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Next15 Reports First Half Growth

September 27 2017

Marcoms group Next15 has reported a 16% rise in half-year revenue to £93.5m (with organic growth accounting for 2%). The firm's data and insights division now accounts for 6% of group revenue, compared to less than 2% two years ago.

Richard EyreThe group comprises eighteen subsidiary agencies, spanning digital content, marketing, PR, consumer, technology, marketing software, market research, public affairs and policy communications. Earlier this summer, Next15 merged its two research brands, Morar Consulting and HPI to form MIG Global, a data and insights division. MIG now includes recently acquired financial MR consultancy Charterhouse Research; Circle Research; Velocity Partners; Morar; Viga and its Crowdology platform, Cardinal; and Envirosell.

Overall for the group, H1 2017 adjusted profit before tax rose 13% to £12.0m, compared with £10.6m in H1 2016; operating profit rose 11% to £12.3m; adjusted EBITDA grew 13% to £14.5m, from £12.8m a year earlier; and net debt remained 'relatively modest' at £20.8m. The group reported a statutory profit before tax of £5.2m, up from £4.2m.

Next15's US businesses increased revenues by 12.5% to £57.0m, although operating margins were reduced to 18.1% in part due to the investment of taking some of the group's UK brands to the US. In the UK, revenues were up by 27.9% to £25.5m, and operating margins rose from 17.8% to 20.2%. In EMEA, the group saw a continued improvement in both revenue and profitability, while in APAC it says it has invested in talent, infrastructure and technology, which it anticipates will lead to a 'much improved' second half profit performance.

Commenting on the results, Chairman Richard Eyre (pictured) said: 'Technology continues to change the business of marketing, opening up more and more channels between brands and audiences. Content can be highly-targeted and directly shoppable in a way not possible through traditional media. Today's marketing deploys mountains of data, with a growing role for technology to understand and use it effectively. Next15 agencies are well-placed to take advantage of this industry shift'.

Web site: www.next15.com .

All articles 2006-21 written and edited by Mel Crowther and/or Nick Thomas unless otherwise stated.

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