Next 15 Group (NFG) H1 2026 earnings summary

Executive summary

• Decisive leadership in the first 100 days addressed legacy issues, simplified the portfolio from 22 to 12 businesses, and clarified strategic direction.

• Resilient trading and margin discipline maintained despite macroeconomic pressures, with strong growth in Consumer, Retail, Government, and Digital Transformation offsetting technology sector weakness.

• Financial strength preserved through reduced net debt, a strong balance sheet, and maintained dividend.

• Portfolio simplification and integration of key businesses delivered immediate cost efficiencies.

• Strong culture, talent retention, and engagement highlighted as key strengths.

Financial highlights

• Net revenue down 3.6% year-over-year to £230.8m, impacted by currency and tech sector weakness.

• Adjusted operating margin improved to 14.2% from 14.1% year-over-year.

• Adjusted profit before tax at £30.9m; statutory PBT fell to £2.8m due to Mach49 write-downs.

• Adjusted diluted EPS increased to 21.4p, driven by reduced minority interests and cash earn-out settlements.

• Net debt reduced to £45.3m from £74.8m a year ago; leverage at 0.5x EBITDA.

• Interim dividend maintained at 4.75p per share.

Outlook and guidance

• H1 performance in line with projections; early H2 trading also as expected, with full-year results anticipated to meet market expectations.

• Growth expected in Digital Transformation, Retail Media, and data-driven services, with continued focus on cost and margin discipline.

• FY26 results anticipated to be in line with market expectations: Net Revenue (excl. Mach49 and disposals) £454m, adjusted operating profit £66.5m.

• Early signs of recovery in technology clients, but no rapid reversal anticipated.