Shares in Mission Group (LSE:TMG) rose 20% after the company announced the £17.4 million disposal of April Six Limited and an updated capital allocation strategy.
The digital marketing and communications group completed the sale to Marketbridge Inc for an initial £10.5 million, with an additional earn-out of up to £4.2 million based on 2024 performance.
Proceeds from the sale will be used to reduce net debt from £17 million to £6.5 million, significantly improving leverage and interest cover ratios. The sale also completes the group’s value restoration plan, which delivered £5 million in operational savings in 2024.
The updated capital policy includes a focus on debt reduction, organic growth investment, and shareholder returns through dividends and buybacks. The board intends to begin a £1.5 million share buyback immediately and resume dividend payments in 2026.
The stock rose 5p to 29p.