Headline numbers from Mission Marketing (TMMG) look decent. Revenue in the year to 31 December 2016 rose 8 per cent to £65.9m and pre-tax profits (after excluding one-off events) were up by a similar amount to £7m. But much of that growth has come from recent acquisitions and we are concerned by management's failure to disclose organic growth.
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Furthermore, free cash flow of £5.3m omits the £800,000 spent on software development, and the group's cash position has in fact narrowed to just over £1m. With £16m of net debt, including the obligations owed for recent acquisitions, the balance sheet is not looking healthy.
