23 September 2025

THE MISSION GROUP plc

 

("MISSION", "the Group") 

 

INTERIM RESULTS FOR THE SIX MONTHS TO 30 JUNE 2025

Performance in line with Board expectations

Management actions driving strong headline operating profit and margin improvement

Good start to H2 supports FY outlook amid tough trading backdrop

 

MISSION Group plc (AIM: TMG), creator of Work That Counts^TM, comprising a group of digital marketing and communications Agencies, is pleased to announce its interim results for the six months ended 30 June 2025 (the "Period" or "H1").

 

David Morgan, MISSION's Non-Executive Chair, commented:

 

"The completion of our Value Restoration Plan in the prior year and the proactive actions taken in early 2025 to refocus the Group around a more agile and leaner operational structure, positioned MISSION to deliver a resilient first half performance.

 

Whilst the market remains challenging and we are seeing some delays in Client approval processes, we have started H2 with a number of notable new business wins and a strong, high-quality new business pipeline which underpins our confidence in the outlook for the full year.

 

In John Carey we have a new and highly experienced CEO who is already bringing his extensive experience to bear across the business. We look forward to his contribution as we continue to deliver against our long-term plans to create value for all our stakeholders."

 

FINANCIAL HIGHLIGHTS

 

·

H1 performance in line with Board expectations.

·

Successful Q1 operational restructuring alongside the completion of the Group's Value Restoration Plan in 2024 underpinned a sustained recovery in headline operating profit and margin improvement in H1, despite a challenging trading environment.   Six months ended 30 June 2025 H1 2025 £m H1 2024 £m change   Continuing operations** ·      REVENUE (OPERATING INCOME)* 33.7 35.3 -4% ·      HEADLINE OPERATING PROFIT* 2.2 1.9 +15% ·      HEADLINE PROFIT MARGINS 6.5% 5.4% +1.1pts ·      HEADLINE PROFIT BEFORE TAX* 1.1 0.6 +97% ·      REPORTED LOSS BEFORE TAX (1.1) (0.5) ·      HEADLINE EARNINGS PER SHARE* 0.9 0.6 +50% ·      HEADLINE DILUTED EARNINGS PER SHARE* 0.9 0.6 +50% Total operations ·      REVENUE (OPERATING INCOME)* 34.1 42.2 -19% ·      HEADLINE OPERATING PROFIT* 2.2 2.6 -17% ·      HEADLINE PROFIT MARGINS 6.4% 6.2% +0.2pts ·      HEADLINE PROFIT BEFORE TAX* 1.1 1.3 -13% ·      REPORTED LOSS BEFORE TAX (£4.0m) £0.0m ·      HEADLINE EARNINGS PER SHARE* 0.9 1.0 -10% ·      HEADLINE DILUTED EARNINGS PER SHARE* 0.9 1.0 -10% ·      NET BANK DEBT 13.7 19.6 -30%

 

·	Net bank debt of £13.7m following completion of restructure and simplification programme and settlement of outstanding acquisition obligations.
·	As a result of this, total debt*** closed at £16.2m as at 30 June 2025 (£24.0m as at 30 June 2024) (£14.2m as at 31 December 2023).
·	Successful long-term refinancing of the Group's debt facilities with long standing lender NatWest.

*Headline results are calculated before start-up costs, acquisition adjustments, goodwill and business impairment, bank refinancing, equity placing and restructuring costs.

** Continuing operations in 2025 and 2024 exclude the Group's 70% interest in Asian business Bray Leino Splash PTE Ltd which was disposed of in Q1 2025. Continuing operations in 2024 also exclude the results of the Group's 100% interest in April Six Ltd which was sold in December 2024.

*** Total debt includes net bank debt and outstanding acquisitions obligations.

    

 

BUSINESS HIGHLIGHTS

 

·	Strong Client retention underpinned by Agency-driven culture and rigorous focus on exemplary Client service
·	Notable new Client wins during the period include Google, TikTok International, Accenture and the Federal Reserve Bank of Chicago.
·	Appointment of new CEO John Carey from 1 September 2025, brings a diverse breadth of commercial and business transformation experience to the business. Mark Lund, outgoing Interim CEO, will resume his previous role as a Non-Executive Director of the Company.

 

OUTLOOK

 

·	As in previous years, the Group expects the majority of its profit to be generated in the second half of the year.
·	Since the period end, the Group has secured several notable new business wins including Marlink, Co-op, Boehringer Seraquin, Amaala Yacht Club and The Las Vegas Convention and Visitors Authority.
·	Robust and high-quality new business pipeline for H2, particularly in our Sports & Entertainments business, amid prevailing macroeconomic uncertainty that is exemplified by increasing approval periods especially within new business assignments.
·	While we remain very mindful of the challenging trading environment, the Group currently remains on track to meet full-year headline operating profit and margin expectations.

 

ENQUIRIES:     

                                               

John Carey, Chief Executive Officer Giles Lee, Chief Financial Officer	Via Houston
The MISSION Group plc
Simon Bridges/Andrew Potts/Harry Rees
Canaccord Genuity Limited (Financial Adviser, Nominated Adviser and Broker)	020 7523 8000
Peter Tracey Blackdown Partners Limited (Financial Adviser)	020 3807 8484
Kate Hoare/Charlie Barker/India Spencer	0204 529 0549
E: [email protected]
Houston PR

 

 

NOTES TO EDITORS  

   

The MISSION Group Plc. is the Alternative Group for Ambitious Brands. 

 

Delivering measurable, results-driven campaigns as the preferred creative partner for real business growth. We offer top-tier agencies, strategic specialisms and global reach delivering outstanding performance for brands. We call it Work That Counts™ www.themission.co.uk  

 

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse (Amendment) (EU Exit) Regulations 2019. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

 

OVERVIEW

 

The successful completion of MISSION's Value Restoration Plan ("VRP") in the prior year, combined with the restructuring of its operations in early 2025, has positioned the Group to move forward as a much leaner and less complex business. This underpinned a positive headline performance in H1, despite an ongoing challenging trading backdrop.

 

The restructure and reorganisation programme outlined earlier this year by Interim CEO, Mark Lund, was completed quickly and as a result the platform for significantly improving operating margins is now very much in place. This has been achieved through the simplification of the Group structure, reduction of central operating units and the organisation of the Group around four key Agency segments of Business & Corporate, Consumer, Sports & Entertainment and Property. These segments are focused on the growth of their agency brands, driving efficiency and so improving operating margins.

 

The Group is therefore encouraged to report total H1 revenue of £34.1m and revenue from continuing operations of £33.7m (30 June 2024: £35.3m from continuing operations**, £42.2m from all operations). Whilst overall revenues were inevitably impacted by the challenging trading backdrop, headline operating profit before adjustments for the Period of £2.2m (30 June 2024: £1.9m from continuing operations, £2.6m from all operations) was driven by margin improvements in the Business & Corporate and Property segments alongside a significant reduction in central function costs resulting from the restructuring behind the key Agency brands.

 

Headline profit before tax for the Period has benefitted from much reduced interest charges compared to 2024 and is £1.1m (30 June 2024: £0.6m from continuing operations, £1.3m from all operations).

 

Performance and progress

 

The Group's trading environment continued to be challenging in H1 2025 with the global macro and political uncertainty continuing to manifest in client caution and reduced marketing spend, resulting in a reduction in Group revenue from continuing operations of 4%.

 

Whilst the majority of this reduction was felt in the Consumer & Lifestyle segment where the market remains more challenged, it was pleasing to see a more resilient performance from other market segments including Property, highlighting the diversification benefits of the Group's portfolio. 

 

Client retention across the Group remained strong with additional Client wins secured across the business throughout the period including Google, TikTok International, Accenture and the Federal Reserve Bank of Chicago.

 

Since the period end, the Group has secured several notable new business wins including Marlink, Co-op, Boehringer Seraquin, Amaala Yacht Club and The Las Vegas Convention and Visitors Authority. The robust and high-quality new business pipeline for H2 provides some encouraging momentum despite broader macro-economic uncertainty and a challenging trading environment.

 

 

Finally, the Group AI transformation steering team continues to make good progress in driving the continuous enhancement of our Client offering and business operations through the integration of AI. Initial areas of focus have centred on driving efficiencies across the Group's management systems, the enhancement of content and production, improvements to our Client insight reporting and the roll out of an AI learning and development plan for our teams. Whilst early in our plans we are encouraged by the pace of adoption and implementation of these various initiatives which are running to plan and we look forward to providing more updates in due course.

 

FINANCIAL PERFORMANCE

 

Billings and Revenue:

Total turnover ("billings") for H1 was £83.4m (H1 2024: £94.4m) while total operating income ("revenue") of £34.1m compares to £42.2m for the period to 30 June 2024. The major reductions reflect the disposal of April Six Ltd and related subsidiaries at the end of December 2024.

 

Taking continuing operations only, turnover ("billings") for H1 increased by 3% to £82.8m (2024: £80.4m) while operating income ("revenue") of £33.7m has reduced compared to the £35.3m for the period to 30 June 2024.

 

Profit, Margins and Earnings Per Share

The Group has focused on margin improvement and in so doing has restructured and reengineered the business to be more efficient and focused on revenue delivery. This firm, but future-focused cost control, alongside a continued commitment to transforming our infrastructure through the MISSION Shared Services initiatives, has enabled the Group to deliver a £1.9m reduction in operating expenditure for the period to 30 June 2025 compared to the 2024 equivalent. As a direct result of this the Group has delivered an operating profit from continuing operations that is ahead of the prior year comparison.

 

Headline operating profits from continuing operations for H1 increased by 15% to £2.2m (30 June 2024: £1.9m from continuing operations, £2.6m from all operations). Headline operating margin from continuing operations increased to 6.5% (H1 2024 equivalent: 5.4%). Continuing activities in 2024 exclude the results of April Six Ltd which was sold in December 2024 and the Group's 70% interest in the Asian business Bray Leino Splash PTE Ltd which was disposed of in Q1 2025.  

 

The Segmental Analysis for the new Group structure is summarised in the following table.

 

 

H1 2025 £m		Business & Corporate	Consumer & Lifestyle	Health & Wellness	Property	Sports & Entert'mnt	Central	Total Continuing
Revenue		10.9	10.1	1.3	7.7	3.8	0.0	33.7
Headline operating profit		1.1	0.3	-0.1	1.1	0.2	-0.4	2.2
margin %		10%	3%	-11%	15%	4%		6.5%
H1 2024 £m		Business & Corporate	Consumer & Lifestyle	Health & Wellness	Property	Sports & Entert'mnt	Central	Total Continuing
Revenue		11.0	11.2	1.7	7.5	4.0	0.0	35.3
Headline   operating profit		0.8	0.5	0.0	1.0	0.5	-1.0	1.9
margin %		7%	5%	0%	13%	13%		5.4%
Change £m		Business & Corporate	Consumer & Lifestyle	Health & Wellness	Property	Sports & Entert'mnt	Central	Total Continuing
Revenue		-0.1	-1.1	-0.4	0.2	-0.2	0.0	-1.6
Rev %+/-		-1%	-10%	-22%	3%	-6%		-4%
Headline operating profit		0.3	-0.2	-0.1	0.1	-0.4	0.6	0.3
margin %		2.4%	-1.6%	-10.6%	1.5%	-8.5%		1.1%

 

The Property and Business & Corporate segments have both performed well in H1, with profits and margins ahead of H1 2024. Operating income (revenue) in the Consumer & Lifestyle segment reduced by £1.1m in an undoubtedly tough marketplace, however the work on simplification and effectiveness means that the profit reduction year-on-year has been mitigated to £0.2m. The Sports & Entertainment segment was also down somewhat year on year reflecting the timing of new rights deals being approved. As noted above, significant savings have been made within central function costs (£0.6m year on year).

 

Financing costs reduced to £1.1m (H1 2024: £1.5m). Within this total, net interest on bank loans, overdrafts and deposits reduced to £0.6m (H1 2024 £1.0m), reflecting a lower average level of debt in the period. Amortisation of bank debt arrangement fees increased by £0.1m to £0.1m (H1 2024: £0.0m) as a result of the Group agreeing a new revolving credit facility on 21 March 2025 and expensing all unamortised arrangement fees relating to the previous credit agreement. Underlying financing costs for H2 are expected to remain at similar levels to H1.

 

Headline profit before tax increased by 97% to £1.1m (30 June 2024: £0.6m from continuing operations, £1.3m from all operations), as a result of the reduced financing costs and resilient operating profit.

 

H1 Adjustments:

Following the disposal of April Six in December 2024 the Board commenced a restructuring programme with the objective of further streamlining the Group and driving efficiency. This has been completed, and the Group is now organised by four primary Agency pillars, each of which are focused on securing the growth potential of their respective agency brands and, importantly, on improving their respective operating margin. The £1.7m cost incurred as part of this restructure, both at the Agency level as well as central, are directly related to reducing ongoing operating expenditure (primarily headcount) and improving efficiency and operating margin. As a result, the payback on this cost is expected to be recovered within 12 months and has supported the overall improved operating margin and reduction in operating expenditure of £1.9m in the period.

 

As part of this restructuring the Group also disposed of its 70% majority shareholding of Bray Leino Splash PTE Ltd and related subsidiaries, the Bray Leino Asia operations, for a nominal sum and below the last reported book value, which further simplifies the Group's operations.

 

The disposal of April Six Ltd, our US Technology specialist agency, on 31 December 2024 included an earn-out component based on earnings for December 2024, January 2025 and February 2025.   The earn-out was capped at £4.2m and estimated in the 2024 report and accounts at £2.0m, but the downturn in Q1 2025 in the US Technology sector has resulted in a final payment of only £0.1m.  As a consequence, a £1.9m reduction to the reported profit/loss on the sale of April Six has been recognised in H1.

 

Summary of H1 Adjustments:

As detailed above, adjustments of £5m have been incurred in H1 as follows

 

·      £1.7m cash cost of the Group restructuring following the April Six disposal, including associated redundancy costs.

·      £2.8m non-cash adjustment related to the disposal of Splash Interactive PTE (£0.9m) and April Six (£1.9m).

·      £0.3m of amortisation and other acquisition costs

·      £0.2m of start-up costs relating to the geographical expansion of the Sports & Entertainment business.

 

The Group estimates an effective tax rate on headline profits before tax of 25% (H1 2024: 25%), resulting in an increase in headline earnings to £0.8m for the six months (H1 2024: £0.5m from continuing operations, £0.9m from all operations) and reported loss after tax on all operations of £3.7m (H1 2024: £0.0m).

 

Headline diluted EPS from continuing operations increased to 0.9 pence (H1 2024: 0.6 pence). Fully diluted EPS from all operations decreased to a loss of 4.1 pence (H1 2024: loss of 0.1 pence).

 

 

Balance Sheet and Cash Flow

The key balance sheet ratio measured and monitored by the Board is the ratio of net bank debt to headline EBITDA ("leverage ratio"). The Group closed the half year at 2.8x (30 June 2024: 3.5x, 31 December 2024: 2.2x) based on the trailing 12-month headline EBITDA. The ratio offers significant headroom against the facility limit of 3.5x for the period.

 

The Board also monitors the ratio of total debt, including outstanding acquisition obligations, to headline EBITDA and this ratio has also decreased year on year, to 3.1x (30 June 2024: 3.9x, 31 December 2024: 2.6x). Again, there is significant headroom against the facility limit of 4.0x for the period.

 

The Group spent £nil on acquisitions during the period (2024 £nil) and a total of £2.2m of acquisition obligations from prior years were settled in the first half of the year all of which were in cash (30 June 2024: £1.1m of which £0.6m were cash and the remainder settled in shares). After adjustments to estimated future contingent consideration payments the total estimated acquisition liability at 30 June 2025 totalled £2.5m (30 June 2024: £4.4m). Of this £1.0m is due for payment in the second half of 2025.

 

Capital expenditures continue to be strictly controlled with spend of £0.3m (H1 2024 £0.3m).

 

Trade and other receivables from continuing operations increased by £9.8m across the first six months of 2025 compared to an increase of £5.8m in the equivalent period in 2024. Payables have also increased and by a similar amount, £9.6m (H1 2024: £2.8m). The net result is a reduction in net working capital from continuing operations of £2.7m compared to H1 2024.

 

Net bank debt was £13.7m on 30 June 2025. This compares to £19.6m on 30 June 2024, and £9.5m on 31 December 2024 following the April Six disposal. The increase from 31 December 2024 is primarily a result of the settlement of outstanding acquisition obligations of £2.2m in H1, the cash cost of the restructuring programme noted (£1.7m) and the shares bought back in the Period totalling £0.4m. 

 

Total debt (being net bank debt plus outstanding acquisition obligations) closed at £16.2m (30 June 2024: £24.0m), and £14.2m on 31 December 2024.

 

Dividend

The Board has made the decision to keep dividend payments paused alongside other major capital allocations until balance sheet strength is restored and net debt is reduced (2024: 0 pence per share). The Board will keep this decision under regular review.

 

Share buyback

On 2 January 2025 the Company announced a share buyback programme for on market purchases of up to £1.5 million. Shares bought back in the Period totalled £0.4m.  The Board has paused the share buyback programme but remains alert to resuming the buyback should opportunities arise over the remaining half year. 

 

BOARD

 

The Company has recently announced a number of changes to its Board composition.

 

On 1 July 2025 the Board was pleased to announce that following an external process, John Carey had been appointed to the Board as Chief Executive Officer with effect from 1 September 2025. A highly experienced international leader, John brings a diverse breadth of commercial and business transformation expertise most recently holding executive leadership positions at Castrol, BP plc and Abu Dhabi National Oil Corporation for Distribution, where he led the company's IPO in 2017.

 

Following John's appointment, Mark Lund, Interim Chief Executive, has resumed his previous role as Non-Executive Director and Chair of the Board's Audit and Risk Committee.

 

On 12 September 2025 the Board announced the appointment of Claudine Collins as Non-Executive Director of the Group and Chair of the Remuneration Committee. Claudine draws on a career spanning over 30 years in the media industry having held several leadership positions in media agencies, and most recently Chief Client Officer at EssenceMediacom UK, part of WPP.

 

She will replace Eliza Filby who has informed the Board that she will be stepping down from her role as Non-Executive Director and Chair of the Remuneration Committee on 30th September 2025 following over three years of service to the Board.

 

MAKING POSITIVE CHANGE

 

Over the course of the period, we have made further progress against our Environmental, Social and Governance (ESG) commitments, outlined in our manifesto 'Making Positive Change'. 

 

Traction against our social goals, focused on building diverse and healthy teams and supporting the communities we work within, has been a key priority. The impactful community work across the Group through pro bono support, donations and volunteering has been tremendous helping to address key social challenges from elderly care and homelessness to conservation and education entry pathways into the creative industries.  

 

Another important priority has been positive traction in our commitment to reduce carbon emissions as a Group. We have benchmarked and set our emissions reduction targets in line with the Paris Climate Agreement and validated these targets via the Science-Based Targets initiative (SBTi) Net-Zero Standard. We have a near-term (2029) target of reducing all emissions from our baseline of 2019 by 44%. Although we have seen an increase in emissions by 13% from 2023 to 2024, due to an increase in office presence and travel combined with enhanced accuracy in our carbon reporting, we are on track to meet our near-term targets with an overall 32% reduction on 2019 emissions as at the end of 2024. 

 

The next six months will be key in our ESG journey as we prepare for ISSB updating its sustainability rules (IFRS S2 and SASB Standards) to make climate and industry disclosures clearer and more consistent worldwide. We will be developing a Materiality Assessment and reviewing current reporting - especially Scope 3 emissions and industry-specific metrics - so we can adapt smoothly when the new rules take effect in 2026.

 

OUTLOOK

 

As in previous years, Group profitability is heavily weighted to the second half of the year.

 

While we remain very mindful of the challenging trading environment, the Group currently remains on track to meet full-year headline operating profit and margin expectations. 

 

Recent new business wins and continued support from our loyal Client base should hold us in good stead given the macroeconomic uncertainty that prevails that is exemplified by increasing approval periods especially within new business assignments.

 

Our Agencies continue to punch above their weight and our Client roster has been further strengthened with a number of blue-chip brands.