Next 15 Group (LSE:NFG) shares declined approximately 10% on Thursday after the marketing and technology consultancy reported a reduction in first-half revenue and a pre-tax loss, compared with a profit in the corresponding period last year.
The company recorded net revenue of £214.9 million for the six months ended 31 July 2026, down 6.9% from £230.8 million a year earlier. On a like-for-like basis at constant exchange rates, revenue declined 1.3%.
Next 15 reported a pre-tax loss of £1.5 million, compared with a profit of £15.8 million in the prior-year period. The company attributed the change principally to ongoing litigation expenses and acquisition accounting-related costs.
Diluted earnings per share moved to a loss of 3.4 pence from earnings of 10.4 pence a year earlier.
Adjusted operating profit was £32.1 million, compared with £32.7 million in the previous year. Despite the reduction in profit, the adjusted operating margin increased to 14.9% from 14.2%, which the company attributed to cost management measures.
Net debt increased to £57.3 million from £45.3 million, reflecting payments relating to acquisition earn-outs, taxation and capital expenditure.
The board maintained the interim dividend at 4.75 pence per share, payable on 20 November 2026 to shareholders registered on 16 October.
Next 15 also provided an update on the arbitration proceedings concerning its former Mach49 business. The arbitration hearing has concluded, and the company is awaiting a decision.
The group continues to dispute payment of the remaining acquisition earn-out and has submitted a counterclaim seeking recovery of earn-out amounts previously paid.
Chief Executive Officer Sam Knights said the company expects a ruling “within this financial year.”
Looking ahead, Next 15 expects to deliver like-for-like revenue growth for the full financial year, with total revenue and adjusted operating profit anticipated to remain in line with market expectations.
However, the company said the composition of its financial performance is expected to differ from earlier assumptions. Growth in digital transformation has exceeded expectations, while business disposals and a slower recovery in certain other segments have affected the overall revenue mix.
The group reported three consecutive months of organic revenue growth between June and August, marking its first such period in three years.
Within its portfolio, the six businesses classified as Track 1 generated like-for-like revenue growth of 1.8%, with an operating margin of 18.4%.
Digital transformation was the principal contributor to growth in this category, recording a 26.8% increase in revenue.
Next 15 has also continued restructuring its business portfolio, reducing the number of operating businesses from 22 to 10.
Group headcount declined 5% to 3,198 employees as part of the changes to its operating structure.
The company additionally stated that it had not experienced any material adverse impact from the conflict in the Middle East.
Next 15 Group is a London-listed marketing and technology consultancy providing services across digital transformation, marketing, communications and business consulting. The company operates through a portfolio of specialist businesses serving corporate clients across international markets.
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