Next Fifteen Communications Group plc Trading Update

Next Fifteen Communications Group plc Trading Update

 

Next Fifteen Communications Group plc, the digital communications group, is pleased to announce a pre-close trading update ahead of its preliminary results for the year ended 31 July 2011, which are due to be announced on 18 October 2011. Next Fifteen is pleased to report that it expects results to be in line with market expectations and the board expects the Group to make further progress in the financial year just commenced.

The Group also announced today that Margit Wennmachers, a partner at leading Silicon Valley-based venture capital firm Andreessen Horowitz, is joining the board, as a non-executive director. Earlier this year Richard Eyre was appointed Chairman and Alicja Lesniak became a non-executive director as Will Whitehorn and Ian Taylor stepped down from the board.

These appointments complete our plan to align the board's expertise with the next phase of the Group’s growth. The new chairman and non-executive directors bring digital insight, a US perspective and valuable experience in operating and extending international agencies. In addition, we believe these changes will improve the Group’s ability to address the needs of its investors in the UK and other markets.

During the year the Group launched Beyond, its first pure digital agency following the acquisition of Type3. The Group also acquired three further digital agencies: One Xeno, ILS (which are now part of Bite) and Bourne. The Group added several major new clients including: Nokia, GE and Zynga and organic growth rates on a constant currency basis are expected to remain strong. We are pleased with this outturn despite the sluggish economic conditions in many markets.

Next Fifteen is unique amongst its peers in the relative scale of its US business. In the year just completed over 50% of revenue was generated in the US. Going forward into the new financial year, we believe the Group should continue to benefit from the relative strength of the US technology sector however, we recognise the increased level of uncertainty created by the continuing and interconnected volatility in equity, sovereign debt and foreign exchange markets.

Richard Eyre, Chairman of Next Fifteen, said: “The Group continues to invest to reinforce its position in emerging markets and in further expansion of its digital capabilities. Its technology heritage and early recognition of the significance of the substitution of traditional media time by online and mobile engagement have placed it well to benefit from the new opportunities created by this transition.”

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