1st Oct 2019 10:57
(Alliance News) - Next 15 Communications Group PLC said Tuesday its pretax profit dropped in the first half of its financial year on one-off costs, despite revenue growth in the period.
Also, the digital communication group announced the acquisition of Creston PLC US Holdings Ltd, and its subsidiary Health Unlimited LLC for up to USD45.0 million.
Health Unlimited is a global health consultancy and communications agency.
For the initial payment of USD27.7 million, USD21.0 million will be in cash, and the remaining balance satisfied by the issue of 979,970 shares in Next 15.
The deferred consideration will be paid in two tranches depending on Health Unlimited's financial performance for its two financial years ending March 2020 and 2021. The first payment can be satisfied in cash or shares, and the second in cash only.
The acquisition is expected to be earnings accretive for Next 15 in its current year ending January 31, 2020.
For the six months to the end of July, Next 15 reported a pretax profit of GBP2.8 million, down 72% from GBP10.3 million. This is due to higher one-off costs including restructuring, acquisition-related payments and amortisation of acquired intangibles.
On an adjusted basis, pretax profit rose 14% to GBP17.2 million from GBP15.1 million the prior year.
Total billings for the period rose by 15% to GBP156.5 million from GBP135.6 million, with revenue coming in at GBP145.2 million, up 14% from GBP127.9 million.
Excluding direct costs, net revenue grew by 11% to GBP118.7 million from GBP106.8 million the year before.
Next 15 Communications declared an interim dividend of 2.5 pence per share, up 16% from 2.16p the prior year.
Looking ahead, Next 15 said the performance of its data and analytics segment and its recent acquisitions, leaving the company's prospects for the second half good.
Next 15 said it is confident of a return to high single digit organic growth in its next financial year.
"Next 15 continues to make good progress, validating our strategic focus on marketing technology as our Data and Analytics based businesses lead our growth. With the acquisition of Health Unlimited announced today, we are confident of meeting our expectations for this year," said Chair Richard Eyre.
"Furthermore, we are increasingly confident about our next fiscal year as the changes at Archetype and Beyond work through alongside the full year impact of our more recently acquired businesses," Eyre added.
By Dayo Laniyan; [email protected]
Copyright 2019 Alliance News Limited. All Rights Reserved.
Related Shares:
NFC.L