Archived article
Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
Next 15 Group PLC on Thursday said it expected profit for the financial year that ends on Friday ‘at the bottom of analyst expectations’ and remains ‘cautious’ heading into financial 2026.
Next 15 cited market consensus for financial 2025 as adjusted operating profit between £107 million and £112 million, down as much as 12% from to £121.1 million in financial 2024.
Nonetheless, the London-based business growth consultant noted ‘an encouraging uptick in new business wins’ in the second half. Next 15 anticipated it will see the benefits of this in the coming year.
The company expects 2025 year-end net debt will be about half of adjusted earnings before interest, tax, depreciation and amortisation.
Cost-cutting to free investment capital will be the firm’s focus, it said. Next 15 plans to raise investment in artificial intelligence by £5 million, and to launch a new business-to-business technology marketing arm in year ahead.
Restructuring efforts are expected to save Next 15 around £40 million on an annualised basis. Of this, around £14 million will be realised by letting go employees in the Mach49 division, which lost its largest customer in September. Consequently, Next 15 anticipates £15 million in exceptional redundancy costs.
This comes with news that Chief Financial Officer Peter Harris will step down from his role and his position on the board. Harris has a six-month notice period, and will support the company’s transition to a new CFO, Next 15 said. Deputy CFO Katie Smith will play a significant role during the search for a successor, the firm added.
Chief Executive Tim Dyson said the company ‘is excited about the year ahead’, but reiterated ‘an appropriately cautious outlook’.
‘Technology customer spend continues to be muted although there are signs of improvement within certain subsectors,’ Next 15 noted. The firm pointed to a recent contract win with the UK Department of Education, and the addition of ‘its first significant US customer in WHSmith North America’.
Next 15 shares were up 7.3% to 367.50 pence each on Thursday afternoon in London.
Copyright 2025 Alliance News Ltd. All Rights Reserved.