We are increasingly confident about our next fiscal year as the changes at Archetype and Beyond work through alongside the full year impact of our more recently acquired businesses

Tim Dyson, Next Fifteen CEO

 

What it does

Next Fifteen Communications Group Plc (LON:NFC) is a digital marketing and communications group, and its brands span everything from digital content to PR to market research.

The group’s aim is to build a group of specialised companies that can cover a wide range of sectors and geographies, allowing it maximum access to customers and international talent.

The latest addition to the stable is Health Unlimited, which provides communication services to companies involved in solving global health issues.

Previous clients include the International AIDS Society and the American Society of Clinical Oncology.

 

How it is doing

In a trading update covering the year to the end of January 2020, the firm said revenues and profits should be up year-on-year by a double-digit percentage and it expects to repeat that sort of growth in the coming year.

The top line has been dented a bit by the recent strength of sterling but revenues for the full year are still expected to be broadly in line with the board’s expectations.

 

Inflexion points

  • In early October, Next Fifteen announced it had acquired health consultancy and communications agency Health Unlimited in a US$27.7mln deal
  • Tim Dyson, chief executive of Next Fifteen, said the purchase of Health Unlimited was a “major milestone” for the group which would add a specialist business to its portfolio and “greatly” expand its international footprint.
  • Last year it also appointed Helen Hunter, the chief data officer of FTSE 100 supermarket Sainsbury’s, to the board as an independent non-executive director.

 

What the boss says: Richard Eyre, chairman

“While our growth has been moderated by currency headwinds and a couple of clearly defined operational issues, the data and analytics businesses are performing well, endorsing our focus on marketing technology.”

“I am therefore pleased to report that we anticipate continued strong revenue and profit growth in the new financial year.”

 

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Broker estimates

Peel Hunt currently has Next Fifteen pegged with a ‘buy’ rating and a target price of 640p.

“The prospects for Beyond are looking positive for the new fiscal year with new client wins. It is also encouraging that the issues are mainly within these two businesses, with the rest of the group producing strong organic growth,” analysts said in a note.

“The acquisition pipeline is active, and management expects to announce the completion of acquisitions in the coming months.”