28th Jan 2020 12:33
(Alliance News) - Next Fifteen Communications on Tuesday said it expects annual profit to be marginally below expectations despite strong revenue growth.
Shares were down 1.8% at 512.65 pence each on Tuesday in London at midday.
For its financial year ending January 31, the digital communications company said that revenue remained in line with guidance with an expected 20% increase in organic growth for the year in its data segment.
Although the prospects for Next Fifteen's Beyond digital design studio have improved in the recent months, the recovery to profitability is taken longer than anticipated, the company said.
Next Fifteen added that although it experienced profit growth, its adjusted profit is likely to be below expectations on a constant currency basis. Net debt is expected to be around GBP12 million.
For the year ended January 31, 2019, pretax profit was GBP18.8 million on revenue of GBP272.4 million. Net debt was GBP5.2 million at that point.
"Next 15 continues to make good progress and has delivered another year of double-digit profit and revenue growth. While our growth has been moderated by currency headwinds and a couple of clearly defined operational issues, the data and analytics businesses are performing well, endorsing our focus on marketing technology," Chair Richard Eyre said.
Looking ahead, Next Fifteen said it remains confident about it prospects for its financial year ending January 2021 as it expects to again achieve double-digit revenue and profit growth. "We have an active acquisition pipeline and expect to complete a number of acquisitions in the next couple of months," it added.
Results for the year ending on Friday will be published in early April.
By Ife Taiwo; [email protected]
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