- Proceeds of sale will be used to reduce debt
- £1.5 million share buyback announced
- Shares up 29% over the past year
Shares in Mission Group (TMG:AIM) gained over 19% to 28.75p in morning trading as the digital and marketing communications group said it had sold April Six to US-headquartered Marketbridge for £17.4 million.
Fiona Shepherd, founder, and CEO of April Six will remain at the company but will step down from the Mission Group’s board with immediate effect after 14 years’ service.
Investors welcomed the sale of April Six - which has a strong blue chip client base – as net proceeds will be used to pay down bank debt to its lender NatWest (NWG).
As of 30 December 2024, net bank debt stood at £17 million, and therefore the pro forma net bank debt including the £10.5 million net proceeds from the sale of April Six will be £6.5 million.
COMPLETION OF PLAN
The sale marks the completion of Mission’s VRP (value restoration plan) announced on 20 December 2023.
The company said through self-help actions the VRP has delivered £5 million of annualised operational improvements in 2024 and has ‘significantly strengthened Mission’s financial position.’
Separately Mission announced a £1.5 million share buyback programme in accordance with its capital allocation policy, with the dividend expected to return in full year 2026.
This move is an added boost for shareholders which has seen the group’s shares gain 29% over the past year.
EXPERT VIEW
Analysts at Canaccord Genuity were upbeat about Mission’s sale, branding it a ‘success’ and allowing the group to focus on core UK markets and not its non-core US market.
By easing the debt burden: ‘Mission is now able to access more favourable covenants with its lender NatWest. Here, we understand management is negotiating to extend its debt agreement (due to end April 2026), expected to complete in the first quarter.’
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