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Midwich shares climb on AIM debut

Shares in AV distributor Midwich climbed in the first few hours after the firm debuted on AIM

AV distribution specialist Midwich is enjoying the first few hours of its premium listing on London's AIM market with its shares already increasing in value.

The Diss-based channel player announced the IPO earlier this week, with a launch price of 208p a share, which gave the firm a valuation of £165m.

The distributor has a strong hertiage in the audio visual market as well as printing, and has been developing its portolio to include the latest technologies, including interactive touch screens and 3D.

The business, which started in the UK, has also expanded internationally over the last few years creating an operation with access to most of the major global growth markets with offices in the UK, Ireland, Germany, France, Australia and New Zealand.

The expectation is that international revenues outside of the UK, which contributed 30% of turnover in 2015, will grow and some of the funds raised by the IPO will be used to support further expansion.

In a statement accompanying the IPO announcement Stephen Fenby, managing director of Midwich, who also has a decent stake in the firm, said that it was a major moment in the firm's history.

"Today represents an important milestone in the Group's history and becoming a public company will further enhance Midwich's leading competitive position as a specialist AV and document solutions distributor to the trade market," he said.

"I would like to welcome our new shareholders and I am very excited about the next stage of our journey as we continue to grow both in the UK and internationally," he added.

For the year ended 31 December 2015, Midwich generated revenues of £314.3m up from £280.8m a year before and gross profit of £47m up from £40.2m.

This is not the first channel flotaion in recent times with Softcat going public last winter, but it is showing signs of being a successful one underlining just how much support there is from the investment community in IT specialists.

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