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(Sharecast News) - Shares in Midwich Group fell sharply in early trading on Tuesday, after the audio visual specialist warned on profits.
Updating on trading at the annual general meeting, the AIM-listed firm said the challenging market conditions seen last year, especially in the UK & Ireland, had continued into 2024.
In the year-to-date, there has been a mid-single digit decline in organic revenues in the UK and Ireland, Midwich noted.
Chair Andrew Herbert said that on a group basis, organic revenues were in line with the previous year, below internal expectations, "as the persistence of elevated interest rates has deferred purchasing decisions and market recovery".
He continued: "The board believes it is now prudent to assume trading conditions in certain markets such as the UK and Ireland will likely remain challenging for the rest of 2024.
"We now expect adjusted operating profit for the full year to be broadly in line with that achieved in 2023."
In the year to 31 December 2023, Midwich posted adjusted operating profits of £59.6m, up 17% on 2022.
As at 0900 BST, shares in Midwich had slid 10% to 379p.
Midwich, which also has operations across Europe and the Middle East, Asia Pacific and North America, supplies a range of audio visual equipment to around 800 vendors.
It is due to update on interim trading on 18 July.
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