The flat top line recorded by Mission Marketing Group (TMMG) in 2014 is somewhat misleading, as around half of the company's turnover is made up of pass-through billing. Look beneath that figure and the numbers are encouraging: operating income grew 7 per cent to £55m, while headline trading profit was up 10 per cent at £7.7m.
Chairman David Morgan, who described the year as "a good innings", said £2.1m of costs associated with the acquisitions of Proof Communication, Splash, and Speed Communications masked the additional earnings of the new businesses, which should be better reflected in income and profits this year. Together, the deals have given the marketing division greater exposure to Asia and the US as well as a broader reach in UK public relations.
Despite these investments - which were partly funded by an autumn equity placing of £2.3m - the company reduced its debt pile by £1.3m to £9.4m. Management is targeting parity between cash profits and net debt this financial year. That's despite plans for a further two acquisitions, one of which Mr Morgan says is likely to be the largest in the company's history.
Broker finnCap forecasts adjusted pre-tax profits of £6.4m and EPS of 5.6p this year, up from £5.5m and 5.1p in 2014.
| MISSION MARKETING GROUP (TMMG) | ||||
|---|---|---|---|---|
| ORD PRICE: | 42p | MARKET VALUE: | £35m | |
| TOUCH: | 41.5-43p | 12-MONTH HIGH: | 56p | LOW: 39p |
| DIVIDEND YIELD: | 2.6% | PE RATIO: | 8 | |
| NET ASSET VALUE: | 84p* | NET DEBT: | 13% | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | 90 | 1.6 | 1.7 | nil |
| 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 |
| % change | +1 | +69 | +75 | +10 |
Ex-div: 9 Jul Payment: 20 Jul *Includes intangible assets of £77m, or 92p a share | ||||
