Trading Statement

Next Fifteen Communications Plc

Next Fifteen Communications Group plc (“Next 15” or the “Group”)

Trading Update and Acquisition of MSI by Savanta US

Highlights

Strong revenue growth in Q2: 40% year-on-year, with 29% organic growth, driving results ahead of management expectations
31% year-on-year revenue growth in H1 with 23% organic growth
Strong performances across all segments and geographies
Attractive margin performance in H1 – anticipate investments in H2 in productization and some cost normalisation as Covid impact recedes
Healthy balance sheet with net cash as at 31 July 2021 of £5m
Acquisition of the business and assets of MSI International East Inc. (“MSI) by the US arm of Savanta, Next 15’s largest customer insight business

Next 15 is pleased to announce that trading in the first six months of the financial year has continued to be strong and ahead of management expectations.

For the three-month period to 31 July 2021, the Group’s total revenues were up by approximately 40% compared with the same period last year, with organic revenue growth of 29%. This resulted in revenues for the six months to 31 July 2021 being up 31% in total, with organic revenue growth of 23%.

Organic growth is expected to moderate in the second half of the financial year given the relatively strong performance experienced in that period last year, with full year organic growth anticipated to be ahead of previous guidance in the mid to high teens range. As a result, we anticipate that our results for the year ending 31 January 2022 will be ahead of management expectations.

The performance has been strong across all four areas of the Group. Customer Delivery, which was the highest growth area last year, has remained the top performer and the Group has also seen encouraging performances from the Business Transformation, Customer Insight and Customer Engagement segments. We have also seen a positive start to life as part of Next 15 from our most recent acquisition, Blueshirt Capital Advisors (“BCA”).

Given the robust performance of the businesses, we are using the period to accelerate investment in productizing a number of areas of the Group and hire additional digital talent. While these investments will have a minor impact on margins this year, they are expected to help drive long-term organic growth.

The Group continues to have a strong balance sheet. Net cash at 31 July 2021 was approximately £5m following the recent acquisitions of Shopper Media Group and BCA, in addition to other earn out and tax related payments.

The Group is also pleased to announce that the US arm of its largest customer insight business, Savanta, has acquired the business and assets of MSI, a New Jersey based market research agency. This is a further step in the ambition for half of Savanta’s revenues to be delivered from its US arm. MSI’s clients include a variety of Fortune 500 companies across the Healthcare, Pharmaceutical, Investment, Insurance, IT/Security and Retirement sectors.

The Group will announce its financial results for the six months to 31 July 2021 on 28th September 2021.

Enquiries:

Next Fifteen Communications Group plc
Tim Dyson, CEO
+1 415 350 2801
Peter Harris, CFO
+44 (0)20 7908 6444

Numis
Mark Lander, Hugo Rubinstein
+44 (0)20 7260 1000

Berenberg
Ben Wright, Mark Whitmore
+44 (0)20 3207 7800