LONDON--(BUSINESS WIRE)--\u00a0<\/p>
\n7 May 2026<\/p>
\nNext 15 Group plc<\/b><\/p>
\n(\u201cNext 15\u201d or the \u201cGroup\u201d)<\/p>
\nResults for the year ended 31 January 2026<\/b><\/p>
\nDecisive action stabilises performance and resets Next 15 for growth. Simplified, higher-quality portfolio delivering early FY27 progress.<\/p>
\nNext 15 Group plc (AIM:NFG) today announces its final results for the year ended 31 January 2026.<\/p>
\nFinancial results for the year to 31 January 2026<\/b><\/p> \n\u00a0<\/p><\/td> \nYear ended<\/b><\/p> \n31 January 2026<\/b><\/p> \n\u00a3m<\/b><\/p><\/td> \nYear ended<\/b><\/p> \n31 January 2025<\/b>1<\/sup><\/p> \n\u00a3m<\/b><\/p><\/td> \n% change year on year<\/b><\/p><\/td><\/tr>\n \nAdjusted results<\/b><\/span>2<\/sup><\/p><\/td> \n\u00a0<\/p><\/td> \n\u00a0<\/p><\/td> \n\u00a0<\/p><\/td><\/tr>\n \nNet revenue<\/p><\/td> \n448.8<\/b><\/p><\/td> \n479.2<\/b><\/p><\/td> \n(6.3)%<\/b><\/p><\/td><\/tr>\n \nAdjusted operating profit<\/p><\/td> \n67.6<\/b><\/p><\/td> \n74.0<\/b><\/p><\/td> \n(8.6)%<\/b><\/p><\/td><\/tr>\n \nAdjusted operating profit margin<\/p><\/td> \n15.1%<\/b><\/p><\/td> \n15.4%<\/b><\/p><\/td> \n\u00a0<\/p><\/td><\/tr>\n \nAdjusted profit before tax<\/p><\/td> \n63.4<\/b><\/p><\/td> \n68.0<\/b><\/p><\/td> \n(6.8)%<\/b><\/p><\/td><\/tr>\n \nAdjusted diluted earnings per share<\/p><\/td> \n44.4p<\/b><\/p><\/td> \n47.5p<\/b><\/p><\/td> \n(6.5)%<\/b><\/p><\/td><\/tr>\n \nNet debt<\/p><\/td> \n35.6<\/b><\/p><\/td> \n38.4<\/b><\/p><\/td> \n(7.3)%<\/b><\/p><\/td><\/tr>\n \nStatutory results<\/b><\/span><\/p><\/td> \n\u00a0<\/p><\/td> \n\u00a0<\/p><\/td> \n\u00a0<\/p><\/td><\/tr>\n \nNet cash generated from operations<\/p><\/td> \n63.3<\/b><\/p><\/td> \n96.1<\/b><\/p><\/td> \n(34.2)%<\/b><\/p><\/td><\/tr>\n \nRevenue<\/p><\/td> \n617.3<\/b><\/p><\/td> \n639.2<\/b><\/p><\/td> \n(3.4)%<\/b><\/p><\/td><\/tr>\n \nOperating (loss)\/profit<\/p><\/td> \n(0.1)<\/b><\/p><\/td> \n28.2<\/b><\/p><\/td> \n\u00a0<\/p><\/td><\/tr>\n \n(Loss)\/profit before tax<\/p><\/td> \n(13.4)<\/b><\/p><\/td> \n34.1<\/b><\/p><\/td> \n\u00a0<\/p><\/td><\/tr>\n \nDiluted (loss)\/earnings per share<\/p><\/td> \n(15.2)p<\/b><\/p><\/td> \n19.8p<\/b><\/p><\/td> \n\u00a0<\/p><\/td><\/tr>\n \nTotal dividend per share<\/p><\/td> \n15.35p<\/b><\/p><\/td> \n15.35p<\/b><\/p><\/td> \n\u00a0<\/p><\/td><\/tr>\n<\/table> \n1<\/sup>Prior year figures have been re-presented to exclude Mach49 which is separately reported as a discontinued operation, as previously announced.<\/p> \n2<\/sup>Adjusted 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.<\/p> \nFinancial highlights<\/b><\/p> \nOperational highlights<\/b><\/p> \nCommenting on the results, Sam Knights said:<\/b><\/p> \n\u201cFY26 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.<\/p> \nWe have acted decisively to address those issues, simplify the business and redefine control. We have reduced the portfolio from 22 businesses to 11, removed \u00a311m of cost, strengthened working capital discipline and brought greater clarity to the Group\u2019s direction.<\/p> \nThe 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\u2019s core and strategy in action.<\/p> \nWe 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.<\/p> \nAs 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.<\/p> \nWe 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.<\/p> \nLooking forward, our priorities are clear \u2013 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\u2019s largest ever client win secured in FY26, a highlight of many client wins across the business in the last 6 months.<\/p> \nThe next phase is delivery - converting a simpler, higher-quality business into sustained growth and improved returns.\u201d<\/p> \nTrading<\/b><\/p> \nThe 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 \u00a3448.8m and adjusted operating profit \u00a367.6m, with margins proving resilient at 15.1%, reflecting disciplined cost management and the early benefits of simplification.<\/p> \nAlongside 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.<\/p> \nThe 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.<\/p> \nDespite 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 \u00a326m, of which approximately \u00a311m was realised in the year.<\/p> \nThe 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 \u00a343.8m compared to an outflow \u00a37.0m 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.<\/p> \nOngoing Mach49 arbitration<\/b><\/p> \nAs 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\u2019s selling shareholder under the earnout agreement in connection with Next15\u2019s 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.<\/p> \nAs a result of this ongoing matter, the balance sheet includes total contingent consideration of \u00a368.9m, 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\u2019s and company\u2019s ability to continue as a going concern.<\/p> \nHowever, 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.<\/p> \nFinal dividend<\/b><\/p> \nThe 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.<\/p> \nOutlook<\/b><\/p> \nEarly 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.<\/p> \nOur 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.<\/p> \nWebcast for analysts and investors<\/b><\/p> \nNext 15 will host an analyst and investor webcast at 9:30 today (UK time), Thursday 7 May 2026.<\/p> \nTo access the webcast, please contact next15@mhpgroup.com<\/a><\/p> \nFor further information contact:<\/b><\/p> \nNext 15 Group plc (via MHP)\n \nDeutsche Numis (Nomad & Joint Broker)\n \nBerenberg (Joint Broker)\n\n
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