Next 15 Group Plc · LSE:NFG
Next 15 — FY2017 Earnings Presentation
16 slides from Next 15's earnings presentation, Apr 4, 2017
Slide 1: Final Results – April 4th, 2017
FINAL RESULTS – APRIL 4TH, 2017 1
Slide 2: Financial Summary
FINANCIAL SUMMARY • Revenue up 32% to £171.0m (2016: £129.8m) • Organic* revenue growth of 10% (US organic growth of 12.6%) • Adjusted** EBITDA up 51% to £29.0m (2016: £19.2m) • Adjusted operating profit margin up to 14.6% from 12.7% • Adjusted pre tax profits up 50% to £24.2m (2016: £16.1m) • Divid
Slide 3: Corporate Progress
CORPORATE PROGRESS • US continues to deliver double digit organic growth (12.6%) and total growth of 28.1% to £107.0m • UK revenues grew 52.7% to £42.6m with margin up to 18.9% thanks to acquisitions and operational improvements to drive organic growth of 3.7% • UK portfolio action within last 12m –
Slide 4: Drivers of Our Growth
DRIVERS OF OUR GROWTH • Working with high growth clients • UK acquisitions with US growth potential • Expanded and modernised service offerings • Focus on key geographies • Simple incentive schemes 4
Slide 5: Income Statement – Adj. Results
INCOME STATEMENT – ADJ. RESULTS £M 2017 2016 GROWTH % Revenue 171.0 129.8 32% EBITDA 29.0 19.2 51% Operating profit 25.0 16.5 52% Operating margin 14.6% 12.7% PBT 24.2 16.1 50% Tax (5.3) (3.5) Minorities (0.6) (0.5) Retained Profit 18.3 12.1 51% Diluted EPS 23.4 16.9 38% Dividend 5.25 4.2 25% 5
Slide 6: Adjustments Breakdown
ADJUSTMENTS BREAKDOWN £M 2017 2016 Adjusted pre tax profits 24.2 16.1 Restructuring (0.7) (1.5) Office moves - (1.4) Deal costs (0.4) (0.2) Share based payments (10.5) (1.5) Unwinding of discount and change in (4.2) (2.4) estimate of earnout liabilities Amortisation of acquired intangibles (5.5) (3.
Slide 7: Regional Breakdown
REGIONAL BREAKDOWN Regions Revenue Organic Operating Margin Margin Comments 2017 growth Profit 2017 2016 £M £M US 107.0 12.6% 22.3 20.9% 21.0% Exceptional performances pretty much across the Board UK 42.6 3.7% 8.0 18.9% 13.6% Growth in revenue and margin driven by recent acquisitions APAC 14.2 6.4%
Slide 8: Cash Flow Statement
CASH FLOW STATEMENT £M 2017 2016 Inflow from op activities 26.5 16.1 Working capital 6.3 0.2 Net inflow from operations 32.8 16.3 Tax (2.0) (3.0) Net capex (8.9) (6.8) Acquisitions (21.6) (13.4) Share placings - 12.1 Net interest and dividends paid (5.2) (3.4) Exchange gain on cash held 0.1 0.2 (Inc
Slide 9: Cash Commitments
CASH COMMITMENTS 31 Jan 17 Morar 4 April 17 £M £M £M FY 2018 5.1 (1.4) 3.7 FY 2019 2.9 2.9 FY 2020 5.6 5.6 FY 2021 2.2 2.2 FY 2022 5.0 5.0 Total 20.8 (1.4) 19.4 9
Slide 10: Appendices
APPENDICES 10
Slide 11: Management Team
MANAGEMENT TEAM Richard Eyre CBE Tim Dyson Peter Harris (Chairman) (CEO) (CFO) Richard joined in 2011, he is Tim joined the group in 1984 Peter was appointed CFO in also Chairman of the Internet and became the global CEO in 2013. He is also a NED at Advertising Bureau. Prior to this 1992. An early a
Slide 12: Today
TODAY INSIGHT: CONTENT: TECHNOLOGY: MORAR/HPI BITE AGENT3 BLUESHIRT GROUP BEYOND LEXIS BDA M BOOTH CONNECTIONS MEDIA OUTCAST ENCORE STORY TWOGETHER TEXT 100 VRGE PUBLITEK ODD 12
Slide 13: Top 20 Customers
13 TOP 20 CUSTOMERS For the year to 31 January 2017
Slide 14: Our Growth 2012 - 2017
OUR GROWTH 2012 - 2017 89 151 REVENUE GROWTH % INCREASE IN EBITDA 2012/17 % GOOGLE/ ALPHABET LARGEST CLIENT 2017, NOT A MATERIAL CLIENT IN 2012 146 DILUTED EPS GROWTH % 2012/17 2012/17 11 73 150 18 MINIMUM ANNUAL % % INCREASE IN EBITDA PER % INCREASE IN DIVIDENDS % ORGANIC GROWTH IN US STAFF 2012/17
Slide 15: Client Analysis 2017
CLIENT ANALYSIS 2017 14 36 43 17 INCREASE IN AVG % CLIENTS GENERATING % SHARE OF GROUP % INCREASE IN AVG STAFF CLIENT YIELD OVER $1M IN REVENUES REVENUES FROM $1M PLUS NUMBERS 2017 CLIENTS 15 17 88 70 INCREASE IN CLIENT % TOP 20 CLIENTS IN 2017 IN % REVENUES GENERATED IN + REVENUES FROM TECH % NUMBE
Slide 16: Balance Sheet Summary
BALANCE SHEET SUMMARY £M FY 2017 FY 2016 Intangible assets 80.0 53.6 Non-current assets 27.5 17.8 Current assets 64.8 56.2 Non-current liabilities (54.2) (34.8) Current liabilities (49.6) (40.0) Net assets 68.5 52.8 Share capital 1.8 1.8 Reserves 65.8 50.3 Minorities 0.9 0.7 Total equity 68.5 52.8 N