Next 15 describes 'robust' trading

The AIM-traded firm, which was holding its annual general meeting, said that in the five-month period ended 30 June, it experienced organic growth in its customer insight, customer delivery, and business 5ransformation divisions.

However, the customer engagement sector showed a modest decline, primarily attributed to delays in client spending.

The group's technology customer base displayed strong spending, the board said, albeit with some expenditure shifts across specific segments as clients sought data-driven services to bolster sales.

Despite prevailing macroeconomic uncertainties, Next 15 said it expected its full-year profits and earnings per share to align with management expectations, delivering another year of solid growth.

Revenues were projected to surpass the previous year by an estimated 5% to 8%.

Additionally, despite inflationary pressures, the group anticipated an increase in full-year operating margins compared to the previous year, reflecting improved trading stemming from the Engine acquisition and disciplined cost control across the organization

“The group’s balance sheet remains strong, and we expect to be cash positive at the year-end,” Next 15’s board said in its statement.

“The group maintains a disciplined approach to capital allocation which enables it to take advantage of strategic opportunities as they arise.”

In line with that approach, as well as the share price during the period, the company said it had chosen to settle £10m of its earn-out obligations in cash rather than shares, reducing the impact of any share dilution.

“The board will continue to prioritise organic investment within the business, as well as mergers and acquisitions, and are evaluating strategic options for returning excess cash to shareholders, including a share buyback.”

At 1449 BST, shares in Next 15 Group were down 3.76% at 692p.

Reporting by Josh White for Sharecast.com.