Next 15 Group plc UK Regulatory Announcement: Final Results

LONDON--(BUSINESS WIRE)-- 

7 May 2026

Next 15 Group plc

(“Next 15” or the “Group”)

Results for the year ended 31 January 2026

Decisive action stabilises performance and resets Next 15 for growth. Simplified, higher-quality portfolio delivering early FY27 progress.

Next 15 Group plc (AIM:NFG) today announces its final results for the year ended 31 January 2026.

Financial results for the year to 31 January 2026

¹Prior year figures have been re-presented to exclude Mach49 which is separately reported as a discontinued operation, as previously announced.

²Adjusted results have been presented to provide additional information that may be useful to shareholders to understand the performance of the Group by facilitating comparability both year on year and with industry peers. Adjusted results are reconciled to statutory results within the appendix.

Financial highlights

• Encouraging performance in FY26, with results delivered in line with expectations despite a challenging macroeconomic environment and a period of significant structural change.
• Net revenue was £448.8m, representing a like-for-like decline of 4.3%.
  • Continued strong growth in Digital Transformation (41.8%) and Retail Media (8.2%) drove Track 1 revenue growth of 4%.
  • Declines in revenue from both our technology clients and our creative production revenue, driven by cautionary spending as a result of macroeconomic uncertainty.
• Adjusted operating profit was £67.6m (FY25: £74.0m), reflecting disciplined cost management and the early benefits of simplification.
• Operating margins protected at 15.1% (FY25: 15.4%).
• Statutory loss before tax of £13.4m (FY25: profit of £34.1m), principally due to Mach49 costs and impairments.
• Significant improvement in cash performance, with a working capital inflow of £43.8m (FY25: £7.0m outflow).
• Net debt reduced to £35.6m (FY25: £38.4m), with leverage remaining low at 0.4x adjusted EBITDA.
• Final dividend unchanged at 10.6p per share, giving a total dividend of 15.35p for the year.

Operational highlights

• Decisive action to simplify the Group, restore operating discipline and protect margins.
• The portfolio has been reduced from 22 businesses to 11, with the disposal of non-core assets and the integration of overlapping capabilities.
• Headcount reduced from 3,992 to 3,350 (16%).
• The integration of Savanta and Plinc, and House 337 and elvis was completed, and Pretzl, a new consolidated B2B marketing business, launched.
• Mach49 has been fully wound down and is now reported as a discontinued operation. Mach49 arbitration ongoing.
• A new ‘unified but not uniform’ operating model has been implemented, improving coordination across the Group while maintaining entrepreneurial autonomy.
• These actions have materially reduced complexity, removed £11m of cost in FY26 with an approximate £26m total annualised saving, enabled sharper focus on higher-quality, data and technology-led businesses.

Commenting on the results, Sam Knights said:

“FY26 has been a challenging year for Next 15, reflecting both legacy issues and a difficult external environment and I would like to thank all my colleagues for their commitment and the dedication they have shown during the year.

We have acted decisively to address those issues, simplify the business and redefine control. We have reduced the portfolio from 22 businesses to 11, removed £11m of cost, strengthened working capital discipline and brought greater clarity to the Group’s direction.

The business is now simpler and more focused. Our Track 1 portfolio - SMG, Transform, Savanta, Pretzl, M Booth and M Booth Health - operate in structurally growing markets and delivered impressive like-for-like revenue growth of 4% and profit growth of 7%, demonstrating the quality of the Group’s core and strategy in action.

We are repositioning Next 15 as a more focused, data and AI-led growth platform, with increasing integration across our core businesses and early commercial applications already delivering client impact.

As a result, performance has stabilised. We have delivered results in line with expectations, protected our margins at 15.1% despite lower revenue, and significantly improved working capital.

We are working to resolve the legacy issues on Mach 49 which continue to cause some uncertainty. We continue to maintain a robust defence, and we believe we have a strong legal case.

Looking forward, our priorities are clear – resolving this legacy issue, continuing the process of simplification at pace and returning Next 15 to organic growth. Early trading in FY27 is encouraging, with improving activity in Digital Transformation and Retail Media, and benefits from simplification beginning to translate into growth including Transform’s largest ever client win secured in FY26, a highlight of many client wins across the business in the last 6 months.

The next phase is delivery - converting a simpler, higher-quality business into sustained growth and improved returns.”

Trading

The Group delivered financial performance in FY26 in line with expectations despite a challenging macro environment and a period of significant structural change. Net revenue was £448.8m and adjusted operating profit £67.6m, with margins proving resilient at 15.1%, reflecting disciplined cost management and the early benefits of simplification.

Alongside this, we have taken decisive action to reset the business. We have materially simplified the portfolio, reduced complexity and sharpened our strategic focus through the Track 1 / Track 2 framework, prioritising higher-quality, data, technology and AI-enabled businesses. This has been supported by cost actions and improved working capital discipline, resulting in a more controlled and resilient operating model.

The continued expansion of our Retail Media and Digital Transformation segments drove a meaningful shift in our client industry mix: Retail and FMCG is now our largest industry sector, Government our fastest-growing, whilst Technology, historically our largest, has become our second-largest sector. This diversification underpins a more balanced, resilient revenue base and is expected to continue as we invest in our highest-growth businesses.

Despite a challenging revenue environment in certain end markets, disciplined cost management enabled the Group to protect our adjusted operating margin at 15.1% (FY25: 15.4%). Restructuring initiatives delivered a reduction of approximately 375 roles during the year, generating total annualised savings of approximately £26m, of which approximately £11m was realised in the year.

The balance sheet remains robust, and leverage remains low with Net Debt/Adjusted EBITDA at 0.4x (against a covenant limit of 2.5x). We experienced a significant net working capital inflow of £43.8m compared to an outflow £7.0m in the prior year. Approximately half of this inflow reflects disciplined working capital management across the Group, with the remaining relating to the Mach49 wind down and ongoing litigation.

Ongoing Mach49 arbitration

As announced on 25 June 2025, the Group became aware of potential serious misconduct concerning the Mach49 business which has been reported to the relevant law enforcement agencies. As a result, no further payments have been made to Mach49’s selling shareholder under the earnout agreement in connection with Next15’s acquisition of Mach49. Our assessment of the strength of our legal position remains unchanged. Confidential arbitration proceedings with the former members of Mach49 in relation to material claims which include the remaining earnout payments are ongoing. The Mach49 business was fully discontinued by 31 January 2026, and was loss making during the year. The Company maintains its position regarding the non-payment of the remaining earnout and has counterclaimed for previously paid earnout payments.

As a result of this ongoing matter, the balance sheet includes total contingent consideration of £68.9m, which, even in a reasonable worst case trading scenario, and after taking necessary mitigating cost reduction actions, the Company has sufficient liquidity available to settle. However, the outcome of the arbitration, which is expected to be known within the next 12 months, is inherently difficult to predict. The Board cannot entirely exclude the possibility of a material adverse financial outcome which could exceed the current forecast liquidity in the longer term. As a result, and arising solely as a consequence of the uncertainty of the outcome of the arbitration, the directors have concluded that there is a material uncertainty related to events or conditions that may cast significant doubt on the group’s and company’s ability to continue as a going concern.

However, in the event of a material adverse financial outcome, the Company has a number of legal and commercial courses of action available which it would consider to protect its long-term financial position, as appropriate at the time. In this regard, the Group's financial position remains strong.

Final dividend

The Board remains confident in the underlying health of the business, both in the short term and the long term, and is therefore recommending the payment of a final dividend for the year ended 31 January 2026 of 10.6p per share, representing a total dividend of 15.35p for the year, unchanged from the 2025 financial year.

Outlook

Early trading in FY27 shows positive signs of progress. We are seeing improving activity in key growth areas, particularly Digital Transformation, where Transform has won its largest ever client contract and continues to accelerate, alongside early benefits from simplification and a more focused investment approach. Whilst it is still early in the financial year, the Board expects to deliver like-for-like growth in revenue and operating profit and to meet market expectations for the full year. We have not, at this stage, experienced any material adverse impact on our operations from the ongoing Middle East conflict.

Our focus is now on execution - growing our core Track 1 businesses, continue embedding AI capabilities across the portfolio and converting the benefits of simplification into sustained financial performance.

Webcast for analysts and investors

Next 15 will host an analyst and investor webcast at 9:30 today (UK time), Thursday 7 May 2026.

To access the webcast, please contact next15@mhpgroup.com

For further information contact:

Next 15 Group plc (via MHP)
Sam Knights, Chief Executive Officer
Mickey Kalifa, Chief Financial Officer

Deutsche Numis (Nomad & Joint Broker)
Mark Lander, Hugo Rubinstein
+44 (0)20 7260 1000

Berenberg (Joint Broker)
Ben Wright, Mark Whitmore, Richard Andrews
+44 (0)20 3207 7800

MHP (Investor Relations)
Oliver Hughes, Eleni Menikou, Lucy Gibbs
Next15@mhpgroup.com
+44 (0)7885 224 532 / +44 (0)7701 308 818

Notes:

Net revenue

Net revenue is calculated as revenue less direct costs as shown on the Consolidated Income Statement.

Organic net revenue growth

Organic net revenue growth is defined as like-for-like (lfl) net revenue growth at constant currency excluding the impact of acquisitions and disposals in the last 12 months. For acquisitions made in the prior year, only the corresponding months of ownership are included in the calculation of growth. Net revenue is reconciled to statutory revenue within the appendix and a reconciliation of the movement in the year is included in the net revenue bridge on page 7.

Adjusted operating profit margin

Adjusted operating profit margin is calculated based on the adjusted operating profit as a percentage of net revenue. Adjusted operating profit is reconciled to statutory results within the appendix.

This announcement contains inside information as defined in Article 7 of the Market Abuse Regulation.

About Next 15

Next 15 (AIM:NFG) is an AIM-listed Group with operations in Europe, North America and across Asia Pacific. The Group has long-term customer relationships with many of the world’s leading companies including Google, Amazon, Boots, Dow, Microsoft, Dell, American Express and Procter & Gamble.

During the year, the business introduced five new operating segments aligning to the Group’s refreshed strategy: Retail Media, Data and Research, Digital Transformation, Marketing and Communications and Creative Services. These segments reflect the Group’s business activities and align with the management of the Group.

At Next 15, success is underpinned by a people-led approach. Our purpose is to empower our team to deliver data-powered growth, fit for an AI future - delivering measurable solutions for our clients, nurturing exceptional talent, and creating lasting value for our shareholders.

Chief Executive’s Officer’s Review

Review of FY26

The Group delivered a robust performance in FY26, with results in line with market expectations despite a challenging macro environment and a period of significant structural change. Alongside this, we have taken decisive action to reset the business. We have materially simplified the portfolio, reduced complexity and sharpened our strategic focus through the Track 1 / Track 2 framework, prioritising higher-quality, data, technology and AI-enabled businesses. This has been supported by cost actions and improved working capital discipline, resulting in a more controlled and resilient operating model.

Track 1 comprises SMG, Transform, Savanta, Pretzl, M Booth and M Booth Health, businesses that collectively generated revenues of £273.4m in FY26 and are positioned in some of the industry’s fastest-growing markets, including Retail Media, Data, Insights & Analytics and Digital Transformation. These businesses grew revenues by 3.9% LFL to £273.4m (FY25: £259.9m) and adjusted operating profit by 7.2% to £50.4m (FY25: £47.0m), demonstrating the quality and growth potential of the core portfolio.

Track 2 comprises Activate, Brandwidth, elvis, Marker and MHP. These businesses generated revenues of £160.9m (FY25: £191.4m) and an adjusted operating profit of £32.4m (FY25: £43.3m).

The Group reported adjusted operating profit of £67.6m (FY25: £74.0m), with margins protected at 15.1% (FY25: 15.4%), reflecting disciplined cost management and the early benefits of simplification. Adjusted diluted earnings per share has reduced by 6.5% to 44.4p for the year to 31 January 2026, compared with 47.5p achieved in the prior year, as a result of the reduced profitability on an adjusted basis. Statutory operating loss was £0.1m (FY25: profit of £28.2m), principally due to the Mach49 costs and loss on disposals. As a result of this lower statutory profit, diluted loss per share reduced to 15.2p (FY25: earnings per share of 19.8p).

Simplification Strategy

We are progressing the time-boxed portfolio review process outlined at the Capital Markets Day, with active work underway across relevant businesses. The Group made significant progress with its simplification programme during the period, reducing its portfolio from 22 to 11 businesses. Bynd, Palladium, BCA and Blueshirt were sold during the year for estimated total consideration of £7.5m, resulting in an aggregate net loss on disposal of £3.2m. £2.9m of the final consideration payable is contingent upon the FY26 performance of these businesses, which remains to be determined. The Group also integrated a number of business units including combining Savanta and Plinc into a single data and insights business, alongside combining House 337 and elvis into one creative agency, as well as launching Pretzl, our new B2B marketing business bringing together four existing brands; Agent3, Publitek, Velocity and Twogether. The Group also completed the winding-down of the operations of Mach49, which has been reported as a discontinued operation.

Returns to shareholders

Our priorities are to maintain a strong, low-leverage balance sheet and to invest selectively in long-term organic growth. Excess cash will be returned to shareholders through regular dividends. Where surplus capital remains, it will be deployed through additional shareholder returns or targeted bolt-on acquisitions that strengthen key business areas.

The Board is recommending the payment of a final dividend for the year ended 31 January 2026 of 10.6p per share, which would represent a total dividend of 15.35p for the year.

Review of Adjusted Results to 31 January 2026

To assist shareholders’ understanding of the performance of the business, the following commentary is focused on the adjusted performance for the 12 months to 31 January 2026, compared with the 12 months to 31 January 2025. The Directors believe these adjusted measures provide a more meaningful view of the Group’s underlying trading performance than statutory measures alone. They also give shareholders more information to allow for like-for-like, year-on-year comparisons and more closely correlate with the cash and working capital position of the Group. These measures:

• Reflect how management monitors the business
• Align with how shareholders and analysts value the Group
• Enable clearer year-on-year comparisons
• Correlate more closely with cash generation and working capital dynamics.

¹Prior year figures have been re-presented to exclude Mach49 which is separately reported as a discontinued operation.

²Adjusted results have been presented to provide additional information that may be useful to shareholders to understand the performance of the business by facilitating comparability both year on year and with industry peers. Adjusted results are reconciled to statutory results below and within the appendix.

Adjusted operating profit decreased by 8.6% to £67.6m (FY25: £74.0m) whereas statutory operating (loss)/profit decreased to a loss of £0.1m (FY25: profit of £28.2m), principally due to the Mach49 costs, impairments and loss on disposals. The Group reported a statutory loss before tax of £13.4m (FY25: profit of £34.1m). The year-on-year change is driven by the movement in fair value of other financial liabilities relating to earnout liabilities principally Mach49, as well as the other adjusting items referred to below.

The adjusted effective tax rate on the Group’s adjusted profit for the year to 31 January 2026 was 24.7% (FY25: 25.0%), largely due to the impact of the differing rates of taxation related to overseas profits. Adjusted diluted earnings per share has reduced by 6.5% to 44.4p for the year to 31 January 2026, compared with 47.5p achieved in the prior year, as a result of the reduced profitability on an adjusted basis. Diluted loss per share reduced to 15.2p (FY25: earnings per share of 19.8p), principally reflecting lower operating profit as a result of the Mach49 related costs.

The Group’s balance sheet remains healthy. Leverage also remains low with net debt excluding lease liabilities of £35.6m as at 31 January 2026, which is after cash payments of £35.0m for acquisition related liabilities. We experienced a significant net working capital inflow of £43.8m compared to a £7.0m working capital outflow in the prior year. Approximately half of the inflow was driven by a disciplined focus on the management of working capital across the Group, with the other half relating to the wind down of Mach49 and ongoing litigation.

Net revenue bridge

¹The definition of net revenue and explanation of how organic net revenue growth is calculated is included within the appendix.

Reconciliation between statutory and adjusted profit

¹Prior year figures have been re-presented to exclude Mach49 which is separately reported as a discontinued operation.

²Acquisition accounting related costs includes unwinding of discount and change in estimate on deferred and contingent consideration and share purchase obligation payable, employment linked acquisition payments and amortisation of acquired intangibles.

³A full reconciliation and further detail is set out in the appendix.

The adjusted profit measures exclude items that are not reflective of the Group’s underlying trading in the year. The principal adjustments in the current year were:

• Acquisition accounting related costs (£27.5m) include employment-related acquisition payments (£5.2m): Deferred consideration payments that are contingent on continued employment and therefore treated as remuneration under IFRS.
• Acquisition accounting related costs also include amortisation of acquired intangibles (£13.9m): A non-cash charge relating to the amortisation of customer relationships and other intangibles recognised on historical acquisitions. The year-on-year reduction reflects the full amortisation of certain legacy assets.
• Operational restructuring costs (£10.9m): Primarily relates to headcount reductions and associated severance costs as part of the Group's cost optimisation programme.
• Intangibles write off of £5.0m relating to the identified customer relationships recognised on acquisition of Engine Acquisition Limited allocated to House 337.
• Mach49 costs (£16.4m): Principally legal and adviser fees in connection with the potential serious misconduct at Mach49, the related arbitration proceedings and the wind-down of the Mach49 business. Mach49 ceased operations effective 31 January 2026 and has been reported as a discontinued operation.
• Loss on disposals (£3.2m): Net loss arising from the divestment of Palladium, Bynd, BCA and Blueshirt.
• Deal costs (£1.9m): Professional fees and other transaction costs associated with disposals and corporate activity.
• Impairment of £10.4m against the carrying value of goodwill relating to House 337 and elvis.

Segment adjusted performance

Next 15 Group plc