Next 15 Group Plc · LSE:NFG
Next 15 — Q4 2025 Earnings Presentation
19 slides from Next 15's earnings presentation, Apr 14, 2025
Slide 1: Preliminary Results - April 2025
NEXT15 PRELIMINARY RESULTS - APRIL 2025 NEXT15
Slide 2: Agenda
AGENDA FY25 results summary What’s next for Next 15? Capital allocation priorities Outlook Q&A 2 NEXT15
Slide 3: The Results
THE RESULTS Net revenue of £570m down 1.4% (down 4.0% Adjusted diluted EPS 69.3p organically) (2024: £578m). Currency impact of (2024: 81.6p) (£7.2m). Excluding large contract, revenues would be roughly flat YoY Adjusted operating profit of £107.4m down Final dividend maintained at 10.6p 11.3% (2024:
Slide 4: The Results
THE RESULTS Significant improvement in working capital Restructuring costs of £17.0m, to deliver in H2 FY25. Full year outflow of £7.0m vs annualised saving of £45m, of which £16m £31.9m in H1 relates to Mach49. Of the remaining £29m, approximately £9m has been realised in FY25 Estimated earn-out comm
Slide 5: Next 'Soft' Data
NEXT 15 ‘SOFT’ DATA World class customer base ~70% of our top 100 Operating margins remain ahead of industry averages customers have been with us for 5 years or more Invested early in AI and data Technology clients will account for a third of revenues in current FY Starting second phase of AI evolut
Slide 6: Review of Strategy
REVIEW OF STRATEGY Simplification of the Group is making good progress. More to come Shape and role of HO is under review to eliminate duplication and improve service levels We will not peanut butter investment. Instead we will focus funds into two areas: AI and new capabilities A small number of str
Slide 7: Priorities
PRIORITIES Business area Product/service evolution AI Product Investment B2B Rev Gen Adapting to a dark funnel Orchestration layer Retail Media US and EMEA markets Tier 2 retailer platform Data Always on expert thought partners Synthetic data/Personas Evolution of product service mix. Expand Comms c
Slide 8: Reinventing B2B Marketing
REINVENTING B2B MARKETING Enterprise tech marketing is worth $30bn pa globally, growth of 8-9% pa We are creating a new business that brings together our four B2B tech marketing agencies in the UK/US: Agent3 CEO, Clive Armitage, is leading this initiative. Beta customers are already testing this sol
Slide 9: Capital Allocation Priorities
CAPITAL ALLOCATION PRIORITIES Continue to prioritise investment in internal capabilities Leverage target of net debt below 1.5x EBITDA Disciplined approach to bolt-on M&A to enhance key business areas Surplus cash to be returned to shareholders via dividends & share buybacks Share price will determi
Slide 10: Outlook
OUTLOOK We note that markets are reacting strongly to the trade war. As of today, our customers are still determining the impact on their businesses. We anticipate this to be non-linear and strongly dependent on supply chains. We also anticipate that, as during Covid, some customers will increase th
Slide 11: Appendices
APPENDICES NEXT15 NEXT15
Slide 12: Adjusted P&L
ADJUSTED P&L £M 2025 2024 DECLINE % Net revenue 569.7 577.8 (1.4)% Organic revenue (decline)/growth (4.0)% 0.3% Operating profit 107.4 121.1 (11.3)% Operating margin 18.9% 21.0% Profit before tax 101.4 117.9 (14.0)% Tax (27.8) (31.1) Minorities (1.5) (1.0) Profit after tax 72.1 85.8 Diluted EPS (p) 69.
Slide 13: Segmental
SEGMENTAL Net revenue Organic Operating Margin Margin Margin Operation 2025 (decline)/ Profit 2025 H1 FY25 2024 £M growth £M Customer Insight 55.4 (9.5)% 7.0 12.7% 11.0% 18.0% Customer Engage 262.0 (2.4)% 53.9 20.6% 19.8% 20.2% Customer Delivery 109.6 2.7% 23.8 21.8% 21.8% 27.0% Business Transformati
Slide 14: Cash Flow
CASH FLOW £M 2025 2024 Inflow from operating activities* 103.1 115.7 Working capital (7.0) (10.7) Net inflow from operations 96.1 105.0 Tax (20.7) (25.4) Net capex (7.2) (7.2) Acquisitions (66.7) (60.2) Acquisition of own shares (5.3) (4.5) Other cashflows** (33.2) (35.2) Decrease in net cash (37.0) (2
Slide 15: Estimated Earn-out Commitments
ESTIMATED EARN-OUT COMMITMENTS 31 Jan 2025 31 Jan 2024 £M £M FY 2025 - 58.7 FY 2026 61.0 46.4 FY 2027 31.7 43.6 FY 2028 25.0 28.6 Total 117.7 177.3 15 NEXT15
Slide 16: Adjustments
ADJUSTMENTS £M 2025 2024 Adjusted profit before tax 101.4 117.9 Costs associated with the current period restructure (17.0) (5.1) Property impairment (0.6) - Deal costs (0.6) (0.7) One-off charge for employee incentive schemes (0.2) (6.6) Acquisition accounting related costs (16.1) (24.6) Goodwill im
Slide 17: Regional
REGIONAL Operation Net revenue Organic Operating Margin Margin 2025 growth Profit 2025 2024 £M £M US 282.5 (3.9)% 75.7 26.8% 31.0% UK 258.9 (4.1)% 44.5 17.2% 18.0% APAC 16.0 (6.6)% 1.9 12.0% 9.9% EMEA 12.3 2.0% 2.6 21.4% 18.9% HEAD OFFICE - - (17.3) - - Total 569.7 (4.0)% 107.4 18.9% 21.0% 17 NEXT15
Slide 18: Balance Sheet Summary
BALANCE SHEET SUMMARY £M 31 January 2025 31 January 2024 Intangible assets 270.5 279.3 Non-current assets 77.9 98.5 Current assets 256.6 260.0 Non-current liabilities (145.4) (197.0) Current liabilities (278.4) (284.6) Net assets 181.2 156.2 Share capital 2.5 2.5 Reserves 179.2 153.5 Minorities (0.5
Slide 19: Trading Environment
TRADING ENVIRONMENT FY25 % Share of Group FY24 % Share of Net Revenue Group Net Revenue Organic Growth Technology 28% 32% (12%) Healthcare 6% 5% 5% Professional & Financial Services 28% 27% (1%) Public Sector 8% 9% (23%) Consumer Passions 24% 20% 12% Industrial & Others 6% 7% (7%) 19 NEXT15