Next 15 Group (NFG) H2 2025 earnings summary

Executive summary

• Revenue declined 1.4% year-over-year to £570m, with a 4% organic decrease, mainly due to the loss of a major contract and currency headwinds; excluding the large contract, revenues were roughly flat.

• Adjusted operating profit fell 11.3% to £107.4m, with margins down to 18.9%.

• Significant restructuring included over 500 role reductions and £17.0m in costs, expected to deliver £45m in annualised savings, with £9m realised in FY25.

• Strategic investments are being made in AI, data, and selective acquisitions, with a focus on U.S. and EMEA expansion; AI investment of £5m planned for FY26.

• Final dividend maintained at 10.6p, with total dividend per share unchanged at 15.35p, supported by strong cash position.

Financial highlights

• Net revenue: £569.7m (down 1.4% year-over-year); organic revenue down 4.0%.

• Adjusted operating profit: £107.4m (down 11.3%); operating margin 18.9%.

• Adjusted diluted EPS: 69.3p (down 15.1%); profit after tax: £72.1m.

• Net debt reduced to £38.4m (31 Jan 2025) from £74.8m.

• Tax rate at 27.4%, expected to fall to 25.5% next year.

Outlook and guidance

• Management remains cautious due to macroeconomic uncertainty, including U.S. political and currency risks, trade war impacts, and market volatility.

• Guidance has been pulled back; focus is on prudence and adaptability until market conditions normalize.

• Continued investment in AI and strategic improvements; confidence in medium- and long-term prospects.