NFC: Next Fifteen Comm: Trading Statement

  NFC: Next Fifteen Comm: Trading Statement

UK Regulatory Announcement

LONDON

3 September 2013

                    Next Fifteen Communications Group plc

                           Pre-close Trading Update

Next Fifteen Communications Groupplc("Next 15" or "the Group"), the digital
communications group, announces a pre-close trading update for the year to 31
July 2013. The results for the financial year 2013 are due to be announced
on5 November2013. Next15 expects to report record revenues in line with
management expectations while adjusted profits will be modestly below the
previous year, following continued restructuring at Bite and investment in the
Group’s digital capabilities. Thanks to new client wins and the investments
made, the Group anticipatesgood progressin the financial year just
commenced.

Next 15 has seen strong performances from its North American agencies, with
the exception of Bite which was mentioned in the interim statement. This
agency had operational challenges and changes in senior management, which
reduced its profitability. Elsewhere, the Group has invested in adding digital
talent and skills to many of its agencies and also invested in the launch of
Agent 3, a data-driven digital marketing agency, which has already secured
contracts with some blue chip clients and is moving towards
profitability.During the year, the Group also added Connections Media, a
digital public affairs agency based in Washington DC, whichis performing to
plan.

The Group’s pure digital agency, Beyond, has invested in the development of
software platforms in response to client demand. While depressing
profitability in the short term, these investments are creating scalable
products which should enable the businesses to grow faster in the next few
years.

During the period, the Group has won new major clients including Blackberry
and Virgin Management Group. The Blackberry account covers multiple
territories and services and its scale means that it will be one of the
Group’s top three clients. The Group also expanded its relationships with
several of its top customers including Facebook and Google.

Richard Eyre, Chairman of Next 15, said: “The financial year 2013 presented a
number of new opportunities and operational challenges for the Group, which
the management team reacted quickly to address. I am pleased to report to
shareholders that as a result of its focus on digital transition, the Group
has continued to win and grow business with significant clients, maintaining
its consistent record of annual revenue growth. Our financial resources remain
sound and the proven strategy of investment in digital transition will
continue in the current year.”

Next Fifteen Communications Group plc

Tim Dyson, CEO, +1 415 350 2801

David Dewhurst, Finance Director, 07974 161183

Canaccord Genuity Limited

Simon Bridges 020 7523 8000

Henry Fitzgerald-O`Connor

Contact:

Next Fifteen Communications Plc
 
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