25th Aug 2020 09:28
(Alliance News) - Next Fifteen Communications Group PLC on Tuesday said trading in the first half of its financial year was ahead of expectations, and it expects a material outperformance in its full year.
The London-based digital communication group expects revenue for the six months ended July 31 to be up by around 6.5% year-on-year to at least GBP126 million and adjusted pretax profit to be up by over 16% to at least GBP20 million. It added that this has resulted in an improved operating profit margin of above 16%, up from 15% a year prior.
Next Fifteen credited the performance to its B2B technology-focused agencies, such as Activate and Agent3, as well as more resilient trading than previously expected in its brand marketing and creative technology divisions.
Looking ahead, Next Fifteen said: "Whilst the group remains cautiously optimistic about trading as we enter the second half of our financial year in what is still a highly uncertain general economic environment, we currently expect results for the year to be materially ahead of current market expectations. We will continue to tightly manage our cost base and conserve cash."
Net debt as at last Thursday was less than GBP1 million.
Next Fifteen added it is currently reviewing the timing of a resumption of dividend payments. In April, the company withdrew the payment of its final dividend.
The stock was trading 16% higher at 428.25 pence each on Tuesday morning in London.
By Ife Taiwo; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
NFC.L