2024 Final Results
2024 Full Year Results
March 2025
midwichgroupplc.com
2024 Final Results
Financial and | ||
01/ | ||
strategic highlights |
Stephen Fenby,
Group Managing Director
2
2024 Final Results | 3 |
2024: Robust performance in a challenging market
- Midwich delivered record revenue and gross margins, despite continued challenging macro conditions.
- Strong performance in strategic product categories, reflecting the Group's strategy to focus on higher margin product areas.
- Oversupply in some mainstream product categories continued throughout 2024, despite expectations that this would reverse in H2.
- Cost mitigation undertaken in H2 , resulting in c.£5m of annualised savings.
- Operating cash generation ahead of expectations, with leverage at 2.0x adj EBITDA.
- Four acquisitions undertaken in 2024 now integrated.
- Total dividend of 13p reflects cover of 2 times by adjusted EPS.
- Expected trading performance for the full year remains unchanged, with a higher weighting to the second half.
2024 Final Results | 4 |
Robust performance with record gross margins
2024 revenue and gross margin
2024 operating profit and cash generation
Global revenue Total growth (cc)
Organic growth
Technical sales
Mainstream sales
Gross margin^
£1.317bn
+3.5%
-1.4%
+6.8%
-8.9%
17.8% (up 0.3%)
Adj. operating profit | £48.3m |
Adj. operating profit (cc) | -17.4% |
Adj. operating margin | 3.7% (down 0.9%) |
Operating cash conversion | 97% |
Leverage | 2.0x |
Total dividend | 13.0p (16.5p) |
^ Gross margin has been restated to recognize carriage income as revenue. This increased the gross margin in 2024 from 17.1% to 17.8% and in 2023 from 16.8% to 17.5%
2024 Final Results | 5 |
Current landscape
General Market Conditions
- Ongoing challenging economic conditions continue to impact our markets, with no current signs of general improvements;
- UK&I markets were very challenging in 2024, but have seen small improvements in early 2025. Demand in mainland Europe suppressed. Continued strength in Middle East;
- Corporate market remains weak through general economic uncertainty. Post Covid refresh cycle expected, but timing remains uncertain;
- Softness in discretionary education spend continues - particularly in Germany;
- Live events and entertainment continue to be robust.
Our Business
- Order books remain stable;
- Demand for display and volume projectors has been at best static, but with significant price erosion seen throughout 2024 as a result of oversupply. Early evidence that manufacturers may be realigning production capacity;
- Market shares generally stable or increasing;
- Cost base realignment undertaken in H2;
- Four small deals completed in 2024. No deals currently in late stages but appetite for M&A remains in the medium term.
2024 Final Results | 6 |
Our purpose and key differentiators
Why Midwich?
We exist to help our customers win and then deliver successful projects, and our manufacturers to reach a broad market
Deep vendor relationships
Broad, long, close, symbiotic, unique
We are exclusive or #1 distributor in most relationships with our top 40 vendors.
Portfolio management expertise
Products, technologies, geographies
Has driven seamless revenue growth every year since 2005, doubling of GP percentage, and PBT 38x higher
Unrivalled depth of specialist knowledge
Support customers to win and deliver great projects
Growth in technical sales of 6.8% in the year
Consistently high customer service
Responsive, knowledgeable, understanding and effective operators
Relationship with most top 50 customers for over 10 years
.
Market data
The technology distribution market (IT and AV products) as a whole was relatively flat in 2024 and is expected to show some growth overall in 2025 - with displays, software and services being key drivers:
Source: CONTEXT
"5 years since the COVID boom, 2025 should be the refresh year" - Context
The overall Pro AV market is expected to grow at 5.3% CAGR to 2029 with technical product growth exceeding mainstream.
Strong growth from China and India impacts overall trends.
2024 Final Results | 7 |
Large format display sales (23% of revenue in 2024) experienced significant price erosion in Europe in 2024. This expected to reverse - but excessive sales into distribution may slow progress:
Financial review | |
02/ |
Stephen Lamb,
Group Finance Director
8
Income statement
Actual | Constant | |||
£m | currency | |||
2024 | 2023 | change | ||
change | ||||
Revenue^ | 1,317.0 | 1,295.1 | 1.7% | 3.5% |
Gross profit | 234.3 | 226.1 | 3.6% | 5.5% |
Margin^ | 17.8% | 17.5% | ||
EBITDA (Adj.) | 59.2 | 69.5 | (15%) | (13%) |
Adjusted operating profit | 48.3 | 59.6 | (19%) | (17%) |
Margin | 3.7% | 4.6% | ||
Net finance expense | (10.0) | (9.6) | ||
Adjusted PBT | 38.3 | 50.0 | (23%) | (22%) |
Taxation | (10.1) | (11.5) | ||
Adjusted PAT | 28.2 | 38.5 | (27%) | |
Adjusted EPS (p) | 26.24 | 37.64 | (30%) | |
Full year DPS (p) | 13.0 | 16.5 | (21%) | |
2024 Final Results
- Record revenue of £1,317m, up by 3.5% at CFX. Organic sales down by 1.4% in a challenging market.
- Highest ever gross margin at 17.8%; ahead of prior year by 30bps reflecting technical mix benefit.
- Temporary reduction in adj. operating profit due to growth in overheads of £19.5m. These were impacted by M&A, inflationary pressure and further investment in the Middle East.
- Overhead reduction programme mid-year resulted in c£3m of savings in H2 2024. Exceptional items shown on slide 43
- Productivity focus in 2025 to respond to ongoing market challenges.
- Adjusted effective tax rate of 26.3% (2023: 23.1%) reflects introduction of corporation tax in UAE and mix.
- Adjusted EPS reflects profit trend and equity issue in June 2023.
- Final dividend of 7.5p per share (payable July 2025). Full year dividend of 13.0p (2x covered by Adj. EPS).
^ Restated to recognize carriage income as revenue. This increased the gross margin in 2024 from 17.1% to 17.8% and in 2023 from | 9 |
16.8% to 17.5% |
2024 Final Results | |
• Non-current assets increased due to the four | |
Balance sheet and net debt | small acquisitions completed in 2025. |
working capital as a percentage of last twelve | |
• Strong working capital management, with |
months' revenue slightly below prior year.
Balance Sheet (31 December)
£m | 2024 |
Non-current assets | 224.9 |
Net working capital (ex cash) | 155.8 |
Net working capital as % of revenue | 11.8% |
Cash | 49.2 |
Other net of liabilities due within one year | (57.3) |
Capital employed (Total assets less long-term | 372.6 |
liabilities) | |
Long-term liabilities | (183.4) |
Net assets | 189.2 |
Net debt (reported) | 153.4 |
Adj net debt (ex leases) | 130.6 |
- Increase in adjusted net debt to £130.6m largely
2023 | reflects £37.8m of acquisition related payments |
208.9 in the year. Leverage at 2.0x Adj EBITDA
154.6 (December 2023: 1.1x).
11.9% | • Other liabilities at the period end include |
56.1 estimated payments for put/call options and deferred consideration:
(83.0) | • £15.5m due <12 months |
336.6 | • £1.8m due >12 months |
(140.5) | • Multibank RCF facility of £175m (plus £75m |
196.4 accordion): >£100m of other facilities in place -
106.2 mainly working capital.
82.6 | • Cash conversion guidance remains 70-80%. |
• Consistent capital allocation model (appendix). |
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Midwich Group plc published this content on March 18, 2025, and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on March 18, 2025 at 11:03:07.413.
