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magazineMidwich has gained nearly 50% in seven months
Midwich (MIDW) 550p
Gain to date: 47%
Original entry point: Buy at 374p, 24 August 2017
Audio visual equipment supplier Midwich (MIDW:AIM) rewarded shareholders with a 36.2% hike in its dividend for its 2017 year, paying 13.8p per share. Its 2017 results were pleasing across the board, with pre-tax profit up 56.2% to £18.9m on revenue that increased 27.5% to £471.9m.
Managing director Stephen Fenby tells Shares that the company’s acquisition policy is to grow capabilities and expand geographies.
The company last year bought Earpro, a professional audio systems distributer based in Spain and Portugal as well as a majority stake in Gebroeders van Domburg, a Netherlands-based mainstream audio visual solutions provider.
Midwich now has offerings across Europe as well as businesses in New Zealand and Australia which trade under the Midwich name.
Its acquisitions attributed 6.8% of the 27.5% revenue growth in 2017 although it is also enjoying strong organic growth as well. The company estimates that over the last five years, one third of its profit growth has been derived from acquiring businesses.
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Investors acting on the information in these articles do so at their own risk and AJ Bell Media and its staff do not accept liability for losses suffered by investors as a result of their investment decisions.
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