- First-half revenue rises 11 per cent to £41.8mn
- Operating profit is down 11 per cent to £2mn
- Interim dividend raised 5 per cent to 0.87p
- Full-year guidance maintained
UK advertising and marketing specialist Mission Group (TMG:41p) delivered 6 per cent organic growth in first-half revenue – but at a much lower margin, which led to a decline in operating profit.
A focus on the technology and healthcare segments – which have in the past accounted for more than a fifth of group revenue – has previously helped support a resilient performance, as has growth from North America (around a 10th of revenue) where Amazon Web Services is a top-five client. However, more challenging trading conditions in the US technology sector meant that the segment’s revenue dipped by 5 per cent in the first half of 2023, with margins “significantly impacted”. This helps explain why group operating margin contracted from 2.7 to 2.1 per cent and why operating profit fell 11 per cent despite the group delivering double-digit revenue growth.