Next Fifteen shares drop 24 per cent after profits warning

The share price of Next Fifteen Communications Group plunged yesterday after it issued a profits warning due to audit issues at Bite and its finance director quit.

Profits warning: Next Fifteen chief executive Tim Dyson
Profits warning: Next Fifteen chief executive Tim Dyson

Investors punished the company, sending its shares down from 92 pence at Monday’s close to 70 pence at yesterday’s close, a level that was little changed in early trading this morning.

The two-year low was reached after it announced that finance director David Dewhurst was stepping down with immediate effect.

The company is recruiting an interim finance director and while a search for a permanent replacement takes place, Dewhurst has made himself available to ensure an orderly transition.

Next Fifteen’s preliminary results will be announced as planned on 5 November.

The company, which is led by chief executive Tim Dyson, said profits would be "materially short of market expectations" but revenues would be in line.

What the company called "audit adjustments that relate to issues at Bite" could be traced back to problems that came to light a year ago.

Last October the company delayed the publication of its annual results, saying it had learned it "has been the victim of a complex fraud involving a senior member of the finance team at its Bite North America subsidiary".

In April it said the fraud case was concluded but had resulted in total charges of £600,000 in the first half of its financial year, in which it reported adjusted profits before tax of £4.5m.

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus

Latest Articles

John Lewis to tell brand story with "tasteful" 150th anniversary celebrations

John Lewis to tell brand story with "tasteful" 150th anniversary celebrations

Department store John Lewis is to use its 150th anniversary this year to talk about its history, which "not enough people know about", according to director of communications Peter Cross.

Labour hires Obama election strategist David Axelrod to fight General Election

Labour hires Obama election strategist David Axelrod to fight General Election

The man who helped Barack Obama win the 2008 and 2012 US presidential elections is to work for Labour along with members of his team.

Sky adds Fever PR to its roster after splitting with Cake

Sky adds Fever PR to its roster after splitting with Cake

Pay-TV giant Sky has added Fever PR to its agency line-up for a wide-ranging brief covering products and services.

Max Clifford trial jury to continue deliberations after Easter break

Max Clifford trial jury to continue deliberations after Easter break

The jury in the trial of celebrity publicist Max Clifford has been sent home for Easter and will reconvene on Tuesday for further deliberations about its verdicts on 11 charges of indecent assault.

Home Office brings in Munro & Forster to campaign against FGM

Home Office brings in Munro & Forster to campaign against FGM

The Home Office has tasked Munro & Forster (M&F) with supporting its campaign to eradicate female genital mutilation (FGM) as part of a wider retained brief.