Mission Group saw revenue jump 14% in 2021
British agency network The Mission Group has revealed a major revenue jump in its full-year results, released today.
A still from Mission Group agency Krow’s recent Medicins Sans Frontieres work / Krow
The group increased its revenue by over 14% in 2021 and has restored its shareholder dividend.
The Mission Group owns 17 agencies, including Bray Leino, Spark and April Six.
Its revenue rose from £61.5m to £72.5m last year, £10.2m of which was organic, representing an organic growth of 14.3%. Operating profits meanwhile rose to £8m from £1.9m the previous year and operating margins increased 8%, yielding a pre-tax profit of £7.5m.
Certain sectors performed especially well. ThinkBDW, Mission’s property marketing agency, saw revenues rise 34%, while Mongoose (now Spark) saw revenues rise 40%.
In a statement, the group said that trading in 2022 has “started well and in line with board expectations“.
Julian Hanson-Smith, non-executive chair, said: “Mission’s performance in 2021 has demonstrated the resilience, adaptability and strength of the group. We have delivered a sustained improvement in revenues and profitability, as well as reinstating the group’s progressive dividend policy.
“The board is optimistic for 2022, notwithstanding the current macroeconomic uncertainty and the implications of increasing general costs and, in particular, wage inflation. Trading year to date is in line with our expectations and we continue to explore opportunities to add additional capabilities in dynamic areas of our markets.”
Strategic mission
In the last year, Mission acquired customer engagement agency Soul and creative agency Livity.
The group is working to boost its capabilities in creative and customer experience (CX). The launch of subsidiary Krow’s CX practice aims to fulfil that goal.
Mission still had staff on furlough in 2021, though its furlough support from the UK government amounted to £300,000, down from £3m in 2020. Despite holding debts of over £10m, the group’s cash position is “strong,“ the company said in its statement.
Mission expects revenues to return to pre-pandemic levels by the third quarter of 2022. That is behind the estimates of most holding companies and its larger rivals, but may reflect caution in light of rising inflation and the economic impact of the war in Ukraine.
Chief executive James Clifton said: “The vast majority of our agencies within the advertising and digital segment delivered year-on-year growth over the course of 2021. However, it was also particularly rewarding to see strong performances from our agencies exposed to sectors that were hardest hit by the pandemic.
“Trading in 2022 has started well and in line with our expectations, though we note that, while we have no operations in the region, the war in Ukraine is heartbreaking and creating a level of economic uncertainty that is difficult to predict. We remain at the forefront of opportunities across our markets and since the year end have been delighted to confirm the acquisition of Livity, the youth-focused creative consultancy.
“We are confident that Mission is well positioned for future growth and will continue to make further progress against its strategy in the year ahead and beyond.“