25th Mar 2014 13:56
LONDON (Alliance News) - The Mission Marketing Group PLC Tuesday reported a lower pretax profit in 2013 as higher sales costs and restructuring charges more than offset a rise in revenues, but said early signs for 2014 were "very positive" after its markets showed signs of improvement in the second half of last year.
The marketing, communications and advertising company posted a pretax profit of GBP3.2 million, down from GBP4.7 million in 2012, despite revenue rising to GBP124.1 million, from GBP117.0 million.
Revenues in the first half of the year were hampered by the loss of B&Q as a client at its Addiction business, and reduced revenue from new client Aviva, which meant it had to restructure its Bray Leino unit in London. It also said the first half of the year was tougher than expected, as client marketing budgets remained under scrutiny. The pitching process was frequently long and drawn out it said.
That pushed up its operating expenses and cost of sales, weighing heavily on operating margin which fell to 8% from 12% in the first half of the year. It also booked a GBP1.5 million charge for the year as a whole for restructuring of the Bray Leino and Addition business.
In the second half, the company saw the benefits of restructuring, and the market became easier. Its margin recovered to 14%, from 13% a year earlier.
Revenue was boosted by the acquisition of Fox Murphy Ltd contributing for its first full year, Mission said, and its acquisition of Solaris Healthcare Network Ltd in September, 2013.
The company expressed confidence for 2014, saying that early signs were positive.
The company had resumed dividend payments at its half year results, and Tuesday proposed a final dividend of 0.75 pence, bringing its total dividend to 1.0 pence. Dividend payment had been previously suspended to conserve cash.
Shares in Mission Marketing were trading down 5.9% at 42.35 pence Tuesday afternoon.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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