Growth through acquisitions remains at the heart of the business strategy for Mission Marketing (TMMG), with two new businesses added to the portfolio in the last financial year. Last year also saw the launch of the company's first start-up agency - Mongoose Sports and Entertainment - which though currently loss-making, has been gaining traction in an exciting marketplace. "All good stuff", concluded chairman David Morgan.
Recent acquisitions were key drivers of the 11 per cent increase in operating income. But the hefty associated costs, plus restructuring and the loss-making start-up caused operating profit to take a dip. Stripping out the £1.3m of one-off expenses, headline operating profit increased 14 per cent to £6.9m.
Mission's brands continue to attract big clients such as British Airways, BMW and Pfizer. Client retention also remains high, with 59 per cent of the total operating income generated in 2015 coming from companies that have been with the group for more than five years and over 20 per cent from those that have stuck around for more than two decades.
Broker finnCap is expecting an adjusted pre-tax profit of £7.2m and EPS of 6.7p in 2016, up from £6.5m and 5.9p last year.
MISSION MARKETING (TMMG) | ||||
|---|---|---|---|---|
| ORD PRICE: | 45p | MARKET VALUE: | £38m | |
| TOUCH: | 44-46p | 12-MONTHHIGH: | 49p | LOW: 39p |
| DIVIDEND YIELD: | 2.7% | PE RATIO: | 9 | |
| NET ASSET VALUE: | 87p* | NET DEBT | 15% | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 116 | 4.1 | 4.4 | nil |
| 2012 | 117 | 4.7 | 4.7 | nil |
| 2013 | 124 | 3.2 | 3.1 | 1.0 |
| 2014 | 126 | 5.4 | 5.4 | 1.1 |
| 2015 | 132 | 5.1 | 4.9 | 1.2 |
| % change | +5 | -5 | -10 | +9 |
Ex-div: 7 Jul Payment: 18 Jul *Includes intangible assets of £82m, or 98p a share | ||||
