Audiovisual (AV) distributor Midwich has reported a record performance in 2022, boosted by acquisitions and strong organic growth.
The group achieved 2022 revenue of £1.2 billion, a reported year-on-year increase of almost 41%. Growth in constant currencies was around 39%, and more than 20% on an organic basis, with North America soaring by 60%.
The company’s overall gross margin rate remained steady at 15.3%, while gross profit increased by 40% to £183.7 million. Adjusted operating profit was up by almost 50% to £51.1 million, and adjusted pre-tax profit by 37.5% to £45.2 million.
“We saw a steady improvement in a number of end-user markets that have been quieter since the start of the pandemic,” noted Managing Director Stephen Fenby. “The corporate market was stronger for us, with demand for our offering of unified communication and collaboration products showing the greatest improvement. The live events, hospitality and entertainment markets also improved during the year as in-person activity resumed.”
The year was marked by two key acquisitions in the UK: security products distributor DVS and AV/unified communications wholesaler Nimans. Together, these businesses added £154 million to the top line at a gross profit level that was slightly higher than the group’s average.
These transactions helped UK & Ireland revenue to leap by 72% in 2022 to £492 million. This included organic growth of more than 18%, driven by products such as audio, lighting and high-end projectors. Adjusted operating profit more than doubled from £12.7 million to £26.5 million due to strong contributions from both organic growth and the acquired companies.
The company said it has a strong future acquisition pipeline, with a number of transactions in due diligence.
“Although still early into the new financial year and mindful of the slower general economic conditions and higher interest rate environment, we remain confident that 2023 will see yet another year of growth in excess of the overall market,” concluded Fenby.