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Next Fifteen feeling good on almost every level

Global digital communications group Next Fifteen Communications saw a strong full year performance marred by previously reported fraudulent activity. Adjusted profit before tax increased by 14% to £9.6mln in the year to the end of July from £8.4mln the year before, on the back of revenues that rose 6% to £91.6mln from £86.0mln.
Next Fifteen feeling good on almost every level

Global digital communications group Next Fifteen Communications (LON:NFC) saw a strong full year performance marred by previously reported fraudulent activity.

Adjusted profit before tax increased by 14% to £9.6mln in the year to the end of July from £8.4mln the year before, on the back of revenues that rose 6% to £91.6mln from £86.0mln.

Statutory profit before tax, which factors in a number of exceptional items, eased to £5.96mln from £7.53mln the year before.

The biggest of those exceptional items was a non-cash charge of £1.78mln for misappropriation of assets.

The group had alerted the market at the end of October to the embezzlement of funds by a long-serving US employee of its Bite Communications subsidiary. 

The betrayal by a trusted employee in the finance department did not dampen the spirits of chief executive officer Tim Dyson, however. "On almost every level we are feeling good about how the business is performing," he told Proactive Investors.

The full year dividend has been lifted by 12% to 2.30p from 2.05p the year before, which is a good indication, Dyson said, of the board's confidence in its prospects.

More than half of the group's revenues come from the US, and that market is doing very well.

Asia is also "growing very nicely" but Europe is letting the side down a bit.

"That's the least digital part of the business," Dyson revealed.

For Dyson, digital is where the growth is, and he conceded that Next Fifteen were a bit slow in expanding in that arena in Europe.

"You have to pick your battles," he observed, and at the time North America and Asia offered richer pickings.

"There is no doubt that traditional areas of marketing are struggling. They are running to stand still," he claimed.

"Social [networking] has disrupted the industry. It will settle down, I am sure, but if you don't do digital well, you will go out of business, as simple as that," Dyson predicted.

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Next Fifteen Communications Group PLC Timeline

Newswire
January 29 2019

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