The chief executive of Next Fifteen, Tim Dyson, said the group expected to incur additional costs of approximately £2m during this period in staff restructuring charges and investment in the start-up losses of new digital brands and product development.
Dyson said: ‘The group has made further progress in its digital transition, but we believe that the rate of change among clients is gathering pace with a trend away from large traditional PR mandates and towards digital services.’
Next Fifteen is the holding company for agencies including Bite, Lexis and Text 100 and announced its financial results for the six-month period to 31 January today.
It recorded six per cent growth in adjusted profit before tax to £4.5m and three per cent growth in revenues to £46.6m, though organic growth was one per cent.
Its financial performance has slowed from the same period the previous year, when its adjusted profit before tax rose 15 per cent and revenues climbed 11 per cent.
Dyson added: ‘The scale of the digital transition plan will not stop us making acquisitions, which remain a proven cornerstone of our growth strategy.’
Next Fifteen provided an update on the fraud case at Bite last year, stating it was concluded but had resulted in total charges of £600,000 in the first half of its financial year.
It added that Bite had experienced a challenging last quarter, which prompted the new management to make changes including ‘a small number’ of redundancies.