Print Published 25th Sep 2018, 16:48

Revenue growth and better margins double Next 15’s profit

Next Fifteen Communications Group, the AIM listed communications business, lifted its post-tax profit by 100% to £7.8 million in the half year to 31 July.   Proving convincingly that the management of operating profit margins is a key driver, the latest period benefitted from an increase in margins from 7.7% to 9.9%.

If amortisation, share incentive charges and various abnormal items were to be excluded, the margin rose from 13.2% to 14.4% which alone accounted for over £1 million of additional operating profit. A 14.2% increase in gross income (or net revenue – meaning billings less direct costs) added roughly a further £2 million.