Mission Group trading as expected as it works on savings plan
By Josh White
Date: Monday 17 Jun 2024
(Sharecast News) - Mission Group said in an update on Monday that trading between 3 April and 17 June had remained in line with the board's expectations.
The AIM-traded company, which was holding its annual general meeting, highlighted several new business wins during the period, including high-profile clients such as Okta, Popeyes, FatFace, GoHenry, Mastercard, BNP Paribas, England Cricket Board, Guinness Homes, Fonterra, and McCarthy Stone.
It put the new client mandates down to previous investments aimed at enhancing Mission's service offerings and capabilities.
The group also reported notable progress on its value restoration plan (VRP), which
aimed to achieve £5m in annualised profit improvements for the year.
It said the first phase, completed in late 2023, included significant headcount reductions, resulting in £2m in annualised cost savings.
The second phase was focussed on an additional £3m from cost savings and profit improvements through efficiency gains, with most of those savings already implemented and the rest expected to be fully realised by the end of 2024.
Mission Group said it was also continuing to explore options for deleveraging its balance sheet.
The company successfully refinanced its existing debt facility with long-standing lender NatWest in March, and would provide further updates on these discussions when appropriate.
"I am pleased to report progress on our stated commitments to focus on debt reduction, rebuilding the balance sheet and delivering on our strategy for 2024 and 2025, to deliver value for our shareholders and other stakeholders," said non-executive chair David Morgan.
"A series of great new business wins, some of which open up fresh strategic opportunities for the group, are testament to the entrepreneurial spirit of our agencies and we look forward to providing further updates as the year progresses."
Mission Group said it would release its half-year trading update for the six months ending 30 June by the end of July.
Reporting by Josh White for Sharecast.com.
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