**Summary of Midwich Group PLCs 2025 Full Year Results:**
Midwich Group PLC, a global specialist audio-visual (AV) distributor, reported its 2025 full-year results, highlighting a return to revenue growth in the second half of the year despite challenging macroeconomic conditions. The company achieved sustained record gross margins of 17.7%, consistent with 2024.
**Financial Highlights**
**Revenue** £1,270.8 million, a slight decrease of 1.5% from 2024 (£1,289.5 million), with a return to growth in the second half.
**Gross Profit** £225.2 million, down 1.6% from £228.8 million in 2024.
**Adjusted Operating Profit** £43.6 million, a 10.7% decline from £48.9 million in 2024, with 60% generated in the second half.
**Adjusted Profit Before Tax** £30.5 million, down 22.1% from £39.1 million in 2024.
**Adjusted EPS** 22.37p, a 17.0% decrease from 26.96p in 2024.
**Adjusted Cash Flow Conversion** 123%, up from 97% in 2024, reflecting improved working capital management.
**Adjusted Net Debt to Adjusted EBITDA Ratio:** 2.17x, slightly up from 2.0x in 2024 but down from 2.5x in H1 2025.
**Operational Highlights**
**Market Share Gains** The company gained market share with key vendors, supported by its diverse product and geographic portfolio.
**Regional Performance** Strong growth in the UK&I due to market share gains and new vendors, despite challenging conditions. Robust performance in EMEA (excluding Germany), with Germany expected to improve from 2026.
**Digital Investments** Progress in digital initiatives, including AI automation and digital platforms, expected to enhance productivity and growth from 2026.
**Dividend Policy** Proposed final dividend of 3.5p and interim dividend of 1.75p, totaling 5.25p for 2025, reflecting a revised dividend policy with a 25% payout ratio of adjusted EPS.
**Strategic Focus**
**Efficiency and Market Positioning** Focused on driving efficiencies and strengthening market positioning in 2025.
**Digital Strategy** Approved a new digital strategy emphasizing agility, AI, and digital solutions to deliver new customer solutions and differentiate from competitors.
**ERP System** Decided to pause the rollout of a global ERP system, prioritizing bespoke digital tools for quicker benefits at lower cost and risk.
**M&A and Organic Growth** Continued focus on organic growth and strategic acquisitions to expand capabilities and geographic reach.
**Outlook**
**2026 Expectations** The Board anticipates a return to profit growth in 2026, supported by actions taken in 2025 and the companys strong market position.
**Long-Term Growth** The global Pro AV market is expected to grow faster than GDP, and Midwich is well-positioned to benefit from this trend, with less than 4% market share in its target addressable market.
**Leadership Changes**
**CFO Transition** Adam Councell appointed as Group CFO, succeeding Stephen Lamb, who left in 2026.
**Board Changes** Mike Ashley retired from the Board in May 2026, with plans to appoint at least one additional independent Non-executive Director.
**Sustainability and Corporate Governance:**
**Sustainability Progress** Enhanced environmental initiatives, including renewable energy investments and science-based carbon targets.
**Diversity and Inclusion** Commitment to diversity in future Director and senior leader appointments.
**Community Engagement** Continued support for community initiatives, with the Gift of AV program raising £325,000 over five years.
**Conclusion**
Midwich Group PLC demonstrated resilience in 2025, navigating challenging conditions while positioning itself for future growth through strategic investments, operational efficiencies, and a focus on digital transformation. The company remains optimistic about its long-term prospects in the growing Pro AV market.