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(Alliance News) - Mission Group PLC on Tuesday reported a stark fall in interim profit as costs increased more quickly than revenue.
The Devon, England-based owner of a group of digital marketing and communications agencies said pretax profit in the first half of 2023 plummeted to GBP69,000 from GBP1.5 million a year prior.
Revenue climbed by 14% to GBP92.9 million from GBP81.2 million. However, cost of sales increased by 17% to GBP51.1 million from GBP43.7 million. Operating expenses grew by 13% to GBP39.8 million from GBP35.3 million.
Despite the profit fall, the company increased its interim dividend by 4.8% to 0.87 pence per share from 0.83p a year before.
"The sustained global macroeconomic and geo-political uncertainty coupled with rising inflation and the cost-of-living crisis continued to impact trading conditions across the group's industry sectors and beyond," Mission said.
Looking ahead to the full year 2023, Mission said its run rate from the US technology sector is starting to return to the 2022 level. It remains on track to meet full-year guidance, with profit likely to be at the lower end of its own expectations. Pretax profit for 2023 is expected to be higher than 2022's GBP7.8 million.
Mission shares were down 2.4% to 40.00 pence each on Tuesday morning in London.
By Tom Budszus, Alliance News reporter
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