8th Apr 2014 10:35
LONDON (Alliance News) - Next Fifteen Communications Group PLC raised its interim dividend and expressed confidence in meeting market expectations, as it saw pretax profit rise in the half-year to January, 31 2014.
The digital communications company proposed an interim dividend of 0.70 pence, up 12% from 0.625 pence in the previous year.
Next Fifteen posted a pretax profit of GBP3.3 million, up from GBP2.0 million in the previous year, as revenue rose to GBP49.3 million from GBP46.6 million. Revenue was driven by a strong performance from the company's North American business, which saw revenue growth of 13%.
In the US Next Fifteen saw revenue growth across its Outcast, M Booth, Blueshirt, Beyond and Text 100 businesses, and a strong performance from Connections Media, which it acquired in April 2013. It's Bite US business saw performance improve and returned to profitability in the period.
However, in the UK revenues declined 4.5% as Lexis and Bite UK were hit by client losses in the prior period. In the Europe, Middle East and Africa region revenues declined 10%, hampered by difficult conditions. Next Fifteen said it was actively reviewing this region to improve trading performance.
In the Asia Pacific region revenues dropped 6%, hit by the strength of sterling and the closure of its Japanese office.
The company acquired a majority shareholding in marketing business Republic Publishing Ltd in January 2014, which it said had made a positive contribution to earnings since acquisition. Republic posted revenues of GBP2.5 million for the financial year end-October, 2013, and an adjusted pretax profit of GBP400,000.
Next Fifteen has opted to move its financial year end to January 31 from July 31 to better align itself with its clients budgeting cycle.
Next Fifteen said its current trading remains healthy, and it expects strong performances from its UK and US businesses.
Shares in the company were trading up 4.3% at 110.00 pence Tuesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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