Next Fifteen to 'benefit from falling pound', expects 'modest' impact from UK/EU downturn

Next Fifteen Communications Group says it should benefit from the falling value of the pound following the EU referendum due to the size of its overseas business, while the impact of any economic downturn in the UK or EU should be "relatively modest".

The company, which owns agencies Bite, Lexis, Text100 and The Blueshirt Group, made the announcement this morning in a scheduled trading update ahead of its AGM today.

The update said: "With approximately 75 per cent of the group’s revenues generated in other currencies (and in particular 60 per cent deriving from the US), the group’s reported results stand to benefit on translation from a weaker British pound whilst the impact on the group of any slowdown in economic activity in the UK and EU should be relatively modest."

The value of the pound has fallen sharply following news that the UK voted to leave to the EU, closing yesterday (Monday) at its lowest level against the US dollar for 31 years ($1.3218).

Next Fifteen’s share price stood at 221.79p at 4.30pm on Monday, down from 254.06 on Thursday afternoon before the results of the EU referendum were known.

The company, led by CEO Tim Dyson (pictured), said its "good start" to its new financial year (which began on 1 February) had continued.

"Driven by strong organic revenue growth from our North American businesses, the period has also seen continued revenue growth and margin improvements in the UK and Asia as the group’s work to simplify its non-US operations progresses. Next Fifteen has also seen an improvement in its business in EMEA."

The company said it planned to expand its recently acquired UK agencies ODD, Publitek and Twogether into the US. The three had been "integrating well and making a growing contribution", the group stated.

Next Fifteen said that since the year-end, it had added additional business from Godiva, Google and Facebook: "These wins, combined with the performances noted above, put the group in a good position to deliver on the board’s expectations for the financial year to January 2017."

In April, Next Fifteen reported a rise in pre-tax profits of nearly a third for the year to 31 January 2016.

Have you registered with us yet?

Register now to enjoy more articles and free email bulletins

Already registered?
Sign in