The Mission Group plc announces the sale of its subsidiary, April Six, to Marketbridge, Inc. for up to £17.4 million. The sale includes an initial payment of £10.5 million and a potential earn-out payment of up to £4.2 million. The disposal completes the Groups Value Restoration Plan, improving its financial position and reducing net debt. The net proceeds will be used to repay bank debt, improving the Groups leverage and interest cover ratios.
The Group also outlines its capital allocation policy, prioritizing debt repayment, organic growth investment, and returning surplus cash to shareholders through share buybacks and dividends. The Board intends to return up to £1.5 million to shareholders via an on-market share buyback.
The sale of April Six, a full-service integrated agency, is expected to benefit the companys growth plans in the US. The Groups non-executive chair, David Morgan, expresses confidence in the Groups future, emphasizing the intrinsic value of its agencies and a commitment to delivering great work for clients and shareholders.