REG-Next Fifteen Comm Trading Statement

Released: 04/08/2009

 
LONDON--(Business Wire)--
Next Fifteen Communications Group plc
Trading Update
Next Fifteen Communications Group plc ("Next Fifteen" or "the Group"), the
international public relations consultancy group is issuing a pre-close trading
update ahead of its preliminary results for the year ended 31 July 2009. 
Next Fifteen is pleased to report that its top line reported revenues will be
ahead of expectations as 463 Communications LLC , a 40% owned subsidiary entity,
will now be fully consolidated within the Group results in accordance with IFRS.
Excluding this, underlying revenues will be in line with expectations. Adjusted
profit before income tax for the period is also expected to be in line with
market expectations prior to the inclusion of certain one-off costs including,
aborted deal costs relating to a target in China and the takeover approaches
received earlier this year, higher than anticipated restructuring charges and
the movement in the fair value of financial instruments, referred to at the half
year. 
Separately, the Group has today announced the acquisition of M Booth &
Associates, a leading New York based consumer and B2B agency whose clients
include Unilever, Remy Cointreau USA and JC Penney (see separate announcement).
This agency had revenues of $10.4m and profit before tax of $1.0m for the year
ended 31 December 2008, with net assets of $4.3m at 31 December 2008. 
The Group will see some further restructuring in the early part of the 2009/10
year following the loss of Sun Microsystems as a client after it was recently
acquired by Oracle; however the costs will be substantially lower than those in
the current year. In addition, the Group has chosen not to renew its hedging
contracts that lead to the large currency losses in the current year. The
combination of these factors and the addition of M Booth, should see the Group
achieve operational progress in the new financial year. 
Will Whitehorn, Chairman of Next Fifteen, said: 
"The market during the first quarter of this calendar year was very tough as
sales by all the major technology companies were under pressure. However, since
then we have seen budgets stabilize and we are cautiously optimistic about our
prospects for the coming year. The Group continues to benefit from its strong
reputation in social media, this combined with the Group`s strategy of acquiring
compatible firms to strengthen our role as an independent public relations
group, gives good reason for this optimism. I`m therefore particularly pleased
to see the addition of M Booth, as this should enable us to expand our existing
client relationships over time through the addition of sophisticated consumer PR
services." 
For further information, please contact: 
 
 Next Fifteen Communications Group plc                         
 Tim Dyson, Chief Executive               +1 415 350 2801      
 David Dewhurst, Finance Director         +44 (0)20 8846 0771  
                                                               
 Canaccord Adams Limited                                       
 Mark Williams                            +44 (0)20 7050 6500  
 Adria Da Breo Richards                                        
 
 
Next Fifteen Communications Plc 
Copyright Business Wire 2009 
 
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