AV News August 2022

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The direct channel to the industry

August 2022 www.avnewsonline.com Predictions for digital signage

Finding a microphone that makes everyone happy

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We caught up with industry expert Business Development Director, Maverick Europe, Joan Aixa about the main priorities for the digital signage industry over the next 12 months.

Midwich Group trading update Midwich Group (AIM: MIDW) has provided a trading update for the six months ended 30 June 2022 (“H1 2022”). Trading was strong in H1 2022, with revenue expected to be in excess of £560 million, an increase of over 45% versus H1 2021, and a record first half for the Group. Organic revenue growth was approximately 27% versus H1 2021, with strong contributions from the Nimans and DVS businesses, which were both acquired early in H1 2022. The overall gross margin was around 15.0%, which is broadly in line with H1 2021. The Group has seen a partial return of live events and in-person activities in a number of markets. Should these conditions continue, the Board expects to see stronger gross margins coming through in the second half of the year. Adjusted profit before tax for H1 2022 is expected to be over £19 million, compared with £13.0 million in the first half of 2021, an increase of nearly 50%. Performance in the UK & Ireland was significantly ahead of H1 2021, with revenue up 85%. The contributions from

Nimans and DVS supplemented strong organic growth in this region. Trading in North America was also very strong, with revenue increasing by over 90%. In EMEA, after substantial growth in the first half of 2021, revenue grew by 17% in H1 2022. Cash generation was in line with the Board’s expectations. Net debt increased by around £55 million, as a result of M&A spend and working capital increases due to normal seasonality and the significant growth in the business. At 2.1x adjusted net debt over adjusted EBITDA at the period end, leverage remains comfortably within the Group’s covenants. With order books remaining very strong, unless general economic conditions deteriorate significantly, the Board expects the momentum seen in H1 2022 to continue throughout the remainder of the year. As a result, the Board now expects trading performance for the full year will be slightly ahead of its previous expectations. Midwich will announce its half year results for the six months ended 30 June 2022 on 6 September 2022.

Great audio is no longer a luxury; it’s a necessity. But reconciling competing demands for sound quality, appearance, compatibility, and ease of use has many AV/ IT professionals struggling.

Brompton Technology secures £5.1 million investment Brompton Technology has se- at Connection Capital. “With its cured a growth capital invest- industry-leading technology, diment from specialist private versified revenue streams, talclient alternative investments ented management team and business, Connection Capi- soaring demand for its prodtal. Richard Mead, Brompton ucts, Brompton Technology has Technology CEO, is clear on a very compelling growth story the benefits the investment that has really appealed to our will bring to the company: private investor clients.” “We are seeing unprecedent- Alongside Connection Capital’s ed growth in demand for our investment, Neil Gaydon, a cutting-edge, robust, tour and highly experienced Non-Execvirtual production-ready LED utive Chairman, will also join video processing products from Brompton’s board. Neil has a our core industry sectors, as track record of successfully well as a lot of exciting poten- delivering growth in technology tial for our technology to be companies, including as CEO applied to new markets. Whilst of Pace plc from 2006-2011, our focus on quality and dedi- during which time Pace becation to customer service will came the world’s largest proremain the same, Connection vider of digital TV technologies Capital’s investment gives us to the Pay TV industry. Mead the ability to scale up rapidly to concludes: “We are fortunate meet demand and address the to be in a leadership position new opportunities that are pre- in a rapidly growing market. senting themselves.” This investment will enable us “Brompton Technology is an ex- to capitalise on growth opportucellent example of a successful nities and deliver outstanding business that pivoted, almost visual experiences to more and overnight, into virtual produc- more people worldwide. We are tion for film and TV during the excited to start a new phase of pandemic and is now emerging our journey with support from even stronger than before,” Connection Capital.” comments Miles Otway, Partner Brompton Technology has secured a growth capital investment from specialist private client alternative investments business, Connection Capital.

Barco publishes first half results Barco (Euronext: BAR; Reuters: BARBt.BR; Bloomberg: BAR BB) announced results for the six-month period ended 30 June 2022. [1] •First half and second quarter 2022 highlights[2] include: •Orders 1H22 of 509 million euro, an increase of 9% vs 1H21 •Orderbook at 538 million euro, 146 million euro higher compared to 1H21 and 51 million euro higher compared to year-end 2021 •Sales 1H22 of 473 million euro, an increase of 29% compared to 1H21 •EBITDA 1H22 of 46 million euro, or 9.8% of sales vs 7.5% or 27 million euro for 1H21 •Orders 2Q22 of 262 million euro up 11% vs 2Q21 and almost flat compared to 2Q19 •Sales 2Q22 of 266 million euro up 37% vs 2Q21 and up 5% vs 2Q19 •Executive summary Barco’s first half sales were 29% above 1H21 and 8% above 2H21 with sales conversion improving in all divisions and all regions. During the first semester, growth accelerated from the first to the second quarter and sales for 2Q22 surpassed 2Q19 pre-pandemic

Trading for the Midwich Group was strong in H1 2022, with revenue expected to be in excess of £560 million, an increase of over 45% versus H1 2021, and a record first half for the Group. Barco CEOs An Steegen and Charles Beauduin commented: “Barco is turning the corner in its recovery from the pandemic. levels, driven by strong uptakes in demand in Cinema and Meeting experience. Order intake continued to grow, increasing 9% versus

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