New analysis Midwich pre-close


trading statement Midwich has provided a trad- ing update for the six months ended 30 June 2020 (“H1 2020”) when trading in much of the period was impacted significantly by the coronavirus pandemic. As a result, Group revenue for H1 2020 is ex- pected to be around 4% below the same period last year, with a decline in underlying sales of around 22%. Due to product mix, gross margins are also ex- pected to be up to 2.5 percent- age points lower. Actions taken to reduce operating expendi- ture mean the Board expects the Group to be profitable in H1 2020, but at a level signifi- cantly below the same period last year.


In a statement released at


the end of March, the Board said: “Due to reduced customer demand during the period, our staff have shown great flexibility in their work patterns, including voluntary short time working and reduced remuneration. We have also used the support offered by governments as necessary, such as furloughing in the UK.” “Protection of the business over the short term has meant a significant and ongoing focus on the management of work- ing capital. Cash receipts from customers have generally re- mained at normal levels and we have been pleased that, overall, suppliers have shown flexibility where necessary.”


The overall impact of actions taken to manage cashflow is that adjusted net debt has reduced by £13 million since 31 Decem- ber 2019 to £40.5 million. As countries entered lockdown, the ability of the Group’s customers, primarily system integrators, to access sites became significant- ly curtailed, and many projects were delayed.


While some of these projects have since been undertaken, and certain others are anticipat- ed in the short to medium term, a small number are now consid- ered unlikely to be carried out. This led to a reduction in reve- nue, which was felt in March and more significantly in the month of April, when revenue was less than 50% of the ex- pectation set out by the Board. Revenue improved in May and further in June. The Board is encouraged by the speed of re- covery but notes that revenue continues to be below its initial expectations set at the start of the year.


Certain product sets have been impacted in different ways depending on their use. Rela- tively strong performance was achieved initially from technol- ogies used to facilitate working from home. Such products in- clude desk top monitors, print- ers and various associated ac- cessories.


Markets which are largely gov- ernment funded (such as edu- cation, healthcare and defence) have remained relatively strong – impacted mostly by the abili- ty of customers to access sites. The corporate market has been more muted with end users mostly working from home and investment plans largely placed on hold.


Sidwick and Hammersley join Collabtech Continued from page1


Sidwick explains: “Over


the past few years, we have watched Collabtech evolve into one of the exciting and agile businesses in the market right now. They have a unique set of skills deployed with care and the highest quality for the channel. I am so pleased to be able to work with Shawn and the team to take the business to the next stage. This moment is pivotal for the market as companies adjust to a new nor- mal and Collabtech can help scale enablement like no-one


else.”


Formerly at Maverick AV Solu- tions, Jon and Jane created a world leading AV and collabo- ration business delivering in- novation, channel partnerships and multi-vendor solutions to the market. The deployed solu- tions for thousands of meeting spaces annually. Jon continues as Vice Chairman of the indus- try association AVIXA, working with


leaders throughout the


world to create industry devel- opment opportunities, diversity and growth within the market.


Jane Hammersley, SVP Glob- al Alliances explains: “The current crisis is driving unprec- edented usage of meeting plat- forms that require end to end digital workflow deployment. CollabTech is seeing a massive increase in demand, leading to recent global investment and expansion in its service set, designed to help the channel to evolve rapidly and in a more customer focussed way than ever before.”


Collabtech Founder Shawn Leonard explains; “Our mission


at Collabtech is to help people work better together and never has that been more pertinent. Jon and Jane bring unique UC experience and deep channel relationships which will help the business to scale and meet the exponential growth we are seeing in the space right now. As President, Jon’s creative and disruptive approach fits with our customer centric focus and desire to challenge convention- al thinking to create a new kind of partner for the channel.” Shawn will remain as Chair of


the board and majority share- holder, actively involved in the business’s direction and strat- egy. The business has a new European head office in the UK and will be adding to the lead- ership and deployment teams to reinforce current customer programmes and help develop and deploy emerging platform centric services.


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