Next 15 Group (NFG) H2 2026 earnings summary

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 4.3% like-for-like, but core Track 1 businesses grew revenue by 3.9% and profit by 7.2%.

• Early signs of progress are evident for fiscal year '27, especially in digital transformation and AI-led services.

• Low leverage (0.4x EBITDA) and maintained dividend reflect strong financial foundations.

• Mach49 arbitration is ongoing, with liability maintained on the balance sheet.

Financial highlights

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

• EBIT was £63.4 million; diluted EPS was 44.4p; final dividend maintained at £50.35 million.

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

• Track 1 revenue grew 3.9% to £273.4 million; adjusted operating profit up 7.2%.

• Track 2 revenue declined to £160.9 million from £191 million; adjusted operating profit fell to £32.4 million.

Outlook and guidance

• Full-year performance for fiscal year '27 expected to be in line with expectations, with growth weighted toward H2.

• Digital transformation and AI-led businesses are expected to drive organic growth.

• Early momentum in key growth areas and continued investment in Track 1 businesses.

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