Shares in Next Fifteen Communications (NFC) slumped at the end of last month after the digital communications group warned investors to expect a profit shortfall in these results. Indeed, as a result of audit adjustments relating to the group's Bite agency, which also led to a £1.95m impairment charge, finance director David Dewhurst decided to step down.
However, issues there should not detract from the progress Next Fifteen has made towards changing the business model to embrace advances in digital communications. Indeed, four of its agencies - Text 100, M Booth, Outcast and Blueshirt - generated record revenue that boosted group revenue to an all-time high. Growth was most pronounced in the US operations where revenues rose by 17 per cent in the second half to account for 55 per cent of group turnover. Moreover, after adjusting for one-off items, pre-tax profits declined from £9.6m to £7.7m, a far better outcome than analysts at Canaccord had expected.