The Mission Group Regulatory News (TMG)

26 Sep 2007 07:02

The Mission Marketing Group PLC26 September 2007 26 September 2007 The Mission Marketing Group plc Interim results for the six months to 30 June 2007 Continued strong organic growth and successful integration of acquisitions means benefits of buy and build strategy are coming through Organic profit growth of 19% is 4 times adspend forecast* The Mission Marketing Group plc ("TMMG, themission(R)"), the national marketingcommunications and advertising group, today announces interim results for thesix months ended 30 June 2007. As we have added in the period under review two new companies to themission, wehave used proforma figures allowing direct year-on-year comparison with thecomparable interim period for 2006. Highlights * Turnover: £39.7m, proforma £45.9m(2006: £13.0m, proforma £42.3m) up 9% * Operating profit: £4.0m, proforma £4.7m (2006: £1.0m, proforma £4.1m) up 15% * Profit before tax: £3.0m, proforma £3.8m (2006: £0.7m, proforma £3.2m) up 19% * Diluted EPS: 7.73 pence, proforma 9.27 pence (2006: 1.92 pence, proforma 7.65 pence ) up 21% * First interim dividend of 0.36 pence per share declared - reflects confidence in the prospects for the Group * Cash flow from operating activities of £3.1m and cash balance of £8.0m (2006: £3.0m cash net of loan notes) * Organic growth driven by leveraging additional services across the Group's existing clients, a good new business performance and continued expansion of digital capabilities * Acquisition strategy being actively implemented through the acquisitions of April-Six and BDW in March 2007 - both companies successfully integrated and synergy benefits coming through as planned * Strong start to the second half with current trading in line with the Board's expectations Commenting on the results Iain Ferguson, CEO, said: "themission(R) has reported a good financial performance in the first half. Wehave delivered above industry organic growth by successfully implementing ourstated strategy of combining good organic growth with selective acquisitions.The acquisitions of April Six and BDW have extended our geographical reach,brought new services to the Group and moved us into new markets. The second half has started well with trading in line with our expectations. Theacquired businesses have already been successfully integrated and the benefitsare coming through as planned. This, coupled with the continued growth indigital and new business wins, makes us confident of delivering a good financialperformance in 2007." * Source: Carat Adspend forecast anticipates 4.1% growth in 2007 in the UK Enquiries: Iain Ferguson, Chief Executive 020 7395 7575 Tim Alderson, Chief Financial Officer The Mission Marketing Group plc Charles Palmer/Nicola Biles 020 7831 3113 Financial Dynamics Mark Percy / Sarah Jacobs 020 7107 8000 Seymour Pierce www.themission.co.uk themission(R) is a national marketing communications and advertising group with10 offices across the UK. The Group specialises in providing national andinternational clients with award winning marketing, advertising and businesscommunications. Group members include April-Six, Bray Leino, Big Communications,Fuse Digital, thinkBDW and Story UK. themission(R) employs over 550 staffnationally and is listed on AIM (TMMG). Chief Executive's Statement Overview and strategy The Mission Marketing Group plc ("themission", "TMMG") has delivered anotherexcellent set of results in the first half of 2007. The results are based on acombination of strong organic growth and the successful integration of acquiredbusinesses. On a like-for-like basis, using proforma figures allowing directyear-on-year comparison with the comparable interim period for 2006, operatingprofit increased by 15% while adjusted profit before tax grew by 19%. Reflectingour confidence in the future prospects of themission, the board has declared aninterim dividend of 0.36 pence per share. The Group's continued success demonstrates the benefits of building a network offully integrated businesses specialising in the provision of the award winningadvertising and marketing services required by our national and internationalclients. We have grown considerably faster than the marketing services sector,which demonstrates the strength of our business model at a time when clients areincreasingly focused on the return they get on their marketing and advertisinginvestment. The two businesses acquired in the first half have added some £21m of annualisedturnover to the Group and each offers a specific opportunity to add new servicesand markets. Having structured the Group at the time of our IPO last year tomake and support acquisitions, we have already integrated these businessessuccessfully. The Group's strategy is to acquire and leverage proven businesses locatedlargely outside high-cost central London that provide marketing andcommunications services to national and international brands. This strategy isdelivering a number of clear benefits: - Clients receive fully integrated, on-line and off-line campaigns from agencies where functional silos do not exist; - Service levels are being enhanced by the provision of new expertise from around the group; - Margins are improved by locating our agencies outside traditional high-cost locations; - We can attract and develop excellent people who, enabled by broadband technologies, enjoy reduced cost and increased quality of life; and - Our acquisition pipeline is strong and we have identified a number of potential partners, with very specific and relevant expertise, who match our target profile. Our strategy reflects that pursued by many of the most successful clients inmultiple markets and geographies. Lower cost locations, high penetration oftechnology to drive efficiencies and the ability to invest in people and skillsto deliver future growth and profit. We see this strategy as the right approach at the right time and believe it hasthe ability to deliver long-term benefits for TMMG shareholders. Results Turnover for the six month period was £39.7m, operating profit was £4.0m anddiluted EPS was 7.73 pence. The comparative period includes only the two and ahalf months of trading (13 April to 30 June 2006) for the newly formed Groupfollowing its admission to the AIM market. To provide meaningful information, wehave provided proforma financials for the full six months to 30 June 2007 andcomparatives for the first six months and full year of 2006, as if the Group hadexisted in its current form throughout those periods. On this basis, as shown at the end of this interim report, turnover grew by 9%to £45.9m (2006: £42.3m). This increase in volume led to gross profitsincreasing by 11% to £17.2m (2006: 15.4m). Operating profit rose by some 15% to£4.7m (2006: £4.1m). Net interest payable amounted to £925,000. Proforma comparatives also includenet interest payable of £925,000 to reflect the interest charge associated witha comparable level of debt. As a result the proforma pre-tax profit grew by 19%,and earnings and EPS grew by a slightly higher 21% (identical tax rates pre IFRSinterest charges and number of shares assumptions for the periods). The profitbefore taxation was £3.8m (2006: £3.2m). The interim statements have been prepared in accordance with InternationalFinancial Reporting Standards ("IFRS") and these statements do not constitute aset of statutory financial statements. Comparative amounts have been restated. Dividends The Board has a progressive dividend policy and is pleased to meet itscommitment to extending its dividends to both the full and half year bydeclaring its first interim dividend of 0.36 pence per share. This will be paidon 23 October 2007 to those shareholders on the register at 5 October 2007. Nointerim dividend was awarded in 2006 for the two and a half months of trading.The main focus of the Group in the short term remains delivering growth inearnings through well planned organic growth and selective acquisitions. Review of Operations The Group has been materially enlarged and since our IPO in April last year hasseen annualised turnover grow from £5m to £85m. This is consistent with ourstated aim at the time of the IPO to deliver both organic and acquisitiongrowth. In the first half of 2007 we announced the completion of two significantacquisitions, April-Six and BDW, both of which meet our stringent investmentcriteria. These acquisitions also give us new strength in dynamic and profitableindustry sectors. April-Six is a leader in providing marketing and communications campaigns to ITcompanies and their supply chains. April-Six operates both nationally andinternationally for worldwide hardware and software manufacturers and providersincluding Seagate, Microsoft and Symantec. BDW is one of the country's leading specialist property and real estatemarketing agencies. BDW provides creative, marketing, media and technicalservices to some of the UK's most famous names in house building, propertydevelopment and estate agency. The integration process is a very important part of our business model and theseacquisitions have been rapidly and successfully integrated into the Group. Theprocess begins pre-acquisition so that before completion and without incurringexternal cost, systems, reporting and other standards are already aligned. Oursystem ensures that prospective Group companies are introduced to existingGroup members to help ensure a smooth transition from vendor to subsidiary.Immediately after completion, face to face 'all staff' meetings provide a forumfor ensuring clear understanding, at all levels, of themission strategy, therole of the new company in delivering against that strategy, and the areas offocus which will leverage membership of the Group. Finally, new CEOs areappointed to the Executive Board which is the team tasked with managing thecollective operation to deliver maximum performance in line with the Group'sbusiness plan. Our operations are organised and reported under four areas of business. Branding and Advertising (including Media) Branding and Advertising is our largest segment and has had another strong firsthalf. This business line includes TV and other mass-media advertising as well asour design and production activities across a wide range of direct marketing,print and other media platforms. Volumes in IT and Property for clients such asSeagate and Barratt are now adding significantly to our previous activity levelsand mainstream advertising campaigns for brand leaders such as WKD, Wrigley'sExtra, Ibuleve and Champion have produced good results. Our agencies continue to enjoy strong recognition for our creativity and haveagain this year received multiple accolades including eight Golds at this year'sFresh awards. Digital and On-line Digital and on-line communications are continuing their dramatic growth trend.The explosion in affordable high-speed internet access and the rapid developmentof mobile phone and other media platforms has driven, and will continue todrive, client investment to reach consumers in fast, measurable, cost-effectiveways. Our business has, accordingly, grown rapidly in these areas includingon-line activities for clients such as Lucozade, Miele, and Price-Runner. We have taken steps to add further talent to our management team at Fuse Digitaland have also, at Bray Leino, recruited an entire on-line team of 20, from acompetitor agency, as part of our continued investment in the segment. Also viaBray Leino, we have invested in a digital in-store marketing offer calledi-blink. This delivers on-screen and experiential marketing activities to drivesales for clients such as Superdrug where i-blink is deployed as part of thenew-format store roll-out. We will continue to look for new ways to innovate and to help our clients derivemaximum advantage from digital initiatives. The Group will also continue toexplore acquisition and other opportunities to drive future growth in this area. Public Relations Public Relations has also had a good first six months - including the win of afirst assignment from Innocent Drinks - and has benefited from its strength inmanagement of environmental and green issues. This is an area in which we havedeep expertise, already applied on behalf of major brands such as Ecover. Asconsumer awareness and their expectation of brands' environmental credentialscontinues to develop, we expect this specialist team to continue its strongperformance. Events and Learning Events and Learning has had a somewhat mixed start to the year with a strongperformance in Events offset by slower Government spending in Learning. We haveinitiated a plan to reduce overheads in this area whilst in parallel, enhancingthe service offering and margin profile by moving to higher value learningprogrammes. The events business continues its growth in the fashion and luxurysectors for clients including Aquascutum and Timberland and in thepharmaceutical sector where it created a major launch event for Gardasil - thecervical cancer vaccine. The Events team has also been successful in providingnew services to existing clients of Big Communications such as BT Rolatruc andFruit of the Loom - both of whom ran major events earlier this year. New Business We have had a good start to the current year. New wins include Princes Foods atBig Communications, Ben & Jerry's, Sugar Puffs and Bradford & Bingley at BrayLeino, a first campaign for Innocent, digital wins including Mates, Ruby and Edand Insurancewide.com. Across the Group, the focus remains on identifyingopportunities to target growth sectors, service national and internationalbrands and deliver to our clients effective, business-building ideas, time aftertime. Corporate Governance The Board recognise the importance of sound corporate governance and will,insofar as practicable given the Company's size and constitution of the Board,comply with the main provisions of the Combined Code: Principles of CorporateGovernance and Code of Best Practice. Current trading and outlook The Group has enjoyed a good start to the current year with a strong first halffollowing a successful 2006. Integration of new acquisitions has gone well withactive collaboration between Group companies to offer clients new services.This, and new locations coming on stream, will enable new revenue streams whichin turn will help fuel future growth. themission's growing strength in digital, on-line and environmental initiatives,coupled with our proven capability as a fast moving, multi-discipline, nationalGroup means we are well positioned to continue to out-perform the marketingservices sector. The momentum seen in the first six months has continued into the second half andtrading is in line with the Group's expectations. The benefits from acquisitionsare coming through as planned and on 11th September we announced the acquisitionof Story UK; a leading direct response, digital and communications agency. Withnew initiatives to drive continued growth in digital and encouraging newbusiness momentum, the Board is confident of delivering a good financialperformance in 2007. Iain Ferguson Chief Executive Consolidated Income Statement for the 6 months ended 30 June 2007 6 months 2.5 months 8.5 months to to to 30 June 30 June 2006 31 December 2007 2006 Restated* Restated* Unaudited Unaudited Audited Note £'000 £'000 £'000 TURNOVER 2 39,687 12,985 37,468 Cost of sales (24,654) (8,308) (22,417) OPERATING INCOME 15,033 4,677 15,051 Operating expenses 3 (11,053) (3,636) (12,528) OPERATING PROFIT 3,980 1,041 2,523 Investment income 4 183 82 281Finance costs 4 (606) (197) (590)IFRS interest charges 4 (529) (215) (404) PROFIT ON ORDINARY ACTIVITIES 3,028 711 1,810 BEFORE TAXATION Taxation 5 (1,146) (297) (749) PROFIT FOR THE PERIOD 1,882 414 1,061 Basic earnings per share (pence) 7 7.77 2.05 5.16Diluted earnings per share 7 7.73 1.92 4.92(pence) Fully diluted earnings per share 7 6.61 1.75 4.44 (pence) The comparative figures in this statement cover the period from incorporation, 7March 2006, and the trading period from 13 April 2006. *Restated under IFRS (see note 13) Consolidated Balance Sheetas at 30 June 2007 As at As at As at 30 June 2007 30 June 2006 31 December 2006 Restated* Restated* Unaudited Unaudited Audited Note £'000 £'000 £'000 FIXED ASSETS Intangible assets 8 61,571 37,034 37,292Investments 9 24 - -Property, plant and 1,954 1,357 1,443equipment 63,549 38,391 38,735 CURRENT ASSETS Work in progress 891 184 237Trade and other 10 14,783 11,685 9,642receivables Cash and short term 7,954 11,379 11,082deposits 23,628 23,248 20,961CURRENT LIABILITIES Trade and other payables (13,365) (10,449) (8,151)Accruals (1,936) (2,394) (1,347)Corporation tax payable (1,693) (798) (590)Bank loans (3,995) - (700)Acquisition loan notes 11.1 (1,686) (8,386) (7,151)Acquisition contingent payments 11.1 (122) - - (22,797) (22,027) (17,939) NET CURRENT ASSETS 831 1,221 3,022 TOTAL ASSETS LESS 64,380 39,612 41,757 CURRENT LIABILITIES NON CURRENT LIABILITIES Bank loans (14,732) (8,000) (7,300)Acquisition loan notes 11.1 (1,007) (1,881) (1,923)Acquisition contingent payments 11.1 (15,087) (6,452) (6,599) Obligations under - - (28) finance leases Deferred tax liabilities (81) (45) (45) NET ASSETS 33,473 23,234 25,862 CAPITAL AND RESERVES Called up share capital 2,604 2,000 2,156Share premium account 27,867 20,820 22,517Staff remuneration 274 - 128reserve Retained earnings 2,728 414 1,061TOTAL EQUITY 33,473 23,234 25,862 *Restated under IFRS (see note 13) Consolidated Cash Flow Statementfor the 6 months ended 30 June 2007 2.5 months 8.5 months 6 months to to to 30 June 2007 30 June 31 December 2006 2006 Unaudited Unaudited Audited Note £'000 £'000 £'000 Operating cash flow 12 4,232 167 2,207Net finance costs (648) (115) (309)Tax paid (516) (121) (782)Net cash inflow/(outflow) from 3,068 (69) 1,116operating activities Investing activities Purchase of property, plant (100) (105) (368)and equipment Acquisition of subsidiaries (13,148) (2,436) (2,436)Net Cash acquired with 3,743 3,464 3,464subsidiaries Acquisition of associate (24) companies Net cash (outflow)/inflow from investing activities (9,529) 923 660 Financing activities Dividend paid (215) - -Repayments of amounts borrowed (7,151) (11,095) (12,331)Movement in HP creditor (28) - 28Receipts from long term loans 10,727 8,000 8,000Receipts from issue of ordinary share capital - 14,800 14,800 Financing and share issue - (1,180) (1,191)costs Net cash inflow from financing 3,333 10,525 9,306 activities (Decrease)/increase in cash (3,128) 11,379 11,082 and cash equivalents Cash and cash equivalents at 11,082 - - beginning of period Cash and cash equivalents at 7,954 11,379 11,082 end of period Consolidated Statement of Changes in Equityfor the 6 months ended 30 June 2007 Staff Share Share Retained remuneration capital premium earnings reserve Total £'000 £'000 £'000 £'000 £'000 Changes in equity At 7 March 2006 - - - - -(incorporation) New shares issued 2,000 20,820 - - 22,820Profit for the period - - 414 - 414Dividends - - - - -At 30 June 2006 2,000 20,820 414 - 23,234 New shares issued 156 1,697 - - 1,853Credit for share - - - 128 128option scheme Profit for the period - - 647 - 647Dividends - - - - -At 31 December 2006 2,156 22,517 1,061 128 25,862 New shares issued 448 5,350 - - 5,798Credit for share - - - 146 146option scheme Profit for the period - - 1,882 - 1,882Dividends - - (215) - (215)At 30 June 2007 2,604 27,867 2,728 274 33,473 Notes to the unaudited Interim Reportfor the 6 months ended 30 June 2007 1. Accounting Policies Basis of Preparation The Financial statements have been prepared in accordance with InternationalFinancial Reporting Standards (IFRS) for the first time. The disclosuresrequired by IFRS 1 concerning the transition from UK GAAP to IFRS are given innote 13. The Financial statements have also been prepared in accordance withIFRS adopted for use in the European Union and therefore comply with Article 4of the EU IAS Regulation. The next annual financial statements of the group to 31 December 2007 will beprepared in accordance with International Financial Reporting Standards asadopted for use in the European Union. The financial statements have been prepared on the historical cost basis. Basis of Consolidation The Group's financial statements consolidate the financial statements of theCompany and entities controlled by the Company (its subsidiaries). Control isachieved where the company has the power to govern the financial and operatingpolices of an investee entity so as to obtain benefits from its activities. On acquisition, the assets and liabilities and contingent liabilities of asubsidiary are measured at their fair values at the date of acquisition.Goodwill represents the excess of acquisition cost over the fair value of theGroup's share of the identifiable net assets of the acquired subsidiary at thedate of acquisition. Any deficiency of the cost of acquisition below the fairvalue of the identifiable net assets acquired (i.e. discount on acquisition) iscredited to the income statement in the period of acquisition. The results of subsidiaries acquired or disposed of during the year are includedin the consolidated income statement from the effective date of acquisition orup to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements ofsubsidiaries to bring accounting policies used into line with those used by theGroup. All intra-group transactions, balances, income and expenses are eliminated onconsolidation. Turnover Turnover represents the invoiced value of goods sold and services provided netof value added tax. It comprises the amounts billed to clients in respect of theprovision of marketing services in respect of fees, advertising, media, trainingand events. Income Recognition Income is taken on fee income in the period to which it relates. Project incomeis recognised in the period in which the project is worked on. For projects,which fall over the accounting year end, income is recognised to reflect thepartial performance of the contractual obligations in accordance with UITF 40. Income is recognised on the following basis: • Retainer fees are apportioned over the time period to which they relate. • Project income is recognised by apportioning the fees billed or billable to the time period for which those fees were earned by relationship to the percentage of completeness of the project to which they relate. • Media commission is recognised, when the advertising has been satisfactorily aired or placed. • Unbilled costs relating to contracts for services are included at rechargeable value in accrued income. • Unbilled costs relating to contracts for products are carried forward at the lower of cost and net realisable value with no profit recognition. • Financial liabilities are released to income when the liability is extinguished. Share-based payment Transactions In accordance with IFRS 3 certain payments made to employees in respect ofearn-out arrangements are required to be treated as remuneration within theincome statement. These amounts are required to be charged to the incomestatement. The Group has applied the requirements of IFRS 2 Share-based Payments. IFRS 2has been applied to all grants of equity instruments. Equity-settled share-based payments, such as share options, are measured at fairvalue at the date of grant. The fair value determined at the grant date of theequity-settled share payments is expensed on a straight-line basis over thevesting period, based on the Group's estimate of the number of shares that willeventually vest. Fair value is measured by use of a Black Scholes model on the grounds that thereare no market related vesting conditions. The expected life used in the modelhas been adjusted, based on the management's best estimate, for the effects ofnon-transferability, exercise restrictions and behavioural considerations.Market price on any given day is obtained from external publicly availablesources. Pension costs Retirement benefits to employees are provided by defined contribution schemesthat are funded by the Group and employees. Payments are made to pension truststhat are financially separate from the Group. Foreign Currencies Assets and liabilities in foreign currencies are translated into sterling at therates of exchange ruling at the balance sheet date. Transactions in foreigncurrencies are translated into sterling at the rate of exchange ruling at thedate of the transaction. Exchange differences are reflected in the incomestatement accordingly. Goodwill Goodwill arising from the purchase of subsidiary undertakings, represents theexcess of the cost of acquisition over the Group's interest in the fair value ofthe identifiable asset, liabilities and contingent liabilities of the subsidiaryacquired, and is capitalised in accordance with the requirements of IFRS 3.Future anticipated payments to vendors in respect of earn-outs are based on theDirector's best estimates of these obligations. Earn-outs are dependent on thefuture performance of the relevant business and are reviewed annually. Thedeferred consideration is discounted to its fair value in accordance with IFRS 3and IAS 39. The difference between the fair value of these liabilities and theactual amounts payable are charged to the income statement as notional financecosts over the life of the associated liability. Property, plant and equipment Tangible fixed assets are stated at cost less accumulated depreciation.Depreciation is provided on all property, plant and equipment at ratescalculated to write off the cost, less estimated residual value based on pricesprevailing at the date of acquisition, of each asset evenly over its expecteduseful economic life, as follows: Short leasehold property Period of the lease Motor vehicles 25% per annum Fixtures, fittings and equipment 10-33% per annum Computer 25-33% per annum Assets held under finance leases are depreciated over their expected usefullives on the same basis as owned assets or, where shorter, the term of therelevant lease. The gain or loss arising on the disposal of an asset is determined as thedifference between the sales proceeds and the carrying amount of the asset andis recognised in the income statement. Work in progress Work in progress is stated at the lower of cost and net realisable value andincludes the costs of direct materials and purchases, and the costs of directlabour. Net realisable value is based on estimated invoice value less furthercosts expected to be incurred to completion. Deferred Consideration The terms of an acquisition may provide that the value of the purchasesconsideration, which may be payable in cash, shares or other security at afuture date, depends on uncertain future events, such as the future performanceof the acquired company. Where it is not possible to estimate the amountspayable with any degree of certainty, the amounts recognised in the financialstatements represent a reasonable estimate at the balance sheet date of theamounts expected to be paid. The deferred consideration is discounted to a fairvalue. The difference between the fair value of the liabilities and the actualamounts payable are charged to the income statement as notional finance costscalculated at annual rates of between 4.6% and 5.5% over the life of theassociated liability. The rate used is the risk free rate applicable at the timeof acquisition of the relevant entity. The Directors consider these rates to bereasonable in light of similar rates available on debt instruments. Financial Instruments Financial assets and financial liabilities are recognised on the Group's balancesheet when the Group becomes a party to the contractual provisions of theinstrument. Issue costs are offset against the proceeds of such instruments. Financial Liability and Equity Financial liabilities and equity instruments are classified according to thesubstance of the contractual arrangements entered into. An equity instrument isany contract that evidences a residual interest in the assets of the Group afterdeducting all of its liabilities. The Group has only one class of share inexistence. Finance costs Finance costs, which include interest, bank charges and the unwinding of thediscount on deferred consideration, are recognised in the income statement inthe year in which they are incurred. Accounting estimates and judgements The Group makes estimates and judgements concerning the future and the resultingestimates may, by definition, vary from the actual results. The Directorsconsidered the critical accounting estimates and judgements used in thefinancial statements and concluded that the main areas of judgement are: • Revenue recognition policies in respect of contracts which straddle the year end; • Contingent deferred payments in respect of acquisitions • Recognition and qualification of share based payments; and • Valuation of intangible assets. These estimates are based on historical experience and various other assumptionsthat management and the Board of Directors believe are reasonable under thecircumstances and are discussed, to the extent necessary, in more detail intheir respective notes. 2. Business segmentation For management purposes the Group had five operating subsidiaries during theperiod, Bray Leino Limited, Big Communications Limited, Fuse Digital Limited,Bastin Day Westley Limited and April-Six Limited. These have been divided intofive segments which form the basis of the Group's primary segmentation namely;Branding and Advertising, Media, Events and Learning, Public Relations andDigital. 6 months to 2.5 months to 8.5 months to 30 June 2007 30 June 2006 31 December 2006 Unaudited Unaudited Audited £'000 £'000 £'000 Turnover Business segment Branding and 14,909 2,685 11,548Advertising Media 16,851 6,845 15,026Events and Learning 4,227 2,268 7,042Public Relations 936 379 1,302Digital and On-line 2,764 808 2,550 39,687 12,985 37,468 Operating income Business segment Branding and 9,017 2,519 8,807Advertising Media 1,372 483 1,052Events and Learning 1,924 855 2,670Public Relations 734 310 1,042Digital and On-line 1,986 510 1,480 15,033 4,677 15,051 Operating profit Business segment Branding and 2,919 70 1,365Advertising Media 717 624 1,102Events and Learning 413 292 456Public Relations 64 64 94Digital and On-line 619 245 509 4,732 1,295 3,526Central costs (752) (254) (1,003) 3,980 1,041 2,523 3. Operating expenses The operating expenses of £11,052,500 include a non-cash charge of £145,850 forthe options granted to employees in line with Financial Reporting Standard 20:"Share-based payments". 4. Investment income and Finance costs 6 months 2.5 months 8.5 months to to to 30 June 30 June 31 December 2007 2006 2006 Unaudited Unaudited Audited £'000 £'000 £'000 Investment income: Interest receivable 183 82 281 Finance costs: on bank loans and overdrafts (496) (132) (398)on loan notes (110) (65) (192) (606) (197) (590) IFRS interest charges: Finance cost of deferred (304) (95) (284)consideration Bank arrangement fees (225) (120) (120) (529) (215) (404) Total net finance cost (952) (330) (713) All interest bearing loan notes were redeemed within the period. 5. Taxation The taxation charge for the period ended 30 June 2007 has been based on anestimated effective tax rate on profit on ordinary activities prior to IFRSinterest charges of 32% (30 June 2006: 32%). 6. Dividends 6 months 2.5 months 8.5 months to to to 30 June 30 June 31 December 2006 2007 2006 Unaudited Unaudited Audited £'000 £'000 £'000 Amounts recognised as distributions to equity holders in the period (approved): Full year dividend for the period 215 - -ended 31 December 2006 of 1.0 pence per share Amounts not recognised as distributions to equity holders in the period (declared): Full year dividend for the period - - 215ended 31 December 2006 of 1.0 pence per share Interim dividend for the 6 months 94 - -ended 30 June 2007 of 0.36 pence per share 94 - 215 The proposed interim dividend was approved by the Board on 25 September 2007 andhas not been included as a liability as at 30 June 2007. The dividend will bepaid on 23 October 2007 to those shareholders on the register at 5 October 2007. 7. Earnings per share The calculation of the basic and diluted earnings per share is based on thefollowing data, determined in accordance with the provisions of IAS33: "Earningsper Share". 6 months 2.5 months 8.5 months to to to 30 June 30 June 31 December 2007 2006 2006 Unaudited Unaudited Audited £'000 £'000 £'000 Earnings Earnings for the purpose of basic earnings per share being net profit attributable to equity holders of the parent 1,882 414 1,061 Number of shares Weighted average number of ordinary shares for the purpose of basic earnings per share 24,223,833 20,165,289 20,567,372 Dilutive effect of securities: Shares to be issued subject to performance achieved within the period - 1,375,620 994,274Share options 120,000 38,254 -Weighted average number of ordinary shares for the purpose of diluted earnings per share 24,343,833 21,579,163 21,561,646 Dilutive effect of securities: Dilutive effect of expected contingent additional consideration shares 4,114,771 2,066,116 2,325,851Weighted average number of ordinary shares for the purpose of fully diluted earnings per share 28,458,604 23,645,279 23,887,497 Basic earnings per share includes shares to be issued subject only to time as ifthey had been issued at the beginning of the period. Diluted earnings per share includes the Bray Leino deferred initialconsideration shares to be issued, weighted from the date of acquisition whichwas at the beginning of the period, subject to performance achieved within theperiod. The additional consideration shares included in non current liabilitieshave not been included in the diluted earnings per share because the conditionsfor their issue had not been met in the period. Options issued are included indiluted earnings per share to the extent that the market price is above theexercise price in accordance with IAS33. Fully diluted earnings per share includes the contingent Bray Leino, BDW andApril-Six additional consideration shares, at a level that the Board estimatewill be payable, weighted from the date of acquisition, as if they had beenissued at the share price at the end of the period. 8. Goodwill £'000 At 7 March 2006 -Recognised on acquisition of subsidiaries 37,034Adjustment to consideration and net assets -At 30 June 2006 37,034Recognised on acquisition of subsidiaries -Adjustment to consideration and net assets 258At 31 December 2006 37,292Recognised on acquisition of subsidiaries (see note 9) 24,082Adjustment to consideration and net assets 197At 30 June 2007 61,571 The adjustments to consideration relate to changes in the estimated deferredconsideration in the earn-out period under the terms of the relevant sale andpurchase agreement. In accordance with the Group's accounting policies, an annual impairment test isapplied to the carrying value of goodwill. Goodwill is not amortised. Goodwill is comprised of the following substantial components: 30 June 30 June 31 December 2007 2006 2006 Unaudited Unaudited Audited £'000 £'000 £'000 The Mission Marketing Holdings Ltd - 1,106 1,106Big Communications Ltd/Fuse Digital 9,126 7,838 7,965Ltd Bray Leino Ltd 28,363 28,090 28,221April-Six Ltd 14,307 - -Bastin Day Westley Ltd 9,394 - -The Driver Is Ltd 381 - - 61,571 37,034 37,292 The Mission Marketing Holdings Limited has been made non-trading and thegoodwill previously held in it as owner of Big Communications Limited and FuseDigital Limited has been reallocated to those companies. 9. Investments in associates 30 June 30 June 31 December 2007 2006 2006 £'000 £'000 £'000 Investment in shares in iblink Limited 24 - - Investments in associates consists of a 40% holding in the share capital ofiblink Limited, which has been incorporated into these financial statementsusing the equity method of accounting. As at 30 June 2007, the entity has notyet materially traded. 10. Trade and other receivables An allowance has been made for estimated irrecoverable amounts of £165,235 (30June 2006: £63,260 and 31 December 2006: £136,181). 11. Acquisitions 11.1 Acquisition loan notes and acquisition contingent payments The terms of an acquisition may provide that the value of the purchaseconsideration, which may be payable in cash or shares or other securities at afuture date, depends on uncertain future events such as the future performanceof the acquired company. The directors estimate that the liability for paymentsthat may be due are as follows: Initial Additional Shares to Total Consideration Consideration be issued Loan Notes Loan Notes £'000 £'000 £'000 £'000 Less than one year 1,686 61 61 1,808Between one and two years 827 4,479 2,352 7,658Between two and three years 180 4,128 4,128 8,436 2,693 8,668 6,541 17,902 11.2 Acquisition of April-Six Limited On 21 March 2007, The Group acquired the whole issued shared capital ofApril-Six Limited. The fair value of the consideration given for the acquisitionwas £15,973,520. An initial payment of £6,793,864 was satisfied by cash oncompletion. Costs relating to the acquisition amounted to £432,473. Contingent consideration of £7,774,000 is dependent on the profitability ofApril-Six Limited for the 3 years to 16 March 2010. The Group has provided forcontingent consideration of £5,722,000 to date. This has been discounted to anet present value of £4,928,783, with the resulting discounting charge of£793,217 to be taken thorough the income statement over the earnout period. Upto 50 percent of this contingent consideration is payable in the form of sharesat the option of The Mission Marketing Group Plc. The fair value of the net assets acquired was £1,666,264, resulting in goodwillof £14,307,256 which has been capitalised as an intangible asset. Book Value Fair Value Fair value adjustments £'000 £'000 £'000 Net assets acquired Fixed assets 280 - 280Trade and other receivables 1,190 - 1,190Cash and cash equivalents 1,172 - 1,172Trade and other payables (959) - (959)Deferred taxation liability (17) - (17) 1,666Goodwill 14,307Total consideration 15,973 Satisfied by: Cash 6,794Shares issued 3,818Loan notes issued -Deferred contingent consideration 4,929Acquisition costs 432 15,973 The goodwill arising on the acquisition is attributable to the anticipatedprofitability of the Company and the anticipated future operating synergies fromthe combination. Management carried out a review to assess whether any intangible assets relatingto brand names, customer relationships and contractual arrangements wereacquired as part of the transaction. Management concluded that no value could beascribed to these intangible assets on the basis that other intangibles andgoodwill cannot be separately valued, due to the nature of the intangible assetsin question. 11.3 Acquisition of Bastin Day Westley Limited ("BDW") On 9 March 2007, The Group acquired the whole issued shared capital of BastinDay Westley Limited. The fair value of the consideration given for theacquisition was £11,610,122. An initial payment of £5,293,892 was satisfied bycash on completion. Costs relating to the acquisition amounted to £432,473. Contingent consideration of £7,900,000 is dependent on the profitability ofBastin Day Westley Limited for the 3 years to 14 March 2010. The Group hasprovided for contingent consideration of £3,694,000 to date. This has beendiscounted to a net present value of £3,181,916, with the resulting discountingcharge of £512,084 to be taken thorough the income statement over the earnoutperiod. Up to 50 percent of this contingent consideration is payable in the formof shares at the option of The Mission Marketing Group Plc. The fair value of the net assets acquired was £2,216,344 resulting in goodwillof £9,393,778 which has been capitalised as an intangible asset. Book Value Fair Value Fair value adjustments £'000 £'000 £'000 Net assets acquired Fixed assets 251 - 251Inventory 10 10Trade and other receivables 3,021 - 3,021Cash and cash equivalents 2,571 - 2,571Trade and other payables (3,618) - (3,618)Deferred taxation liability (19) - (19) 2,216Goodwill 9,394Total consideration 11,610 Satisfied by: Cash 5,294Shares issued 1,980Loan notes issued 572Deferred initial consideration 150Deferred contingent consideration 3,182Acquisition costs 432 11,610 The goodwill arising on the acquisition is attributable to the anticipatedprofitability of the Company and the anticipated future operating synergies fromthe combination. Management carried out a review to assess whether any intangible assets relatingto brand names, customer relationships and contractual arrangements wereacquired as part of the transaction. Management concluded that no value could beascribed to these intangible assets on the basis that other intangibles andgoodwill cannot be separately valued, due to the nature of the intangible assetsin question. 11.4 Acquisition of The Driver Is Limited ("TDI") On 6 February 2007, The Group acquired the whole issued shared capital of TDI.The fair value of the consideration given for the acquisition was £439,732. Aninitial payment of £185,000 was satisfied by cash on completion. Costs relatingto the acquisition amounted to £11,041. Contingent consideration of £350,000 is dependent on the profitability of TDIfor the 3 years to 31 December 2009. The Group has provided for contingentconsideration of £260,000 to date. This has been discounted to a net presentvalue of £243,691, with the resulting discounting charge of £16,309 to be takenthorough the income statement over the earnout period. The fair value of the net assets acquired was £59,191, resulting in goodwill of£380,541 which has been capitalised as an intangible asset. Book Value Fair Value Fair value adjustments £'000 £'000 £'000 Net assets acquired Fixed assets 80 - 80Trade and other receivables 14 - 14Trade and other payables (35) - (35) 59Goodwill 381Total consideration 440 Satisfied by: Cash 185Deferred contingent consideration 244Acquisition costs 11 440 The goodwill arising on the acquisition is attributable to the anticipatedprofitability of the Company and the anticipated future operating synergies fromthe combination. Management carried out a review to assess whether any intangible assets relatingto brand names, customer relationships and contractual arrangements wereacquired as part of the transaction. Management concluded that no value could beascribed to these intangible assets on the basis that other intangibles andgoodwill cannot be separately valued, due to the nature of the intangible assetsin question. 12. Notes to the consolidated cash flow statement Reconciliation of operating income to operating cash flow 6 months to 2.5 months to 8.5 months to 30 June 30 June 31 December 2007 2006 2006 Unaudited Unaudited Audited £'000 £'000 £'000 Operating profit 3,980 1,041 2,523Depreciation charges 199 71 248Non cash charge for share options 146 38 128(Increase)/decrease in receivables (915) (550) 1,320Increase in work in progress (644) (45) (98)Increase/(Decrease) in payables 1,466 (388) (1,914)Operating cash flow 4,232 167 2,207 13. Explanation of transition to IFRSs This is the first period for which the Group has presented its financialstatements under IFRS. The following disclosures are required in the year oftransition. The last financial statements under UK GAAP were for the year ended31 December 2006 and the date of transition to IFRS was therefore 7 March 2006(incorporation). 13.1 Reconciliation of Equity at 31 December 2006 (date of last UK GAAPfinancial statements) UK GAAP As previously Effect of IFRSs reported transition to IFRSs Note £'000 £'000 £'000 FIXED ASSETS Intangible assets a, d 38,315 (1,023) 37,292Property, plant and equipment 1,443 - 1,443 39,758 (1,023) 38,735CURRENT ASSETS Work in progress 237 - 237Trade and other receivables 9,642 - 9,642Cash and short term deposits 11,082 - 11,082 20,961 - 20,961CURRENT LIABILITIES Trade and other payables d (7,971) (180) (8,151)Accruals (1,347) - (1,347)Corporation tax payable (590) - (590)Bank loans (700) - (700)Acquisition loan notes (7,151) - (7,151) (17,759) (180) (17,939)NET CURRENT ASSETS 3,202 (180) 3,022 TOTAL ASSETS LESS CURRENT 42,960 (1,203) 41,757LIABILITIES NON CURRENT LIABILITIES Bank loans (7,300) - (7,300)Acquisition loan notes b (2,047) 124 (1,923)Acquisition contingent c (7,274) 675 (6,599)payments Obligations under finance (28) - (28)leases Deferred tax liabilities (45) - (45) (16,694) 799 (15,895) NET ASSETS 26,266 (404) 25,862 CAPITAL AND RESERVES Called up share capital 2,156 - 2,156Share premium account 22,517 - 22,517Staff remuneration reserve 128 - 128Retained earnings 1,465 (404) 1,061TOTAL EQUITY 26,266 (404) 25,862 Note 31 December 2006 Total equity previously reported under UK GAAP 26,266a Decrease in Goodwill as a result of adjustment to deferred consideration component of cost of acquisition to present value at acquisition date (1,203)b Adjustment to outstanding deferred consideration acquisition loan notes to present value 124 c Adjustment to outstanding deferred consideration acquisition contingent payments to present value 675 d Adjustment to reverse media accrual writebacks previously recognised under UK GAAP - Increase in Goodwill 180 - Increase in Trade and other payables (180) Total adjustment to equity (404) Total equity IFRSs 25,862 13.2 Reconciliation of Equity at 30 June 2006 UK GAAP As Effect of IFRSs previously transition to reported IFRSs Note £'000 £'000 £'000 FIXED ASSETS Intangible assets a, d 38,057 (1,023) 37,034Property, plant and equipment 1,357 - 1,357 39,414 (1,023) 38,391CURRENT ASSETS Work in progress 184 - 184Trade and other receivables 11,685 - 11,685Cash and short term deposits 11,379 - 11,379 23,248 - 23,248CURRENT LIABILITIES Trade and other payables d (10,269) (180) (10,449)Accruals (2,394) - (2,394)Corporation tax payable (798) - (798)Acquisition loan notes (8,386) - (8,386) (21,847) (180) (22,027)NET CURRENT ASSETS 1,401 (180) 1,221 TOTAL ASSETS LESS CURRENT 40,815 (1,203) 39,612LIABILITIES NON CURRENT LIABILITIES Bank loans (8,000) - (8,000)Acquisition loan notes b (2,047) 166 (1,881)Acquisition contingent c (7,274) 822 (6,452)payments Deferred tax liabilities (45) - (45) (17,366) 988 (16,378) NET ASSETS 23,449 (215) 23,234 CAPITAL AND RESERVES Called up share capital 2,000 - 2,000Share premium account 20,820 - 20,820Retained earnings 629 (215) 414TOTAL EQUITY 23,449 (215) 23,234 Note 31 December 2006 Total equity previously reported under UK GAAP 23,449a Decrease in Goodwill as a result of adjustment to deferred consideration component of cost of acquisition to present value at acquisition date (1,203)b Adjustment to outstanding deferred consideration acquisition loan notes to present value 166 c Adjustment to outstanding deferred consideration acquisition contingent payments to present value 822 d Adjustment to reverse media accrual writebacks previously recognised under UK GAAP - Increase in Goodwill 180 - Increase in Trade and other payables (180) Total adjustment to equity (215) Total equity IFRSs 23,234 13.3 Reconciliation of Profit or Loss for the 8.5 months to 31 December 2006 UK GAAP As Effect of IFRSs previously transition reported to IFRSs Note £'000 £'000 £'000 Turnover 37,468 - 37,468Cost of sales (22,417) - (22,417)Operating Income 15,051 - 15,051Operating expenses (12,528) - (12,528)Operating profit 2,523 - 2,523 Investment income 281 - 281Finance cost (590) - (590)IFRS interest charges a, b - (404) (404)Profit before tax 2,214 (404) (1,810)Tax expense (749) - (749)Profit for the period 1,465 (404) 1,061 Note Operating Profit on Profit for profit Ordinary the period Activities before taxation £'000 £'000 £'000 Profit as previously reported under UK GAAP 2,523 2,214 1,465 a Interest charge on deferred consideration on acquisitions - (284) (284) b Bank arrangement fees - (120) (120) Total adjustment to profit - (404) (404) Profit per IFRS 2,523 1,810 1,061 13.4 Reconciliation of Profit or Loss for the 2.5 months to 30 June 2006 UK GAAP As Effect of IFRSs previously transition reported to IFRSs Note £'000 £'000 £'000 Turnover 12,985 - 12,985Cost of sales (8,308) - (8,308)Operating Income 4,677 - 4,677Operating expenses (3,636) - (3,636)Operating profit 1,041 - 1,041 Investment income 82 - 82Finance cost (197) - (197)IFRS interest charges a, b - (215) (215)Profit before tax 926 (215) (711)Tax expense (297) - (297)Profit for the period 629 (215) 414 Note Operating Profit on Profit for profit Ordinary the period Activities before taxation £'000 £'000 £'000 Profit as previously reported under UK GAAP 1,041 926 629 a Interest charge on deferred consideration on acquisitions - (95) (95) b Bank arrangement fees - (120) (120) Total adjustment to profit - (215) (215) Profit per IFRS 1,041 711 414 14. Leave pay accrual No liability or expense has been recognised relating to untaken leave for any ofthe periods presented. The Group has a policy of not allowing days to be carriedforward from one year to the next, unless in exceptional circumstances. Inaddition, no payment is made in lieu of untaken leave which is not carriedforward. As a result, there is no material liability relating to untaken leaveat year end. An accounting policy of not recognising a liability for untakenleave in the interim figures has therefore been adopted, as any effect on theincome statement at the first half year reverses itself in the second half ofthe year. Were the Group to recognise a liability for the full cost of untakenleave at 30 June 2007, the effect on the income statement would be an expense of£257,560 (30 June 2006: £109,540). 15. Post balance sheet events The Group announced the acquisition of Story UK Limited on 11 September 2007. Aninitial payment of £6.9m was made on completion on 14 September 2007, payable asto £2.8m in TMMG shares and £4.1m in cash and loan notes. The maximumconsideration including the performance related additional consideration payablein March 2011 is £13.5m. 16. Availability of the Interim Report Copies of the Interim Report are available from the Company's registered officeat Garden House, 57-59 Long Acre, London, WC 2E 9JL and on the Group's website,www.themission.co.uk INDEPENDENT REVIEW REPORT TO THE MISSION MARKETING GROUP PLC Introduction We have been instructed by the Company to review the financial information forthe six month period ended 30 June 2007 which comprises the Consolidated IncomeStatement, Consolidated Balance Sheet, Consolidated Cash flow Statement,Consolidated Statement of Changes in Equity and the related notes. We have readthe other information contained in the interim report and considered whether itcontains any apparent misstatements or material inconsistencies with thefinancial information. This report is made solely to the Company in accordance with Bulletin 1999/4issued by the Auditing Practices Board. Our work has been undertaken so that wemight state to the Company those matters we are required to state to them in anindependent review report and for no other purpose. To the fullest extentpermitted by law, we do not accept or assume responsibility to anyone other thanthe Company, for our review work, for this report, or for the conclusions wehave formed. Directors' responsibilities The interim report, including the financial information contained therein, isthe responsibility of, and has been approved by the directors. The directors areresponsible for preparing the interim report in accordance with the ListingRules of the AIM market which require that the accounting policies andpresentation applied to the interim figures should be consistent with thoseapplied in preparing the preceding annual accounts except where any changes, andthe reasons for them, are disclosed. International Financial Reporting Standard As disclosed in note 1, the next annual financial statements of the group willbe prepared in accordance with International Financial Reporting Standards asadopted for use in the EU. Accordingly, the interim report has been prepared inaccordance with the recognition and measurement criteria of IFRS and thedisclosure requirements of the Listing Rules of the AIM market. Review work performed We conducted our review in accordance with guidance contained in Bulletin 1999/4issued by the Auditing Practices Board. A review consists principally of makingenquiries of Group management and applying analytical procedures to thefinancial information and underlying financial data and based thereon, assessingwhether the accounting policies and presentation have been consistently appliedunless otherwise disclosed. A review excludes audit procedures such as tests ofcontrols and verification of assets, liabilities and transactions. It issubstantially less in scope than an audit performed in accordance withInternational Standards on Auditing (UK and Ireland) and therefore provides alower level of assurance than an audit. Accordingly we do not express an auditopinion on the financial information. Review conclusion On the basis of our review we are not aware of any material modifications thatshould be made to the financial information as presented for the six monthperiod ended 30 June 2007. 141 Wardour Street London W1F 0UT Kingston Smith LLP 25 September 2006 Chartered Accountants and Registered Auditors Proforma Consolidated Income Statementfor the six months ended 30 June 2007 The interim financial statements for the six month period ended 30 June 2007includes a full six month trading period, whereas the comparative period to 30June 2006 covers only a two and a half month trading period. In addition, theGroup acquired April-Six Limited and Bastin Day Westley Limited in March 2007,and the Group is presenting its financial statements under IFRS for the firsttime. As a result of the aforementioned factors, comparison of the interim resultsdoes not reflect the underlying organic growth of the Group. A comparableproforma financial statement has therefore been prepared. Proforma figures forboth the current period ended 30 June and the comparative period include allcurrent trading units for the full six months ended 30 June. Similarly, theproforma figures for the year ended 31 December 2006 include all current tradingunits for the full twelve months ended 31 December 2006. This gives arepresentative picture of the underlying trading performance of the Group, thecomparisons representing purely organic growth. 6 months to % 6 months to Year to 30 June 2007 growth 30 June 2006 31 Dec 2006 Unaudited Unaudited Unaudited £'000 £'000 £'000 TURNOVER 45,931 +9% 42,296 78,247 Cost of sales (28,703) +7% (26,829) (48,315) OPERATING INCOME 17,228 +11% 15,467 29,932 Operating expenses (12,489) +10% (11,350) (23,277) OPERATING PROFIT 4,739 +15% 4,117 6,655 Investment income 63 63 63Finance costs (459) (459) (1,193)IFRS interest charge (529) (529) (947) PROFIT ON ORDINARY ACTIVITIES 3,814 +19% 3,192 4,578BEFORE TAXATION Taxation (1,390) (1,191) (1,768) PROFIT FOR THE PERIOD 2,424 +21% 2,001 2,810 Basic earnings per share 9.31 +21% 7.69 10.80(pence) Diluted earnings per share 9.27 +21% 7.65 10.75(pence) Fully diluted earnings per 7.63 +21% 6.30 8.85share (pence) The current level of interest costs and IFRS interest charges has been appliedto all periods presented to reflect the costs associated with the current sizeof the Group and the current levels of debt. A tax rate of 32% has been appliedto profit before IFRS interest charges for all interim periods presented. Incalculating the earnings per share, the proforma number of shares was calculatedand has been used for all three periods, (Basic: 26,036,411, Diluted:26,156,411, Fully diluted: 31,772,037). Segmentation Note For management purposes the Group had five operating subsidiaries during theperiod, Bray Leino Limited, Big Communications Limited, Fuse Digital Limited,Bastin Day Westley Limited and April-Six Limited. These have been divided intofive segments which form the basis of the Group's primary segmentation namely;Branding and Advertising, Media, Events and Learning, Public Relations andDigital. The Group's operations are all based in the UK and substantially allthe Group's business is executed in the UK. 6 months to 6 months to Year to 30 June 2007 % growth 30 June 2006 31 December 2006 Unaudited Unaudited Unaudited £'000 £'000 £'000 Turnover Business segment Branding and 17,171 +11% 15,462 29,058Advertising Media 20,433 +11% 18,354 32,414Events and Learning 4,227 -22% 5,442 10,216Public Relations 936 +26% 740 1,663Digital and On-line 3,164 +38% 2,298 4,896 45,931 +9% 42,296 78,247 Operating income Business segment Branding and 10,679 +9% 9,834 19,167Advertising Media 1,608 +12% 1,432 2,468Events and Learning 1,924 -8% 2,096 3,911Public Relations 734 +29% 568 1,300Digital and On-line 2,283 +49% 1,537 3,087 17,228 +11% 15,467 29,932 Operating profit Business segment Branding and 3,516 +14% 3,092 5,388Advertising Media 759 +36% 557 1,016Events and Learning 413 -27% 565 773Public Relations 64 +49% 43 73Digital and On-line 739 +40% 528 1,026 5,491 +15% 4,785 8,276Central costs (752) +13% (668) (1,621) 4,739 +15% 4,117 6,655 This information is provided by RNS The company news service from the London Stock Exchange