Midwich (MIDW)

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A specialist audio visual and document solutions distributor to the trade market.

17-Jan-2018 – 550.15p – £437.1m – PER 22.5

Trading Update For The 12 Months To End December 2017 – Expects Revenue for 2017 of approximately £470 million (growth of about 28%, movements in exchange rates account for approximately 3 per cent of this). Gross margins improved in-line with the Board’s expectations.Cash generation to the year end was also strong, finishing marginally ahead of the Board’s expectations. Board anticipates reporting adjusted PBT for 2017 comfortably ahead of its previous expectations.

Investors have doubled their money here in the past 12 months and this update does indeed sound impressive. There’s a lot to like here, I am going to put it on my Watchlist, 500p.

Subsequently revised Watchlist price, 520p.

13-Mar-2018 – 595p – £472.7m – PER 23.0

Results For The 12 Months To End December 2017 – Revenue up 27.5% from £370.1m to £471.9m (24.2% in constant currency), Adjusted PBT up 35.7% from £17.9m to £24.3m (31.9% in constant currency), Final dividend 9.65p (2016: 7.09p) taking the total annual dividend payment to 13.82p, anincrease of 36.2% on a LFL basis.

Remains on my Watchlist at 520p although wishing I had perhaps bought in already!

Subsequent note: Following further research it appears that EPS is forecast to fall in 2019E, I am now Neutral with an eye out for upgrades.

12-Mar-2019 – 575p – £456.8m – PER 18.3

Final Results For The 12 Months To End December 2018 – Revenue up 21%, PBT up 11.5% (19.7% adj.) and EPS up 8.6% (19.3% adj.). The Total Dividend is up about 10% and the board expects 2019 to be in-line with existing expectations.

Looks about fairly priced to me.

13-May-2019 – 623p – £497m – PER 19.1

AGM Statement – 1st 4 months of trading in-line.

600p or so still looks about fair value to me.

22-Jul-2019 – 560p – £445m – PER 16.7

Trading Update For The 6 Months To End June 2019 – Traded well in the first half and expects FY cash generation to be in-line with the groups long term average.

I am no more interested here today than I was yesterday.

10-Sep-2019 – 500p – £400m – PER 16

Interim Results For The 6 Months To End June 2019 – Strong H1 gives the board confidence but does not guide on FY.

Still not interested but 480p could perhaps be a bottom here.

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