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1. Company Snapshot

1.a. Company Description

Midwich Group plc, together with its subsidiaries, engages in the distribution of audio visual (AV) solutions to the trade customers in the United Kingdom, Ireland, Europe, the Middle East, Africa, Asia Pacific, and North America.Its products support various AV categories, such as displays, projectors, broadcast, audio, video, and digital signage, as well as lighting and unified communications.The company also provides logistics services.


It serves professional AV integrators and IT resellers in corporate, education, retail, residential, and hospitality sectors.The company was formerly known as Jade 320 Limited and changed its name to Midwich Group Plc in April 2016.Midwich Group plc was founded in 1976 and is based in Diss, the United Kingdom.

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1.b. Last Insights on MIDW

Midwich Group's recent performance was driven by a 17% increase in share price over the last quarter, indicating a positive trend. The company's resilience in a challenging market, as highlighted in the "High Growth Tech Stocks in the UK to Watch" article, suggests its adaptability and robust growth potential. Additionally, the absence of any negative news in the recent past, such as the frosty reception faced by Donald Trump in Aberdeen, further contributes to the company's positive sentiment.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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Midwich Group First Half 2025 Earnings: UK£0.024 loss per share (vs UK£0.065 profit in 1H 2024)

Sep -15

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An Intrinsic Calculation For Midwich Group plc (LON:MIDW) Suggests It's 47% Undervalued

Aug -07

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The past three years for Midwich Group (LON:MIDW) investors has not been profitable

Jul -21

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Donald Trump faces frosty reception on Aberdeen golf trip

Jul -20

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Do Its Financials Have Any Role To Play In Driving Midwich Group plc's (LON:MIDW) Stock Up Recently?

Jun -30

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High Growth Tech Stocks in the UK to Watch April 2025

Apr -28

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Midwich Group (LON:MIDW) Will Pay A Dividend Of £0.075

Apr -09

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Midwich Group PLC (STU:9S2) (FY 2024) Earnings Call Highlights: Record Revenues Amid Market ...

Mar -25

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.01%)

6. Segments

Audio Visual Solutions Goods and Ancillary Services

Expected Growth: 4%

Midwich Group plc's Audio Visual Solutions Goods and Ancillary Services segment growth is driven by increasing demand for hybrid workspaces, rising adoption of digital signage and collaboration tools, and growing need for immersive experiences in education and corporate sectors. Additionally, the shift towards cloud-based services and IoT integration fuels growth in this segment.

Rental of Goods (Operating Lease Income)

Expected Growth: 6%

Midwich Group plc's 6% growth in Rental of Goods (Operating Lease Income) is driven by increasing demand for audio-visual and IT products, expansion into new markets, and a growing customer base. Additionally, the company's strategic partnerships and investments in digital platforms have enhanced its rental offerings, leading to higher revenue growth.

7. Detailed Products

Audio Visual Solutions

Midwich Group plc provides a range of audio visual solutions including display solutions, collaboration tools, and audio solutions for various industries such as education, corporate, and hospitality.

Print and Scan Solutions

Midwich Group plc offers a variety of print and scan solutions including multifunctional devices, printers, and scanners from leading manufacturers for various industries such as healthcare, finance, and government.

IT and Security Solutions

Midwich Group plc provides IT and security solutions including servers, storage, and network infrastructure, as well as cybersecurity solutions for various industries such as finance, retail, and healthcare.

Unified Communications

Midwich Group plc offers unified communications solutions including video conferencing, instant messaging, and voice over IP (VoIP) solutions for various industries such as corporate, education, and healthcare.

Display and Digital Signage

Midwich Group plc provides display and digital signage solutions including LED displays, interactive kiosks, and digital signage software for various industries such as retail, hospitality, and transportation.

8. Midwich Group plc's Porter Forces

Forces Ranking

Threat Of Substitutes

Midwich Group plc operates in the IT industry, which is characterized by rapid technological advancements. While there are substitutes available, the company's focus on providing specialized IT solutions and services reduces the threat of substitutes.

Bargaining Power Of Customers

Midwich Group plc has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's focus on providing specialized IT solutions and services makes it difficult for customers to switch to alternative suppliers.

Bargaining Power Of Suppliers

Midwich Group plc relies on a few large suppliers for its IT products and services. While the company has some bargaining power due to its size, the suppliers also have some bargaining power due to the specialized nature of their products and services.

Threat Of New Entrants

The IT industry is characterized by high barriers to entry, including significant capital requirements and the need for specialized expertise. This reduces the threat of new entrants in the market.

Intensity Of Rivalry

The IT industry is highly competitive, with many established players competing for market share. Midwich Group plc faces intense competition from other IT distributors and resellers, which increases the intensity of rivalry in the market.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 48.37%
Debt Cost 7.34%
Equity Weight 51.63%
Equity Cost 7.34%
WACC 7.34%
Leverage 93.69%

11. Quality Control: Midwich Group plc passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Neurones

A-Score: 6.0/10

Value: 5.1

Growth: 6.6

Quality: 7.1

Yield: 6.9

Momentum: 2.5

Volatility: 8.0

1-Year Total Return ->

Stock-Card
AB

A-Score: 5.5/10

Value: 7.7

Growth: 6.3

Quality: 4.7

Yield: 4.4

Momentum: 4.0

Volatility: 6.0

1-Year Total Return ->

Stock-Card
MIND C.T.I.

A-Score: 5.5/10

Value: 7.9

Growth: 1.9

Quality: 8.2

Yield: 10.0

Momentum: 0.0

Volatility: 5.0

1-Year Total Return ->

Stock-Card
Solar

A-Score: 5.0/10

Value: 8.6

Growth: 4.6

Quality: 2.1

Yield: 10.0

Momentum: 0.5

Volatility: 4.3

1-Year Total Return ->

Stock-Card
Esprinet

A-Score: 4.8/10

Value: 8.4

Growth: 2.2

Quality: 2.8

Yield: 8.8

Momentum: 4.0

Volatility: 2.3

1-Year Total Return ->

Stock-Card
Midwich

A-Score: 4.4/10

Value: 7.2

Growth: 6.3

Quality: 2.5

Yield: 6.9

Momentum: 0.0

Volatility: 3.3

1-Year Total Return ->

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

1.8$

Current Price

1.8$

Potential

-0.00%

Expected Cash-Flows