Next Fifteen hikes expectations again after solid third quarter

Next Fifteen Communications reported “broad-based growth” across its segments in a trading update on Monday, leading to the fourth upgrade to its outlook this year.

The AIM-traded firm said it recorded “strong” revenue growth in the third quarter at 38% year-on-year, with organic growth coming in at 26%.

That led to 34% year-on-year revenue growth in the first nine months of the year, with organic growth for that period standing at 24%.

Next Fifteen said performance had been “very encouraging” across all of the segments and geographies, with that strong performance continuing into the fourth quarter.

Accordingly, the board said the results for the year ending January were expected to be ahead of its previous expectations.

“The performance has been strong across all four areas of the group, with each segment showing organic revenue growth of at least 15% in the first nine months of our financial year,” the board said in its statement.

Its directors said customer delivery and business transformation continued to be the fastest growing segments, while customer insight and customer engagement segments showed a “welcome recovery” from their Covid-19 impacted performances in the prior year.

“We’re delighted to see such a strong performance across the group and take it as further confirmation that we have assembled an impressive array of specialists,” said chief executive officer Tim Dyson.

“Our strong revenue momentum is testament to demand for our wide range of growth-enhancing services at a time of challenge and disruption across industries.

“It remains our priority to accelerate investment in talent and product development to continue to innovate for clients and drive longer term growth.”

At 1219 GMT, shares in Next Fifteen Communications Group were up 5.47% at 1,181.26p.