Shares plunge as Mission warns on profits, scraps dividend

The digital marketing and advertising specialist said that while the first half had been broadly in line with expectations, recent trading had "rapidly" become more challenging than previously anticipated.

In particular, new client wins had been "more than offset" by client losses, while other customers had deferred or cut spending.

Full-year revenue growth is expected to be between 8% and 9%, including the impact of acquisitions.

But Mission warned: "The board now believes that the outturn for 2023 full-year will be materially below market expectations. Headline profits before tax are not expected to be more than £3.1m." In 2022, headline pre-tax profits came in at £7.8m.

Net debt was also higher. As at 20 October, net debt stood at £25.5m compared to £14.9m as at 30 June.

Mission therefore said it was in the best interest of shareholders to cancel the interim dividend. The 0.87p per share payment was due on 1 December.

As at 0845 BST, nearly two thirds of the stock’s value had been wiped out, down 60% at 13.66p.

Mission said: "The board is extremely disappointed by the recent adverse change in current trading, and the outlook for the remainder of the 2023 full year.

"Notwithstanding these short-term challenges, the board believes that mission’s strategy of deliberate investment in its people and capabilities, when combined with operating cost reductions, leaves the group well positioned as markets improve."