Mission Marketing
1st December 2007
The marketing communications and advertising company Mission Marketing has announced that it has, subject to shareholder approval, raised a total of £5 million by placing 3,571,429 new ordinary shares at 140p with institutions. The net proceeds are expected to be used to support the company's acquisition driven growth strategy.
COMMENT
This is a useful boost to the balance sheet and should reduce net debt to around £11-£12 million by the end of the current year to 31 st December 2007. This looks high but forecast pre-tax profits of £6.2 million for the year should mean that interest payments are comfortably covered. Of course our earnings forecasts will have to be changed as the placing will Increase the number of shares in issue by 12.7%. The shares are expected to commence trading on 16th November so current year earnings will only be slightly affected and now we expect 14.1p of earnings, putting the shares on a multiple of 10 for the year. In calendar 2008 earnings should now be around 16p and on a forward multiple of just 8.8 times earnings we continue think that the shares merit a BUY.
http://www.aimnewsletter.co.uk/
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