Next Fifteen Communications Group PLC (AIM:NFC, FRA:8LS) said the strong trading that fuelled a 69% surge in interim adjusted pre-tax profit continued into the third quarter.
“We are currently seeing no sign of a slowdown in client demand,” the technology-driven marketing and communications business told investors.
“Despite being against a strong comparable period, we anticipate delivering double-digit organic revenue growth in our second half.
“Our new positioning as a growth consultancy is clearly resonating with our clients and we are confident in a positive financial performance for the rest of the year.”
The group said its strong balance sheet, with £6.6mln of cash and £100mln of debt capacity, provided headroom for further M&A activity.
It confirmed the recent purchases of Shopper Media Group and Blueshirt Capital Advisers (in which it took a controlling stake) performed strongly in the first half.
It added Boots, Citibank, Diageo and Disney+ to its client roster in that period.
Adjusted net revenue for the six months ended June 30 was up 32% at £165.9mln, reflecting a more favourable mix towards more higher-margin services and improved operational gearing. Adjusted pre-tax profit for the period grew to £35mln from £20.7mln a year earlier.
Reflecting its confidence in the outlook for the remainder of the year, the group resumed its interim dividend payment. Investors will receive 3.6p a share.
Chair Penny Ladkin-Brand said: “Our first-half results have seen very strong organic revenue and profit growth across all segments and we continue to benefit from the same momentum in our second half.
“The increasing mix of digital services is providing strong operating leverage although we are also taking the opportunity to accelerate investment in talent and product development to continue to drive longer-term growth.”