Last checked at 27 Jul 2023 07:01
27 July 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 CountsTM, 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 six months ended 30 June 2023 ("the period" or "H1").
Trading Update
MISSION has secured notable new Client wins during H1, including; UK Space Agency, Macmillan Coffee Morning, M1 Telecom, Goldman Sachs, Jägermeister and Worldpay, among others, and looking ahead, the new business pipeline remains strong.
As a result, the Group expects to report overall revenue growth of 12 percent to £42.0m (30 June 2022: £37.5m) for the period, with headline operating profit of £1.9m (30 June 2022: £2.2m). Headline profit before tax for the period has been impacted by higher interest rates and is expected to be £1.0m (30 June 2022: £1.8m).
Revenue growth has been driven by strong progress across MISSION's Lifestyle & Property, Sports & Entertainment and B2B sectors. However, the Group has not been immune from the challenges in the US technology sector and the reduced level of activity in this market in 2023 has impacted margin mix, particularly in comparison to 2022.
MISSION has a significant second-half weighting with respect to profitability. Revenue growth is anticipated across all sectors with run rates from the US technology sector starting to return to 2022 levels. Whilst the Group remains on track to meet full-year guidance, profitability is likely to be at the lower end of the Board's expectations, with profit before tax expected to exceed that of 2022 (£7.8m).
In line with its stated strategy for growth, the Group continues to expand its capabilities in new areas of opportunity. In H1, this included the acquisition of Mezzo Labs, a global data science and digital analytics consultancy, and the launch of Turbine, an integrated Growth Media agency specialising in earned, owned and paid media for consumer brands.
MISSION has been pleased with the progress made to integrate both these offerings into the wider Group and continues to drive cross-Agency synergies.
Commenting, James Clifton, Chief Executive Officer of MISSION said:
"Despite the more challenging trading environment, it is pleasing to see double-digit revenue growth and continued strong Client retention and acquisition. The investments made across the Group in recent years underpin a robust performance for the period.
"We enter H2 with a degree of caution linked to the wider economic backdrop but with the tailwind of notable Client wins and an encouraging pipeline of new business opportunities, which reinforce the Board's confidence in the long-term outlook for the Group."
Notice of Results The Group expects to announce its interim results for the six months ended 30 June 2023 on 26 September 2023.
ENDS
ENQUIRIES:
James Clifton, Chief Executive Officer Giles Lee, Chief Financial Officer The MISSION Group plc |
020 7462 1415 |
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 Creative and MarTech Agencies led by entrepreneurs who encourage an independent spirit. 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 our 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