reports
- Fiona Orford-Williams
The Mission Marketing Group - Krow: Bar raised
The mission has delivered good FY17 results and announced the purchase of Krow Communications, a well-regarded London advertising agency. Initiatives on shared back-office functions and tech-enabled collaboration are starting to lift group operating margins, up 20bp to 11.7%, on the path to the FY20 goal of 14%. Strong cash generation reduced end FY17 net debt by £4.1m to £7.2m (£14.5 including previous acquisition obligations), amply covering the initial cash consideration of £2.75m for Kro...
- Fiona Orford-Williams
The Mission Marketing Group - Adding value and building margin
The mission’s year-end trading update indicates that its FY17 profits were a shade ahead of the market forecast, with the bonus of a strong working capital performance delivering a very good reduction in net debt to below £7.5m. A greater degree of back-office integration in FY18, building on collaboration initiatives already in place, should help margins to progress, further boosted by reduced interest rates triggered by the stronger balance sheet. The lengthening record of delivering on exp...
QuickView: Double-digit growth continues
This morning’s trading update shows that the positive trading momentum from H215 has continued into the current year. The mission’s H1 revenue and profit growth, in double digits, continue to be well ahead of the market, with no indication of any hiatus post the Brexit vote. There is growth both at the organic level and from last year’s acquisitions, which added scale, capability and geographic reach. Although there is an inherent H2 bias to the numbers, current year forecasts look well un...
QuickView: Scaling up
A busy close to the year helped the mission (TMMG) to deliver market-beating revenue and earnings growth of 11% and 17% respectively: a combination of organic and acquisitional progress and particularly strong growth from acquired agencies. It is thriving on its rediscovered confidence, building its capabilities and extending its geographic reach via a low-risk model. The valuation remains at a deep discount to other smaller quoted agencies, on a rating that does not reflect the greater scale an...
Update: A new Chapter
The mission has added the Chapter Agency to its network, consistent with its growth strategy of broadening and deepening its network through both acquisitions and start-ups. Chapter broadens the advertising base, with an award-winning creative team, and adds strong new clients to the roster. New business wins continue to flow in H2 and the group is starting to leverage its international opportunities. The valuation remains at a deep discount to peers – well beyond that attributable to its smal...
QuickView: Quest for growth
The mission’s H115 results benefited from strong performances from newly acquired businesses, driving operating income ahead by 12%. There is plenty still to do in H2, but new business momentum is good, with some high-profile new clients on the roster. The group has been broadening and deepening its capabilities via both acquisition and start-ups, particularly in PR, digital and events. Further deals are on the cards in H2, supported by the stronger balance sheet. The interim dividend is raise...
QuickView: Mission in progress
The mission’s trading update shows the group on track to meet full-year market expectations, with the normal profits’ bias towards the second half. This has been a busy time for the group, now firmly on the front foot as it seeks out and consolidates opportunities for both organic and acquisitional growth. With continued strengthening of the balance sheet and forecast EPS growth of 10% in the current year and 9% in FY16, the rating of 7.2x FY15 is on an overly heavy discount to peers and mar...
QuickView: Mission on message
The mission’s FY14 results are in line with market expectations and show good progress in building out the client offer. The acquisitions have bedded in well and extended the group’s geographic reach, with new business wins helping to drive operating income. There have been meaningful improvements to the balance sheet, with gearing falling to 13% (end FY13: 16%) and new banking facilities give flexibility to fund growth. Current forecasts factor in negligible growth over pro forma numbers, y...
QuickView: Weather brightening up
With its improved financial position, the mission continues to supplement organic growth with complementary and contiguous acquisitions. This morning it has added a further small agency to its stable, The Weather, strengthening the Story agency’s digital capability. Due to its relatively small scale, full transaction terms are not disclosed, but include the issue of 210k shares. Group final results will be on 26 March, when management will update on early progress of last autumn’s three acqu...
QuickView: Good H2 delivers on expectations
The mission’s brief trading update indicates FY15 results in line with market expectations, along with further balance sheet improvement. There is an inherent industry bias toward the year end as clients spend up their marketing budgets, which can make H2 trading targets look demanding. The mission has clearly achieved its H2 ambitions and this momentum gives encouragement that it is now firmly on the front foot. Final results are on 26 March, when we expect news on early progress of the autum...
QuickView: Coming up to speed
The mission is continuing its acquisition programme to build up its capabilities and resource. It has today added to its PR activities with the purchase of Speed Communications. Although a small transaction, including the issue of 600,000 shares, this gives the group greater resource, a wider range of vertical speciality and further strengthens the client roster. After last month’s share placing and acquisition in Singapore, the group is clearly confident and back in growth mode, and is back o...
QuickView: Making a splash in Asia
Following on from the progress reported at the recent interim figures, the mission has raised £2.4m gross via a placing of 5.7m new shares at 42p, a small premium to the previous close. It has also made a further step towards its goal of increasing the group’s scale and reach through its intended purchase of a 70% holding in Splash, a digitally-focused agency in Asia, on an exit multiple equivalent to around 7x profits. The return to dividend payments with the interims underlines managementâ€...
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