**Summary of Next 15 Group plc Half-Year Report (H1 FY26, ended 31 July 2025)**
**Overview**
Next 15 Group plc, a tech and data-driven growth consultancy, reported its interim results for H1 FY26, highlighting a **robust performance despite challenging market conditions**. The Group achieved **net revenue of £230.8 million**, down 3.6% year-on-year (5.3% on a constant currency basis), primarily due to macroeconomic uncertainties, US tariffs, and reduced discretionary marketing spend. **Adjusted operating profit** declined by 3.1% to £32.7 million, with margins maintained at **14.2%** through disciplined cost management and portfolio simplification.
**Financial Highlights**
**Net revenue**£230.8 million (H1 FY25: £239.4 million), impacted by weaker USD and tech client spend declines.
**Adjusted operating profit**£32.7 million (H1 FY25: £33.7 million), with margins stable at 14.2%.
**Adjusted diluted earnings per share (EPS)**: 21.4p, up 2.9% year-on-year, driven by reduced minority interests and earn-out settlements.
**Statutory profit before tax**£2.8 million (H1 FY25: £33.4 million), significantly reduced due to **£10.0 million write-downs in Mach49** and **£4.4 million in advisory costs**.
**Net cash inflow from operations**£5.6 million (H1 FY25: £4.6 million), with **net debt at £45.3 million**.
**Interim dividend**Maintained at 4.75p per share, supported by strong cash flow and balance sheet.
**Operational Highlights**
**Portfolio simplification**Reduced businesses from 22 to 12, including disposals of **Palladium** and **BYND (Beyond)** for £6.3 million.
**Integrations**Ongoing consolidation of **Savanta & Plinc** and **House 337 & Elvis**.
**Mach49**Commenced winding down, expected to complete by year-end, with **£2.9 million operating loss** in H1.
**B2B tech marketing**Combined four agencies into a single data and AI-led business, yielding immediate cost efficiencies.
**Segment Performance**
**Retail Media and Digital Transformation**: Strong growth, with Digital Transformation revenues up over 50%.
**Consumer & Retail**Largest client group, accounting for 31% of revenues, with 9% growth.
**Public Sector**Fastest-growing segment, up 45% due to increased government projects.
**Technology**Revenues declined by 15% due to sectoral headwinds and reduced client spend.
**Strategic Focus**
**Simplification**Streamlining portfolio to enhance agility and efficiency.
**Cost discipline**Reduced headcount to 3,747 (H1 FY25: 4,070) to support profitability.
**Growth areas**Focus on high-potential markets like Digital Transformation, Retail Media, and data-driven services.
**AI adoption**Early integration of AI solutions to align with client needs.
**Outlook**
**H2 FY26**Trading in line with expectations, with full-year performance anticipated to meet market forecasts.
**Strategic priorities**Continued portfolio simplification, margin discipline, and capital allocation focus.
**Mach49**To be classified as a discontinued operation in full-year reporting.
**CEO Commentary (Sam Knights)**
Knights emphasized decisive actions to resolve legacy issues, simplify the Group, and position it for sustainable growth. Despite softer revenues, disciplined cost management maintained margins and improved cash generation. With a stronger balance sheet and clear strategic priorities, the Group is well-placed to meet full-year expectations.
**Conclusion**
Next 15 Group demonstrated resilience in H1 FY26, navigating macroeconomic challenges while executing strategic initiatives to streamline operations and focus on high-growth areas. The Group remains confident in its ability to deliver sustainable growth and value for stakeholders.