Global audiovisual (AV) wholesaler Midwich has said the expected uptick in the second half of the year has not materialised.
Three months ago, the UK-based group was hoping for a return to growth in mainstream product demand in a number of its key geographies. Now, it has said it expects current (ie, soft) market conditions to persist for the rest of the year.
“In recent weeks, while the UK market has stabilised, and performance in the North American region, as well as demand in the live events and entertainment sectors, remains strong, broader market conditions have not improved as anticipated,” Midwich wrote in a trading statement.
It added: “In particular, Germany has seen a further deterioration and there remains subdued demand for mainstream products, primarily in the education and corporate markets.”
The distributor said a previously announced cost reduction programme was “well progressed”, but would not prevent 2024 operating profit from being “significantly below” that of 2023. It also revealed it had made three “small specialist acquisitions” in the UK – primarily in the live events and fire security segments – in recent weeks for a total cash outlay of £12 million.
Midwich recently unveiled a new corporate branding that features a ‘waveform’ logo and common colour palette across all group companies.
