Print Published 4th Apr 2017, 17:23

Acquisition related charges take shine off Next Fifteen’s 32% growth

AIM listed Next Fifteen Communications Group increased its revenue by 31.8% in the year to 31 January 2017, but a 36.7% increase in staff costs and a £10.5 million charge for share-based remuneration paid to vendors of acquired companies reduced the operating profit by £0.5 million.  The outcome was an operating profit of £7.9 million before acquisition payments compared with £8.4 million in the previous year.

If all share related charges, amortisation and various abnormal items were to be excluded, the operating profit for the year would have been £25.8 million, a very healthy improvement on the £17 million achieved in the previous year (see table).   That adjusted profit represented a margin of 15.1% on revenue, up from 13.1% in the previous year.