LONDON (Alliance News) - The Mission Marketing Group PLC Thursday posted a rise in pretax profit in 2014, due to lower exceptional costs, and it saw revenue rise 1% as a strong performance from its marketing agencies was offset by a reduction in media spend from its clients.
The company proposed a final dividend of 0.85 pence, taking its total dividend for the year to 1.10 pence, up from 1.0 pence a year before. The company said that it intends to increase its dividends in future years, although it said it will continue to regularly review the best use of its cash resources.
Mission Marketing posted a pretax profit of GBP5.4 million for 2014, up from GBP3.2 million a year before, as revenue rose to GBP125.5 million from GBP124.1 million, and exceptional costs did not recur.
In 2013 the company had posted an exceptional charge of GBP2.2 million, including GBP1.5 million in restructuring costs, a GBP442,000 impairment of goodwill and intangibles, and a GBP207,000 loss on a legal dispute with a supplier.
The company attributed the reduction in marketing spend by developers and estate agents to the boom in the property market during the year, as demand outstripped supply. It had expected client's spending cycles in 2014 to be similar to the previous year, however, they were more strongly weighted towards the second half.
Mission Marketing has restructured some activities, which has led to one-off costs of GBP600,000 in the first quarter of 2015, but will reduce its overall cost base.
"As we exited 2014, the group was in good shape and we expect further growth in the coming year in both revenue and profit," said Chairman David Morgan in a statement.
Shares in Mission Marketing are trading up 1.3% at 42.53 pence Thursday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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