Shares in MISSION Group (LSE:TMG) rose 16% to 18p after the AIM-listed marketing and advertising agency group said first-half profits had improved despite a decline in revenue.
Headline operating profit before adjustments is expected to be 10% higher at £2.4 million for the six months to 30 June, while headline pre-tax profit is set to rise 27% to £1.4 million.
Revenue fell to £32.5 million from £34.1 million a year earlier.
The improvement in profitability reflects a restructuring completed during the period, which merged the group's consumer and business-to-business advertising arms into a single agency and cut operating costs.
Mongoose, the group's sports and events agency, grew both revenues and profits, while the ThinkBDW property division held broadly flat in a difficult market.
New client wins included Westminster Council, Puma, PwC and the International Tennis Federation.
Net bank debt stood at £11 million at the end of June, down from £13.7 million a year earlier but up from £9 million at the end of December, reflecting acquisition payments and the cash cost of the restructuring.
The group expects debt to fall in the second half as annualised cost savings come through.
Chief executive John Carey said a strong pipeline of new business and a reduced cost base supported confidence in meeting full-year market expectations.
