Next 15 Group (NFG) investor relations material

Executive summary

• The portfolio was streamlined from 22 to 11 businesses, delivering £26 million in annualized cost savings and restoring operating discipline.

• Performance stabilized with net revenue down 4–4.3% like-for-like, but core Track 1 businesses grew revenue by 3.9–4% and profit by 7%.

• Early signs of progress are evident in digital transformation and AI-led growth, with a more balanced client mix and improved cash generation.

• Low leverage (0.4x EBITDA) and working capital inflow of £43.8–44 million reflect strong financial foundations.

• Mach49 arbitration is ongoing, with liability maintained on the balance sheet; early signs of progress into FY27.

Financial highlights

• Net revenue declined 4–4.3% year-over-year to £448.8 million; operating profit down 8.6% to £67.6 million.

• Operating margin held at 15–15.1%; profit before tax declined 6.8% to £63.4 million.

• Adjusted diluted EPS decreased to 44.4p; final dividend maintained at 15.35p.

• Net debt reduced to £35.6 million; leverage at 0.4x EBITDA; working capital inflow of £43.8–44 million.

• Cash flow strengthened by disciplined management and Mach49 wind-down.

Outlook and guidance

• Early FY27 trading is positive, especially in Digital Transformation, with growth expected to accelerate in H2.

• Full-year performance anticipated to be in line with expectations, supported by momentum in digital transformation and AI.

• Continued focus on resolving Mach49 arbitration, simplifying the portfolio, and scaling AI-led Track 1 businesses.

• Final dividend of 10.6p to be paid in August 2026, underpinned by strong balance sheet and low leverage.