Midwich Group (AIM: MIDW) today provided a trading update for the year ended December 31, 2021.
Stephen Fenby, the Group Managing Director, said “2021 was a very successful year for the Group, despite continued market challenges caused by the pandemic. Coming into the year, our ambitious goal was to return the Group’s profitability back to pre-Covid 19 levels. We achieved this, finishing the year with the highest revenues and net profit in the Group’s history. I would like to thank our team for this fantastic result. Since joining the Group in 2021, NMK, eLink and Intro 2020 have all performed well, and we look forward to working with our new colleagues at DVS, who joined the Group in early January. In 2022, the Group’s focus will be on maintaining a strong growth trajectory whilst supporting customers through ongoing widespread product shortages, exploring cross-selling opportunities in the current portfolio and also evaluating the healthy pipeline of potential acquisitions.”
The Group finished the year strongly and the Board now expects to report revenue for 2021 in excess of £850 million, representing growth of approximately 20% over the prior year (23% at constant currency). The gross margin improved in line with the Board’s expectations. Adjusted net debt at the end of the year of approximately £57 million (around 1.5 times adjusted EBITDA) was in line with Board’s expectations.
As a result of this strong performance, the Board now anticipates reporting adjusted profit before tax not less than £31.5 million for 2021, which is ahead of previous expectations.
Midwich will announce its final results for the year ended December 31, 2021 on March 8, 2022.