REG - Mission Group PLC - Trading Update

MissionAnnouncement

12/01/2023 07:01

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RNS Number : 4485M  Mission Group PLC (The)  12 January 2023

12 January 2023

 

The MISSION Group plc

("MISSION" "The Company" or "The Group")

TRADING UPDATE AND NOTICE OF RESULTS

MISSION Group plc (AIM: TMG), creator of Work That Counts(TM), comprising a
group of digital marketing and communications Agencies delivering real,
sustainable growth for its Clients, is pleased to issue a trading update for
the financial year ended 31 December 2022.

Trading Update

The Group continued to see a resilient underlying performance from its
Agencies in the second half of the financial year, despite the weakening
macro-economic backdrop. Increasing exposure to more robust sectors and
geographies, coupled with the benefits of the investments MISSION has made to
expand its capabilities and services, have underpinned year-on-year Group
revenue growth of 10%, slightly ahead of expectation.

Careful control of costs has remained a priority throughout the year, and the
Group has balanced this with a commitment to build a strong platform to
support growth through continued investment in our talent base. Despite
inflationary headwinds and higher finance costs, the Group expects to report
Headline Profit before Tax of not less than £7.6m, ahead of the prior year.

Further progress has been made against the Group's strategic areas of focus,
expanding its capabilities whilst also improving structural efficiencies to
create operational improvements.

As part of the Group's strategy to strengthen the integrated communications
offering of its Agencies, further acquisitions were made in H2 of Influence
Sports & Media and social media agency Populate, by the Group's Sports
Marketing Agency Mongoose. These follow the successful acquisition of the
youth focussed creative business Livity in H1.

MISSION has fundamentally restructured its Asian operations, where performance
has been impacted by the extended effect of COVID-19 on the region, and has
reviewed the progress and potential of Pathfindr, the Group's Industrial IoT
solutions business. Taken together, these actions will result in exceptional
restructuring costs, and a non-cash Goodwill impairment charge, in the region
of £6m at the year end.

The effect of these restructuring costs and acquisitions, was that Net Debt
closed at £11.4m. The Group continues to benefit from significant headroom
against its current debt facility of £20m to support its strategic goals and
remains cash generative, with Net Debt expected to reduce significantly in
2023.

Board Update

Executive Director Sue Mullen will be retiring from the Board with immediate
effect but will remain with the Group as Chair of Story.

Notice of Results
The Group expects to announce its final results on 28 March 2023.

Commenting, James Clifton, Chief Executive Officer of MISSION said:

"In a year of social and political turmoil with unprecedented cost and
inflationary challenges MISSION has delivered a robust performance in 2022,
building on the strong momentum established in the prior year. 2023 has
started well with new Client wins meaning that despite the continued economic
uncertainties creating challenges for all businesses, we will continue to
exploit the opportunities available to us. The Group has a clear strategic
focus that means we are well positioned for revenue and margin growth both in
2023 and the longer term."

 

ENDS

ENQUIRIES:

 James Clifton, Chief Executive Officer

 Giles Lee, Chief Financial Officer

 The MISSION Group plc                            020 7462 1415

 Mark Percy / James Thomas

 Fiona Conroy (Corporate Broking)
 Shore Capital (Nomad and Broker)                 020 7408 4090

 Kate Hoare / Alexander Clelland / India Spencer
 HOUSTON (Financial PR and Investor Relations)    0204 529 0549

 

NOTES TO EDITORS

MISSION is a group of digital marketing and communications Agencies.
Employing 1,000 people across 27 locations and three continents, the Group
successfully combines its diverse expertise to produce Work That
Counts(TM) for our Clients, whatever their ambitions. Creating real standout,
sharing real innovation and delivering real business growth for some of the
world's biggest brands. www.themission.co.uk (http://www.themission.co.uk/)

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