Midwich Group (AIM:MIDW), the global specialist audio visual distributor to the trade market, said adjusted profit before tax for the six months to 30 June is expected to be around £10.6 million, up approximately 10% on the £9.6 million reported in the first half of 2025.
Revenue for the period is expected to reach approximately £640 million, up around 3% year-on-year, or 2% on a constant currency basis.
Underlying gross margins slipped slightly, reflecting lower Middle East revenue and a shift in UK sales mix.
Excluding the Middle East and exited businesses, adjusted profit before tax grew 20% in the period, underlining the strength of the wider group against a region hit by the ongoing conflict, which had been an important profit contributor in 2025.
Adjusted net debt rose by approximately £12 million from the prior year end to £138 million, against £148 million a year earlier, reflecting normal working capital seasonality. Leverage stood at 2.3 times adjusted EBITDA, down from 2.5 times at the same point last year, and is expected to fall to around 2.0 times by year-end.
"Although general market conditions remain challenging, we have been proactive in rolling out initiatives to drive improved future performance," said Group Chief Executive Stephen Fenby.
The Middle East contribution was more weighted to the second half in 2025, leaving a range of outcomes for the full year depending on the conflict's duration.
The Board expects full-year results to be broadly in line with 2025 if current momentum in the rest of the business continues.
Midwich will report half-year results on 22 September.
News Intelligence what this means for the company
Midwich lifted adjusted profit 10% to £10.6m in H1 2026 on 3% revenue growth, but the headline masks a sharp regional split: excluding the Middle East, profit grew 20%, while the conflict-hit region dragged on margins and created full-year uncertainty. The board expects 2026 results broadly in line with 2025 only if momentum outside the Middle East holds—a conditional outlook that reflects how much the region's volatility now dominates the narrative.
The core business is performing—20% profit growth ex-Middle East and leverage falling to 2.3x from 2.5x shows operational traction. But the Middle East's outsized prior contribution and the conflict's unpredictable duration mean full-year guidance is hostage to a geopolitical variable the company cannot control, limiting visibility and capping upside until that exposure stabilizes or shrinks.
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