Trading Statement

LONDON--(BUSINESS WIRE)-- 

25 August 2020

Next 15 Communications Group announces

Trading Update and Capital Markets Day

Trading Update

Next 15 is pleased to announce that trading has continued to remain resilient over the first half of the financial year and is well ahead of management expectations set in March of this year.

For the six-month period to 31^st July 2020, revenues are expected to be up by approximately 6.5% compared with the same period last year to £126m and adjusted profit before tax up by over 16% to at least £20m. This has resulted in an improved overall operating profit margin of above 16%, up from 14.7% last year. The strong performance was driven by our B2B technology focused agencies, such as Activate and Agent3, and more resilient trading than previously anticipated in our brand marketing and creative technology divisions. The overall organic decline in revenues for the period was approximately 6%, though the decline was less severe in the US where organic revenues declined by just 2.5%. Client budget declines were typically related to those industry sectors most affected by Covid-19, whereas sectors such as technology and the digital services we provide have seen increases over previously budgeted spend.

Whilst the group remains cautiously optimistic about trading as we enter the second half of our financial year in what is still a highly uncertain general economic environment, we currently expect results for the year to be materially ahead of current market expectations.

We will continue to tightly manage our cost base and conserve cash. The group is highly cash generative and has a strong balance sheet, with net debt as at 20^th August, after recent acquisition related payments, of less than £1m.

We recognise the importance of paying a regular and sustainable dividend to our shareholders and are reviewing the exact timing of a resumption of dividend payments. We anticipate being able to update shareholders when we announce Interim results at the end of September.

Capital Markets Day

The board will host a capital markets day on September 8th in which we will focus on customer trends, especially those that have accelerated as a result of the pandemic. Presentations from Agent3 and Activate will be used to demonstrate areas where data and technology are driving strong growth. To register your interest in advance for this webinar please follow this link: https://numiscorp.zoom.us/webinar/register/WN_kgfO8YcUQrSoDmQeAEUOYA

This announcement contains inside information as defined in Article 7 of the Market Abuse Regulation.

Enquiries:

Next Fifteen Communications Group plc

Tim Dyson, CEO

[phone]

Peter Harris, CFO

[phone]

Numis

Mark Lander, Hugo Rubinstein, Nick Westlake,

[phone]