Last checked at 14 Jul 2010 07:00
The Mission Marketing Group plc
Trading update
14 July 2010
The Mission Marketing Group plc ('themission®`, AIM: TMMG), the national marketing communications and advertising group, today issued the following trading update for the six months ended 30 June 2010.
Trading for the first half of 2010 has been in line with management's expectations. Whilst turnover is marginally higher than the equivalent period last year (at c£43m), the continuing pressure on margins due to the difficult economic backdrop has resulted in operating income approximately 7% lower than last year.
The Board has substantially strengthened the group's balance sheet in the period. Bank debt has been rescheduled, with committed facilities available to 2013, acquisition liabilities have been virtually eliminated through equity conversion and a placing of new shares, and the focus on cash management across the agencies has resulted in stronger operating cash flows. As a result, the group's total debt/equity ratio has reduced from almost 50% at 31 December 2009 to c30% at 30 June 2010.
Although operating profits in the first half of the year will, in line with management's expectations, be somewhat lower than last year's, the Board can see clear signs of improvement in the second half of the year. Some of the group's specialist agencies, notably in the IT and property sectors, are showing strong market growth and good new business wins, whilst the integrated agencies have received commitments for H2 which indicate a more pronounced second half profit.
The Group has had a steady start to the year and the Board looks forward to the second half with increased confidence.
| David Morgan, Executive Chairman The Mission Marketing Group plc |
020 7758 3525 |
| Peter Fitzwilliam, Chief Financial Officer The Mission Marketing Group plc |
020 7758 3525 |
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| Charles Palmer/Nicola Biles Financial Dynamics |
020 7831 3113 |
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| Mark Percy/Jeremy Porter |
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| Seymour Pierce Limited | 020 7107 8000 |
themission® is a national marketing communications and advertising group with 11 offices across the UK. The Group specialises in providing national and international clients with award winning marketing, advertising and business communications. Group members include thinkApril-Six, Bray Leino, Big Communications, Fuse Digital, thinkRLA, Story and thinkBDW. themission® employs 600 staff nationally and is listed on AIM (TMMG).