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Mission on course for strong profit recovery

UK advertising and marketing specialist is delivering a robust profit rebound and one supported by new client wins and double-digit growth in advertising spend.
Mission on course for strong profit recovery
  • First half operating profit of £2m on 17 per cent higher revenue of £34.1m reverse £1.8m loss in first half of 2020.
  • 11 of 13 agencies deliver material year-on-year improvement.
  • Interim dividend of 0.8p supports full-year forecast of 2.3p.

UK advertising and marketing specialist The Mission Group (TMG:78p) flagged up the strong sequential quarter-on-quarter recovery in both revenue and profitability in the first half in a pre-close trading update (‘On a recovery mission’, 15 July 2021), so the directors view on the outlook and strategic developments are more relevant at this juncture. Given the seasonal second half weighting, the guidance given supports analysts’ predictions of a six-fold rise in full-year pre-tax profit to £7.1m on £10m higher revenue of £71.1m which underpin earnings per share (EPS) of 6p and a forecast dividend per share of 2.3p.

The directors report a particularly strong performance from agencies that operate in sectors that have been more resilient to the effects of the pandemic, including specialist technology and mobility agency, April Six, which delivered 10 per cent higher revenue in the first half and 25 per cent growth in North America.

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