The Marketing Group (TMG)

Business description

The Marketing Group is building a global full-service marketing network. Each company within the group provides specialist marketing services brought together, within communities of practice, to form an international network that can address a global market.

Investment summary

The Marketing Group has made its first acquisition under the new management team. Although relatively small (FY16 revenues of €1.5m), wildcard communications fits well with Ranieri Communications, adding to its PR, social and influencer network. It brings in a good range of blue-chip clients and opportunities for cross-selling. Our FY18e and FY19e estimates are nudged ahead, having been increased by 10% following the Q3 results. Industry interest in TMG’s start-up blockchain-enabled global media agency, Truth, has been very strong. Having spent time sorting out the inherited group, management is now clearly looking for profitable growth, which should lead to an improving rating.

Last updated on 13/12/2017

Y/E Dec Revenue (€m) EBITDA (€m) PBT (€m) EPS (c) P/E (x) P/CF (x)
2015A N/A N/A N/A N/A N/A N/A
2016A 15.8 2.3 2.2 11.27 3.4 12.3
2017E 26.9 1.9 1.7 4.17 9.1 6.3
2018E 31.2 2.4 2.2 4.97 7.6 5.5

Last updated on 06/12/2017

Latest research

Acquisition of German wildcard

Flash note | Media | 29/11/2017

Q3 update gives reassurance and upgrade

Update | Media | 15/11/2017

Ready to move forward

Initiation | Media | 27/09/2017

Promising maiden results

QuickView | Media | 28/02/2017

Agglomeration on a global scale

QuickView | Media | 16/12/2016

Latest video

Executive interview - The Marketing Group

Industry outlook

Many smaller and mid-sized businesses have no ambition to be absorbed into the larger groups and risk losing their individual culture and autonomy, even if take-out multiples can be attractive. PE is also involved either directly or through taking stakes – an attractive option for those with ambition but lacking the funding. Even for the large groups, the dominance of Google and Facebook within the (digital) market raises concerns. These are exacerbated by some of the largest consumer clients (the natural historical pool for the industry majors) taking marketing communications in-house or setting zero-based budgets.

Last updated on 13/12/2017

Key management

Don Elgie, Chairman
Adam Graham, CEO
Mike McElhatton, CFO

Company address

Enterprise House
Ocean Village
SO14 3XB
United Kingdom
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