The Mission Marketing Group plc
Unaudited preliminary results
For the period ended 31 December 2006
26th March 2007
Quality acquisitions, breadth of service offering and lower operating costs drive strong financial performance - profit growth of 22% is well ahead of sector.
The Mission Marketing Group plc ("TMMG, themission ®"), the UK marketing communications group, today announces its preliminary results for the period ended 31 December 2006 following its admission to AIM on 13 April 2006.
As the statutory accounts cover only the eight and a half month trading period to 31 December 2006, proforma accounts have been prepared for the full year together with a comparable period to 31 December 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 full year with the comparable proforma for the previous year.
- Turnover £37.47m, proforma £54.13m (2005: £47.09m) up 15%
- Gross profit £15.05m, proforma £21.32m (2005: £18.87m) up 13%
- Operating profit £2.52m, proforma £4.28m (2005: £3.59m) up 19%
- PBT £2.21m, proforma £3.74m (2005: £3.07m) up 22%
- Normalised proforma PBT excluding FRS20 non-cash charges of £3.87m
- Diluted EPS 6.79 pence, proforma 11.86 pence (2005: 9.68 pence) up 23%
- Maiden dividend of 1.00p per share proposed
- Cash (net of collateral cash held against loan notes due within one year) of £3.86m
- Broad service offer, growth in digital and cost efficient structure underpins the strong organic growth
- Digital revenues grew by 61% and made up 9% of gross profit for the full year
- New on and off-line clients include Seagate, Sugar Puffs, Hadrin, Miele, THE WORKS, Mates, Britax and Superdrug
- Successful integration of Bray Leino, Big and Fuse already achieved and synergy benefits delivered to clients
- Acquisition strategy being actively implemented: two major acquisitions completed in March 2007 and an estimated £24.0m turnover and £8.5m gross profit
- 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
Iain Ferguson, CEO of themission ® said:
"The mission has delivered a strong performance in its first year. In a competitive and fragmented world, our clients are increasingly looking for expert, commercial partners who look constantly for ways to do things faster, more cost-effectively and with more flexibility than ever before. We have created a solid platform on which to execute our strategy of combining further organic growth with selective earnings enhancing acquisitions."
"The current year has started well with the momentum seen in the period to 31 December 2006 continuing into 2007. The acquisitions of BDW and April-Six extend the Group into the high growth property and IT marketing sectors. These two new members fit perfectly with the themission ®'s strategy set out at the time of our AIM flotation and we have a strong acquisitions pipeline of future targets. This, coupled with an encouraging start to the year across our businesses, makes the Board confident of delivering another strong year in 2007."
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