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(Sharecast News) - Midwich Group said in an update on Tuesday that it expects full-year adjusted operating profit to fall materially below previous expectations, as challenging market conditions from 2024 continued into the current year.
The AIM-traded audiovisual distributor, which was holding its annual general meeting, reported a mid-single digit decline in organic revenue so far in 2025, despite gaining market share with key vendors and delivering growth in the UK and Ireland.
Revenue in the UK and Ireland had risen modestly year to date, but that was offset by weaker performance in EMEA and North America, where demand in the corporate and education sectors had softened.
Supply chain disruption and cost inflation had further pressured operating profit, although gross margins have shown a slight improvement.
The company said it was taking action to reduce overheads and capital expenditure, while investing in automation and expanding vendor relationships.
Despite the near-term outlook remaining subdued, Midwich highlighted the long-term opportunity to grow both organically and through acquisitions, noting its 1.3bn 2024 revenue represented a small share of its addressable market.
A half-year trading update was scheduled for 21 July.
At 0852 BST, shares in Midwich Group were down 3.79% at 202p.
Reporting by Josh White for Sharecast.com.
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