Mission Marketing 1H Trading In Line With Management Views

14th Jul 2010 07:34

LONDON (Dow Jones)--The Mission Marketing Group Plc (TMMG.LN), a national marketing communications and advertising group, announced Wednesday for the six months ended Jun. 30, 2010, trading has been in line with management's expectations. MAIN FACTS: -Whilst turnover is marginally higher than the equivalent period last year (at GBP43 million), the continuing pressure on margins due to the difficult economic backdrop has resulted in operating income 7% lower than last year. -The Board has substantially strengthened the group's balance sheet in the period. -Bank debt has been rescheduled, with committed facilities available to 2013, acquisition liabilities have been virtually eliminated through equity conversion and a placing of new shares, and the focus on cash management across the agencies has resulted in stronger operating cash flows. -As a result, the group's total debt/equity ratio has reduced from almost 50% at Dec. 31, 2009 to 30% at Jun. 30, 2010. -Although operating profits in the first half of the year will, in line with management's expectations, be somewhat lower than last year's, the Board can see clear signs of improvement in the second half of the year. -Some of the group's specialist agencies, notably in the IT and property sectors, are showing strong market growth and good new business wins, whilst the integrated agencies have received commitments for 2H which indicate a more pronounced second half profit. -The Group has had a steady start to the year and the Board looks forward to the second half with increased confidence. -Shares closed Tuesday at 9.25 pence. -By Zechariah Hemans, Dow Jones Newswires; 44-20-7842-9411; [email protected] (END) Dow Jones Newswires July 14, 2010 02:34 ET (06:34 GMT)