The Mission Marketing Group PLC (LON:TMMG) continues to flesh out its offer, scaling up and adding to its capabilities through small acquisitions and start-ups. H116 figures show double-digit growth in operating income, with adjusted EPS ahead 15% y-o-y, solid cash flow and a good step-up in the dividend. A number of high-quality names are added to the client roster, including O2 and Halfords Group (LON:HFD). Greater emphasis is being placed on collaboration between the networked agencies, which should maintain the new business momentum and enable the group to win a greater share of spend from existing clients. The deep valuation discount to sector looks increasingly incongruous.
Investing to grow
The mission has invested in its in sports marketing, creative and healthcare offers in H116, along with systems and technology to support the growing group. Agency management teams have also been strengthened and resources added to the Asia Pacific and US offices. The network structure makes the group particularly responsive to client needs in determining investment priorities, with support and control from the centre. Recent acquisitions are delivering as expected and future expansion is likely to follow a similar pattern. New initiatives include healthcare agency, Solaris, working with Vivactis and Precision Effect networks on a global basis and sales promotion being added to the mix.
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