Next 15 organic growth accelerates in Q2

Next 15 has reported a 29 per cent rise in organic revenue in the second quarter of 2021, with the performance ahead of management expectations.

Next 15 chief executive Tim Dyson
Next 15 chief executive Tim Dyson

Overall, its second-quarter revenue was up 40 per cent year on year, said Next 15. The group is the listed owner of PR agencies Archetype, The Outcast Agency, The Brandwidth Group, M Booth and Publitek.

The performance results in organic growth for the first half of 23 per cent (overall growth: 30 per cent). The group previously reported organic growth of 17 per cent in Q1.

In a trading statement today, Next 15 said it had "strong performances across all segments and geographies" in Q2, and cited "attractive margin performance" in the first half.

The company stated: "Organic growth is expected to moderate in the second half of the financial year given the relatively strong performance experienced in that period last year, with full-year organic growth anticipated to be ahead of previous guidance in the mid to high teens range. As a result, we anticipate that our results for the year ending 31 January 2022 will be ahead of management expectations."

Next 15 said that, given its "robust performance", it would accelerate investment in "productizing a number of areas of the group and hir[ing] 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."

The group said it continues to have a strong balance sheet, with net cash at 31 July of about £5m following recent acquisitions of Shopper Media Group and BCA, alongside other earn-out and tax-related payments.

It also announced the acquisition of market research agency MSI International East by the US arm of Savanta, Next 15’s biggest customer insight business.

Next 15 will announce its financial results for the six months to 31 July on 28 September.

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