The company has reported that despite drops in the entertainment, events and hospitality markets due to lockdowns, business continued to grow in Q2 2020. As a result, Group revenue for H1 2021 has been predicted to increase by 29% to £390m since H1 2020.
In the statement, Midwich comments: “Albeit this does represent a weak comparator due to the onset of the pandemic in Q2. Organic growth was approximately 25%.”
Despite this, the company’s overall growth margin was approximately 15.2% which it says is 0.7% higher than for 2020 in total.
Reflecting on this period, the company says: “The Group has seen improvements in product mix and in rebates received, although further growth margin improvements should be deliverable once lockdowns are eased further and the live events, entertainment and hospitality markets return more fully.”
If lockdown restrictions within the Group’s key markets continue to ease, the Board expects the momentum seen in H1 2021 to continue throughout the remainder of the year”
For Midwich, the EMEA showed the most improvement in terms of trading and achieved revenues of up to 65% year-on-year. The company cites the acquisition of eLink and NMK as contributing strongly to these results.
For the UK and Ireland, performance improved “significantly” as lockdowns were lifted. This resulted in an increase in revenue of 25% which Midwich says was “helped particularly by the contribution from new vendors launched in late 2020 and H1 2021” such as Barco Clickshare and BirdDog.
As the live events, entertainment and hospitality markets are now back open in the UK and Ireland, it is predicted that performance in these markets will continue to improve.
In North America, trading improved steadily in H1 which the company says was partly due to the release of provisions such as aged stock sold in the period.
Midwich adds: “If lockdown restrictions within the Group’s key markets continue to ease, the Board expects the momentum seen in H1 2021 to continue throughout the remainder of the year.”
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