6th Sep 2024 09:35
(Alliance News) - Next 15 Group PLC on Friday lowered its guidance for financial years 2025 and 2026 after a large contract was not renewed.
Next 15 shares dived 49% to 421.00 pence each on Friday morning in London. It now has a market cap of GBP834.6 million.
The London-based public relations agency said a contract with Mach49's largest customer has not been renewed after its initial three-year term and will now end on December 31.
This contract had been expected to contribute just over GBP80 million of revenue in financial 2026, which means forecasts for that year will need to be adjusted. Next 15's financial year ends on January 31.
Mach49 is a venture-building and investing firm.
Additionally, Next 15 has continued to see "an ongoing weakness in spend" from its technology customers, as well as a reduction in revenue from its public sector clients.
As a result of these factors and the contract ending which will impact the last month of the financial year, Next 15 now believes financial 2025 revenue will be lower than planned, and profits to be materially below management expectations.
Next 15 will publish its half year results on September 17.
By Tom Budszus, Alliance News slot editor
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