Mission Group Public Limited Company · LSE:TMG
Mission Group Public — The Mission Marketing Group — H1 2016 Earnings Presentation
16 slides from Mission Group Public's earnings presentation, 2016
Slide 1: 2016 interim results
the mission® own ideas 2016 interim results
Slide 2: Contents
Contents Page 3 Summary of progress in the period Page 5 Financial summary Page 15 Prospects for H2 and beyond 2
Slide 3: Continuing to build on our solid platform
Continuing to build on our solid platform • Great new Client wins and good cross-Agency collaboration • Wide-scale investment in people and technology • Senior H1 appointments at RLA, Bray Leino and Events • Sports Marketing Agency strengthened via in-fill acquisition • Systems development at Broadc
Slide 4: The trends of the past six years continue
The trends of the past six years continue • Profits up • Strong cash flow • Balance sheet continues to strengthen • Bank debt down by £1.5m • Acquisition obligations down by £2.7m • Debt levels comfortable • Interim dividend increased • Cash flow demonstrates sustainability • Confidence in prospects
Slide 5: Profit & Loss
Profit & Loss H1 H1 2016 2015* % Turnover 74.2 66.6 Operating income ("Revenue") 32.4 29.5 +10% Operating expenses (29.5) (26.9) Headline operating profit 2.8 2.6 +10% Net interest (0.2) (0.2) Headline PBT 2.6 2.3 +10% Adjustments to headline profit (0.6) (0.6) PBT 2.0 1.7 +14% Tax (0.5) (0.4) Earni
Slide 6: Profit trends
Profit trends 9 8 7 6 5 PBT EBIT 4 EBITDA 3 2 1 0 2010 2011 2012 2013 2014 2015 6
Slide 7: P&L adjustments
P&L adjustments H1 H1 2016 2015 Exceptional items Restructuring costs - (0.6) - (0.6) Acquisition items Movement in fair value of contingent consid’n - 0.5 Amortisation of intangibles arising on acq’n (0.3) (0.3) Acquisition costs (0.1) - (0.4) 0.2 Start-up costs (0.2) (0.2)* Total (0.6) (0.6) * Pre
Slide 8: Balance sheet
Balance sheet June June Dec 2016 2015 2015 Intangibles 82.0 77.4 82.1 Tangible fixed assets 4.4 4.5 4.5 Working capital 4.4 3.7 6.9 Net bank debt (9.4) (7.9) (10.9) Acquisition obligations (5.4) (4.5) (8.2) Total net debt (14.8) (12.4) (19.1) All others (mainly Corp. tax) (0.9) (1.4) (1.0) Net asset
Slide 9: Acquisition obligations
Acquisition obligations Prior This Total At 31 December 2015 8.2 - 8.2 Acquisitions - 0.3 0.3 Settled in cash (2.4) (0.3) (2.7) Settled in shares (0.3) - (0.3) At 30 June 2016 5.4 - 5.4 [Cash acquired with acquisitions - 0.1 0.1] Falling due: H2 2016 0.6 H1 2017 1.9 2018 and beyond 2.9 5.4 9
Slide 10: Debt trends
Debt trends 25 20 15 Bank Acq'ns 10 Total 5 0 2009 2010 2011 2012 2013 2014 2015 H1 2016 10
Slide 11: Cash flow – H1
Cash flow – H1 H1 H1 2016 2015 Headline operating profit 2.8 2.6 Add back depreciation/other non-cash items 0.8 0.8 EBITDA 3.6 3.4 Changes in working capital 2.6 0.4 Net interest and tax (1.1) (0.7) Headline operating cash flows 5.1 3.2 Exceptional costs - (0.6) Capex (0.5) (0.4) Acquisition conside
Slide 12: Cash flow - profile
Cash flow - profile FY FY FY 2014 2015 2016 Headline operating profit 6.1 6.9 7.7 Add back depreciation/other non-cash items 1.3 1.5 1.6 Capex (2.1) (1.3) (1.5) Interest and tax (1.2) (1.9) (1.9) Free cash flow 4.1 5.2 5.9 Acquisition consideration (2.1) (2.4) (3.2) Dividends (0.8) (0.9) (1.0) Avail
Slide 13: Cashflow, EPS and dividend trends
Cashflow, EPS and dividend trends 7.0 6.0 5.0 4.0 Cash EPS 3.0 Divi 2.0 1.0 0.0 2010 2011 2012 2013 2014 2015 13
Slide 14: Increased dividend…
Increased dividend… 8 7 6 5 Cash 4 EPS Divi 3 2 1 0 2013 2014 2015 2016 14
Slide 15: Prospects
Prospects • New capabilities • Sales Promotion • Technology incubator • Overseas development • Solaris tie up with Vivactis/Precision Effect • Accretive acquisition opportunities • Progressive dividend policy 15
Slide 16: the mission®
the mission® own ideas
The Mission Marketing Group — H1 2016 Earnings Presentation on 6ix