REG - Mission Group PLC - Trading Update

MissionAnnouncement

17/01/2024 07:00

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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 £87.0m
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 £4.3m. Earnings before Interest, Taxation,
Depreciation and Amortisation (EBITDA) from continuing operations are expected
to be approximately £10.0m 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 £5m of profit improvements for 2024. This
includes an initial £2m of annualised costs savings relating to headcount
reduction in certain of the Group's business units and a further £3m 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 £1m being deployed to reduce debt.

 

BALANCE SHEET

 

Net bank debt as at 31 December 2023 is estimated to be £15.5m. This is a
considerable improvement on the previously stated guidance of £24m, 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 £4.3m 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 £29m.

 

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

 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

 

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
(https://eur03.safelinks.protection.outlook.com/?url=http%3A%2F%2Fwww.themission.co.uk%2F&data=04%7C01%7C%7C2e2f37c792c7415afaad08d947a9c473%7Cb7e4783d67604ed5b0c156d405b9349b%7C0%7C1%7C637619616734507818%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C2000&sdata=5duO%2FyhgYrmP5I17h1eW4mAaM4%2BhySTEObFl5Dz5R%2Fs%3D&reserved=0)

The person responsible for arranging the release of this announcement on
behalf of MISSION is James Clifton.

 

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.

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