Next Fifteen H1 profits and revenues rise, dividend lifted

Next Fifteen reported a jump in interim profit and revenue on Tuesday as it hiked its dividend.

In the six months to the end of July, adjusted pre-tax profit rose 26% to £15.1m on revenue of £106.8m, up 14%. Adjusted earnings before interest, taxes, depreciation and amortisation grew 22% to £17.7m and adjusted earnings per share were up 25% to 14.2p.

Organic revenue grew by 8.7% in the period, led by the company’s UK-based agencies, which recorded organic revenue growth of 14.9%. On a constant currency basis, the group’s net revenue was up 19%.

The interim dividend was lifted 20% to 2.16p a share and the company said its UK business saw revenues increase by 56% to almost £40m, with operating profit of £9.5m, up from £5.2m in the prior period.

In the US, however, reported revenues slipped 2% to £55.8m on the back of sterling’s strength against the US dollar and the disposal of most of the Story business.

During the period, the group made significant client wins, including Capital One, Waze, Diageo and AIG.

Next Fiften said the it was "encouraged" by recent trading and the prospects for the second half remain good. As a result, it remains optimistic about the outlook for the group and is confident that it will meet its expectations for the full year.

Chairman Richard Eyre said: "The pace of change in the marketing sector has shown no sign of slowing. Companies are increasingly focused on how consumers experience their brand through digital channels and especially mobile platforms.

"Next 15 remains committed to building and buying businesses that understand how to take advantage of these platforms, using technology and data to design and manage marketing programs. Our strong growth in the first half of the year is evidence of an effective strategy which we believe will continue to drive shareholder value."

At 1020 BST, the shares were down 4.5% to 536p.