Interim Results 2006 for the six months to 30 June 2006
Growth in digital and breadth of service offering drives organic operating profit growth of 30% - well ahead of sector
14th September 2006
The Mission Marketing Group plc ("TMMG, themission®"), a leading UK marketing communications group, today announces its maiden interims following admission to AIM on 13 April 2006.
As the statutory accounts cover only the two and a half month trading period to 30 June 2006, proforma accounts have been prepared for the full six months together with a comparable period to 30 June 2005. This gives a representative picture of the underlying trading performance of the Group and enables comparison with the proforma accounts in the AIM Admission Document. This comparison represents purely organic growth as it includes only the current trading units for each of the periods.
The highlights below show the results for the period and then for the proforma half year with the comparable proforma half for the previous year.
Highlights
- Turnover £13.0m, proforma £29.8m (2005: £24.2m) up 23%
- Operating profit £1.0m, proforma £2.9m (2005: £2.2m) up some 30%
- PBT £0.99m, proforma £2.5m (2005: £2.1m) up 22%
- Diluted EPS 2.92 pence, proforma 8.01 pence (2005: 6.57 pence) up 22%
- This growth in the half builds upon the proforma full year to 31 December 2005 which had o Turnover of £47.1m o Operating profit of £3.6m o PBT of £3.1m o Diluted EPS 9.68 pence
- Cash net of loan notes due within one year of £3.0m
- A broad service offer, growth in digital and cost efficient structure underpins good organic growth
- Digital marketing grew by 34% and made up £947,000 or 9% of gross profit in the half
- Successful flotation provides capital for growth - both organically and through selective acquisitions
- Acquisition of Bray Leino adds significant scale
- Integration of businesses on track and benefits are beginning to be generated
- Acquisition strategy being actively implemented
- Current trading is in line with the Board's expectations, with good organic growth supported by encouraging new business performance - including digital and new media.
Commenting on the results Iain Ferguson, CEO said:
" themission® has reported a good financial performance during the first half of the year. The successful IPO and acquisition of Bray Leino have provided us with a strong platform from which to implement our strategy of building a national advertising and marketing agency network. We are already seeing the benefits of the acquisition and our increased scale coming through as our clients start to use more of our specialist services, particularly digital.
The second half has started well with trading in line with our expectations. Growth in digital together with increased share of spend from existing clients, thanks to the Group's broader service offering, underpins our good organic growth prospects. This, coupled with a strong acquisitions pipeline, makes us confident of delivering a good financial performance in 2006 and positive about the future prospects for the Group."
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