Half Year 2025 Next 15 Group PLC Earnings Call Transcript
Key Points
- SMG had a strong performance, winning significant contracts like Asda and expanding in the US market.
- M Booth and M Booth Health also reported strong performances, contributing positively to the company's results.
- Despite challenges, the company maintained its interim dividend, signaling confidence in long-term business prospects.
- Next 15 Group PLC is making significant progress in AI, which is expected to create new revenue streams and improve operational efficiency.
- The company has a healthy pipeline for new business, indicating potential for future growth.
- Revenue was flat, and adjusted profit was down due to high operational gearing in tech-focused businesses.
- The technology market showed no signs of recovery, impacting the company's performance negatively.
- Net debt increased due to earn-out payments, affecting the company's financial position.
- The company experienced working capital outflows, particularly from high-growth areas like SMG.
- EPS was down 20%, reflecting the overall challenging financial performance in the first half.
Thank you all for coming along. It's funny, Peter and I talk about our business a lot, and we talk a lot about the businesses internally that are doing well. And then there's always a small number, and we just that aren't doing quite so well. And we described them as being on the naughty step, which I know is a bit belittling and terrible, but I think we know how they feel right at this moment.
So, yeah, it's an unusual circumstance for us. We are not used to finding ourselves in a position where the market effectively is saying we don't really know quite where you are. We don't quite know where you're going.
In reality, the situation is relatively simple. We lost a big contract and the trends that we had in the full year last year have just largely continued. And I think the latter part is the part that's surprising to us. I think we had expected certainly in the first quarter, the indications were that that was going to change. But in the second quarter, it became increasingly clear that the technology
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