Next Fifteen saw strong performance and revenue growth in the US and the UK
Companies: Next 15 Group plc
Next Fifteen Communications Group, released interim results for the six months to 31 July 2016 this morning, reporting solid increases in revenue (+30%), EBITDA (+50%), and PBT (+47%). The firm's cash generation doubled to £14.7m, but its debt also increased 37% to £12.2m.
The firm's US business performed strongly, with revenues increasing by 27% to £50.7m, an organic growth rate of 17.2%. Its operating profit was £10.2m (£8.4m H115), with operating margins at 20%. The UK business enjoyed revenue growth of 56%, with operating profit of £3.6m (up from £1.5m last year) as the operating margin increased to 17.8%:
"This was the result of strong performances by Morar and Encore in particular. The acquisitions of Publitek and Twogether in the period should see the UK business continue to deliver strong growth in the year ahead."
The company saw improvement in Europea and Asia in revenue and profit, with EMEA rebounding from last year's loss to deliver a 5% profit margin, whilst APAC achieved 6.6% organic growth and saw margins improve to 13.5%.
Chairman of Next 15, Richard Eyre said it had been a "very encouraging" H1, with headline PBT up almost 50%:
"These results have been driven by continued strong organic revenue growth in our North American business of 17.2%. However, we have also seen significant growth in profitability in all of our other regions, due to a combination of organic revenue growth, acquisitions and efficiency measures."
The group is, according to Mr Eyre, well placed to meets its expectations, and as a result has raised its interim dividend by 25% to 1.5p per share.
