For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240725:nRSY7260Xa&default-theme=true
RNS Number : 7260X Mission Group PLC (The) 25 July 2024
25(th) July 2024
The Mission Group plc
("MISSION" the "Company" or the "Group")
Trading Update
The MISSION Group plc (AIM: TMG), creator of Work That Counts(TM), 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 headline(1)
operating profit of £2.6m (30 June 2023: £2.0m reported, £2.5m from
continuing activities(2)), 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 Via Houston
The MISSION Group plc
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
(http://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.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END TSTUSSNRSSUBUAR