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THE MARKETING GROUP PLC FINANCIAL RESULTS FOR THE HALF YEAR ENDED 30 JUNE 2017

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A leaner, fitter TMG now focused on accelerating sustainable growth 

London – 15 August 2017 - The Marketing Group plc (“TMG” or the “Group” or the “Company”) is pleased to announce its financial results for the half year ended 30 June 2017.

First half highlights

  • Turnover of €12.546 million

  • EBITDA of €770k

  • Goodwill impairment and divestment charge €43.575 million

  • The balance sheet value of TMG’s investments has now been adjusted to reflect current performance

Post period highlights

  • July 2017 - Mary Keane-Dawson appointed as Global CEO, Performance Media

  • August 2017 - Imagine Group, Skye Multimedia and Wilkin Marketing leave the Group

The Group’s third quarter results for the months ended 30 September 2017 will be announced on 15 November 2017.
 

Commenting, Adam Graham, TMG CEO, said,

“Now that this period of internal focus is complete, we can place our full attention on accelerating sustainable growth. I am very confident about the future.”

CEO’s statement
We have now completed the bulk of the internal reorganisation of the group and addressed the under-performing areas. H1 2017 EBITDA is €771k, with trading performance for the second quarter improved significantly with EBITDA coming in at €473k and now divestment negotiations have been concluded, the trading results for Q1 have been uplifted by €173k to €298k.

We are confident that we have now dealt with the legacy issues and have a strong platform for growth going forward. All agencies in the Group have a clear strategic fit and provide complementary services that will form the cornerstone of our growing network.

Three agencies have now left the group (Imagine Group, Skye Multimedia and Wilkin Marketing) and two agencies have been promoted to top tier status (DAE and Digital Virtue).

Now that we have significantly improved the infrastructure, I firmly believe that new acquisitions will slot in smoothly. Future targets will be vetted carefully and selected on the basis that they complement the strategy of the group and unlock incremental value.

Of course, there will undoubtedly be unforeseen bumps in the road ahead, however the Group is in a much better position to deal with any further challenges it might face.

TMG strategy
TMG aims to fill a significant niche between the big holding companies and the smaller independent agencies. By structuring itself in a more progressive way, TMG is able to attract top quality agencies that do not wish to “sell out” to the usual suspects. There are also a great many brands that like to engage independent agencies but require a global presence and a lower risk profile. TMG provides a middle ground between these two extremes and gives the best of both worlds: “independent spirit – global scale”.
 

The big advertising networks were created in a previous era, before modern technology had made the world a smaller place. One no longer needs people in every territory to address a global market. By having offices in key locations, and by using technology to facilitate real- time communication, much more effective solutions can be provided. By flattening the hierarchy, removing the bureaucracy, and empowering people to make decisions, we can respond quickly to change and provide much better value to clients.

TMG is effectively building a marketing platform that cuts through the red tape so many networks are tied up in. We are investing in technology that unlocks this potential and creates a much more scalable business. Future acquisitions will complement this approach.

We will continue to deepen our commitment to data, measurement and transparency. We aim to develop a best in class performance media axis that can service brands nationally and globally. The combination of focusing on highly effective communications techniques and our strong commitment to streamlined internal processes supports our vision of becoming a highly effective global marketing network.

Now that this period of internal focus is complete, we can place our full attention on accelerating sustainable growth. We have all the ingredients to take TMG forward and create something truly special.

I am extremely confident about the future and looking forward to the next chapter in TMG’s development.
Adam Graham, CEO

This information is information that The Marketing Group plc is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out below, at 7.00am CET on 15 August 2017.

-ENDS-

For further information please contact:
Adam Graham, CEO
Email: investorrelations@tmg-plc.com

Media
Jaime Carron
Phone: 0207 1481606
Email: jaime.carron@tmg-plc.com

Investor relations
Claes Delin / Mikael Widell
Phone: +46 703 11 9960
E-mail: investorrelations@tmg-plc.com

Mangold Fondkommission AB, +46 8-5030 15 50, is the company’s Certified Adviser and liquidity provider.

This information is information that The Marketing Group plc is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out below, at 7.00 am CET on 14 August 2017.

The Marketing Group plc (“TMG”) in brief
TMG is building a global full-service marketing network that respects the individual cultures of each agency that joins. By providing a supportive platform for growth, and an agile management approach, TMG aims to provide a fresh alternative to the big holding companies: Independent Spirit - Global scale. Each company within the group provides specialist marketing services brought together, within complementary communities of practice, to form an international network that can address a global market. The central team supports its subsidiaries through a lean and nimble structure that can respond quickly to change and provide highly effective solutions for clients. The Marketing Group is listed on Nasdaq First North, Stockholm. 

www.tmg-plc.com.

Mangold Fondkommission AB, +46 8-5030 15 50, is the company’s Certified Adviser and liquidity provider. 

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