Profit drop at Next Fifteen

Next Fifteen Communications will see a drop in pre-tax profit for 2008 because of the economic downturn and restructuring costs.

Whitehorn: Next Fifteen chairman
Whitehorn: Next Fifteen chairman

The group said that over the last two months the group has experienced cuts in fee levels from certain clients and as a result has lowered costs through an approximately 9 per cent reduction in its workforce and the closure of its Seattle and Dublin offices.

However, the group said that it expects revenues and headline profits before tax, excluding the effects of the currency hedging contracts, to top consensus analysts' expectations.

Will Whitehorn, Next Fifteen chairman, said: ‘To have made a positive start to the current financial year is encouraging, but the group is not, and does not expect to be, immune to the uncertain economic climate that is currently affecting many world markets.'

If exchange rates for the US dollar and euro relative to sterling remain at current levels, full-year profits will be reduced by approximately £2.6m. ‘Whilst it is disappointing to have been affected by this, most of the contracts expire at the end of this financial year,' Whitehorn said.

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