The Mission Marketing Group

Regional marketing communications venture TMMG floated on AIM in April with a £14.8m funding. The group delivered pleasing pro-forma numbers for the half to June, its seasonally stronger period, demonstrating growth rates ahead of the sector.

Reported as if the group had operated in its current form for the full six months, maiden interims revealed 23% like-for-like growth in turnover to £29.8m and a 22% hike in profits to £2.5m, building on a strong 2005.

Chief executive Iain Ferguson’s vision is to buy and build a business providing award winning advertising and marketing services, with select acquisitions to be located outside high-cost central London, where 30% cost advantages are achievable. Target companies will also be adept outside of the TV-centric advertising model. ‘If you are not online, you are dead’, he explains.

The acquisition of Bray Leino at float has helped to lay the foundations for a national advertising and marketing agency network and clients are using ever more of the group’s services, especially in the fast growing digital area. TMMG is also growing faster than the sector due to its diverse range of services spanning advertising, PR, events and on-line marketing.

Recent advertising highlights include campaigns for King of Shaves and WKD, the digital and online side is also thriving, with TMMG agencies working with the likes of Carslberg and Lucozade, and recent client wins include Seagate and Debt Free Direct.

Passing on the dividend this time, TMMG says it will hit the dividend trail at the full year, and carefully nurtured acquisitions should follow. House broker Seymour Pierce is forecasting earnings of 6.1p for the ‘statutory’ 8.5 months to December, placing the shares on a forward rating of 20. Palatable given above-sector-average growth rates. Buy.