Midwich Group PLC on Monday reported subdued demand for mainstream products in Germany, especially in the education and corporate markets, meaning profit will decline in 2024.

Midwich shares fell 15% to 271.31 pence each on Monday morning in London.

The Norfolk, England-based company, which distributes specialist audiovisual technology to the trade market said that broader market conditions have not improved as anticipated, despite the UK market stabilising and demand in live events and entertainment sectors remaining strong. Further, performance in the North American region continued to be sound.

Midwich said it expects current market conditions to persist for at least the rest of the year, noting a challenging audiovisual market backdrop. It expects 2024 revenue to be marginally ahead of 2023, when it was £1.29 billion, gross margins to be in line with the ‘record levels’ seen in the first half.

However, despite cost reductions, Midwich now expects adjusted operating profit in 2024 to be ‘significantly below’ 2023, when it was £59.6 million.

Looking ahead, Midwich said: ‘Despite the continuing challenging market conditions, the group remains well positioned, has continued to grow market share in its key markets since the half year and will seek to drive further revenue mix towards technical product sales. The board remains confident in the future prospects of the group.’

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