The Mission Marketing Share Discussion Threads

[montyhedge] 14/9/2018 13:50

I see Derriston Sorells new agency shell back today.

[jeff h] 14/9/2018 13:22

Whether this becomes a financial success remains to be seen but certainly interesting to watch its progress:-

[pireric] 13/9/2018 22:29

Very much agree that it's performance dependent, but looking at the price paid for some of the businesses, my strong feeling is that much of it will have a lowish hurdle

Btw need to add the maximum +£12.5m from Krow

[red_shed2000] 13/9/2018 22:11

Pirec/ALS

Thanks for you comments!! I slightly disagree (respectfully).
From the last financial results:

The Group's acquisition obligations at the end of 2017 were £7.2m (2016: 4.7m). Virtually all of this is dependent on post-acquisition earn-out profits, some to the end of 2020. £1.8m is expected to fall due for payment in cash within 12 months and a further £2.6m in cash in the subsequent 12 months. The Directors believe that the strength of the Group's cash generation can comfortably accommodate these obligations alongside the Group's commitments to capital expenditure and dividend payments.

So 1.8m next year BUT it's dependant on earn out and therefore if there is a downturn then the vast majority isn't payable.

Looks to me they are getting good deals on initial cash payable then incentivising existing management to perform, often in the long term, to earn the real money. However, mission own the company at this point so the performance is paying for the obligations - so win win?

So if the company does well, they have the cash to pay - no problem. If there's a downturn then net debt is the net debt as it stands - and once again they are not that leveraged in the grand scheme of things (pending utter disaster where no one is safe!)

Just my opinion and maybe yours differs, but that's what makes the markets!

All the best.
Red

[arthur_lame_stocks] 13/9/2018 20:34

And gearing is ok when things are going well, but if there's a sustained downturn then their balance sheet really isn't strong enough to cope.

[pireric] 13/9/2018 19:49

Red - Need to look beyond just headline net debt; you need to factor in contingent consideration on acquisitions already made into the debt equation. Quite frankly, if the business is performing remotely well, then most of this will likely come due for payment. And so liabilities you'd adjust for in addition to net debt adds to much higher than the 8.4m figure.

[bbluesky] 13/9/2018 08:33

ALS see Glasshalffulls excellent earlier post, as to how the company has changed and perception not. Just needs a spark.

[red_shed2000] 13/9/2018 07:41

I personally don't have a problem with the balance sheet and haven't for around 2 years. Net debt on last update was around 8.4 million which is hardly demanding given their forecasts and cash flow.

I do however agree on concentrating on organic growth...

GLA

[arthur_lame_stocks] 12/9/2018 20:42

They should really stop making acquisitions for a couple of years and concentrate on strengthening the balance sheet, then the price might better reflect the results.

[red_shed2000] 12/9/2018 18:39

Been saying the same for 3 or 4 years Monty. I reckon this will be sub 50p till the day I die...which I hope will be many years yet!!!

[montyhedge] 12/9/2018 15:16

Any other agency looking at this company can see the attraction market cap low, low p.e. talented people.

[montyhedge] 12/9/2018 13:51

I like this ripe for a merger with one of the bigger boys.

[red_shed2000] 23/7/2018 13:24

Another update, another signalling of double digit growth....that must be 5 years on the bounce now...

And yet again another year of me saying 'God knows why this is so cheap'!

Next year Rodney.....

[dr biotech] 23/7/2018 10:48

Seems like another solid update. Just have to hope it’s enough to finally trigger a rerating.

[18bt] 23/7/2018 08:09

Difficult not to raise working capital when turnover rises

[funkmasterp12] 23/7/2018 07:22

Solid update

[eentweedrie] 23/7/2018 07:09

decent results

[qs99] 16/7/2018 12:48

And some more....GLA

[qs99] 09/7/2018 15:35

every little helps

[qs99] 04/7/2018 12:26

So XD coming up and July has historically seen a TU so could be an interesting few weeks...DYOR...

[gilotron] 12/6/2018 13:29

Nice one Jeff. I continue to hold

[jeff h] 11/6/2018 19:34

Not a bad read about Bray Leino:-

[bbluesky] 25/4/2018 18:25

I missed the 1m share trade on 20th April, post Polar Cap news. Have talked about the overhang before! Last chance?

[arthur_lame_stocks] 21/4/2018 13:32

Paul Scott did a good write up on Stockopedia which I basically agree with.

Like him i'd say that the debt is not a problem at the moment but if the market takes a turn for the worse it could become one.

That's why i'd really like them to lay off the acquisitions for a while and put some cash aside to strengthen the balance sheet.

[bbluesky] 20/4/2018 08:21

Polar Capital is very good news, they are a well respected outfit and it will draw attention to TMMG and hopefully has soaked up a lot of the overhang that has been holding the share back. Interesting times.