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
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Tim Dyson, Chief Executive Officer 001 415 350 2801
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Merlin 020 7653 6620
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Vanessa Maydon Mob. 07802 961 902
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Rebecca Penney Mob. 07795 108 178
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