Midwich Group Plc · LSE:MIDW
Midwich — H1 2025 Earnings Presentation
35 slides from Midwich's earnings presentation, September 2025
Slide 1: 2025 Interim Results
2025 Interim Results September 2025 midwichgroupplc.com
Slide 2: Financial and strategic highlights
01/ Financial and strategic highlights Stephen Fenby, Group Managing Director 2
Slide 3: 2025: Robust performance despite ongoing challenging market conditions
2025 Interim Results 3 2025: Robust performance despite ongoing challenging market conditions • Strong performance in strategic product categories, with robust revenue and gross margins and market share gains, reflecting the Group’s strategy to focus on higher margin product areas. • Most businesses
Slide 4: H1 metrics
2025 Interim Results 4 H1 metrics 2025 H1 revenue and gross margin 2025 H1 operating profit and cash generation Global revenue £620m Adj. operating profit £16.6m Total growth (cc) -2.7% Adj. operating profit (cc) -23.4% Organic growth -3.5% Adj. operating margin 2.7% (down 0.7%) Technical sales -1%
Slide 5: Current landscape
2025 Interim Results 5 Current landscape General Market Conditions • Ongoing challenging economic conditions continue to impact our markets. • Return to growth in the UK&I due to market share gains and new vendors, despite challenging market conditions continuing. Demand in mainland Germany and Fran
Slide 6: Our purpose and key differentiators
2025 Interim Results 6 Our purpose and key differentiators We exist to help our customers win and then deliver successful projects, and our manufacturers to reach a broad market Deep vendor relationships Broad, long, close, symbiotic, unique. We are exclusive or #1 distributor in most relationships
Slide 7: Market data
2025 Interim Results 7 Market data The technology distribution market (IT and AV products) was Large format display sales, which includes interactive, relatively flat in 2024 and is expected to show some growth were 22% of revenue in H1 2025. This category experienced significant price erosion in Eu
Slide 8: Financial review
02/ Financial review Stephen Lamb, Group Finance Director 8
Slide 9: Income statement
2025 Interim Results • H1 revenue of £620m, declined by 2.7% at CC. Income statement Organic sales down by 3.5% in a challenging market. • Robust gross margin at 17.7% broadly in line with H1 prior year. Constant Actual • Overhead reduction of c£2m on H1 2024 £m currency H1 2025 H1 2024^ change refl
Slide 10: Balance sheet and net debt
2025 Interim Results Balance sheet and net debt • Strong working capital management, with working capital as a percentage of last twelve months’ revenue below previous levels. This Balance Sheet (30 June) resulted in an exceptional H1 adj. cashflow 2025 2024 conversion at 60% of adj. EBITDA (H1 2024
Slide 11: UK & Ireland (40% Group revenue)
2025 Interim Results UK & Ireland (40% GROUP REVENUE) • A return to growth in UK&I due to market share gains and new vendors. Revenue grew by 5.0%, of which 2.8% was organic, with the balance attributable to the small acquisitions completed in 2024. • Whilst the market backdrop in the UK continues t
Slide 12: EMEA (40% Group revenue)
2025 Interim Results EMEA (40% GROUP REVENUE) • EMEA revenue (-7.3% CC) was impacted by significant softness in the German corporate and education end 19 Offices user markets. Economic stimulus programme in Germany expected to boost demand from 2026. • Outside of Germany (1/3rd of EMEA revenue), rev
Slide 13: North America (17% Group revenue)
2025 Interim Results North America (17% GROUP REVENUE) • North American revenues declined by 8.5% compared to H1 2024, resulting from disruption associated with tariff uncertainty and the planned transition to new technical vendors in Canada. 4 Offices • Gross margins in the region at 18.4% (H1 2024
Slide 14: APAC (3% Group revenue)
2025 Interim Results APAC (3% GROUP REVENUE) • Revenue of £22.3m was 1.7% ahead of H1 2024, with new brands added in the last two years continuing to build momentum in the region. 6 Offices • The Asia Pacific gross profit margin of 15.4% (H1 2024: 16.4%) reflected a higher mainstream product mix. •
Slide 15: Capital allocation
2025 Interim Results Capital allocation • The Board remains disciplined in its approach to capital allocation. • Recalibration of the dividend policy to c.25% payout ratio/4x dividend cover of adjusted EPS. • Increases capacity to direct capital towards growth opportunities, both organic and acquisi
Slide 16: M&A overview and investment case
03/ M&A overview and investment case Stephen Fenby, Group Managing Director 16
Slide 17: M&A strategy
Key M&A criteria: 2025 Interim Results 17 M&A strategy • • Strong reputation Technical skills • Vendor and customer portfolio M&A has been part of our strategy since 2006. We acquire businesses to either access new geographical markets, or to add • Culture and ethos new technical product areas into
Slide 18: Our investment case
2025 Interim Results 18 Our investment case Midwich has a market leading position A proven track record and strong financial • We are the leading global Pro AV value-added position distributor • Long track record of consistent and resilient • In a $332bn global market that’s expected to grow by reve
Slide 19: Summary and outlook
2025 Interim Results 19 Summary and outlook Summary • Challenging conditions in 2024 have continued into 2025; • The Group continues to perform well against competition and has maintained or gained market share in key markets; • Long term strategy to increase focus on specialist product categories h
Slide 20: Appendices
04/ Appendices 20
Slide 21: Group at a glance
2025 Interim Results 23 43 29 Showroom/demo Offices & Showrooms £1.3B Turnover 2024 facilities 1,800+ Staff members Group at 24,000+ a glance Accounts served in 2024 Our expertise and specialist focus connect technology and people around the globe. What makes us different is our knowledgeable teams
Slide 22: Why Midwich Group?
2025 Interim Results 24 Why Midwich Group? WHY OUR CUSTOMERS CHOOSE US WHY OUR VENDORS CHOOSE US Nurturing Training and Vertical Credit/business Working Market focus Efficient Scale and Marketing and long-term events market focus services together logistics flexibility sales support relationships 10
Slide 23: The Pro AV value chain
2025 Interim Results 29 The Pro AV value chain MANUFACTURER. A MIDWICH GROUP BUSINESS PROFESSIONAL MARKET END USERS From global leaders to innovative start-ups, Our business provides the services that the Our customers are professional End users are typically businesses covering our manufacturer par
Slide 24: Specialisation across the Group
2025 Interim Results 30 Mainstream Technical LED Audio UC Broadcast Lighting Security Dry Hire Video Specialisation UK & I across the Netherlands Northern Belgium Europe Group Norway Germany DACH/ Eastern Switzerland Europe Austria As you can see, the Group operates in major France geographic market
Slide 25: End user market mix
• Our expanded UC portfolio and continued roll out across the Group has increased importance of End user market mix corporate market, although this market remains relatively soft. • Education spend dropped significantly – more in schools than higher education. UK&I and Germany particularly impacted.
Slide 26: Strong track record
2025 Interim Results 32 Strong track record Strong revenue growth Increased technical product mix Revenue (£m) by product type 5-year CAGR: CAGR 31% Total +14% Organic +5% CAGR 1% Gross margin development EPS (p) development Operating cash generation 5-year operating cash conversion 92% of adj. EBIT
Slide 27: Proven acquisition capability
30 33 PERFORMANCE 30 acquisitions Proven acquisition capability since IPO As you can see, the Group operates in major geographic markets with local specialists covering a multitude of technology categories. 2016 2017 2018 2019 2020 2021 2022 2023 2024 Holdan Earpro New Media Mobile Pro Starin Market
Slide 28: Key drivers for long-term growth
2025 Interim Results 34 Key Drivers for long-term growth Organic revenue Enhanced by M&A Gross margin Manage our cost progression base • Structural market • Fragmented market, growth (AVIXA c5-6% with many • Continue to grow • Operational leverage per annum) opportunities technical mix from scale •
Slide 29: Group trading summary H1 2025
2025 Interim Results 41 Group trading summary H1 2025 6 months to 6 months to Constant 30 June 2025 30 June 2024 Growth % currency £m £m growth % Revenue^ 620.3 648.5 (4.3%) (2.7%) (-3.5% organic) Gross Profit^ 109.6 116.7 (6.1%) (4.4%) Gross profit margin^ 17.7% 18.0% Adjusted operating profit1 16.
Slide 30: Regional summary
2025 Interim Results 42 Regional summary Region Revenue Revenue^ CC % Org % GP %^ GP %^ GP % H1 2025 £m H1 2024 £m H1 2025 H1 2024 Change UK&I 246.5 234.9 5.0% 2.8% 18.4% 17.6% 0.8ppts EMEA 248.7 273.3 (7.3%) (7.3%) 16.8% 17.2% -0.4ppts APAC 22.3 23.5 1.7% 1.7% 15.4% 16.4% -1.0ppts North America 102
Slide 31: Movement in net debt
2025 Interim Results 43 Movement in net debt £22.1m £13.3m (£6.2m) 60% (£8.8m) (£2.9m) (£3.1m) (£3.3m) (£8.1m) (£5.9m) £0.9m £15.3m (£47.2m)
Slide 32: Modelling considerations
2025 Interim Results 44 Modelling considerations Acquisitions Payments related to past M&A expected to be £2.8m in H2 and c£5m in 2026. ERP Strategic review of the ERP investment and benefits case expected to conclude in H2 2025. Investment carrying value c£30m Interest (adjusted) Expected to be c.£
Slide 33: Reconciliation to statutory profits
2025 Interim Results 45 Reconciliation to statutory profits £m H1 2025 H1 2024 Statutory operating profit 4.7 12.8 Acquisition related expenses 0.2 0.3 Exceptional costs (Restructuring costs £3.1m; H1 2024 £0.5m) 3.1 0.5 Share based payments and employer taxes 1.5 2.6 Amortisation of acquired intang
Slide 34: Group Management Team
2025 Interim Results 47 Group Management Team Stephen Fenby Stephen Lamb Tom Sumner Mark Lowe Managing Director Finance Director Chief Strategy Officer Chief Commercial Officer Mathieu Payet Stuart Mizon Joe Thompson Phil Bligh Alex Kemanes Managing Director Group Commercial Director Corporate Strat
Slide 35: Midwich Group contact details
2025 Interim Results Midwich Group Vinces Road Diss, Norfolk IP22 4YT midwichgroupplc.com