A busy close to the year helped the mission (Mission Marketing Group PLC (LON:TMMG)) to deliver market-beating revenue and earnings growth of 11% and 17% respectively: a combination of organic and acquisitional progress and particularly strong growth from acquired agencies. It is thriving on its rediscovered confidence, building its capabilities and extending its geographic reach via a low-risk model. The valuation remains at a deep discount to other smaller quoted agencies, on a rating that does not reflect the greater scale and improved quality of its offer nor its strong and loyal client roster.
Strong core growth
FY15 figures show revenue climbing in all divisions bar Events & Learning, which recovered strongly in H2 to end the year flat. Good 8.4% y-o-y growth in the core Branding, Advertising & Digital segment, which makes up 78% of group income, reflects a mix of organic progress and acquisitions kicking in. New business wins have brought in further well-known clients, including BA and BMW, but should not over-shadow that the group has much longer client relationships than is usual in the sector. As TMMG has increased in scale and complexity, so have opportunities for individual agencies to work alongside each other and £1m of 2015 revenues were generated through cross-referrals. To help drive this aspect, the CEO of RLA will be stepping up to a group Commercial Director role.
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