Next Fifteen turns in solid first-half results

Data-focussed consulting firm Next Fifteen Communications reported a 32% improvement in group net revenue in its half-year results on Tuesday, to £165.9m.

The AIM-traded company said organic net revenue growth totalled 23%, while adjusted profit before tax was ahead 69% to £35.0m.

Adjusted diluted earnings per share increased 51% year-on-year for the six months ended 31 July, to 26.3p.

On a statutory basis, revenue growth came in at 36% to £208.8m, while the company recorded a statutory operating profit of £14.9m, swinging from a loss of £0.4m a year earlier.

It described its balance sheet as “strong”, with net cash totalling £6.6m, compared to net debt of £5m 12 months ago.

During the period the company completed a successful refinancing, providing up to £100m of debt capacity to fund further acquisitions and capital investment.

Client wins in the period included Boots, Citibank, Diageo and Disney+, while it acquired Shopper Media Group (SMG) and a controlling interest in Blueshirt Capital Advisers (BCA), both of which performed “strongly” in the first half.

It also acquired the business and assets of MSI International East, via the United States arm of Savanta.

Looking ahead, Next Fifteen said its “strong trading” had continued into the third quarter of its financial year, with the company currently seeing no sign of a slowdown in client demand.

Despite being against a strong comparable period, it said it expected to deliver double-digit organic revenue growth in the second half.

It said its new positioning as a growth consultancy was “clearly resonating” with clients, with the directors “confident” in a positive financial performance for the rest of the year.

“Our first half results have seen very strong organic revenue and profit growth across all segments and we continue to benefit from the same momentum in our second half,” said chair Penny Ladkin-Brand.

“The increasing mix of digital services is providing strong operating leverage, although we are also taking the opportunity to accelerate investment in talent and product development to continue to drive longer term growth.”

At 1309 BST, shares in Next Fifteen Communications Group were down 0.27% at 1,126.96p.