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Midwich Group PLC on Tuesday reported a drop in annual profit, citing subdued demand and pricing pressure in its mainstream product categories, but said it expects a higher weighting of earnings in the second half of 2025. The Norfolk, England-based company, which distributes specialist audiovisual technology to the trade market said pretax profit for 2024 fell 39% to £22.3 million from £36.5 million in 2023, despite revenue rising 1.7% to £1.32 billion from £1.30 billion. The company attributed the decline to weaker demand in the education and corporate sectors, alongside ‘significant price erosion’ in some mainstream product lines due to excess supply from manufacturers. Gross margin improved slightly to 18%, supported by a focus on higher-margin product areas. Adjusted operating profit fell 19% to £48.3 million from £59.6 million, reflecting cost pressures and the impact of pricing declines. The company declared a final dividend of 7.5 pence per share, bringing the total payout for the year to 13.0p, down from 16.5p in 2023. Looking ahead, Midwich said it anticipates stronger performance in the second half of 2025, with cost-saving measures and continued diversification into technical product categories helping to offset challenges in mainstream markets. Midwich said: ‘In the short term, continued price deflation in mainstream product areas is expected to cause challenges to the growth of the business. In the meantime, the group continues to develop new revenue sources, and ensure we operate as efficiently as possible. Our expected trading performance for the 2025 full year remains unchanged, with a higher weighting anticipated for the second half of the year.’ Shares in Midwich Group were up 4.0% at 236.00 pence in London on Tuesday afternoon. Copyright 2025 Alliance News Ltd. All Rights reserved.
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