Slides
Page 1
midwichgroupplc.com 2026 Interim Results September 2026
Page 2
Summary and trading update 01/
Page 3
Maximising growth opportunities Organic revenue growth Improved net debt position Continued execution of strategy Foundations for future growth Revenue £640m (+3.2%) Gross margin 17.4% (2025 17.7%) Adj operating profit £17.0m (+2.4%) Adj PBT £10.6m (+10.3%) Leverage 2.4x – down from 2.5x at H1 2025, expected to reduce to c2.0x by the end of FY26 Interim dividend 1.9p (2025 1.75p) Market share growth, particularly in UK, Iberia and US Strong growth in key areas of audio, lighting and unified communications Vendor relationship expansion Continued progress in digital capabilities Development of new services Proactive cost mitigation continued Momentum continues Commercial excellence programme Management team reorganised and energised for the future Selective investment in growth areas Outlook for the full year remains unchanged 2026 Interim Results 3
Page 4
Current landscape General market conditions — Markets generally stable — Middle East conflict show no sign of abating — Government investment remains suppressed. Signs that some interest rates may rise — Increased AI adoption in vendor solutions Our business — Order books generally stable — Market shares generally growing — Expansion of the Group’s UC business continues — Ongoing selective cost base realignment in 2026 — Investment in AI and system solutions starting to have positive impact on productivity and revenues — Middle East conflict will have an impact if prolonged The AV market remains dynamic, with long term growth expected 2026 Interim Results 4
Page 5
Strategic growth drivers 2026 Interim Results 5 Specialisation Building leadership positions where specialist knowledge, technical capability and relationships create genuine competitive advantage Intelligence Mining our vast market intelligence for the benefit of our customer, vendors and ourselves Recurring relationships Long term relationships bring more defensible revenues and opportunities for growth Recurring revenue streams increase predictability Global Scale Extensive global reach brings significant benefits to our partners Our scale brings commercial advantages to the group
Page 6
Financial review02/
Page 7
Income statement — H1 2026 revenue of £640.3m, continued growth trajectory seen in H2 of the prior year despite disruption in the Middle East. — Gross margin broadly in line with the prior year reflecting changes in revenue mix. — Overheads largely flat with cost inflation offsetting rationalisation programmes. — Adj. operating profit up 2.4% with UK, USA and Iberia compensating for Middle East, Germany and Canada. — Digital investment programme on track and delivering improvements. — Net finance expense reduced slightly year on year. — Adjusted EPS up 13.7% to 7.86p reflecting increase in profitability and a minor reduction in effective tax rate. — Welcome return to statutory profitability with profit before tax of £4.3m (H1 2025 £3.0m loss). — Interim dividend of 1.9p per share (payable November 2026) up 8.6%. £m H1 2026 H1 2025 Actual change Constant currency change Revenue 640.3 620.3 3.2% 2.4% Gross profit Margin 111.1 17.4% 109.6 17.7% 1.4% 0.7% EBITDA (Adj.) 22.7 22.1 2.9% Adjusted operating profit Margin 17.0 2.7% 16.6 2.7% 2.4% 1.9% Net finance expense/other (6.4) (7.0) Adjusted PBT 10.6 9.6 10.3% 9.6% Adjusted Taxation (2.5) (2.5) Adjusted PAT 8.1 7.1 14.2% Adjusted EPS (p) 7.86 6.91 13.7% DPS (p) 1.9 1.75 8.6% 2026 Interim Results 7
Page 8
UKIANZ (46% Group revenue) FINANCIAL Market position: • Clear market leader • Growth through new technologies, vendors and expanded share from competition Key H1 2026 performance drivers • Market share gains from competition • UK offsetting more modest growth in other countries • Margin movement reflects change in product mix • Portfolio expansion ongoing Key H2 2026 assumptions • Continued market share gains despite flat market • Full year cost saving impact • Product price inflation • Expansion of recent brand launches £m H1 2026 H1 2025 Change Change CC Revenue 294.7 266.7 10.5% 9.9% GP% 17.8% 18.1% (0.3)pp Adj. EBIT 11.9 11.2 6.2% 5.8% 2026 Interim Results 8
Page 9
EMESEA (37% Group revenue) FINANCIAL Market position: • Regional strength in live events/ entertainment markets • Strong market positions in Germany, France and Benelux. Leading specialist distribution businesses in Southern Europe and Middle East Key H1 2026 performance drivers • Revenue reduction driven by disruption in Middle East • Iberia displayed double digit growth • Modest growth in other European countries • Margin improved slightly • All insurance claims now agreed from Dubai fire Key H2 2026 assumptions • Continued weakness in German Market • Middle East business remains subdued • Further market share gains • Product price inflation • Expansion into Central and Eastern Europe £m H1 2026 H1 2025 Change Change CC Revenue 237.2 250.8 (5.4)% (7.9)% GP% 17.3% 16.8% 0.5pp Adj. EBIT 6.6 6.1 9.1% 7.2% 2026 Interim Results 9
Page 10
North America (17% Group revenue) FINANCIAL £m H1 2026 H1 2025 Change Change CC Revenue 108.4 102.8 5.5% 8.4% GP% 16.4% 18.4% (2.0)pp Adj. EBIT 2.4 2.2 6.6% 9.7% Key H2 2026 assumptions • New NA management team now settled and driving the regional performance • New vendors in Canada starting to drive revenue growth • Full year cost saving impact • Further market share gains • Product price inflationKey H1 2026 performance drivers • Double digit growth in the US business • Canada transitioning to new vendors following key loss in 2025 • Margin reflects mix changes following loss of Canadian vendor • Overhead cost reductions in Canada now effective Market position • Canada – strong player in specialist market • US – strong player in UC market, but small share of the large overall AV US market 2026 Interim Results 10
Page 11
Balance sheet and net debt — Year on year reduction in non-current assets reflects the impact of exited businesses and ERP impairment. — Seasonal increase in working capital since the full year in consistent with previous periods. — Working capital increased 3% on H1 2025, slightly lower than revenue growth of 3.2%. — Net debt (ex leases) fell year on year by £10m to £138.1m. Leverage was 2.4x^ and is expected to move to c2x by end of FY26. — Other liabilities reduced as deferred consideration balances have been largely settled. Estimated payments for deferred consideration now only: — £5.0m due <12 months — £1.7m due >12 months — Multibank RCF facility of £175m (plus £75m accordion) with >£100m of other facilities in place – mainly for working capital. — Cash conversion guidance remains 70-80%. ^ Leverage is calculated per the terms of the Group RCF agreement 2026 Interim Results 11 £m 30 June 2026 30 June 2025 31 December 2025 Non-current assets 174.0 216.3 180.6 Net working capital 164.2 159.4 143.9 Cash 54.6 39.3 54.0 Other net liabilities due within one year (48.6) (46.2) (40.0) Capital employed (Total assets less current liabilities) 344.2 368.8 338.3 Long-term liabilities (183.5) (192.4) (178.2) Net assets 160.7 176.4 160.1 Net debt (reported) 158.7 168.7 147.1 Adj net debt (ex leases) 138.1 148.2 126.0
Page 12
Capital allocation priorities Share buybacks look increasingly attr active based on curr ent valuations Disciplined approach to investment, returns and capital efficiency 2026 Interim Results 12 1. Organic investment in working capital, infrastructure and our teams to develop and grow the core business 2. Organic investment in new technologies or brands to support above market growth 3. Acquisitions to add new product capabilities and/or new geographies 4. Board considering potential for share buyback in addition to current dividend policy
Page 13
Growth drivers and outlook 03/
Page 14
Focus areas for 2026 and beyond 2026 Interim Results 14 — Consistently high customer service across all businesses; — Accelerated development of core technical product areas; — Use AI and system development to enhance efficiency and growth; — Take advantage of market disruption; — Accelerate growth of new market segments; — Expand customer breadth and depth; — Leadership development/ enhancement; — Focus on higher growth markets: e.g North America, South-East Asia and Middle East; — Selective M&A – technology infills and geographical expansion. PBT growth, EBIT margin expansion, quality of earnings, shareholder returns
Page 15
Outlook Outlook for the full year remains unchanged • The Board continues to assume general macroeconomic conditions will remain challenging for 2026; • We have taken action and are well placed for the future, particularly when market conditions improve; • Group focus is on driving revenue and gross profit opportunities, whilst ensuring operations are carried out as effectively as possible. 2026 Interim Results 15
Page 16
Appendices04/ 2025 Final Results
Page 17
Our investment case Midwich has a market leading position — We are the leading global Pro AV value-added distributor — In a $332bn global market that’s expected to grow by 3.9% per annum — Our current revenues represents only 3-4% of our target addressable market A clear strategy with solid foundations — Our strategy has remained consistent since our IPO and our business model is robust — Our long-term customer and vendor relationships provide significant barriers to entry — We have the strongest team in the industry, supported by our experience centres and trade shows 17 2025 Final Results We are the leading global Pro AV value-added distributor Our investment case A proven track record and strong financial position — Long track record of consistent and resilient revenue and profit growth — Product portfolio management skills combined with a high degree of repeat business — Strong cash generation and funding position — Successful M&A track record with strong returns A values-based culture — Experienced and motivated management team — High levels of team engagement and share ownership — Long-standing support for sustainability 2026 Interim Results 17
Page 18
43 Offices & Showrooms 50+ Countries sold into 29 Showroom/demo facilities 22,000+ Accounts served in 2025 1,700+ Staff members £1.3B Turnover 2025 Group at a glance Our expertise and specialist focus connect technology and people around the globe. What makes us different is our knowledgeable teams and their passion for taking technology further. Our global network of local experts connects technology brands with the market, enabling our customers to deliver experiences beyond expectations. 2026 Interim Results 18
Page 19
Why Midwich Group? Training and events Vertical market focus Nurturing long-term relationships Credit/business services Working together Award-winning distribution Personal approach 100% Trade only Market and web services Long-term relationships Events Cross-border projects Efficient logistics Marketing and sales support Market focus Scale and flexibility Market intelligence and trends 19 WHY OUR CUSTOMERS CHOOSE US WHY OUR VENDORS CHOOSE US 2026 Interim Results
Page 20
The Pro AV value chain MANUFACTURER. From global leaders to innovative start -ups, our manufacturer partners design, create and produce technology equipment. Value that AV manufacturers get from Midwich: • Market intelligence and strategic and tactical input into planning • Market access through highly experienced and effective AV sales, marketing and technical teams • Ability to reach broad, profiled AV customer base • Industry-leading events and experience centres enable greater interaction with customers and end users • Efficient logistics and specialist product support • Global reach gives ability to support multinational projects • Midwich’s scale means fewer points of contact, improving operating efficiency for manufacturers A MIDWICH GROUP BUSINESS Our business provides the services that the professional market needs to deliver exceptional projects, including product supply, training, system design support or product demonstration, which help the manufacturer sell more of its products to a wider market. Value that Midwich gets from AV manufacturers: • Access to high quality products to distribute to its customers, often on an exclusive or number one basis • Ability to influence product development and early access to new technology • AV product training, informing users of the value proposition PROFESSIONAL MARKET Our customers are professional technology providers, a diverse range across system integrators, live events, production companies, specialist resellers and global e- tailers. These professionals are responsible for designing and installing cutting-edge AV solutions. END USERS End users are typically businesses covering the full spectrum of industries, including corporate, live events venues, government, education, retail, leisure and healthcare, plus a smaller number of personal consumers. Value that end users get from the trade market: • Advice and assistance on AV products and the solution that they require to meet their needs • Integration and installation of the AV products to ensure that all the products work well together as one solution • Ongoing monitoring and support of AV installations Value that Midwich gets from the trade market: • Customers for AV products • Opportunities to support multinational end users’ projects across geographies • Market knowledge and end user feedback Value that the trade market gets from Midwich: • Proactive help to sell and deliver successful projects • Unrivalled depth of product and technical expertise • Widest product range and an ability to offer complete solutions • Efficient logistics • Demonstration and training facilities • Credit team knowledge and support • Technical requirements and targeted marketing support for different vertical markets • Strong relationship management skills • 100% trade focus builds high customer trust Value that the trade market gets from end users: • Customers for AV products • Feedback on their needs from the AV market VALUE EXCHANGE VALUE EXCHANGE VALUE EXCHANGE VALUE EXCHANGE 2026 Interim Results 20
Page 21
New technology trends AI (AI-led functionality driving upgrade demand) Artificial intelligence is increasingly embedded within AV endpoints, shifting products from passive hardware to intelligent systems that actively enhance user outcomes. In collaboration environments, AI-enabled cameras, microphones and control platforms are improving meeting quality through automation, advanced audio processing and more accurate transcription, which is supporting increased demand for premium audio capture solutions. At the same time, organisations adopting third-party AI platforms require higher device memory and processing capability, which will shorten traditional technology refresh cycles. Similar dynamics are emerging in retail media, where AI-generated content adapts in real time to audience and environmental signals, increasing the requirement for smarter edge processing. The result is a market trend toward higher specification hardware and faster replacement activity driven by AI-led innovation. Cloud management and AI-driven managed services Cloud-based monitoring and management platforms are redefining how AV infrastructure is deployed and maintained, moving the market towards continuous, subscription-based lifecycle services. Proactive monitoring, remote diagnostics, and automated optimisation are becoming core expectations as estates scale and become more software defined. In response, Midwich Group has developed Midwich Cloud to facilitate recurring billing for these emerging platforms and invested in NetSpeek, an AI-driven control and management platform now market-ready for conference environments and positioned to expand into full estate management. Mixed Reality & Spatial Experiences Mixed reality installations are creating a new AV application category focused on immersive, spatially interactive environments. Museums, attractions, and leisure venues are increasingly adopting spaces where digital content responds to movement, touch, or location, transforming AV from passive display technology into an interactive experience layer. Although early in adoption, this trend is moving into fixed install environments and represents an emerging growth opportunity for existing and new Midwich technologies driven by experience led design. 2026 Interim Results 21
Page 22
End user market mix Source: Midwich estimates — Corporate market remains our largest segment, representing 40% of the business. — Further drop in share of education in 2025. Expected to improve a little in 2026. — Higher spend in hospitality and events expected to continue. — Stronger year for non education government spending in 2025/26 – but still not a significant part of the business. — Other market sector shares relatively stable. 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 40.00% 45.00% Corporate Education Hospitality Travel Healthcare Broadcast/ media Government Venues - events Residential Retail End User Markets - Estimated Share 2020 2021 2022 2023 2024 2025 2026 2026 Interim Results 22
Page 23
Q1 PERFORMANCE Proven acquisition capability As you can see , the Group oper ates in major geogr aphic markets with local specialists covering a multitude of technology categories. 30 acquisitions since IPO 30 2017 2018 2019 2020 2021 2023 Holdan UK Wired New Zealand Earpro Spain and Portugal Sound Technology UK Van Domburg Partners Benelux New Media Germany, Austria and Switzerland Perfect Sound France Blonde Robot Asia Pacific region Mobile Pro Switzerland Prase Italy AV Partner Norway EES Spain Starin Marketing USA Vantage Systems Australia NMK Group UAE and Qatar eLink Germany Intro 2020 UK DVS (Cooper Projects Limited) UK Nimans UK 2016 SF Marketing Inc Canada Tool Farm 76 Media Promotions USA HHB Pulse Cinemas UK Video Digital Spain prodyTel Germany 2022 The Farm USA DHL UK UK Fire UK DCS UK 2024 2026 Interim Results 23
Page 24
Modelling considerations Acquisitions Payments related to past M&A expected to be £5m in H2 2026 and c£1.7m in 2027. Interest (adjusted) Expected to be c.£12.5m in 2026 before any further M&A or rate changes. Tax Adjusted tax rate estimated to return to 26% to 27.5% over next three years. FX No material year on year impact assumed in 2026. Capex Full year to be c£10m including digital tools and UK rental fleet assets. Dividend policy Long-term progressive dividend policy. Revised payout ratio of c.25% of Adj EPS (ie c.4x covered). Paid 1/3 interim (Oct); 2/3rd final (July). 2026 Interim Results 24
Page 25
Exceptional items £m H1 2026 H1 2025 FY 2025 ERP write off - - 27.0 Impairment of exited business assets - - 4.4 Restructuring costs 1.6 3.1 8.7 Impact of UAE fire (2.1) - (1.8) Total (0.5) 3.1 38.3 — H1 2026 exceptional costs were a net credit to the income statement of £0.5m. — No further write offs from ERP system in H1 2026. — Restructuring costs were incurred across the Group but included overhead reductions in the Group team, Canadian and German businesses. — All insurance claims from the UAE warehouse fire in December 24 have now been agreed. 2026 Interim Results 25
Page 26
Reconciliation to statutory profits £m H1 2026 H1 2025 Statutory operating profit 10.3 4.7 Remove losses from exited businesses (0.2) - Acquisition related expenses - 0.2 Exceptional costs (0.5) 3.1 Share based payments and employer taxes 1.3 1.5 Amortisation of acquired intangibles 6.1 7.1 Adjusted operating profit 17.0 16.6 £m H1 2026 H1 2025 Statutory profit/(loss) after tax 3.6 (2.5) Total of operating profit adjustments above 6.7 11.9 Borrowing derivative losses and Foreign exchange (gains)/losses (0.8) 1.0 Losses and (gains) in relation to deferred consideration and put options 0.4 (0.2) Tax impact of adjustments (1.8) (3.1) Adjusted profit after tax 8.1 7.1 2026 Interim Results 26
Page 27
09 Stephen Fenby Group CEO Adam Councell Group CFO Hilary Wright Non-Executive Director Alison Seekings Non-Executive Director Our experienced Board. 27 Peter Malpas Non-Executive Director Kevin Quinn Non-Executive Chairman
Page 28
09 Group management team. Mark Lowe Chief Commercial Officer and CEO - UK&I Phil Bligh CFO – UK&I 28 Alex Kemanes Regional Managing Director – MESEA Ghyslain Berger CEO - North America Jakob Kvist-Sorensen Managing Director - Continental Europe Stephen Fenby Group CEO Adam Councell Group CFO Joe Thompson Chief Transformation Officer Stuart Mizon Group Commercial Director
Page 29
midwichgroupplc.com +44 (0)20 5555 9999 info@midwichgroup.com Midwich Group Vinces Road Diss, Norfolk IP22 4YT