Sparks - The MISSION Group

The Mission Group’s full-year trading update indicates revenue growth of 2% for 2024 and a marked recovery in headline operating profits of £9.0–9.2m, which equates to an operating margin of 10.5%. This reflects the implementation and completion of management’s ‘Value Restoration Plan’, which was put in place at the end of 2023. Year-end net debt was £9.4m, following the receipt of the first proceeds from the disposal of April Six, the US-oriented technology specialist agency. This reduction in net debt has triggered a better covenant package for the group.

A new capital allocation policy was outlined in a statement at the start of January, prioritising a strong balance sheet with a target leverage ratio between net cash and 1.0x headline EBITDA over the medium term (with flexibility to exceed this if necessary). The next priorities are investment in organic growth opportunities, followed by returns to shareholders via share buybacks and/or dividends, with ordinary dividends expected to recommence in 2026. A buyback of up to £1.5m has already been initiated.