The picture at Midwich Group Plc (LON:MIDW) has improved once again after the audiovisual specialist lifted its full-year profit expectations for the second time this year.
Midwich, which supplies display screens and other AV kit to trade shows, said it had seen “encouraging growth” across the business in the second half of 2018, while almost all of its recent acquisitions are faring better than management had originally hoped.
Given the strong final six months, the AIM company expects 2018 revenues to total more than £570mln – up 20% on the prior year.
READ: Midwich raises full-year expectations
The top-line growth will filter through to the bottom line, too, with Midwich continuing to improve gross margins. Cash generation was also strong, and the conversion rate was ahead of the year before.
“As a result of this strong performance, the board now anticipates reporting adjusted profit before tax for 2018 to be slightly ahead of its previous expectations,” read a brief trading update.
Managing director Stephen Fenby added: “2018 was another year of good growth for Midwich, with strong organic performances from the Group's existing businesses and significant full-year contributions from the acquisitions made in 2017.
“Through 2019, 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.”
Final results for the year just gone will be published on 12 March.
Midwich shares floated on the junior market back in 2016 at 208p and have enjoyed a strong run since. They currently sit at 555p having edged 1% higher early Tuesday.