Midwich's UK revenue soars on the back of Nimans acquisition

UK revenues for Midwich after its acquistion of Nimans this year, a trading update by the distributor claims.

Revenues in the UK and Ireland grew by 85 per cent year on year during the six months until 30 June, buoyed by its acquisitions of Nimans and DVS.

Midwich acquired Nimans for £27.5m in February this year. The distributor turned over £114.3m in revenues and pre tax profits of £5.8m for calendar 2020.

The group's organic revenue grew 27 per cent year on year, the statement reads.

The overall gross margin was stated to be approximately 15 per cent, which Midwich says is largely equivalent to H1 2021. The group's board expects stronger gross margins to be in sight for H2 as more live and face-to-face events return in a number of the markets Midwich services.

Midwich states its adjusted profit before tax is anticipated to be over £19 million, far higher than H1 2021's £13 million, which is speculated to be around a 50 per cent increase according to the trading statement.

Midwich highlights increased performance in the UK and Ireland in H1 2022 over H1 2021, with revenues increasing by 85 per cent, again, noting the acquisitions of Nimans and DVS as major contributors towards the organic growth in the area.

North America experienced a bigger increase in trading, with a more than 90 per cent revenue increase while in EMEA revenue grew by 17 per cent in the last six months.

Net debt however grew by about £55m, due to increases in working capital and M&A as normal seasonality returned along with major growths in the business

The overall outlook at the end of the trading statement shows Midwich retains strong order books, and expects this trend to continue unless the situation economically degenerates rapidly.

The Midwich board is anticipating that the momentum of this first half of the financial year will continue into the second half of 2022, with increased expectations on trading performance overall.