Midwich reports strategic progress, warns of Middle East impact

(Sharecast News) - Midwich Group said trading in the year to date had shown further strategic progress, although the prolonged conflict in the Middle East had materially affected activity in the region. The AIM-traded specialist audio visual distributor said ahead of its annual general meeting that it had continued to take market share, develop new revenue streams, drive operational efficiencies and position the business to benefit as market conditions improve.

Chairman Andrew Herbert said challenging conditions seen in recent periods had started to ease in some regions, with the UK and Southern Europe showing particular improvement.

Excluding the Middle East business, Midwich said the group performed in line with board expectations in the first quarter.

Strong trading in the UK and Southern Europe offset continued slow demand in Germany and a slower-than-expected recovery in Canada following the loss of a key vendor in 2025.

The company said it was continuing to monitor the impact of the Middle East conflict, which had kept activity in the region significantly below its normal run rate.

"We remain focused on supporting customers via our high-quality team on the ground and look forward to the business returning to normal activity levels when conditions allow," Herbert said.

Midwich said it continued to see significant opportunities to grow faster than the wider market and to take further action to improve efficiency during the current year.

Herbert added that the group expected, "in due course and when appropriate", to expand its capabilities and geographic coverage through further targeted acquisitions, and remained optimistic about its long-term prospects.

Midwich said it intended to issue a trading update for the six months ending 30 June on 21 July.

At 1307 BST, shares in Midwich Group were down 11.22% at 146.14p.

Reporting by Josh White for Sharecast.com.

See latest RNS on Investegate