The Mission Marketing Group announced in its trading update for the year ended 31 December 2018 that revenue is likely to be 10% over last year’s figure. Reflecting core growth of about 5% and the first contribution from Krow Communications (acquired in 2018).
Headline profit before tax, calculated before losses from start-up activities, acquisition adjustments and profits on the disposal of BroadCare, is expected to be over 20% higher than the previous year, at £9.4m. This represents the eighth year of consecutive growth.
Against a backdrop of continuing uncertainty and challenges in this sector, the group is pleased with this progress. The group is likely to announce its final results on 9 April 2019.
Net debt position in 2017 benefitted from some “exceptional” working capital benefits, which the company anticipated would unwind during 2018. Given positive working capital management and the sale of BroadCare healthcare services software business, the net bank debt position was £4.0m by end of year. This was slightly better than market expectations.
The ratio of net bank debt to EBITDA consequently reduced to below 0.5x, further strengthening the balance sheet. Low net bank debt to EBITDA triggered another reduction in interest rates on the group’s debt facilities from this month to 1.25% over LIBOR.
David Morgan, The Mission Marketing Group’s Chairman, said: “The mission is a truly joined up group of talented people and we are well positioned for continued growth in 2019 and beyond.”