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On a recovery mission

This company is far better placed to ride out the Covid-19 economic uncertainty than investors are giving it credit

I had an informative call with James Clifton, chief executive of UK advertising and marketing specialist The Mission Group (TMG:56p).

A key take for me from its Covid-19 trading update is that technology-focused agencies, accounting for a fifth of the revenue mix, are doing rather well and have largely been unscathed by the crisis. In fact, they continue to win new clients, perhaps not that surprising when you consider that many clients operate globally so are accustomed to agencies pitching on Zoom calls. For instance, Mission’s April Six agency has just been appointed by MSC Software Corporation, a leader in computer-aided engineering simulation software, to design its media, content and analyst relations strategy in the UK, USA and DACH (Germany, Austria and Switzerland) markets. Mr Clifton also revealed that Mission’s US offices in San Francisco and Seattle are “performing well for us”. The latter office works with technology giant Amazon.

Mission’s technology focus is set to pay dividends in a major way. That’s because the group’s Fuse technology incubator has developed Pathfindr, a tracking product that provides customers with real-time insights into their assets and processes. Prior to the Covid-19 outbreak, it had already been sold to some of the most well-known names in global aerospace and manufacturing, including Rolls Royce. It is even more valuable technology now.

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