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Midwich sees FY adjusted profit 'comfortably ahead' of its expectations
AIM-listed Midwich said on Wednesday that it expects to report a jump in revenue for 2017 following good trading momentum in the second half, while adjusted pre-tax profit is seen "comfortably ahead" of the group's previous expectations.
In an update for the year to the end of December, the company said trading momentum continued in the second half of the year, with encouraging growth across all of its divisions. In addition, all the acquisitions made last year performed either in line or ahead of its expectations.
As a result, it now expects to report revenues of around £470m, up 28% on the previous year, with foreign exchange moves accounting for around 3% of this growth. Midwich said it has delivered this revenue growth while continuing to improve gross margins in line with the board's expectations, with cash generation to the year-end also strong.
Consequently, it now expects to report adjusted pre-tax profit for 2017 ahead of its previous forecast
Managing director Stephen Fenby said: "2017 was another year of solid growth for Midwich, with strong performances from the group's existing businesses and significant contributions from the acquisitions made through the year. We have been pleased with the integration of all the businesses we acquired and they are all trading in line or ahead of management's expectations.
"Through 2018, management will continue to explore cross-selling opportunities in the current portfolio while also evaluating the healthy pipeline of potential acquisitions both in the group's existing markets and in new territories."
At 1025 GMT, the shares were up 7% to 596.25p.