Marketing services firm Mission Marketing Group due to problems at the recently acquired Addiction Agency.
Poor management and the loss of B&Q as a client hit Addiction. Aviva, a major customer of another group business, is cutting costs and thereby its marketing spending. New customers for other parts of the business were not enough to offset these negatives. There will also be one-off charges and goodwill write-offs of £1.5m.
An underlying full year profit of £5m is expected for 2013, which is similar to last year but lower than the £5.8m originally forecast. The interim profit will be lower than last time but the second half is expected to be stronger.
Net debt is expected to fall from £12.3m to £9m by the end of June 2013. This means that the company is still on course for an interim dividend.
At 23p a share, down 3.25p, Mission Marketing is valued at £18m. A 1p a share total dividend for 2013 would suggest a yield of more than 4%.
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