Trading Statement

The MISSION Group plc (AIM: TMG), creator of Work That CountsTM, comprising a group of digital marketing and communications Agencies, wishes to provide a business and trading update since the Group's last update on 23 October 2023 (the "Update") for the remainder of the 2023 financial year to 31 December 2023 ("FY2023").

Trading for FY2023 is currently expected to be in line with the Board's revised outlook, as outlined in the Update.

VALUE RESTORATION PLAN

As outlined in the Update, in response to the impact of the more challenging trading conditions on the business, the Group has started to implement a "Value Restoration Plan" comprising of a series of significant cost saving initiatives, margin improvements and selected possible business disposals, to restore value to MISSION shareholders.

This plan is now well underway and a total of £5m of cost savings have been identified. An initial £2m of annualised costs savings relating to headcount reduction in certain of the Group's business units have been delivered at a cost of £0.4m. A further £3m of annualised non-agency cost savings have been targeted and are being implemented at a cost of £0.3m.

Progress has been made on the disposal of two non-core businesses in line with the Group's strategy. In each case, a letter of intent has been received. These discussions are ongoing and either, or both, of these may complete in the coming months, but at this stage there can be no certainty that they will progress to a completed transaction.

A further update on the Group's progress against the Value Restoration Plan will be provided with the FY2023 trading statement in January 2024.

FINANCIAL POSITION

Our long-standing lender, NatWest has agreed to waive the December covenant. We remain in constructive dialogue with respect to covenants and maturity of facilities and are confident that through this ongoing support from our Bank, we will have the liquidity and headroom to deliver upon our medium-term strategy.

We are actively managing our net debt position together with that of our trade and other creditors to ensure that we have as much flexibility as possible. At this stage, the Group's net debt at 31 December 2023 is expected to be unchanged from that set out in the Update, being approximately £24.0m.