25th July 2024
The Mission Group
plc
("MISSION" the "Company" or
the "Group")
Trading
Update
The MISSION Group plc (AIM: TMG), creator
of Work That CountsTM, comprising a group of digital
marketing and communications Agencies, provides a trading update
for the six months ended 30 June 2024 ("the
Period" or "H1").
TRADING
Trading in the Period has continued
in line with the Board's expectations. MISSION is pleased to
report further, notable new Client wins in the weeks
since its 17 June Trading Update across all business segments.
Looking ahead into H2, the new business pipeline remains
strong.
FINANCIAL PERFORMANCE
The Group expects to report organic
revenue growth of 2.5 percent to £42.5m (30 June
2023: £41.4m) for the Period, with headline1
operating profit of £2.6m (30 June 2023: £2.0m
reported, £2.5m from continuing activities2), in line
with management expectations. Headline profit before tax for
the period has been impacted by higher interest rates and is
expected to be £1.1m (30 June 2023: £1.0m reported,
£1.5m from continuing activities).
Revenue growth has been driven by
strong progress across MISSION's Property and Sports &
Entertainment sectors whilst the timing of the UK general election
delayed some government expenditure compared to H1 2023.
MISSION has a significant
second-half weighting with respect to profitability. Revenue growth
is anticipated across all sectors and the Group remains on track to
meet full-year headline operating profit expectations.
BALANCE SHEET
Total debt has reduced
significantly, with debt including outstanding acquisition
obligations estimated at £23.7m on 30 June 2024. This represents a
reduction of £1.5m compared to the position of £25.2m at 31
December 2023.
Net bank debt is estimated at £19.6m
at 30 June 2024. The HMRC Time To Pay creditor which stood at £4.3m
as at 31 December 2023 has been fully repaid.
VALUE RESTORATION PLAN
The Group continues to make good
progress against the Value Restoration Plan announced on 17 January
2024, with the vast majority of the £5.0m of annualised projected
profit improvements already secured for the year. Planned cost
savings and operating efficiency improvements are tracking to
expectations for full delivery by the end of 2024.
Alongside the successful refinancing
of the existing debt facility with long-standing lender NatWest
announced on 28 March 2024, the Group also continues to
progress discussions regarding options to deleverage its
balance sheet. A further update will be provided when
appropriate.
NOTICE OF RESULTS
The Group expects to announce its
interim results for the six months ended 30 June 2024 towards the
end of September 2024.
Chief Executive of MISSION, James Clifton,
commented: "I am pleased to report ongoing momentum across the Group, with new Client wins driving
revenue growth alongside continued debt reduction and increased
efficiency across our operations.
We are delivering on our strategy
for 2024 and 2025 to create value for all stakeholders.
We enter H2 in a positive mood with
a strong pipeline of new business opportunities and robust
confidence in the long-term outlook for the
Group."
ENDS
1. Headline
results are calculated before acquisition adjustments, start-up
costs and exceptional restructuring costs.
2.
Continuing activities exclude the results of the Group's 80%
interest in Pathfindr which was sold in December
2023.
ENQUIRIES
|
James Clifton, Chief Executive
Officer
Giles Lee, Chief Financial
Officer
The MISSION Group plc
|
Via Houston
|
|
Simon Bridges/Andrew Potts/Harry
Rees
|
|
|
Canaccord Genuity Limited (Nominated Adviser and Broker)
|
020 7523 8000
|
|
|
|
|
Kate Hoare / Alexander Clelland /
India Spencer
|
|
|
HOUSTON (Financial PR and
Investor Relations)
|
0204 529 0549
|
NOTES TO EDITORS
The MISSION Group Plc. is The Brand Performance
Group.
Delivering measurable,
results-driven campaigns as the preferred creative partner for real
business growth. We offer top-tier agencies, strategic specialisms
and global reach delivering outstanding performance for brands. We
call it Work That
Counts™ www.themission.co.uk
The information contained within
this announcement is deemed to constitute inside information as
stipulated under the Market Abuse (Amendment) (EU Exit) Regulations
2019. Upon the publication of this announcement, this inside
information is now considered to be in the public
domain.
