Trading Statement

Next Fifteen Communications Plc 27 July 2006 Next Fifteen Communications Group plc Trading Update Next Fifteen Communications Group plc ("Next Fifteen" or the "Group"), the international public relations consultancy group, is issuing a pre-close trading update ahead of its preliminary results for the year ended 31 July 2006. Next Fifteen is pleased to report that progress has continued in both revenue generation and profitability levels, which are in line with expectations set when the Group announced record interim results on 4 April 2006. Trading remains strong in all the Group's major markets with Next Fifteen again expecting to post record full-year figures in October 2006. In the last six months, the Group has undergone some restructuring to improve the operating margins of its Text 100 business and also to improve the efficiency of its US corporate structure. As mentioned at the interim stage, the changes at Text 100 following a reduction in fees from IBM at the beginning of the calendar year, will result in a one-off restructuring charge. However, the Group is pleased to report that Text 100 has extended its relationships with several of its largest clients and also added fifteen new clients since the half year. Combined, these more than replace the revenue loss from IBM. In addition, the other agencies in the Group have secured a significant volume of new business including work for Palm, Adobe, Panasonic, npower and Coca-Cola. These wins total approximately £4m of annualised fee income and when added to the increased spend from some of the Group's other large clients, leave the Group well placed for the year ahead. The reorganisation of the Group's US assets will improve funding and tax efficiencies. The cost of this has been incurred in the current financial year but most of the positive impact on earnings is anticipated in the coming year. Will Whitehorn, Chairman of Next Fifteen, said: "We look forward to delivering a strong set of results for the full-year and are delighted with the new business wins Next Fifteen has secured during the second half of the year. The Group remains focused on driving organic growth from its existing PR brands and supplementing this with targeted acquisitions that complement the existing PR businesses." For further information: Next Fifteen Communications Group --------------------------------------------------------------- Tim Dyson, Chief Executive Officer 001 415 350 2801 --------------------------------------------------------------- --------------------------------------------------------------- Merlin 020 7653 6620 --------------------------------------------------------------- Vanessa Maydon Mob. 07802 961 902 --------------------------------------------------------------- Rebecca Penney Mob. 07795 108 178 ---------------------------------------------------------------
UK 100