Next 15 achieves best ever result on back of takeovers and new contract wins
Next 15 had a record year following the wave of acquisitions of marketing consultancies and winning new contracts
- The consultancy revealed that net sales have grown by just over £200m to £563.8m
- During the year, Next 15 bought seven companies, including Engine Group and Motif
Next 15 delivered a record year performance following a string of acquisitions and significant organic sales growth.
The technology-focused marketing consultancy revealed that net sales increased by just over £200m to £563.8m for the year ended January, its fastest rate of growth in more than a decade.
Growth was primarily driven by the seven companies it acquired during the period, including its largest ever acquisition, Engine Group, whose clients range from AstraZeneca to Santander, Sky and the Ministry of Education.
Results: Next 15 revealed net sales increased by just over £200m to £563.8m for the year ended January, the fastest rate of growth in over a decade
Other significant acquisitions included market research firm Motif, which has strengthened the company’s presence in the UK financial services and healthcare markets, and US-based Infosurv. Both groups were acquired under Savanta, Next 15’s customer insights company.
It also attempted to buy M&C Saatchi, launching a mixed cash and stock offer that valued the ad agency at £310 million, £56 million higher than a rival offer from AdvancedAdvT.
But while Saatchi’s board initially supported the proposal, they changed their mind after Next 15’s share price plummeted over the summer. Saatchi shareholders subsequently voted against the offer in October.
Sales growth was further boosted by two major contracts, one with Morrisons and the other a five-year “strategic alliance” between its Mach49 subsidiary and an undisclosed technology company.
Next 15 expects to earn more than $400 million in fees over the life of the latest deal, which was agreed in February 2022.
The combination of acquisitions and contract wins helped the company bounce back to an annual pre-tax profit of £10.1m after making a loss of £80.1m last year.
Following this result, the group has announced a 20 percent increase in dividend payments to 10.1 pence per share.
Next 15 said trading since February has been in line with forecasts, with solid performance across all four business segments despite the recent downturn in the technology sector.
The chairman, Penny Ladkin-Brand, said: ‘The board will continue its disciplined approach in evaluating the group’s portfolio and remains confident in Next 15’s ability to continue its trajectory this year.
“Against the backdrop of macroeconomic uncertainty, we believe our flexible structure and entrepreneurial mindset will serve to create growth opportunities for our people, customers and shareholders alike.”
Next 15 Group shares were 3 per cent lower at £7.99 on Tuesday afternoon, though they are up about 92 per cent over the past three years.