AIM flotation is not the end of our expansion, says Midwich boss as half-year profits rise

Stephen Fenby, Managing Director of Midwich in Diss.

Stephen Fenby, Managing Director of Midwich in Diss. - Credit: Eastern Daily Press © 2016

Flotation on the AIM market will give audio-visual distributor Midwich the firepower to continue its global growth strategy, according to its managing director.

Stephen Fenby said the company was already eyeing up new territories for expansion following last week's acquisition of two smaller firms in the UK and New Zealand, with a strong focus on European growth.

Midwich, a member of the EDP/EADT Top 100 list of Norfolk and Suffolk's biggest companies, already has a strong presence in France, Germany and the UK, but is now looking at the potential in other markets including the Netherlands, Poland, Spain, Italy, Switzerland and Scandinavia.

It came as the Diss-based supplier announced its interim results for the six months to June 30, 2016, which showed revenue rose by 12%, from £141.3m to 158.4m. Adjusted profit before tax rose 23% from £6.1m to £7.6m.

The company said the flotation in May had 'substantially strengthened' its financial position, with net debt falling from £29.8m at the end of December 2015 to £13.9m in June, but that Brexit had made a 'minimal impact'.

Midwich last week announced the acquisition of broadcast specialists Holdan Limited, based near Manchester, but yesterday corrected the maximum consideration fee from the £7.9m originally quoted to £7.1m. It also acquired the smaller New Zealand company Wired, which specialises in high-definition distribution for domestic and commercial markets.

'We believe in the company and want to continue growing it,' said Mr Fenby. 'We've been pleased with the funding we've received and that it can help us to continue our growth strategy. We have got our eye on a number of new territories that look promising to us,'

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Mr Fenby said he thought the company had handled the IPO well, and that the step had boosted its 'credibility' while making the statement it intended to stay as an independent company.

A distribution agreement with whiteboard vendor SMART in June was progressing well, said Mr Fenby.

Employees who had been with Midwich for at least a year were given shares in the company 'to share in its future growth', he added.

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