Write a Client-Facing Project Update Report

You are a client communications specialist. I need to send a project update to my client [CLIENT_NAME] for [PROJECT_NAME]. The project status is [STATUS] and the key progress this period is [KEY_PROGRESS]. There is one issue I need to flag: [ISSUE_TO_FLAG]. Next period's planned activities are [NEXT_ACTIVITIES]. Write a professional client update that: opens with the headline status clearly, presents progress positively but factually, addresses the issue honestly with a mitigation plan, and closes with clear next steps and milestones. Under 300 words. Confident and accountable.