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Next Fifteen Comm (NFC)

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Tuesday 29 January, 2013

Next Fifteen Comm

Trading Statement

Trading Statement

Next Fifteen Communications Plc

NEXT FIFTEEN COMMUNICATIONS GROUP PLC

AGM TRADING UPDATE

At the AGM to be held today at 3.30 pm, Richard Eyre, Chairman of Next Fifteen Communications Group plc (the "Group"), will make the following comments with regard to trading and the business since the start of the current financial year, 1 August 2012:

“Next 15 is pleased to report that it has made further good progress in the new financial year as it continues to evolve its business away from a collection of traditional PR agencies to a group focused on social and digital marketing services. The Group is seeing strong growth in its new services as evidenced by recent wins that include: Viacom, Virgin Management and Verizon. Traditional services continue to decline as a proportion of the Group's revenues as clients move marketing spend towards social and digital initiatives. Looking forward, an investment has been made in a new insight business, as foreshadowed in the business review of the annual report. This agency will launch in the spring of this year. Furthermore the Group is pleased by the strong new business pipeline it is experiencing in its key markets.

The Group has concluded its investigations into the fraud, which took place in its Bite North American subsidiary and was reported to shareholders in November. This investigation has resulted in new procedures being implemented and some additional resources being added to the finance team. The cost of the investigation will add approximately £300,000 to this financial year. The additional on-going resources will cost around £250,000 per year, but this cost will only start in the second half of this financial year. In concluding the investigation we believe there will be no further write-offs beyond those already outlined in the last annual report.

Without the one-time costs relating to the fraud investigation and resulting staff changes, the Group is expecting to meet management targets for the full year, but first-half profits will be held back by the planned investments in the new insight business and staff transitions in some of the traditional businesses. The Group’s balance sheet remains strong, which enables it to continue to look at a mix of organic investments and acquisitions, which it is actively exploring.

Economic conditions in some of the Group’s main areas of activity have improved, however as always, currency volatility and visibility of client budgets remain as risk factors.

We anticipate releasing our interim results on 23 April 2013".

Name of contacts and telephone number for queries:

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
 


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