By Joe Hoppe
Midwich Group PLC said on Tuesday it expects a significant increase in adjusted pre-tax profit and revenue in the first half, and raised its full-year expectations provided economic conditions remain relatively stable.
The UK-based media distributor said it expects first-half adjusted pre-tax profit – which excludes exceptional and other one-off items – to be more than £19 million (22 $.7m) from £13.0m the previous year.
Turnover is expected to increase by more than 45% to exceed £560 million. Organic growth is around 27%, with strong performances from Nimans and DVS, both acquired at the start of the first half.
Midwich said its overall gross margin was around 15%, in line with the first half of 2021, and it saw a partial return to live events and in-person business in a number of markets. If these conditions continue, he expects higher gross margins in the second half.
The company said its order book was very strong and unless economic conditions deteriorate significantly, it expects the momentum of the first half to continue throughout the year.
As a result, it now expects full-year performance to exceed its previous expectations, although it did not provide a figure.
Shares at 0741 GMT rose 29.0 pence, or 5.1%, to 594.0 pence.
Write to Joe Hoppe at [email protected]