Interim results for the six months to 30 June 2008
Development across the enlarged Group delivers strong margin and EPS growth
23rd September 2008
The Mission Marketing Group plc ("TMMG, themission®"), the UK marketing communications group, today announces its interim results for the six months ended 30 June 2008.
Highlights
Turnover: £57.6m +45%, (2007: £39.7m)
Operating Income (Revenue): £22.5m +50%, (2007: £15.0m)
Operating profit: £6.0m +50%, (2007: £4.0m)
Digital Operating profit: £3.2m +59%, (2007: £2.0m)
Operating margin: 26%, (2007: 26%)
Profit before tax: £4.9m +62%, (2007: £3.0m)
Diluted EPS: 10.15 pence +31%, (2007: 7.73 pence)
Interim dividend maintained at 0.36 pence per share declared reflecting confidence in the prospects of the Group while conserving cash.
Cash inflow from operating activities of £3.5m, (2007: £3.1m)
Adjusted bank debt £24.0m down £1.4m, (2007: £25.4m)
Interest cover up to 6.9x from 4.9x
Adjusted cash net of loan notes and netting against bank debt of £7.5m down £1.4m, (2007: £8.9m)
On a pro-forma basis:
Turnover: £57.6m +3%, above market rates* (2007: £56.1m)
Operating Income (Revenue): £22.5m +5% (2007: £21.5m)
Organic growth enhanced by leveraging additional services across the enlarged Group's existing clients
Good new business wins including Hastings, Ricoh, Lil-lets, Royal Mint and RBS
Continued expansion of digital capabilities - operating income up 59%
Acquisition integration proceeding well - onemissionTM delivering Group wide benefits
*Source: Carat Adspend forecast anticipates 2.5% growth in 2008 in the UK
The proforma figures allow direct year-on-year comparison with the comparable interim period for 2007.
Iain Ferguson, CEO of themission® said:
"During the first half of 2008 themission® has benefited from the acquisitions made in 2007, its strength in digital and a good new business performance. Overall, our strategy has delivered despite the difficulties facing our clients in the current period of economic weakness.
Against this backdrop we have taken a number of initiatives to reduce costs. Looking forward we believe that the benefits of the enlarged Group, coupled with the quality of our work means that we continue to be well positioned in the markets in which we operate."
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