Next Fifteen Communications Group PLC (AIM:NFC) provided an upbeat assessment of prospects after a robust first half that showed the benefit from recent acquisitions but also strong underlying progress.
The company, which focuses on technology and data-driven marketing and advertising services, also restated the case for its £306mln takeover of rival M&C Saatchi.
“We believe it is a compelling opportunity to bring together two highly complementary organisations to enhance the value of both businesses,” the company said in its interim results statement.
“We remain confident the transaction will be immediately and materially earnings enhancing with the potential to unlock significant synergies.”
It said it expects a "final resolution" to the takeover process in the fourth quarter of 2022.
Turning to the financials, the company posted a 65% increase in net revenues to £274mln in the six months ended 31 July 2022. Organic net revenue growth was 31% while adjusted pre-tax profit advanced 73% to £60.7mln.
It said the strong trading performance had continued into the third quarter of Next Fifteen’s financial year.
The company pointed out that 53% of its revenues are from the US, with a further 7% coming from clients that are billed in US dollars.
“The relative strength of our US businesses provides the board with a high level of confidence in the trading performance for the rest of the year and beyond and we are confident of delivering adjusted profit before tax for the year at least in line with management expectations as revised upwards following our AGM statement in June,” the group said.
Investors were rewarded with a 4.5p a share interim dividend, up 25% from the same period last year.