The Mission Group emerged as an outlier in the struggling advertising sector on Wednesday after updating on significantly improved trading late on in the year.
Shares climbed 10% to 25.85p on news The Mission Group's plans to reduce debt as companies slash advertising spending had delivered early benefits.
Net debt was slashed by a third to £15.5 million in the final three months of the year on non-core business disposals and working capital improvements, the Devon-based group reported.
Strong final quarter trading also meant revenue of £87 million would sit 9% higher over the year meanwhile, with headline profit falling from £7.8 million to £4.3 million.
Broker Canaccord Genuity (TSX:CF, LSE:CF) noted the revenue figure outdid market expectations, which had been revised as the group warned of muted trading in October.
Most important though, Canaccord said, was the initial success in cutting costs as advertising spending slowed and The Mission Group’s scope for further saving from disposals in the new year.
Chief executive James Clifton echoed the sentiment, explaining efficiencies were “quickly being realised”.
The initial reduction in debt had been significant against previous expectations, he added, leaving the group confident despite macroeconomic concerns heading into the new year.
Wednesday’s share price gains follow an over 50% dip in The Market Group’s value over the past year, with the stock having recovered 17.5% so far in January.