Next Fifteen Communications PLC (LON:NFC) said it is currently trading ahead of management expectations after a strong start to the new financial year.
The AIM-listed marketing business reinstated its dividend policy proposing a final distribution of 7p per share for the year ended 31 January 2021.
READ: Next Fifteen acquires data-led business Shopper Media Group for £15.7mln
In the same period, net revenue jumped 7% to £266.9mln, with adjusted profit before tax up 22% to £49.1mln.
At year-end, net cash was £14mln compared to net debt of £9.3mln in January 2019.
The marketing agency expanded its client base to include Salesforce, IBM and Amazon and made a “material step” into innovation consulting through the acquisition of Mach49 and CRE. Both deals were earnings accretive.
Following a review of its property portfolio, the company booked a £10mln property impairment charge due to surplus office space, which resulted in a statutory loss before tax of £1.3mln. The review aims to cut property costs by approximately £5mln annually in the medium term.
It also repaid £1.3mln received under the UK government’s furlough scheme.
“Looking to the year ahead, the board is optimistic about the prospects for the group, despite the continued impact of COVID-19 on the economy. COVID-19 tested our business model but it also tested the character of the team that leads Next 15 and the people that work for the group across the world,” commented chairman Penny Ladkin-Brand alongside the results.
“The board remains confident of the group’s underlying prospects. We believe we have the quality of people, the strategy and the financial strength to continue to outperform our marketplace.”
Shares rose 2% to 794p on Tuesday morning.
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