The Mission Share Discussion Threads

[ali47fish] 13/3/2021 14:32

well wallst sys this is undervalued

[ali47fish] 24/2/2021 10:07

octopus investment are investing some 3pc- no previous holding by the look of it

[dr biotech] 01/2/2021 11:10

I am also temporarily out of here. Has been my best performing this year (obv only 4 weeks). Nothing company related, just seems to be a spike in the price that I can't really justify. Otherwise would hold.

[sphere25] 01/2/2021 10:44

Price has already pretty much hit my 90p target this morning so what do I know?

Being conservative with valuations in this market? PAH! Throw it out the window! :-)

These tipsters don't half have a big influence!

Exited and not chasing here. As per recent posts, far more focus on the US indices and what has been the biggest battle between the bulls and bears for a while in a one way uber bullish environment.

Key support levels are really being tested recently with volatility picking (recent VIX buy is up 32%) up so don't want to be jumping in here just in case it falls over.

Perhaps a better re-entry point on TMG or are the bulls going to hold indices support levels that result in another leg up in TMG?

The near term fate of so many UK shares now depends on that battle.

All imo
DYOR

[estienne] 29/1/2021 14:54

see article above

[wynmck] 29/1/2021 14:42

eh?-that was last Monday

[bostonborn] 29/1/2021 14:38

Simon Thompson IC small companies guru has written about TMG today, with a strong buy rating and 100p to 110p target.

[devilsprofessor] 29/1/2021 09:56

And indeed that is happening!

[devilsprofessor] 29/1/2021 09:54

Some lovely large buys this morning. It's good to see the faith in TMG is coming back. I have held this since Feb last year and continued to hold despite some eye watering losses in essence because I could see the longer term recovery albeit it was very slow!All in my opinion of course. DYOR there are plenty of articles to consider currently.

[estienne] 29/1/2021 09:54

had an informative call with James Clifton, chief executive of UK advertising and marketing specialist The Mission Group (TMG:56p).

A key take for me from its Covid-19 trading update is that technology-focused agencies, accounting for a fifth of the revenue mix, are doing rather well and have largely been unscathed by the crisis. In fact, they continue to win new clients, perhaps not that surprising when you consider that many clients operate globally so are accustomed to agencies pitching on Zoom calls. For instance, Mission’s April Six agency has just been appointed by MSC Software Corporation, a leader in computer-aided engineering simulation software, to design its media, content and analyst relations strategy in the UK, USA and DACH (Germany, Austria and Switzerland) markets. Mr Clifton also revealed that Mission’s US offices in San Francisco and Seattle are “performing well for us”. The latter office works with technology giant Amazon.

Mission’s technology focus is set to pay dividends in a major way. That’s because the group’s Fuse technology incubator has developed Pathfindr, a tracking product that provides customers with real-time insights into their assets and processes. Prior to the Covid-19 outbreak, it had already been sold to some of the most well-known names in global aerospace and manufacturing, including Rolls Royce. It is even more valuable technology now.

That’s because Pathfindr has developed a new product, The Safe Distancing Assistant, to help people maintain safe personal distancing and to keep businesses open. By using cutting-edge ultra-wideband technology, the device provides 360-degree field of detection and is more reliable and accurate than other technologies such as Bluetooth. It can be worn around the neck or clip to a pocket, belt or other item of clothing. A few thousand of the devices are currently on trial and Mr Clifton says that the company has received interest from one potential customer looking to acquire 250,000 units. At a base price of £49.99 per unit, this could be a major money spinner as companies across multiple sectors aim to enforce personal distancing and comply with safe working legal requirements, so to avoid costly fines and crippling closures.

Unlike other players in the industry reliant on new business wins, Mission has a loyal client roster. In fact, half of revenue comes from clients of five years standing or more. Of course, some activities have been impacted by the lockdowns, such as events and property-related agency work. However, staff have been furloughed in specific areas under the government’s Job Retention Scheme, while other costs have been reined in. Importantly, the balance sheet is well capitalised as net debt of £4.9m is well within total borrowing facilities of £23m.

The bottom line is that the market perception of Mission and the reality of how the business is trading are not aligned. Indeed, the 43 per cent share price discount to net asset value, and the miserly rating of six times last year’s post-tax profits, implies a catastrophic reversal in earnings this year and little hope of recovery thereafter. I would beg to differ, so much so that having initiated coverage at the current price ('Alpha Research: Simon Thompson’s latest bargain buy', 11 Oct 2018), I feel that this year’s de-rating has gone too far. Recovery buy.

[wynmck] 25/1/2021 13:22

google missionsrecoverygathersmomentum
for the full article

[sphere25] 25/1/2021 12:03

Stream of buys here and in TSL. Guessing it's a write up by Simon Thompson.

*12.27 UPDATE*

It is a Simon Thompson write up. Usually a Monday and/or Thursday lunchtime update so any stream of buys (particularly on a quiet day like today) stand out easily.

Problem with these tips by influential market participants is that you get stiffed on the price. Ordinarily this could have come back to the trendline around 70p for an opportunity to buy, but it's a different ball game when tipsters are involved.

Have a target price from ST:

"..a return to the 100p-110p pre-Covid-19 high water mark is a reasonable target. Ahead of annual results on Wednesday, 14 April 2020, I rate the shares a strong buy."

All imo
DYOR

[sphere25] 22/1/2021 16:52

We can see the expected earnings progression here:



Even if it was pushed back a couple of quarters, the recovery in eps looks to hit about that 9p mark. You could discount that more if you wanted. I don't remember TMG commanding an enormous multiple, usually around that 10x mark so a conservative 90p target. Price was trading on a similar forward multiple at above 100p pre-covid as far as I can remember.

The market is similar elsewhere with many ratings looking forward to 2023 an/or factoring in further earnings upgrades. It is as per most out there, whether we perceive the earnings recovery to happen. If not, is there enough doubt to not even warrant a buy at these levels, which are clearly significantly off the pre-covid highs?

That's the call. Bulls v Bears. It is what makes a market. I think this has a decent recovery chance, but naturally there is risk involved and could be wrong. As well as things have gone out there for everybody, we're all prone to getting walloped now and again.

So no blinkers here, not piling in - measured risk.

Let's see how the updates progress.

All imo
DYOR

[devilsprofessor] 22/1/2021 07:28

Where do you see this?

[sphere25] 21/1/2021 16:35

"...return to a pre-pandemic run rate by Q3 2021, leading to a strong start to 2022".

The market isn't interested in the next reporting period or all these e.g. retailers and airlines with shut downs would be getting clobbered now. It is looking way out to at least 2022 imo, so personally speaking, it's a case of trying to identify the ones where the rating hasn't captured the level of fundamental trading in 2022 and 2023 judging by some of the ratings out there (OTB was a recent example I posted on when trying to establish how far the market is looking forward) - 2020 was a free pass and alot of 2021 is a free pass according to how these prices are moving.

All imo
DYOR

[scubadiverr] 21/1/2021 16:18

If you reread yesterday's bullish update you'll see a hidden profit warning for the next reporting period.

[sphere25] 21/1/2021 16:00

Stream of buys here. Wanted this one to come back as I'd missed it but had to follow those buys in for a first nibble. A recovery contender based on the bullish statement so expecting a continuation of that trading momentum.

Looks a buy the dips play when they come.

All imo
DYOR

[davebowler] 20/1/2021 09:33

20 January 2021

THE MISSION GROUP plc

("MISSION", "the Group")

TRADING UPDATE AND NOTICE OF RESULTS

The MISSION Group plc (AIM: TMG), the alternative group for ambitious brands , today issues a trading update for the year ended 31 December 2020.

Trading update

2020 was clearly a year like no other with the UK under some form of restrictions for over three quarters of the year, including an unplanned second National Lockdown in November. Despite this challenging backdrop the strong recovery in trading momentum experienced in early H2 has continued throughout the second half of the year, reversing the first half losses felt at the economic height of the COVID-19 pandemic. As a result, the Group now expects full year headline PBT performance to be over GBP1m, comfortably ahead of market expectations.

The decisive and effective measures implemented from the outset of the pandemic, underpinned by our agile and empowered organisational structure, has enabled this result. Our phased COVID-19 management strategy of: survive, strive, thrive has also given us a strong platform for 2021 and beyond. Mindful of the ongoing restrictions resulting from the pandemic and our traditional second half trading bias, we again predict H2 2021 to out-perform H1 with a return to a pre-pandemic run rate by Q3 2021, leading to a strong start to 2022.

Strong cash management over the course of the year resulted in a reduction in year-end net bank debt to GBP1.3m (2019: GBP4.9m), representing a significant improvement on market expectations. This will leave us well placed to capitalise on the undoubted opportunities that 2021 will bring.

Reflecting on this strengthened position, the Board now proposes to reinstate the deferred 2019 final dividend of 1.53 pence per share. This dividend was committed to in our 2019 Annual Report (the period before COVID-19) and will be payable on 1 March 2021, to those shareholders on the share register as at close of business on 12 February 2021. We remain committed to our previously stated long term progressive dividend policy and will continue to monitor the situation as this year progresses in line with the performance of the Group.

Notice of results

The Group expects to announce its final results on 14 April 2021.

Commenting, James Clifton, Group Chief Executive of The MISSION Group plc, said:

"In a year that has brought huge challenges, our entrepreneurial culture has seen MISSION create new opportunities across the Group, ensuring we have been at the forefront of market recovery to deliver this strong performance. Increased collaboration across our Agencies has been underpinned by new acquisitions and the continued development of the MISSION Advantage, ensuring we are better positioned to make further progress against our strategic priorities in both 2021 and beyond. This is of course on top of all the hard work and dedication of all our employees in 2020 that gives us a new, strong foundation for growth."

ENDS

CONTACT


THE MISSION GROUP plc Tel: [phone]
James Clifton, Group Chief Executive
Peter Fitzwilliam, Chief Financial
Officer
SHORE CAPITAL (Nomad and Broker) Tel: [phone]
Mark Percy / James Thomas / Sarah
Mather
HOUSTON (Financial PR and Investor Tel: [phone]
Relations)
Kate Hoare / Laura Stewart

NOTES TO EDITORS

MISSION is a collective of Creative and MarTech Agencies led by entrepreneurs who encourage an independent spirit. Employing over 1,000 people across 31 locations and 3 continents, the Group successfully combines its diverse expertise to bring about commercially effective solutions for some of the world's biggest Clients.

www.themission.co.uk

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

[devilsprofessor] 20/1/2021 07:43

Excellent update. This company has clearly worked hard and to bring back a dividend whe larger company's Cant is excellent!

[18bt] 20/1/2021 07:27

Good update - the divi is back on

[devilsprofessor] 19/1/2021 15:00

Seems there's been a bit of an increase of late. We had a trading update sound this time last year so I've emailed TMG to see if there is something in the offing

[ali47fish] 17/12/2020 14:26

is this one on the ascendant for a change or what?

[davebowler] 11/12/2020 16:40

Edison;
With an improving outlook for advertising spend, The MISSION should see a good bounce in revenues in FY21. Initiatives such as MISSION Made, launched in October, should help drive efficiency, with increasing use of shared central resources and a careful eye on costs also set to lead a rebound in margin. The financial outcome will partially be determined by revenue mix, with the group exposed to high-performing segments, such as tech and pharma, as well as areas with greater COVID-19 related issues, such as property and events. There are no changes to our forecasts at this stage. The group’s valuation remains well below that of peers.

Year end

Revenue (£m)

PBT*
(£m)

EPS*
(p)

DPS
(p)

P/E
(x)

Yield
(%)

12/18

77.6

9.2

8.5

2.1

7.2

3.4

12/19

81.0

10.2

9.0

0.8

6.8

1.3

12/20e

62.7

0.5

0.7

0.0

N/A

N/A

12/21e

76.1

9.0

7.7

1.8

7.9

3.0

Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.

Mix gives resilience

Group agencies have continued to win business and run notable campaigns through H220. Since September’s interims, Story UK has worked on campaigns for NHS Scotland and NHS NorthEast, AprilSix has won new business from IQGeo to promote their geospatial data capabilities, and krow has run high-profile campaigns for UNISON and for DFS. Understandably, the events segment remains disrupted, although even here, Bray Leino Events has been working on the UK pavilion for Expo 2020 Dubai, which was pushed out to October 2021. We would expect there to have been some improvement in trading conditions in the mobility vertical, but for the property segment to have stayed subdued, given the limited stock availability.

Market outlook improving but timing uncertain

The consensus is for a good rebound in UK advertising spend in FY21, with the Advertising Association/WARC predicting a rise of 16.6%, assuming that the vaccine roll-out proceeds as planned and a degree of normality is established. This is post a 15.6% fall in spend in the current year, meaning that 2019 levels of spend would not be reached before 2022. However, there are large variations in these growth rates by sector, with out-of-home and cinema showing the strongest forecast rebound. Q121 year-on-year growth will be more difficult, given the stronger comparatives, with recovery much more marked in Q221. We would expect that there would be similar disparity in rates of growth between sector verticals, so the mix will be a crucial factor in MISSION’s financial outcome.

Valuation: Discount to peers persists

As is the case for MISSION, forecasts for peers remain highly subjective to assumptions on the speed and scale of the recovery, so we have looked at an average over FY19, FY20e and FY21e. MISSION’s shares trade at a discount to peers on EV/EBIT (8.1x2021) and P/E on this basis. Parity indicates a share price of 76.9p (from 78.25p in September, reflecting changes in share prices), 26% above the current level.