Please try another search
With comparative H114 revenues up 6%, adjusted pre-tax profit up 13% and diluted adjusted EPS up 17%, Next Fifteen Communications Group's (NFC.LSE) interim results show that the group is returning to the growth tack, and we expect the group to report record profits in FY14. This performance was led by strong organic revenue growth of 13% in North America, the group’s largest geographic area. We are increasing our FY14e EPS by 0.1p to 9.4p and initiate FY15e EPS of 10.0p. The group is changing its fiscal year end to 31 January to better align with its client budgeting cycle. Last month, Peter Harris was appointed group CFO following four months as interim CFO. The group remains solidly financed at 13.5% debt/equity, which we estimate will fall to 5.7% by financial year-end.
Group revenues of £49.3m were up 6%, comprising 4.1% organic growth and 2.6% acquisition-related, less 0.8% from the impact of sterling strength. The star of the show was 13% organic revenue growth in North America, where the transition from traditional marketing to content-based social and digital marketing is helping drive business there in both tech and non-tech sectors. However, tough market conditions elsewhere, especially in Europe, held back overall organic growth to 4%. Management says that a strong start, including the UK returning to growth, has been made to H214 despite sterling strength.
In line with its ‘Digital Transition Plan’, initiated in H113, the group continues to transition its core business away from traditional communications services towards social and digital communications. Supporting this plan, the group acquired 51% of content marketing business Republic Publishing in January 2014, and the group’s now 54% owned grassroots developed digital marketing consultancy, Agent3, acquired B2B insight business Continuous Insight in February 2014. Management says that digital and social capabilities are increasingly key to pitch success.
To Read the Entire Report Please Click on the pdf File Below
This earnings season, all eyes are on Tesla as investors await their report amid a substantial decline in stock price. Analysts are bracing for potentially poor results, with all...
Amid growing interest in dividend-focused ETFs, investors seek stocks that offer both reliable dividends and growth potential. Today, we'll unveil a selection of such stocks...
Is this just a correction after a strong bullish advance from November, or is the bull market ending? If you read some of the headlines, you would suspect the latter. As noted by...
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
I feel that this comment is:
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.