Mission Group PLC (The) Trading Update (9008Z)
17 Janeiro 2024 - 4:00AM
UK Regulatory
TIDMTMG
RNS Number : 9008Z
Mission Group PLC (The)
17 January 2024
17(th) January 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 financial year ended 31
December 2023 ("FY2023").
TRADING
Trading in the final three months of 2023 was significantly
improved on the previous quarter and the Group's performance for
FY2023 is expected to be in line with the revised guidance issued
in its update to the market on 23 October 2023 ("the Update").
The Group expects to report FY2023 revenue (operating income) of
GBP87.0m representing growth of 9% on 2022, including the impact of
2023 acquisitions, and at the higher end of the guidance provided
in the Update and ahead of Advertising Association expectations for
2023 of 2.6%.
Headline profit before tax from continuing operations,
(excluding the trading loss relating to the Group's Pathfindr
business, the disposal of which was announced on 5 January 2024),
is expected to be in line with the revised guidance in the Update
of GBP4.3m. Earnings before Interest, Taxation, Depreciation and
Amortisation (EBITDA) from continuing operations are expected to be
approximately GBP10.0m on the same basis.
Trading in 2024 has started well with a number of new business
wins already secured including assignments with existing Client
Boehringer Ingelheim, expanding our involvement with the animal
health arm of their business. The new remit includes activity from
top-level strategy, through to activation for an exciting portfolio
of brands.
Other new business wins across the Group since the start of the
new financial year include new Client Herta UK for MISSION Agency
Speed. Speed will be working closely with the UK arm of German
based Herta, which provides quality chilled goods to consumers and
will be focused on amplifying Herta UK's presence within trade and
consumer media. Bray Leino have also been delighted to announce a
new Client mandate with global pharmaceutical company Dr. Reddy's.
The new scope includes all facets of marketing from branding and
packaging to event creation and delivery.
VALUE RESTORATION PLAN ("VRP")
The Group continues to make good progress against its recovery
plan to drive significant cost saving initiatives and margin
improvements and has now secured an annualised, projected GBP5m of
profit improvements for 2024. This includes an initial GBP2m of
annualised costs savings relating to headcount reduction in certain
of the Group's business units and a further GBP3m of annualised
non-agency cost savings and profit improvements.
Part of the Group's VRP also includes the selected disposals of
two non-core businesses and on 5th January 2024 the Group was
pleased to confirm the disposal of its 80% shareholding in
Pathfindr ltd, with the initial proceeds of GBP1m being deployed to
reduce debt.
BALANCE SHEET
Net bank debt as at 31 December 2023 is estimated to be
GBP15.5m. This is a considerable improvement on the previously
stated guidance of GBP24m, provided in the Update.
This improvement has been driven by strong working capital
control both in regard to billing and debtor days management and
the active management of our creditors, including an agreed GBP4.3m
HMRC Time To Pay arrangement phased over the first quarter of
2024.
The Group enters 2024 with the benefit of significantly improved
headroom against its current debt facility of GBP29m.
Chief Executive of MISSION, James Clifton, commented: "Whilst
2023 has not been without significant challenges, the Board is
pleased with the progress being made to restore value for
shareholders through the Value Restoration Plan.
"Whilst there is much more to do, efficiencies are quickly being
realised and we are particularly pleased to have achieved a
significant reduction in net debt against our original
forecasts.
"Trading momentum in the later part of 2023 was encouraging,
with growth ahead of the market, and the recent new business wins
in January give us confidence as we enter 2024."
ENDS
ENQUIRIES
James Clifton, Chief Executive Officer
Giles Lee, Chief Financial Officer Via Houston
The MISSION Group plc
S imon 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
MISSION is a collective of digital marketing and communications
Agencies employing over 1,000 people across 29 locations and 3
continents. The Group successfully combines its diverse expertise
to produce Work That Counts TM for Clients, whatever their
ambitions. Creating real standout, sharing real innovation and
delivering real
growth for some of the world's biggest brands. www.themission.co.uk
The person responsible for arranging the release of this
announcement on behalf of MISSION is James Clifton.
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END
TSTUNABRSOUAAAR
(END) Dow Jones Newswires
January 17, 2024 02:00 ET (07:00 GMT)
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