Next Fifteen ahead of forecasts as activity recovers
- Next Fifteen lifts full-year expectations again
- AIM’s ‘buy and build’ stars draw comparison with main market mid-caps
- Next Fifteen to see good year of growth, says broker
- Next Fifteen Communications Group increases fiscal year guidance again citing strong customer base
Quick facts: Next Fifteen Communications Group PLC
Price: 1202.9998 GBX
Market Cap: £1.12 billion
About the company
Next 15 is a family of marketing businesses spanning digital content, PR, consumer, technology, marketing software, market research, public affairs and policy communications.
Together, the company delivers a unique brand of technology-driven marketing.
How it is doing
Although organic growth is expected to moderate in the second half of the financial year (to end-January 2022), management said organic growth should be ahead of previous guidance. In June, when the marketing group last raised full-year expectations, it said like-for-like revenues should grow by a low double-digit percentage from the year before; the group now expects organic growth to be in the mid-to-high-teens.
The three months to the end of July saw revenues rise by 40% year-on-year, with organic growth of 29%. This meant revenue growth for the first half of the fiscal year improved to 31%, with organic growth of 23%.
Next Fifteen said it saw strong performance across all parts of its business in all parts of the world in which it operates.
For the three-month period to 30 April 2021, the marketing group’s total revenues were up by roughly 21% compared with the same period last year, with organic revenue growth of 17%. This growth rate has improved since then as the year-on-year comparison takes in the pandemic-affected period of 2020.
Next Fifteen Communications Group PLC has exercised an option that gives it a controlling interest in Blueshirt Capital Advisors (BCA), the tech-focused capital markets business.
The business was set up by the management of Next Fifteen’s Blueshirt Agency to create a “separate but complementary business” to work on IPO advisory for its technology clients.
Insight: AIM’s ‘buy and build’ stars draw comparison with main market mid-caps
On Tuesday morning, AIM 100 digital marketing firm Next Fifteen Communications Group PLC (LON:NFC) became the latest ‘buy and build’ star on the junior market to add another brand to its burgeoning portfolio.
The acquisition of consultancy and communications firm Health Unlimited brings the total number of brands under Next’s umbrella to around 20 as it looks to boost growth through a buy and build strategy of acquiring smaller (sometimes referred to as ‘bolt-on’) companies to boost its earnings and corporate footprint.
What the brokers say
The broker upgraded its forecasts to reflect the recently increased stake in Blueshirt Capital Advisors, which went to 51% from 20%.
While the deal increases revenues by 2% for financial years 2022 and 2023 to £310mln and £344mln respectively, earnings per share (EPS) remain largely unchanged at 47.3p for next year and 55.3p for 2023.
What management says
Next Fifteen Communications Group PLC (LON:NFC) CEO Tim Dyson tells Proactive the group has raised expectations for the current fiscal year after a strong final quarter, the third hike in its current financial year.
Dyson says revenues for the three months to the end of January are expected to be up by roughly 9% year-on-year, citing its strong customer base.
He's not concerned a post-pandemic world will adversely affect the business because of the expected longevity of its digital and data-driven-focused product offering.
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