Mission Group Public Limited Company · LSE:TMG
Mission Group Public — The Mission Group — FY2016 Earnings Presentation
19 slides from Mission Group Public's earnings presentation, Sep 21, 2017
Slide 1: 2016 Results
the mission® own ideas 2016 Results the mission®
Slide 2: Contents
Contents • Introduction • Summary of the year • Financials • Outlook • Group overview
Slide 3: What is the mission?
What is the mission? A marketing communications and advertising group, growing both organically and through selective acquisitions Core attributes: • Robust business – consistent growth over seven years • Strong cash flow • Progressive dividend • Diverse and growing Client base • Multiple cross-sell
Slide 4: Summary of 2016 (business)
Summary of 2016 (business) • Further progress delivering strategy • Growth in both revenue and profit • Capabilities broadened/deepened • All plans set out a year ago delivered • Chapter contributing well • Sports Marketing bolstered • Healthcare reach expanded via European JV • Sales Promotion laun
Slide 5: Summary of 2016 (financial)
Summary of 2016 (financial) • Revenue up 8% • Profit up 9% • EPS up 8% • Strong cash flow • Dividend up 25%
Slide 6: Profit & Loss
Profit & Loss 2016 2015 % Billings 144.1 132.2 +9% Revenue 65.9 61.0 +8% Operating expenses (58.3) (54.1) Headline operating profit 7.6 6.9 +9% Operating profit margin 11.5% 11.4% Interest (0.5) (0.5) Headline PBT 7.0 6.4 +9% Adjustments (1.2) (1.3) PBT 5.9 5.1 +14% Tax (1.4) (1.0) Earnings 4.5 4.1
Slide 7: Profit trends
Profit trends 2013 2014 2015 2016 m= PBT mEBIT m EBITDA the mission @
Slide 8: P&L adjustments
P&L adjustments 2016 2015 Exceptional items Restructuring costs - (0.9) Acquisition items Revaluation of contingent consideration - 0.6 Amortisation of acquisition intangibles (0.6) (0.6) Acquisition costs (0.1) (0.1) (0.7) (0.1) Start-up costs (0.5) (0.3) Total (1.2) (1.3)
Slide 9: Effective tax rate
Effective tax rate 2016 2015 Reported profit before tax 5.9 5.1 Statutory tax rate 20.0% 20.25% Expected tax charge at statutory rate 1.2 1.0 Non-deductible expenses 0.1 0.1 Fair value movements in contingent consid’n - (0.1) Higher tax rates on overseas earnings 0.1 0.1 Adjustments to prior periods
Slide 10: Balance sheet
Balance sheet 2016 2015 2014 Intangibles 83.1 82.1 77.2 Tangible fixed assets 3.5 4.5 4.4 Working capital 6.9 6.9 4.3 Net bank debt (11.3) (10.9) (9.4) Acquisition obligations (4.7) (8.2) (5.1) Total net debt (15.9) (19.1) (14.5) All others (mainly Corp. tax) (0.7) (1.0) (1.0) Net assets 76.9 73.4 7
Slide 11: Acquisition obligations
Acquisition obligations Prior 2016 Total At 31 December 2015 8.2 - 8.2 Acquisitions - 0.5 0.5 Settled in cash (3.2) (0.5) (3.7) Settled in shares (0.3) - (0.3) At 31 December 2015 4.7 - 4.7 Deferred consideration (cash): H1 2017 1.7 H1 2018 1.7 2019 and beyond 1.3 4.7
Slide 12: Debt leverage ratios
Debt leverage ratios * Includes deferred consideration (£4.7m at 31 December 2016)
Slide 13: Cash flow
Cash flow 2016 2015 Headline operating profit 7.6 6.9 Add back depreciation/other non-cash items 1.5 1.5 Capex (0.9) (1.3) Interest and tax (2.3) (1.9) Headline free cash flow 5.9 5.2 Start-ups/acquisition fees (0.6) (0.5) Free Cash Flow 5.3 4.7 Acquisitions (3.6) (1.9) Software development (0.8) -
Slide 14: Cashflow, EPS and dividend trends
Cashflow, EPS and dividend trends
Slide 15: Outlook for 2017
Outlook for 2017 • Good revenue visibility • Strong levels of recurring revenue • Strengthening Client relationships • Continued innovation through Fuse • Progressive dividend policy • Interesting acquisition opportunities • Healthcare • SEO • Data
Slide 16: Group Overview
Group Overview the mission®
Slide 17: The largest UK integrated Agency group
The largest UK integrated Agency group 13 24 950 1 Agencies Offices People Mission
Slide 18: Just some of our Clients
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Slide 19: the mission®
the mission® own ideas the mission®