Mission Group Public Limited Company · LSE:TMG
Mission Group Public — Mission Group — H1 2018 Earnings Presentation
18 slides from Mission Group Public's earnings presentation, 2018
Slide 1: Interim Results for the 6 months ended 30 June 2018
@ interim RESULTS FOR THE 6 MONTHS ENDED 30 JUNE 2018 themission
Slide 2: Creating the Agencies of the future. Today.
As our sector faces transition we are successfully creating the Agencies of the future. Today. And our results prove it. 2
Slide 3: The profit trend continues
THE PROFIT TREND CONTINUES 7.0 6.0 5.0 4.0 £'m H1 3.0 H2 2.0 1.0 0.0 2013 2014 2015 2016 2017 2018 * *H2 derived from consensus forecasts 3
Slide 4: Whilst debt levels remain comfortable
WHILST DEBT LEVELS REMAIN COMFORTABLE 3.5 3.0 2.5 2.0 Total limit Bank limit 1.5 Total * Bank 1.0 0.5 0.0 2010 2011 2012 2013 2014 2015 2016 2017 H1 18 *includes deferred consideration 4
Slide 5: Overview of H1 2018
OVERVIEW OF H1 2018 STRONG FINANCIAL PERFORMANCE SHARED SERVICES MAKING GOOD PROGRESS KROW BEDDING IN WELL £0.3m of savings will be delivered in 2018 Good cultural fit Still targeting £1m by end 2019 bigdog now sharing offices Strong cross-referral opportunities FUSE GATHERING PACE IPA nomination a
Slide 6: fuse - Innovation incubator
fuse - INNOVATION INCUBATOR Pathfindr Cortex Real time asset intelligence Powerful marketing technology platform Using low-power Bluetooth trackers Combining sales, marketing and Prime sectors: aerospace, defence, behavioural data energy, construction Transforms the visibility of where Early adopted
Slide 7: Fuse making real progress
FUSE MAKING REAL PROGRESS Pathfindr gaining real traction; further immediate investment of £0.5m approved to accelerate growth Investment also required into Broadcare; evaluating market interest Cortex and easl still latent Ignition (internal innovation competition) and Vaudit (video auditing softwa
Slide 8: Profit and Loss (£'m)
PROFIT AND LOSS (£’m) H1 2018 H1 2017 % Billings 79.2 71.2 +11% Revenue 37.0 33.8 +10% Operating expenses (33.3) (30.7) Headline operating profit 3.7 3.1 +21% Operating profit margin 10.1% 9.1% Interest (0.2) (0.2) Headline PBT 3.5 2.9 +23% Adjustments (0.6) (1.1) PBT 2.9 1.8 +64% Tax (0.6) (0.5) Ea
Slide 9: Balance Sheet (£'m)
BALANCE SHEET (£’m) H1 2018 H1 2017 Dec 2017 Intangibles 95.7 87.5 88.0 Tangible fixed assets 3.2 3.4 3.5 Working capital 3.9 4.4 3.9 Net bank debt (7.8) (9.2) (7.2) Earn-out obligations (11.0) (6.4) (7.2) Total net debt (18.7) (15.6) (14.4) All others (mainly tax) (1.2) (0.9) (0.8) Net assets 82.9
Slide 10: Cash Flow (£'m)
CASH FLOW (£’m) 2018 2017 Headline operating profit 3.7 3.1 Add back depreciation 0.8 0.8 EBITDA 4.6 3.9 Interest and tax (0.9) (0.7) NORMALISED OPERATING CASH FLOW 3.7 3.1 Working capital (0.1) 3.4 CASH FLOW FROM OPERATING ACTIVITIES 3.5 6.6 Exceptional costs - (0.6) Acquisitions (3.9) (3.0) Capex/
Slide 11: Net bank debt and deferred consideration
NET BANK DEBT AND DEFERRED CONSIDERATION 9 0.3 0.6 0.1 0.2 1.7 8 3.7 7.8 7.2 7 2.8 6 5 £'m 4 3 2 1 0 2017 Op. cash New Prior Capex Cash acq'd W/cap Other 2018 acq'ns acq'ns £2.5m £2.2m £5.4m 2019 2020 2021 11
Slide 12: Outlook
OUTLOOK Usual H2 bias expected again Good core growth expected from both Business Units • Integrated Generalists • Sector Specialists Supplemented by the addition of krow Margin improvement due to the Shared Services initiative and recent acquisitions being at higher margins Strong confidence for th
Slide 13: Investment Proposition
INVESTMENT PROPOSITION Robust business – consistent and profitable growth Above average Client, vendor and senior management retention 10th SUCCESSIVE Strong cash flow PERIOD OF Progressive dividend providing attractive yield GROWTH Diverse and growing Client base Multiple cross-selling opportunitie
Slide 14: themission
“ themission
Slide 15: National and growing international presence to service clients
NATIONAL AND GROWING INTERNATIONAL PRESENCE TO SERVICE CLIENTS 2 25 1,100 Business Offices People Units 1 mission 15
Slide 16: Client retention remains a key differentiator
CLIENT RETENTION REMAINS A KEY DIFFERENTIATOR 56% 35% 18% 5 YRS + 10 YRS + 20 YRS + 16
Slide 17: Profits
PROFITS 12 10 8 PBT 6 £’m EBIT EBITDA 4 2 0 2010 2011 2012 2013 2014 2015 2016 2017 17
Slide 18: Cashflow, EPS and Dividend
CASHFLOW, EPS AND DIVIDEND 9.0 8.0 7.0 6.0 £’m / pence per share 5.0 Cash EPS 4.0 Divi 3.0 2.0 1.0 0.0 2010 2011 2012 2013 2014 2015 2016 2017 18