The Mission Share Discussion Threads

[qs99] 28/7/2022 10:51

SAA update bodes well IMO

DYOR

[mfhmfh] 15/7/2022 10:32

EBT Share Purchase continues

[km18] 13/7/2022 13:48

The Mission Group (TMG) issued a trading update this morning reporting continued positive trading momentum and reaffirming full-year guidance. Performance through H1 2022 has been good and in line with expectations. The Group has maintained its growth trajectory, continued to deliver against its strategy and successfully managed previously flagged cost headwinds including wage inflation. The Group expects to report revenues for the period of £37.5m with headline operating profit of £2.2m. Net bank debt at 30 June 2022 was £7.0m. Valuation also looks attractive with forward PE ratio and PS ratio both top-quartile ranked for the Media & Publishing market. The balance sheet is solid, growth steady but unexciting. Share price lacks momentum, TMG is a share to monitor for now....

...from WealthOracleAM

[18bt] 13/7/2022 07:37

PER of under 8x and DY of 4.5% on market forecast. Net debt now under 1x EBIT.

[qs99] 13/7/2022 07:06

Nice update, in line etc Net Debt continuing to fall...will this be enough to push it back to recent highs? DYOR

[mfhmfh] 08/6/2022 15:37

Can it push past 70p and onwards to 80p before trading update in July?

Still undervalued at even 80p IMHO.

[devilsprofessor] 07/6/2022 17:48

Any ideas why we've had this increase today? I can't seem to find anything - hopefully someone in the know had bought and the good news is brewing!

[qs99] 07/6/2022 16:07

On the march again DYOR

[cliffpeat] 31/5/2022 09:29

In May TMG's EBT purchases of own shares:

Period 12 to 30 May
9 buys of £15k = £135k
229,541 shares
Average price 58.8 pence
Lowest 13 May - 52p
Highest 30 May 64.5p

Will the buying stop when they feel "fair value" has been reached?

Did they "walk up" the sp?

Are there any options due to vest?

[qs99] 18/5/2022 14:27

Full offer again being paid. Reckon this could push back towards 80p DYOR

[qs99] 18/5/2022 12:17

EBT continuing to help push the shares North. Interesting SAA now gone hostile, obviously still demand for M&A so will TMG become a target? DYOR

[qs99] 13/5/2022 13:25

May also be that the EBT share purchase has hoovered up any available stock? DYOR

[qs99] 13/5/2022 13:23

Market not great I agree, but couldn't resist topping up. Yield, growth, NAV etc etc.....look forward to trending back to the 70s at least DYOR

[mfhmfh] 29/4/2022 10:45

good read across from SAA?

[currencytrader1] 05/4/2022 15:13

Can't see it in this market, but we live in hope!!

[mfhmfh] 05/4/2022 13:57

70p next stop?

Then onwards to 80p hopefully.

[currencytrader1] 31/3/2022 11:09

All great stuff, thanks for sharing guys.. GLA

[cravencottage] 30/3/2022 17:41

For those that haven't read ST's writeup!

On a mission for a higher rating

Annual revenue increases 17 per cent to £72.5mn
Six-fold rise in pre-tax profit to £7.5mn and earnings per share (EPS) to 6.57p
Dividend per share of 2.4p
Acquisition obligations slashed to £3.3mn
The market perception of UK advertising and marketing specialist The Mission Group (TMG:62p) and the reality of how the group’s network of 17 agencies are trading are not aligned.

The operationally geared group not only quadrupled underlying operating profit to £8mn driven by 16 per cent organic revenue growth, but rebuilt operating margins to 11.1 per cent. Trading recovered strongly in the second half of 2021 as the UK economy roared ahead following the end of Covid-19 related lockdowns.

For instance, the UK housing market boom has boosted activity at property agency ThinkBDW (34 per cent revenue growth). Both Bellway and Redrow are major clients and the sector accounted for around 18 per cent of last year’s revenue, says chief executive James Clifton. Mission’s technology focused agencies (20 per cent of group revenue) performed well during the pandemic, and continue to do so. Exposure to the US certainly helps, as Mission has offices in both San Francisco and Seattle - Amazon Web Services is now a top-five client.

The fact that 47 per cent of the client base has been with the group for five years or more highlights a high degree of satisfaction. Importantly, new clients are being added to the roster including Reckitt Benckiser, Porsche, BMW/Mini, Fuji Xerox and even the Met Office. The collegiate approach adopted by the group continues to deliver results as Mission booked £2mn of cross-referred business in the reporting period, and that excludes deals that were signed off just after the year-end.

Leveraging technology expertise is a strong focus, both in terms of enhancing the group’s data and analytics capability and for supporting client and new business growth, too. The latest offering being the 'Mission Brand Bonding Index', an online platform using comprehensive data and a bespoke algorithm to benchmark global brands. It has become an important tool to showcase the group’s expertise.

Mission’s acquisition of London-based Soul, a customer engagement agency that works with psychologists to help businesses better understand what motivates and drives customer decision making, has enhanced the offering, too. It is proving popular with leading brands Genting, John Lewis Finance, Michael Kors and SSE.

Mission paid £0.7mn of cash consideration for Soul and is modelling for a further £2.3mn earn-out payments that account for 70 per cent of the £3.3mn total acquisition liabilities outstanding. Of that sum only £1.1mn is due over the next two years, so will be easily covered by internal cash flow without the need to tap the group’s £25mn debt facility. At the end of 2021, net debt of £10.3mn equated to 1.2 times cash profit, a comfortable leverage ratio.

Rightly, shareholders are being rewarded. The annual dividend of 2.4p a share is covered 2.7 times by EPS of 6.5p with another rise likely this year. Analyst Roddy Davidson at house broker Shore Capital is pencilling in 9 per cent higher revenue of £79mn to lift pre-tax profit 12 per cent to £8.4mn. On this basis, expect EPS of 7.1p and a conservative looking pay-out of 2.5p.

Moreover, forecast operating free cash flow of £9.4mn could see net borrowings slashed to £5.9mn by the year-end while providing cash to pay dividends and meet earn-out obligations. If all goes to plan – and the 2022 financial year has started well – then Mission’s enterprise valuation of £66mn could fall to £61mn by the year-end. That valuation equates to seven times 2022 operating profit estimates, an anomalous rating in a consolidating sector.

Trading on a 40 per cent discount to net asset value (NAV) of 102.5p, priced on a forward price/earnings (PE) ratio of 8.7 and offering a 4 per cent prospective dividend yield, the 20 per cent share price decline since the interim results is unwarranted (‘Mission on course for strong profit recovery’, 22 September 2021). Buy.

[qs99] 30/3/2022 09:14

so 50%+ upside to NAV per ST? SHould see some more buying interest on that basis IMO over coming days, lets see. Thanks for sharing. DYOR

[qs99] 29/3/2022 22:46

Great thanks 👍👍

[mfhmfh] 29/3/2022 19:03

New tip by ST in IC this evening.

NAV of 102.5p, forward PE ratio of 8.7.

[mfhmfh] 29/3/2022 11:22

next stop 70p hopefully.

ST has a 100p target price but may upgrade this.

I'd expect him to write an update this week.

[qs99] 29/3/2022 10:45

Is this well liked by IC or other tipsters? PLenty of time to get this in to this week's editions if so?

[qs99] 29/3/2022 10:10

c.£11m EBITDA

Market cap £55m

Net Debt coming down

Yield going up

Still some way to go IMO....market likes it DYOR

[dr biotech] 29/3/2022 08:14

I missed out getting back in here. Results and more importantly outlook seem decent enough.