Midwich, a leading specialist audio visual and document solutions distributor to the trade market, today announced its maiden Preliminary Results for the year to 31 December 2016.
| Year to | |||
| £000 | 31-Dec-16 | 31-Dec-15 | % change |
| Revenue | 370,142 | 314,283 | 17.8% |
| Gross Profit | 56,461 | 46,961 | 20.2% |
| Gross profit % | 15.3% | 14.9% | |
| Operating profit | 14,487 | 12,641 | 14.6% |
| Adjusted operating profit (1) | 18,542 | 15,168 | 22.2% |
| Adjusted operating profit % | 5.0% | 4.8% | |
| Profit before tax | 12,102 | 8,558 | 41.4% |
| Adjusted profit before tax(2) | 17,912 | 14,582 | 22.8% |
| Adjusted profit before tax % | 4.8% | 4.6% | |
| Profit after tax | 8,560 | 5,812 | 47.3% |
| Adjusted profit after tax(2) | 14,365 | 11,733 | 22.4% |
| Reported EPS – pence | 10.92 | 7.14 | 52.9% |
| Adjusted EPS – pence(2) | 18.63 | 15.59 | 19.5% |
| Dividend per Share (for 8 month period) – pence | 8.62 | – | n/a |
| Net debt | 14,967 | 29,774 | |
Financial Highlights
- Revenue increased by 17.8% from £314.3m to £370.1 million (15.1% on a constant currency basis)
- Gross profit margin increased by 0.4% driven by an improving product mix
- Adjusted operating profit increased by 22.2% from £15.2m to £18.5m (19.7% on a constant currency basis)
- Adjusted profit before tax(2)grew 22.8% from £14.6m to £17.9m (20.1% on a constant currency basis)
- Conservative balance sheet with net debt of £15.0 million (76% of Adjusted EBITDA(3))
- Recommended final dividend payment of 7.09 pence per share (2015: nil) taking the total dividend payment for the 8 months from IPO to 31 December 2016 to 8.62 pence per share
Operational highlights
- Improved revenue and net profits across all territories driven by impressive growth in the audio visual business and the continued roll out of technical brands overseas
- Successfully listed on AIM in May 2016, positioning the Group well for its next stage of development and providing a strong platform for future growth
- Acquisition of a majority stake in Holdan Limited – a trade only distributor of professional video products
- Launch with significant new vendors including SMART Technologies in the UK and Ireland, and Biamp in Australia
| (1) | Adjusted operating profit has been calculated after adding back costs related to the initial public offering, acquisition costs, share based payments and amortization. |
| (2) | Adjusted profit before tax and profit after tax have been calculated after adding back costs related to the initial public offering, acquisition costs, share based payments, amortization, put and call option finance costs and loan note interest incurred prior to the IPO. |
| (3) | Adjusted EBITDA calculated as Adjusted operating profit after adding back depreciation and amortisation for the year being £19.7m (2015: £16.0m). |
Stephen Fenby, Managing Director of Midwich Group Plc, told us “2016 was a transformational year for Midwich with our successful IPO on AIM in May positioning the Group well for its next stage of development. Post-IPO, we also acquired a majority stake in Holdan Limited and the trade and assets of Wired Limited, further strengthening Midwich’s market position in the UK and Australasia respectively.
“The Group delivered strong revenue and profit growth in 2016 and I am pleased to report that trading in the first few months of 2017 has built on the good growth we saw last year giving the Board confidence in delivering a result in 2017 in line with its expectations.”
There will be a presentation for analysts at 9:30am today, March 14, 2017, at the offices of FTI Consulting, 200 Aldersgate, London, EC1A 4HD.