Mission Marketing Group PLC (LON:TMMG) has announced the disposal of BroadCare, a software application that had been developed within the group’s ‘fuse’ initiative to incubate new and innovative business concepts. The sale, for 8.8x FY17 EBIT, will realise £4.4m in cash (subject to working capital adjustments). The proceeds will be used to reduce net debt, which stood at £7.8m at the half year stage, and to fund further fuse projects. The disposal highlights the value being created within the group, which, alongside the lengthening record of delivering on expectations and of earnings growth, is inconsistent with the deeply discounted rating.
Realising hidden value
By backing ideas germinated within the group agencies, primarily as the result of tackling real day-to-day client issues, themission is creating additional value. The disposal of BroadCare is proof of this concept. BroadCare, developed initially within the Bray Leino agency, is a SaaS platform, managing patients, care and payments associated with continuing healthcare for NHS-funded operators. It is already being extensively used by Clinical Commissioning Groups and Commissioning Support Units across the UK. Other current fuse projects are; Pathfindr locate, an industrial IoT platform providing real-time asset/part location; Pathfindr navigate, which is an indoor micro-location tool; cortex, a network marketing system; and Easl, a back-office management and information system for service-based companies.
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