Next Fifteen Communications Group plc
("Next 15" or "the Group"),
Next 15, the digital communications group, is pleased to announce a trading update ahead of its results for the year ended 31 January 2018, which are due to be announced in early April 2018. Next 15 anticipates that the results will be in line with the Board’s expectations and the Board expects the Group to make further good progress in the year ahead.
The Group has seen an improvement in organic revenue growth in the second half of the financial year with organic revenue growth compared with the second half of last year expected to be in the high single digits. This comes off the back of the expansion of existing clients such as Samsung and the addition of Slack and Nike as significant new customers.
The Group has continued to invest in the transition to digital marketing products and services and has made a series of acquisitions including digital creative and content agencies such as Elvis, Brandwidth and Velocity, as well as data and research businesses, Circle and Charterhouse and the opening of an office for Publitek in the US. The Group also took an investment stake in OnePulse, a low cost, high speed market research tool which is expanding rapidly.
The Group’s balance sheet remains in good health with net debt better than anticipated at approximately £12m as at 31 January 2018.
Given roughly 60% of the Group’s revenues and profits come from the US, we have experienced some adverse impact from the recent weakness in the US dollar but also expect the recent changes to US tax law to have a long-term favorable impact on our earnings. However, the full impact is unclear as the IRS is still detailing its revised guidelines. We do anticipate a small one-off non-cash charge relating to deferred tax, but we also expect a small improvement in the on-going tax rate. More details will be provided in April when we announce the full results.
Richard Eyre, Chairman of Next 15, said:
"The Group continues to focus on data, content and technology. We are pleased that data and analytics are increasingly embedded across the group; we believe that over time this will drive growth in our technology and content businesses as customers’ marketing activities increasingly utilise these tools to predict campaign success and spend levels."