Published on July 22nd, 2020 | by The GC Team0
Midwich first-half trading “significantly” impacted by coronavirus
Specialist A/V distributor Midwich Group has said revenue for the first half of the year is expected to be around 4% below the same period last year, with a decline in underlying sales of around 22%.
In a pre-close statement for the six months ended 30 June 2020, the business said trading in much of the period was impacted significantly by the coronavirus pandemic.
Due to product mix, gross margins are also expected to be up to 2.5 percentage points lower, but actions taken to reduce operating expenditure mean the Board expects the Group to be profitable in the first half, but at a level significantly below the same period last year.
In its outlook for the second half of the year, the business said market conditions for its products and services are likely to remain significantly impacted by the development of the pandemic, but should the positive trading momentum seen in May and June continue for the rest of this year, trading performance in the second half should be better than in the first.
The distributor also said it is likely that the growth in profitability will be slowed as certain government support measures for employment, particularly in the UK, are scaled back later in 2020.
Midwich will announce its half-year results for the six months ended 30 June 2020 on 8 September 2020.