; community engagement is embedded in our DNA. Our teams are passionate about making a difference and once again stepped up their time commitment for our nominated good causes. I'm delighted to report our Gift of AV programme, once again, raised a record amount for charity in the year.

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This year we have continued to enhance our work on formalising our approach to environmental matters. Supported by a specialist third party, we have expanded our mandatory climate-related financial disclosures, incorporating the TCFD aligned reporting, to include broad Scope 3 data for the Group. This is in addition to reporting on our environment-related governance, risk management, scenario analysis, carbon reporting and net zero target setting.

The Group continues to apply the QCA code as its governance framework and has assessed compliance with the newly revised QCA code (November 2023). The Board welcomes the enhanced QCA code requirements and has chosen to adopt the vast majority of additional code requirements this year.

Both our executive and independent Directors continue also to welcome feedback from our shareholders and wider stakeholders. We engage with our largest shareholders through invitations to discuss matters with Committee Chairs and Directors, regular face-to-face meetings and inviting them to join us for office/showroom tours and at our AV trade shows.

People

The success of any company is down to the quality of its leadership and its people. In 2024, our teams demonstrated their resilience and faced up to challenging market conditions with commitment and determination. I believe that we have the best teams in the industry, and they have once again delivered exceptional service to vendors, customers and end users alike. Whilst some competitors have faltered as markets have become more challenging, our market share and customer satisfaction levels continue to demonstrate the core resilience of the Midwich business.

The Board has a strong belief in rewarding success and ensuring that engagement levels are high. Share ownership by our people is a core part of our engagement strategy and I believe that high participation in employee share ownership and incentive plans across the Group continues to incentivise exceptional business performance.

Our culture and values are at the heart of how we do everything in the Group, and we have continued to invest resources in maintaining the spirit of Midwich. This includes a step up in both our environmental and community engagement in the year. Our teams address every challenge with commitment and determination, and it is this positive approach that is the main driver of our market share gains and long-term growth.

The Board has regular interaction with the Executive Directors and senior leadership, together with the Managing Directors of our key operating units. The Board is confident that our senior teams are working well and show the strength and depth of the Group's leadership to support future growth.

On behalf of the Board, I would like to thank all employees and our partners for their commitment and hard work and congratulate them on achieving an impressive performance in a challenging year.

Andrew Herbert

Non-executive Chair

1 Source: AVIXA.

Managing Director's Review

Robust performance in a challenging market.

Overview

In 2023, I reported that challenging macroeconomic factors had started to have an impact on the business, particularly with respect to demand for our more mainstream products. These challenging conditions continued throughout 2024 - the longest period of suppressed demand that I can recall. The impact of lower demand on our business has been exacerbated by certain manufacturers continuing to over-supply product into the market, which in turn has led to significant falls in average selling prices in categories such as large format and interactive displays.

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For many years, our focus has been to increase our strength in higher-margin, more technical products such as audio, lighting and technical video. We have had considerable success with this strategy, and indeed aggregate revenue from these three categories increased by 8% in the year.

However, revenue from some of our mainstream product categories declined during the year, albeit by less than the decline in these markets overall. Displays and projection continue to be important product categories for the business, and the tough conditions in these markets still have an impact on the business.

Amid the difficult market conditions which continued throughout 2024, we delivered record revenue of £1.3bn. The impact of mix improvements pushed our gross margin from 17.5% to 17.8%. However, overheads increased by more than gross profit (driven mostly by acquisitions made in 2023 and 2024, investment in growth markets, inflation and higher interest charges), with the result that our adjusted operating profit declined by 17.4%^ and adjusted profit before tax fell by 21.6%^ to £38.3m.

The business has experienced and weathered occasional periods of significant demand reduction - such as in the financial crisis and COVID-19. I would liken 2024 to one of these periods.

With a tough market backdrop, the business has responded well by focusing on the needs of our customers and vendors. This has been a very challenging year for our team, and I congratulate everyone for their efforts and performance. The Group remains in a strong strategic and financial position, and we continue to maintain and take market share in our core regions, which is a testament to the work of our team.

Business performance

Group revenue increased by 1.7% to £1.3bn in 2024 (constant currency 3.5%), with gross margins reaching 17.8% (2023: 17.5%).

Both were records for the Group and reflect organic growth in the North American businesses with small organic declines in the rest of the world.

The increase in gross margin reflects the favourable product mix benefit from our strategic focus on value-added technical products, driven particularly by our acquisition programme in 2023 and, to a lesser extent, 2024. We take a measured approach to investment, investing in our teams and operational capabilities whilst targeting improvements in operating profit margins.

Despite undertaking a cost reduction programme in H2 2024, adjusted operating profit decreased by 17.4%^ to £48.6m, which represents an adjusted operating profit margin of 3.7%, down from 4.6% in the prior year. Disciplined working capital management contributed to strong operating cash generation, with operating cash at 97% of adjusted EBITDA ahead of our long-term average of c80%. This helped mitigate some of the headwinds from higher interest rates.

Adjusted profit before tax of £38.3m (2023: £50.0m) was 21.6%^ below 2023. We ended the year with leverage

(adjusted net debt to adjusted EBITDA) of 2.0 times (2023: 1.1 times) which was in line with Board and market expectations. This, combined with our long-term bank facilities, provides capacity for the Group to continue to pursue both organic and inorganic opportunities.

Market share gains in end user markets

Third party data* for 2024 shows double digit declines in a number of the mainstream Pro AV product categories and an overall mid-single digit decline in the Pro AV distribution market. The Group's overall growth of 1.7%, with an organic decline of 1.4%, demonstrates further market share gains for Midwich in 2024. The Group adapted to the evolving market conditions, working closely with our customers and vendors to meet the changes in market demand. In broad terms, we categorise our products into mainstream and specialist technical categories.

Mainstream products cover displays and projectors. These categories comprised an aggregate of 31.3% of Group revenue in 2024 (2023: 34.9%). Specialist categories cover technologies which require greater pre and post-sales

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support and hence tend to carry higher margins. This group covers categories such as audio, technical video and broadcast and represented 64.2% of total sales compared with 61.2% in 2023.

A core part of the Group's long-term strategic focus is to become more specialist. Displays and projection are at the core of the majority of Pro AV projects, and we are the leading distributor of high-end displays and projection in many of our businesses. Despite a challenging large format display market, which third party data* indicates declined at double digit rates in 2024, our display and projection business reduced by only 8.9% in the year, indicating a continued growth in market share in these categories. LED solutions, which continue to gain share from displays and projection in the larger format categories, continued to experience strong growth, up 8% in the year, and we believe we have established a strong market position in this category. These products require a higher level of expertise to distribute effectively, and hence tend to carry a higher overall gross margin than mainstream products.

Growing our technical product categories has been a particular focus of the business for many years, and in 2024 revenues increased by 5%. This was driven by increased demand from entertainment and live events and also the full year impact of acquisitions undertaken in 2023. There was strong growth in both professional audio and lighting, particularly in the UK&I and North America.

Investing in the future

The global Pro AV market is in excess of $300bn^^, of which our assessment of the Group's Target Addressable Market ("TAM") is c$45bn. Whilst I believe that we are the leading global specialist Pro AV distributor, our £1.3bn revenue in 2024 represents less than 1% of the global market and 3-4% of our TAM. The opportunity for the future remains enormous and we will continue to target growth both organically and through acquisition.

In the last two years we have undertaken significant M&A activity, completing eleven acquisitions. This was a significant step up from our post-IPO average of two to three deals per annum. We acquire businesses to enter new geographies or add to our product set and technical capabilities. The four transactions in 2024 brought us further technical expertise and sales presence on the west coast of the US, as well as additional lighting and security expertise and a cable assembly business in the UK.

Our values and culture

Midwich Group is our people, their skills, experience, relationships and attitude. We promote trust, honesty, hard work, integrity, humility and creativity and value everyone's ideas and contribution. Team engagement is of critical importance, and we saw improvements in our engagement survey in 2024. Our approach is to reward success, and we continue to adapt to the changing work environment. In the last twelve months, we have increased our global collaboration, stepped up employee benefits and increased our engagement with our nominated charities, our communities and our environment.

Outlook

The Group has a proven capability to grow ahead of its markets both organically and through acquisition. Whilst the challenging market conditions seen in 2024 have continued into 2025, and we do not expect a near-term improvement in market growth, I believe the Group is well positioned to take advantage of an upturn in demand.

Rather than just waiting for market conditions to improve, the team has sought to improve the business through a combination of new technology and vendor launches, and improving productivity.

We have further enhanced the strength of our relationships with customers and vendors alike over the last twelve months. However, our team is not complacent; we recognise that we operate in a competitive market where both vendors and customers have a choice of which partners to work with. Of our top 40 vendors in 2024, we were either exclusive or the number one distributor for the vast majority. Our focus is to ensure that we provide the best service possible and continue to develop our offering.

Having made eleven acquisitions in a short space of time, we took a decision to not pursue other transactions in the short term. We do, however, continue to engage with potential acquisitions and have an extensive opportunity pipeline and several interesting conversations in early stages.

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In the short term, continued price deflation in mainstream product areas is expected to cause challenges to the growth of the business. In the meantime, the Group continues to develop new revenue sources, and ensure we operate as efficiently as possible.

With the global AV market expected to continue growing over the medium to long term, our Group is very well positioned for the future.

Stephen Fenby

Group Managing Director

• Constant currency.

• Futuresource Consulting. ^^ Source: AVIXA.

Financial review

A resilient performance underpinned by strong operating cash generation.

Against a challenging market backdrop the Group achieved record revenue and gross margins in 2024. Group revenue increased to £1.32bn (2023: £1.30bn). Macroeconomic headwinds continued to impact demand for our mainstream products, but the Group's focus on technical product categories, which represent 64% of the Group's revenues, resulted in a record gross margin of 17.8% (2023: 17.5%).

Statutory operating profit was £24.1m (2023: £41.6m). Adjusted operating profit of £48.3m (2023: £59.6m) reflected the impact of price discounting of mainstream products due to excess product supply.

Distribution and administrative overheads increased as anticipated during the year, primarily due to the acquisitions completed in the last two years, labour cost inflation, which eased during the year, and further investment in the Middle East.

Given the continuing tough market conditions, the Group took actions to reduce costs during the year including both lower discretionary expenditure and targeted restructuring activity. This resulted in lower overheads in the second half of the year and positions the Group well for the year ahead. Exceptional cost in the year included restructuring costs, the disposal of the Group's ERP prototype, following "go live" of the base system and the impact of a fire in the UAE. The damage from the fire is insured and expected to be recovered in full in 2025.

Statutory financial highlights
		Year to 31
	Year to 31	December
	December	2023	Total
	2024	(Restated2)	growth
	£m	£m	%
Revenue	1,317.0	1,295.1	1.7%
Gross profit	234.3	226.1	3.6%
Operating profit	24.1	41.6	(42.0%)
Profit before tax	22.3	36.5	(39.0%)
Profit after tax	17.0	28.9	(41.4%)
Basic EPS - pence	15.69p	27.98p	(43.9%)

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Adjusted financial highlights1
		Year to 31
	Year to 31	December		Growth at
	December	2023	Total	constant
	2024	(Restated2)	growth	currency
	£m	£m	%	%
Revenue	1,317.0	£1,295.1	1.7%	3.5%
Gross profit	234.3	226.1	3.6%	5.5%
Gross profit margin %	17.8%	17.5%
Adjusted operating profit	48.3	59.6	(19.0%)	(17.4%)
Adjusted operating profit margin %	3.7%	4.6%
Adjusted profit before tax	38.3	50.0	(23.5%)	(21.6%)
Adjusted profit after tax	28.2	38.5	(26.6%)
Adjusted EPS - pence	26.24p	37.46p	(30.0%)

1 Definitions of the alternative performance measures are set out in note 1 to the consolidated financial statements.

Strong operating cash generation underpinned the resilient trading performance, with adjusted cash flow conversion at 97% (2023: 114%). Adjusted net debt increased to £130.6m at 31 December 2024 (2023: £82.6m) due to further expenditure on acquisitions and deferred consideration.

Currency headwinds reduced both Group revenue and adjusted operating profit in the year by 1.8% and 1.6% respectively. The currency movements in the prior year had a negligible impact on these metrics.

Organic revenue declined by 1.4% (2023: +0.8%) as a result of weaker mainstream product demand which was partially offset by growth in technical product sales.

Adjusted EPS at 26.24p in 2024 (2023: 37.46p) was impacted by both the change in adjusted operating profit and the equity issue in June 2023.

The Group's operating segments are the UK and Ireland, EMEA, Asia Pacific and North America. The Group is supported by a central team.

Regional highlights
		Year to 31		Growth
	Year to 31	December		at
	December	2023	Total	constant	Organic
	2024	(Restated2)	growth	currency	growth
	£m	£m	%	%	%
Revenue
UK & Ireland	476.4	478.3	(0.4%)	(0.3%)	(3.1%)
EMEA	569.9	588.1	(3.1%)	(0.6%)	(2.7%)
Asia Pacific	45.9	48.0	(4.3%)	(1.3%)	(1.3%)
North America	224.8	180.7	24.4%	28.1%	7.0%
Total global	1,317.0	1,295.1	1.7%	3.5%	(1.4%)
Gross profit margin
UK & Ireland	18.0%	18.7%	(0.7)ppts
EMEA	16.8%	16.1%	0.7ppts
Asia Pacific	16.4%	17.4%	(1.0)ppts
North America	20.1%	18.6%	1.5ppts
Total global	17.8%	17.5%	0.3ppts
Adjusted operating profit1
UK & Ireland	19.7	27.1	(27.2%)	(27.0%)
EMEA	24.8	28.1	(11.8%)	(9.6%)
Asia Pacific	(0.8)	(0.3)	(237%)	(249%)
North America	9.3	9.5	(1.0%)	1.8%
Group costs	(4.7)	(4.8)

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