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
NFC: Next Fifteen Comm: Trading Statement
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