24th Jul 2009 07:00
The Mission Marketing Group plc
Trading update
24 July 2009
The Mission Marketing Group plc ('themission®`, AIM: TMMG), the national marketing communications and advertising group, today issued the following trading update for the six months ended 30 June 2009.
During the first half of 2009, themission's performance has reflected conditions in the UK advertising market. Operating income of some £18.4m (H1 2008, £22.4m) is broadly in line with the Group's expectations and the more balanced first half / second half split in operating income announced last year.
While the Board does not believe that market conditions will continue to deteriorate at the same rate in the second half, it does not foresee a return to significant growth in general client expenditures until 2010.
The Group has, therefore, activated a series of initiatives during the last 12 months to manage the cost base and this, combined with industry wide pricing pressure and the continued deterioration in the economy during the first half of 2009, has impacted on profitability during the period.
The Board is pleased to report that, despite the difficult trading environment, our agency management teams have maintained the new business momentum across the Group. Recent wins include The Royal Mint, Countrywide Lettings, Blue Coat, the Office of National Statistics Census, Bloor Homes, Crest Nicholson, Taylor Wimpey, Landmark Trust, WKD Core, Woburn, Transform Medical, Calor, Kingston Technologies, Avanade, Lan2Lan, RNLI, Virgin Media, BP Alternative Energy, Manchester Airports Group and M&S Money.
The full financial benefits of the cost reduction programmes are now being felt and will continue to come through during the second half. As a result, whilst second half operating income is likely to be similar to that achieved in the first six months, profitability will improve significantly against that of the first half.
Overall the Group remains well positioned in the markets in which it operates and will benefit as the UK advertising market recovers.
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Iain Ferguson, Chief Executive The Mission Marketing Group plc |
020 7395 7575 |
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Tim Alderson, Chief Financial Officer The Mission Marketing Group plc |
020 7395 7572 |
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Charles Palmer/Nicola Biles Financial Dynamics |
020 7831 3113 |
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Mark Percy/Sarah Jacobs |
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Seymour Pierce Limited |
020 7107 8000 |
www.themission.co.uk
themission® is a national marketing communications and advertising group with 12 offices across the UK. The Group specialises in providing national and international clients with award winning marketing, advertising and business communications. Group members include April-Six, Bray Leino, Big Communications, Fuse Digital, rla Group, Story UK and thinkBDW. themission® employs 600 staff nationally and is listed on AIM (TMMG).
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