Investment summary

Next Fifteen’s interim results showed good revenue growth of 11%, with adjusted pre-tax up 15% and EPS up 12%. As anticipated, digital marketing is leading the way with organic growth of 39%. Overall organic growth of 4% reflects the strong growth in a number of the group’s agencies, offset by weakness in Europe and the group’s UK consumer business. Management is addressing the latter by accelerating digital capabilities across the UK consumer activities, which should reap benefit in FY13 and beyond. The balance sheet is modestly geared at 12% and, excluding any further acquisitions, the group should return to a net cash position in FY13.

Last updated on 24/04/2012

Industry outlook

Digital communications are increasingly becoming the focus of all forms of marketing as companies grapple with the shift away from traditional media towards social networks, social media, and the growing consumption of web-based content. This is creating a great opportunity for agency groups like Next Fifteen that have developed expertise in this area.

Last updated on 23/04/2012