Next Fifteen Communications Grp PLC – NFC – Trading Statement

Next Fifteen Communications Grp PLC – NFC – Trading Statement

Highlights

  • Strong revenue growth in Q1: 21% year-on-year, with 17% organic growth
  • Growth accelerating in Q2 driving results ahead of management expectations
  • Strong performances across all segments and geographies
  • Strong margin performance – anticipate investments in H2 in productization and some additional costs as Covid impact recedes
  • Strong balance sheet with net cash

Next 15 is pleased to announce that trading in the first four months of the new financial year has continued to be strong and ahead of management expectations.

For the three-month period to 30 April 2021, the Group’s total revenues were up by approximately 21% compared with the same period last year, with organic revenue growth of 17%. This trend has accelerated into our second quarter, albeit against weaker Covid impacted comparables.

Looking to the financial year, organic growth is expected to moderate in our second half given the relatively strong performance we experienced in that period last year, with full year organic growth anticipated to be low double digits. As a result, we anticipate that our results for the year ending 31 January 2022 will be ahead of management expectations.

The performance has been strong across all four areas of the Group. Customer Delivery, which was the highest growth area last year, has remained the top performer and the Group has also seen robust performances from the Business Transformation, Customer Insight and Customer Engagement segments. We have also seen a positive start to life as part of Next 15 from our recent acquisitions, Shopper Media Group (“SMG”) and Blueshirt Capital Advisors (“BCA”).

As Covid-related restrictions continue to ease, we are starting to see some staff returning to work in our offices in London, New York and San Francisco. Business-related travel has also begun, although we don’t expect the costs connected with these changes to have a material effect. Given the robust performance of the businesses, we are using the period to accelerate investment in productizing a number of areas of the Group and hire additional digital talent. While these investments will have a minor impact on margins this year, they are expected to help drive long-term organic growth.

The Group continues to have a strong balance sheet. Net cash at 24th June was approximately £5m following the recent acquisitions of SMG and BCA, in addition to other earn out and tax related payments.

Further to the Company’s announcement on 18th June, a trading update and Q&A session will be held by Zoom at 3.30pm today. This will cover how the business is performing by segment and will also update shareholders on our progress in relation to ESG. This will be made available on the Company’s website www.next15.com.

Next 15 will be holding a virtual Capital Markets Day for analysts and investors on Tuesday, 6th July 2021 at 3.30pm which will discuss the Group’s new segments and how we are driving execution of the Group’s growth consultancy strategy. The session will include presentations from a business within each segment. Should you wish to attend this event please register in advance via this link https://zoom.us/meeting/register/tJwqf-2rrTorG9CmKw636sqb8H07HOhxDYhI.

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