Next 15 organic revenue grows 17 per cent in Q1

Organic revenue at Next 15 increased 17 per cent in the three months to 30 April 2021 versus the same period last year, with growth accelerating since.

Next 15 CEO Tim Dyson
Next 15 CEO Tim Dyson

Overall revenue in its first quarter was up 21 per cent year-on-year, said Next 15, the listed owner of PR agencies Archetype, The Outcast Agency, The Brandwidth Group, M Booth, and Publitek.

"This trend has accelerated into our second quarter, albeit against weaker COVID impacted comparables," it said in a trading update this morning.

Next 15 expects organic growth to "moderate" in the second half, "given the relatively strong performance we experienced in that period last year". It predicts full-year organic growth in "low double digits", and results for its full year (to 31 January 2022) to be "ahead of management expectations".

The group said it saw a strong performances across all segments, including a "positive start to life" for recent acquisitions Shopper Media Group and Blueshirt Capital Advisors, and across all geographies. It also saw "strong" margin performance.

The group said some staff are returning to offices in London, New York and San Francisco as COVID-related restrictions continue to ease. Business-related travel has also begun.

Next 15 added: "Given the robust performance of the businesses, we are using the period to accelerate investment in productizing a number of areas of the group and hire additional digital talent. While these investments will have a minor impact on margins this year, they are expected to help drive long-term organic growth."

Net cash at the group was c.£5m at 24 June, following recent acquisitions and other earn-out and tax-related payments.

Next 15 saw pre-tax profit rise 22 per cent to £49.1m in the year to 31 January 2021, in what it described as "excellent" results aided by its focus on the b2b and tech sectors.

Have you registered with us yet?

Register now to enjoy more articles and free email bulletins

Register
Already registered?
Sign in