Shares in MISSION Group (LSE:TMG) fell 18% to 15.15p after the marketing and communications group said full-year revenues and profits would come in below market expectations, as delays to major projects pushed income into the new financial year.
In a trading update for the year to December 2025, the AIM-listed group said underlying trading had remained resilient, with strong client retention and new business wins across all divisions.
However, continued macroeconomic uncertainty has slowed the completion of some large projects, particularly within its integrated consumer marketing agencies.
As a result, Mission now expects revenues of about £68 million for 2025 and headline operating profit of £5.1 million, both below expectations.
Management said pipelines remain strong and are continuing to grow, but the timing of project delivery meant some work originally expected in the second half of 2025 will now fall into the first half of 2026.
The update also showed some improvement in the balance sheet. Net bank debt at the end of December was £9.0 million, down from £9.5 million a year earlier.
Including outstanding acquisition liabilities, total debt fell more sharply to £10.3 million from £14.2 million, reflecting what the company described as strong cash conversion during the year.
Alongside the softer trading update, the group set out plans to reshape the business following the appointment of John Carey as chief executive in September. The board has carried out a strategic review aimed at simplifying the group, prioritising investment and ultimately moving towards a net cash position.
A key element of that plan is the consolidation of the group’s advertising agencies. Mission intends to rationalise its business-to-consumer and business-to-business agencies, combining capabilities and leadership teams.
Its sports marketing and events operations will also be brought under a single leader. The group said this simpler structure, alongside continued investment in artificial intelligence, should improve efficiency, broaden geographic reach and enhance service delivery for clients.
The changes are expected to deliver annualised cost savings of between £1.5 million and £2 million, mainly through shared infrastructure, streamlined processes and the consolidation of offices and technology platforms.