Announcement • May 28
Midwich Group plc Announces Board Changes Midwich Group PLC announced that Peter Malpas had been appointed as an independent Non-Executive Director with effect from June 1, 2026, replacing Mike Ashley who stepped down from the Board on May 12, 2026. Upon his appointment, Peter Malpas became a member of the Group's Board, Audit, Nominations, Remuneration and Sustainability Committees. Peter Malpas, aged 58, has held a range of senior leadership roles at IMO Precision Controls Ltd, Brammer Group (now Rubix) and RS Group plc, and is currently the President of EMEA at RS Group plc. Peter Malpas has deep experience working in distribution businesses, in particular across EMEA, and will further strengthen the Board's skillset thanks to his valuable blend of engineering, sales, commercial strategy and operational management experience. Peter Malpas holds or has held the following directorships/partnerships in the past five years: Current Directorships or Partnerships: RS Components Limited. New Risk • May 15
New major risk - Revenue and earnings growth Earnings have declined by 2.4% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 2.4% per year over the past 5 years. Minor Risks High level of debt (79% net debt to equity). Paying a dividend despite being loss-making. Share price has been volatile over the past 3 months (8.4% average weekly change). Upcoming Dividend • May 14
Upcoming dividend of UK£0.035 per share Eligible shareholders must have bought the stock before 21 May 2026. Payment date: 03 July 2026. The company is not currently making a profit but it is cash flow positive. Trailing yield: 3.7%. Lower than top quartile of British dividend payers (5.8%). Higher than average of industry peers (0.8%). Announcement • May 14
Midwich Group plc Approves Final Dividend for the Year Ended December 31, 2025 Midwich Group plc at its Annual General Meeting held on May 12, 2026, approved to declare a final dividend for the financial year ended 31 December 2025 of 3.5 pence per ordinary share. Announcement • Apr 10
Midwich Group plc, Annual General Meeting, May 12, 2026 Midwich Group plc, Annual General Meeting, May 12, 2026. Location: the office of midwich group plc, vinces road, diss, norfolk, ip22 4yt, United Kingdom New Risk • Mar 23
New major risk - Financial position The company's interest payments are not well covered by earnings. Net interest cover: 1.8x This is considered a major risk. If the company is unable to fund interest repayments on its debt through profits, it may be forced into reducing its debt burden through selling assets, undertaking a potentially costly capital raising or even into bankruptcy in the worst case scenario. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (1.8x net interest cover). Earnings have declined by 2.4% per year over the past 5 years. Minor Risks Paying a dividend despite being loss-making. Share price has been volatile over the past 3 months (7.7% average weekly change). New Risk • Mar 20
New major risk - Revenue and earnings growth Earnings have declined by 2.4% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 2.4% per year over the past 5 years. Minor Risks High level of debt (92% net debt to equity). Paying a dividend despite being loss-making. Share price has been volatile over the past 3 months (7.7% average weekly change). Declared Dividend • Mar 19
Final dividend reduced to UK£0.035 Dividend of UK£0.035 is 53% lower than last year. Ex-date: 21st May 2026 Payment date: 3rd July 2026 Dividend yield will be 3.3%, which is higher than the industry average of 1.6%. Sustainability & Growth Dividend is being paid despite the company being loss-making over the last 12 months. However, the dividend is well covered by cash flows (21% cash payout ratio). The dividend has increased by an average of 12% per year over the past 10 years. However, payments have been volatile during that time. Reported Earnings • Mar 18
Full year 2025 earnings: EPS and revenues miss analyst expectations Full year 2025 results: UK£0.22 loss per share (down from UK£0.16 profit in FY 2024). Revenue: UK£1.29b (down 1.9% from FY 2024). Net loss: UK£22.6m (down 241% from profit in FY 2024). Revenue missed analyst estimates by 1.1%. Earnings per share (EPS) were also behind analyst expectations. Revenue is forecast to grow 2.6% p.a. on average during the next 3 years, compared to a 8.1% growth forecast for the Electronic industry in the United Kingdom. Over the last 3 years on average, earnings per share has fallen by 60% per year but the company’s share price has only fallen by 31% per year, which means it has not declined as severely as earnings. Announcement • Mar 18
Midwich Group plc Recommends Final Dividend for the Year Ended December 31, 2025, Payable on 3 July 2026 The board of Midwich Group plc recommended a final dividend of 3.5 pence per share for the Year Ended December 31, 2025, which, if approved by shareholders at the AGM, will be paid on 3 July 2026 to shareholders on the register on 22 May 2026. The last day to elect for dividend reinvestment ("DRIP") is 12 June 2026. New Risk • Mar 17
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 1.6% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (1.7x net interest cover). Earnings are forecast to decline by an average of 1.6% per year for the foreseeable future. Minor Risks Dividend is not well covered by earnings (137% payout ratio). Share price has been volatile over the past 3 months (7.7% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.5% net profit margin). New Risk • Mar 04
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of British stocks, typically moving 7.2% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (1.7x net interest cover). Minor Risks Dividend is not well covered by earnings (137% payout ratio). Share price has been volatile over the past 3 months (7.2% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.5% net profit margin). Valuation Update With 7 Day Price Move • Mar 03
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to UK£1.85, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 21x in the Electronic industry in the United Kingdom. Total loss to shareholders of 57% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at UK£3.39 per share. Recent Insider Transactions Derivative • Oct 08
Group Finance Director exercised options and sold UK£86k worth of stock On the 6th of October, Stephen Lamb exercised 91.05k options at around UK£0.01, then sold 46k of the shares acquired at an average of UK£1.89 per share and kept the remainder. Since December 2024, Stephen's direct individual holding has increased from 159.61k shares to 204.57k. Company insiders have collectively bought UK£324k more than they sold, via options and on-market transactions, in the last 12 months. Reported Earnings • Sep 11
First half 2025 earnings released: UK£0.024 loss per share (vs UK£0.065 profit in 1H 2024) First half 2025 results: UK£0.024 loss per share (down from UK£0.065 profit in 1H 2024). Revenue: UK£620.3m (down 4.3% from 1H 2024). Net loss: UK£2.49m (down 138% from profit in 1H 2024). Revenue is forecast to grow 3.1% p.a. on average during the next 3 years, compared to a 5.7% growth forecast for the Electronic industry in the United Kingdom. Over the last 3 years on average, earnings per share has fallen by 12% per year but the company’s share price has fallen by 29% per year, which means it is performing significantly worse than earnings. New Risk • Sep 10
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 19% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (2.4x net interest cover). Earnings are forecast to decline by an average of 19% per year for the foreseeable future. Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Profit margins are more than 30% lower than last year (1.2% net profit margin). Valuation Update With 7 Day Price Move • Jul 25
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to UK£2.40, the stock trades at a forward P/E ratio of 16x. Average forward P/E is 20x in the Electronic industry in the United Kingdom. Total loss to shareholders of 48% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at UK£4.20 per share. Major Estimate Revision • Jul 22
Consensus EPS estimates fall by 17% The consensus outlook for fiscal year 2025 has been updated. 2025 EPS estimate fell from UK£0.181 to UK£0.151 per share. Revenue forecast steady at UK£1.31b. Net income forecast to shrink 3.9% next year vs 36% growth forecast for Electronic industry in the United Kingdom . Consensus price target of UK£3.29 unchanged from last update. Share price rose 5.4% to UK£2.16 over the past week. Upcoming Dividend • May 15
Upcoming dividend of UK£0.075 per share Eligible shareholders must have bought the stock before 22 May 2025. Payment date: 04 July 2025. Payout ratio is on the higher end at 83%, however this is supported by cash flows. Trailing yield: 6.2%. Within top quartile of British dividend payers (5.8%). Higher than average of industry peers (1.5%). Major Estimate Revision • May 14
Consensus EPS estimates fall by 13% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from UK£1.35b to UK£1.31b. EPS estimate also fell from UK£0.208 per share to UK£0.181 per share. Net income forecast to grow 32% next year vs 24% growth forecast for Electronic industry in the United Kingdom. Consensus price target down from UK£4.62 to UK£3.29. Share price rose 3.4% to UK£2.12 over the past week. Price Target Changed • May 13
Price target decreased by 19% to UK£3.29 Down from UK£4.08, the current price target is an average from 2 analysts. New target price is 54% above last closing price of UK£2.14. Stock is down 46% over the past year. The company is forecast to post earnings per share of UK£0.18 for next year compared to UK£0.16 last year. Announcement • Apr 08
Midwich Group plc, Annual General Meeting, May 13, 2025 Midwich Group plc, Annual General Meeting, May 13, 2025. Location: the offices of the company, vinces road, norfolk, ip22 4yt, diss United Kingdom Declared Dividend • Mar 20
Final dividend reduced to UK£0.075 Dividend of UK£0.075 is 32% lower than last year. Ex-date: 22nd May 2025 Payment date: 4th July 2025 Dividend yield will be 5.9%, which is higher than the industry average of 1.6%. Sustainability & Growth Dividend is covered by both earnings (83% earnings payout ratio) and cash flows (65% cash payout ratio). The dividend has increased by an average of 17% per year over the past 9 years. However, payments have been volatile during that time. EPS is expected to grow by 9.9% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Mar 20
Midwich Group plc Recommends Final Dividend for the Year Ended December 31, 2024, Payable on 4 July 2025 The board of Midwich Group plc recommended a final dividend of 7.5 pence per share for the year ended December 31, 2024 which, together with the interim dividend of 5.5 pence per share, gives a total dividend for 2024 of 13.0 pence per share (2023: 16.5 pence per share). If approved by shareholders at the AGM, the final dividend will be paid on 4 July 2025 to shareholders on the register on 23 May 2025. The last day to elect for dividend reinvestment ("DRIP") is 13 June 2025. Reported Earnings • Mar 18
Full year 2024 earnings: EPS misses analyst expectations Full year 2024 results: EPS: UK£0.16 (down from UK£0.28 in FY 2023). Revenue: UK£1.32b (up 2.2% from FY 2023). Net income: UK£16.0m (down 40% from FY 2023). Profit margin: 1.2% (down from 2.1% in FY 2023). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 12%. Revenue is forecast to grow 3.9% p.a. on average during the next 3 years, compared to a 5.6% growth forecast for the Electronic industry in the United Kingdom. Over the last 3 years on average, earnings per share has increased by 11% per year but the company’s share price has fallen by 27% per year, which means it is significantly lagging earnings. Buy Or Sell Opportunity • Feb 17
Now 22% undervalued after recent price drop Over the last 90 days, the stock has fallen 7.4% to UK£2.61. The fair value is estimated to be UK£3.35, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 17% over the last 3 years. Earnings per share has grown by 35%. Revenue is forecast to decline by 0.2% in a year. Earnings are forecast to decline by 10.0% in the next year. Buy Or Sell Opportunity • Jan 20
Now 21% undervalued Over the last 90 days, the stock has risen 6.8% to UK£2.81. The fair value is estimated to be UK£3.58, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 17% over the last 3 years. Earnings per share has grown by 35%. Revenue is forecast to decline by 0.2% in a year. Earnings are forecast to decline by 10.0% in the next year. Announcement • Jan 20
Midwich Group plc to Report Fiscal Year 2024 Results on Mar 18, 2025 Midwich Group plc announced that they will report fiscal year 2024 results on Mar 18, 2025 New Risk • Nov 03
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of British stocks, typically moving 6.7% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 5.6% per year for the foreseeable future. Minor Risks High level of debt (69% net debt to equity). Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (6.7% average weekly change). Price Target Changed • Oct 27
Price target decreased by 20% to UK£4.81 Down from UK£6.04, the current price target is an average from 3 analysts. New target price is 80% above last closing price of UK£2.68. Stock is down 29% over the past year. The company is forecast to post earnings per share of UK£0.19 for next year compared to UK£0.28 last year. New Risk • Oct 25
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 5.6% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 5.6% per year for the foreseeable future. Minor Risks High level of debt (69% net debt to equity). Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Recent Insider Transactions • Oct 23
Group MD & Director recently bought UK£410k worth of stock On the 21st of October, Stephen Fenby bought around 150k shares on-market at roughly UK£2.73 per share. This transaction amounted to less than 1% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Stephen has been a buyer over the last 12 months, purchasing a net total of UK£598k worth in shares. Announcement • Oct 22
Midwich Group plc Revises Financial Guidance for the Year Ending 31 December 2024 Midwich Group plc revised financial guidance for the year ending 31 December 2024. The company now expect current market conditions to persist for at least the rest of the year. Given the challenging AV market backdrop, the Board now expects full year Group revenue to be marginally ahead of the prior year. The previously announced overhead reduction programme is also well progressed. However, whilst these overhead reductions will support increased operating profit margins in the second half of the year onwards. Valuation Update With 7 Day Price Move • Oct 21
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to UK£2.65, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 14x in the Electronic industry in the United Kingdom. Total loss to shareholders of 58% over the past three years. Price Target Changed • Oct 07
Price target increased by 8.0% to UK£6.04 Up from UK£5.60, the current price target is an average from 3 analysts. New target price is 91% above last closing price of UK£3.16. Stock is down 21% over the past year. The company is forecast to post earnings per share of UK£0.24 for next year compared to UK£0.28 last year. Reported Earnings • Sep 09
First half 2024 earnings released: EPS: UK£0.065 (vs UK£0.12 in 1H 2023) First half 2024 results: EPS: UK£0.065 (down from UK£0.12 in 1H 2023). Revenue: UK£646.1m (up 5.8% from 1H 2023). Net income: UK£6.62m (down 40% from 1H 2023). Profit margin: 1.0% (down from 1.8% in 1H 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 2.8% p.a. on average during the next 3 years, compared to a 5.8% growth forecast for the Electronic industry in the United Kingdom. Over the last 3 years on average, earnings per share has increased by 35% per year but the company’s share price has fallen by 20% per year, which means it is significantly lagging earnings. Declared Dividend • Sep 05
First half dividend of UK£0.055 announced Dividend of UK£0.055 is the same as last year. Ex-date: 12th September 2024 Payment date: 18th October 2024 Dividend yield will be 5.2%, which is higher than the industry average of 1.6%. Sustainability & Growth Dividend is covered by both earnings (75% earnings payout ratio) and cash flows (36% cash payout ratio). The dividend has increased by an average of 23% per year over the past 8 years. However, payments have been volatile during that time. EPS is expected to grow by 23% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Sep 03
Midwich Group plc Declares Interim Dividend, Payable on 18 October 2024 Midwich Group plc to declare an interim dividend of 5.5 pence per share (H1 2023: 5.5 pence). This will be paid on 18 October 2024 to those shareholders on the Company's register as at 13 September 2024. The last day to elect for dividend reinvestment is 27 September 2024. Announcement • Jul 18
Midwich Group plc to Report First Half, 2024 Results on Sep 03, 2024 Midwich Group plc announced that they will report first half, 2024 results on Sep 03, 2024 Major Estimate Revision • May 15
Consensus EPS estimates fall by 12% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from UK£1.41b to UK£1.38b. EPS estimate also fell from UK£0.283 per share to UK£0.249 per share. Net income forecast to shrink 7.3% next year vs 13% growth forecast for Electronic industry in the United Kingdom . Consensus price target down from UK£6.26 to UK£5.78. Share price fell 8.2% to UK£3.93 over the past week. New Risk • May 15
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 0.04% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 0.04% per year for the foreseeable future. Minor Risks High level of debt (41% net debt to equity). Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Shareholders have been diluted in the past year (15% increase in shares outstanding). Announcement • May 15
Midwich Group plc Approves to Declare A Final Dividend for the Financial Year Ended 31 December 2023 Midwich Group plc at the AGM held on May 14, 2024, approved to declare a final dividend for the financial year ended 31 December 2023 of 11.0 pence per ordinary share. Price Target Changed • May 14
Price target decreased by 7.1% to UK£6.28 Down from UK£6.76, the current price target is an average from 4 analysts. New target price is 60% above last closing price of UK£3.93. Stock is down 20% over the past year. The company is forecast to post earnings per share of UK£0.25 for next year compared to UK£0.28 last year. Upcoming Dividend • May 02
Upcoming dividend of UK£0.11 per share Eligible shareholders must have bought the stock before 09 May 2024. Payment date: 14 June 2024. Payout ratio is a comfortable 59% and this is well supported by cash flows. Trailing yield: 3.9%. Lower than top quartile of British dividend payers (5.8%). Higher than average of industry peers (1.5%). Announcement • Apr 12
Midwich Group plc, Annual General Meeting, May 14, 2024 Midwich Group plc, Annual General Meeting, May 14, 2024, at 09:00 Coordinated Universal Time. Location: Midwich Group plc, Vinces Road, Diss Norfolk United Kingdom Announcement • Mar 23
Midwich Group plc Recommends Final Dividend, Payable on June 14, 2024 Midwich Group plc recommending a final dividend of 11.0 pence per share which, together with the interim dividend of 5.5 pence per share, gives a total dividend for 2023 of 16.5 pence per share (2022: 15.0 pence). If approved by shareholders at the AGM, the final dividend will be paid on 14 June 2024 to shareholders on the register on 10 May 2024. Declared Dividend • Mar 21
Final dividend increased to UK£0.11 Dividend of UK£0.11 is 4.8% higher than last year. Ex-date: 9th May 2024 Payment date: 14th June 2024 Dividend yield will be 4.0%, which is higher than the industry average of 1.6%. Sustainability & Growth Dividend is covered by both earnings (59% earnings payout ratio) and cash flows (35% cash payout ratio). The dividend has increased by an average of 23% per year over the past 8 years. However, payments have been volatile during that time. EPS is expected to grow by 13% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Mar 20
Midwich Group plc Appoints Alison Seekings as an Independent Non-Executive Director Midwich Group plc announced it has appointed Alison Seekings as an independent Non-Executive Director with effect from 19 March 2024. Upon her appointment, Alison will be a member of the Group's Board, Audit, Nominations, Remuneration and Sustainability Committees. With over 35 years of experience, Alison has held senior audit positions at Deloitte and Grant Thornton, where she was recently Audit Partner. Alison has a wealth of experience working with AIM quoted companies, particularly in the technology sector, and will further strengthen the Board's skillset due to her extensive technical accounting, financial governance, and board-level advisory experience. Reported Earnings • Mar 20
Full year 2023 earnings: EPS exceeds analyst expectations Full year 2023 results: EPS: UK£0.28 (up from UK£0.17 in FY 2022). Revenue: UK£1.29b (up 7.1% from FY 2022). Net income: UK£26.8m (up 75% from FY 2022). Profit margin: 2.1% (up from 1.3% in FY 2022). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 5.9%. Revenue is forecast to grow 7.2% p.a. on average during the next 3 years, compared to a 4.9% growth forecast for the Electronic industry in the United Kingdom. Over the last 3 years on average, earnings per share has increased by 64% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. Announcement • Jan 17
Midwich Group plc to Report Fiscal Year 2023 Results on Mar 19, 2024 Midwich Group plc announced that they will report fiscal year 2023 results on Mar 19, 2024 Recent Insider Transactions • Oct 31
Group MD & Director recently bought UK£188k worth of stock On the 27th of October, Stephen Fenby bought around 50k shares on-market at roughly UK£3.76 per share. This transaction amounted to less than 1% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Stephen has been a buyer over the last 12 months, purchasing a net total of UK£387k worth in shares. Recent Insider Transactions • Oct 13
Group MD & Director recently bought UK£100k worth of stock On the 10th of October, Stephen Fenby bought around 25k shares on-market at roughly UK£4.00 per share. This transaction amounted to less than 1% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. This was Stephen's only on-market trade for the last 12 months. Upcoming Dividend • Sep 14
Upcoming dividend of UK£0.055 per share at 3.6% yield Eligible shareholders must have bought the stock before 21 September 2023. Payment date: 27 October 2023. Payout ratio is a comfortable 74% and this is well supported by cash flows. Trailing yield: 3.6%. Lower than top quartile of British dividend payers (6.3%). Higher than average of industry peers (1.6%). Reported Earnings • Sep 06
First half 2023 earnings released: EPS: UK£0.12 (vs UK£0.079 in 1H 2022) First half 2023 results: EPS: UK£0.12 (up from UK£0.079 in 1H 2022). Revenue: UK£610.4m (up 7.4% from 1H 2022). Net income: UK£11.0m (up 57% from 1H 2022). Profit margin: 1.8% (up from 1.2% in 1H 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 6.9% p.a. on average during the next 3 years, compared to a 4.7% growth forecast for the Electronic industry in the United Kingdom. Over the last 3 years on average, earnings per share has increased by 68% per year but the company’s share price has only increased by 1% per year, which means it is significantly lagging earnings growth. Announcement • Sep 05
Midwich Group plc Declares an Interim Dividend, Will Be Paid on 27Th October 2023 Midwich Group plc declare an interim dividend of 5.5 pence per share (H1 2022: 4.5 pence), an increase of 22%. This will be paid on 27th October 2023 to those shareholders on the Company's register as at 22nd September 2023. The last day to elect for dividend reinvestment ("DRIP") is 6thOctober 2023. Announcement • Aug 11
Midwich Group plc (AIM:MIDW) acquired Pulse Cinemas Limited. Midwich Group plc (AIM:MIDW) acquired Pulse Cinemas Limited on August 9, 2023. The existing leadership team of managing director Mike Beatty and chief operating officer Kapes Patel will continue to manage the team post-acquisition. Midwich Group plc (AIM:MIDW) completed the acquisition of Pulse Cinemas Limited on August 9, 2023. Announcement • Aug 05
Midwich Group plc to Report First Half, 2023 Results on Sep 05, 2023 Midwich Group plc announced that they will report first half, 2023 results on Sep 05, 2023 Announcement • Jul 18
Midwich Group plc Provides Earnings Guidance for the Full Year of 2023 Midwich Group plc provided earnings guidance for the full year of 2023. With order books remaining healthy, unless general economic conditions deteriorate significantly, the Board expects the momentum seen in first half 2023 to continue throughout the remainder of the year. As a result, the Board continues to expect trading performance for the full year to be in line with its previous expectations before the positive contribution from the three acquisitions completed in July. New Risk • Jun 09
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 14% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Minor Risks High level of debt (68% net debt to equity). Dividend is not well covered by cash flows (100% cash payout ratio). Shareholders have been diluted in the past year (14% increase in shares outstanding). Announcement • Jun 09
Midwich Group plc has completed a Follow-on Equity Offering in the amount of £51.250487 million. Midwich Group plc has completed a Follow-on Equity Offering in the amount of £51.250487 million.
Security Name: Ordinary Shares
Security Type: Common Stock
Securities Offered: 11,764,705
Price\Range: £4.25
Security Name: Ordinary Shares
Security Type: Common Stock
Securities Offered: 294,233
Price\Range: £4.25
Transaction Features: Subsequent Direct Listing Announcement • Jun 08
Midwich Group plc (AIM:MIDW) acquired SF Marketing Inc. for CAD 44.3 million. Midwich Group plc (AIM:MIDW) acquired SF Marketing Inc. for CAD 44.3 million on June 7, 2023. As for consideration, Midwich acquired entire issued share capital of SFM for a maximum consideration of up to CAD 44.3 million on a cash free, debt free basis, comprising an initial consideration of CAD39.3 million paid on completion, a CAD 2 million deferred consideration paid on the first twelve month anniversary and a further supplementary payment of up to CAD 3 million, paid on the first twelve month anniversary, subject to growth in operating profit as described below. The Consideration is payable in cash with the initial consideration financed from the Midwich Group plc existing bank facilities. The Acquisition is not conditional on the Placing. SFM's management team will remain with the business as part of the enlarged group following completion.Midwich Group plc (AIM:MIDW) completed the acquisition of SF Marketing Inc. on June 7, 2023. Announcement • May 10
Midwich Group plc Declares Final Dividend for the Financial Year Ended 31 December 2022 Midwich Group plc at the Annual General Meeting held on May 9, 2022, approved to declare a final dividend for the financial year ended 31 December 2022 of 10.5 pence per ordinary share. Upcoming Dividend • Apr 27
Upcoming dividend of UK£0.10 per share at 3.2% yield Eligible shareholders must have bought the stock before 04 May 2023. Payment date: 16 June 2023. Payout ratio is on the higher end at 87%, however this is supported by cash flows. Trailing yield: 3.2%. Lower than top quartile of British dividend payers (5.8%). Higher than average of industry peers (1.5%). Reported Earnings • Mar 15
Full year 2022 earnings: EPS misses analyst expectations Full year 2022 results: EPS: UK£0.17 (up from UK£0.14 in FY 2021). Revenue: UK£1.20b (up 41% from FY 2021). Net income: UK£15.3m (up 23% from FY 2021). Profit margin: 1.3% (down from 1.5% in FY 2021). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 34%. Revenue is forecast to grow 4.8% p.a. on average during the next 3 years, compared to a 5.6% growth forecast for the Electronic industry in the United Kingdom. Over the last 3 years on average, earnings per share has increased by 24% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Announcement • Jan 18
Midwich Group plc Provides Trading Guidance for the Year Ended 31 December 2022 Midwich Group plc provides trading guidance for the year ended 31 December 2022. The Board now expects to report record revenue for 2022 of £1.2 billion, representing growth of approximately 40% over the prior year (39% at constant currency), with organic growth of over 20%. Board Change • Nov 16
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 5 experienced directors. No highly experienced directors. Group Finance Director & Director Stephen Lamb was the last director to join the board, commencing their role in 2018. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Announcement • Sep 16
Midwich Group plc to Report Fiscal Year 2022 Final Results on Mar 14, 2023 Midwich Group plc announced that they will report fiscal year 2022 final results on Mar 14, 2023 Reported Earnings • Sep 07
First half 2022 earnings released: EPS: UK£0.079 (vs UK£0.048 in 1H 2021) First half 2022 results: EPS: UK£0.079 (up from UK£0.048 in 1H 2021). Revenue: UK£568.6m (up 46% from 1H 2021). Net income: UK£7.00m (up 66% from 1H 2021). Profit margin: 1.2% (up from 1.1% in 1H 2021). The increase in margin was driven by higher revenue. Revenue is forecast to grow 6.5% p.a. on average during the next 3 years, compared to a 7.2% growth forecast for the Electronic industry in the United Kingdom. Over the last 3 years on average, earnings per share has fallen by 16% per year but the company’s share price has increased by 4% per year, which means it is well ahead of earnings. Announcement • Sep 07
Midwich Group plc Announces Interim Dividend for the Six Months Ended 30 June 2022, Payable on 26 October 2022 The Board of Midwich Group plc declared an interim dividend of 4.5 pence per share (H1 2021: 3.3 pence), an increase of 36% for the six months ended 30 June 2022. This will be paid on 26 October 2022 to those shareholders on the Company's register as at 16 September 2022. The last day to elect for dividend reinvestment ("DRIP") is 3 October 2022. The Board believes in a progressive dividend policy to reflect the Group's strong earnings and cash flow while maintaining an appropriate level of dividend cover to allow for investment in longer-term growth. The Board anticipates that future dividends will continue to be covered in the range of 2-2.5 times by adjusted earnings per share. Announcement • Jul 19
Midwich Group plc Provides Guidance for the Full Year of 2022 Midwich Group plc provided guidance for the full year of 2022. With order books remaining very strong, unless general economic conditions deteriorate significantly, the Board expects the momentum seen in first half 2022 to continue throughout the remainder of the year. As a result, the Board now expects trading performance for the full year will be slightly ahead of its previous expectations. Announcement • Jul 06
Midwich Group plc to Report First Half, 2022 Results on Sep 06, 2022 Midwich Group plc announced that they will report first half, 2022 results on Sep 06, 2022 Announcement • May 12
Midwich Group plc Declares Final Dividend for the Financial Year Ended 31 December 2021 Midwich Group plc declared final dividend for the financial year ended 31 December 2021 of 7.8 pence per ordinary share. Upcoming Dividend • Apr 28
Upcoming dividend of UK£0.078 per share Eligible shareholders must have bought the stock before 05 May 2022. Payment date: 17 June 2022. Payout ratio is on the higher end at 79%, however this is supported by cash flows. Trailing yield: 2.5%. Lower than top quartile of British dividend payers (4.7%). Higher than average of industry peers (1.4%). Board Change • Apr 27
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 5 experienced directors. No highly experienced directors. Group Finance Director, Company Secretary & Director Stephen Lamb was the last director to join the board, commencing their role in 2018. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Announcement • Apr 07
Midwich Group plc, Annual General Meeting, May 09, 2022 Midwich Group plc, Annual General Meeting, May 09, 2022, at 09:00 Coordinated Universal Time. Location: at the office of Midwich Group plc, Vinces Road, Diss Norfolk United Kingdom Valuation Update With 7 Day Price Move • Mar 15
Investor sentiment improved over the past week After last week's 16% share price gain to UK£5.80, the stock trades at a forward P/E ratio of 26x. Average forward P/E is 22x in the Electronic industry in the United Kingdom. Total returns to shareholders of 5.7% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at UK£9.27 per share. 