Next 15 Group plc, a tech and data-driven growth consultancy, has announced its final results for the year ended 31 January 2024. The company reported a record performance driven by organic revenue growth and successful M&A execution. The financial results for the year showed a 2.5% increase in net revenue to £577.8m, with a strong contribution from acquisitions of 3.3% and an FX headwind of 1.1%. The adjusted operating profit reached £121.1m, representing a margin of 21.0%, and the adjusted profit before tax increased by 4.8% to £117.9m.
The company's statutory revenue increased by 2.0% to £734.7m, and the statutory operating profit saw a significant rise of 14.7% to £77.1m. Next 15 also reported a 1.5% increase in adjusted diluted earnings per share to 81.6p. The company's strong balance sheet showed net debt of £1.4m at 31 January 2024. Client spend excluding technology clients increased by 11% LFL, while technology client spend declined by 17% during the year.
Next 15 highlighted significant new client wins and expanded assignments with Asda, Workday, and Sega. The company completed bolt-on acquisitions for an initial consideration of £15.4m, including Explorer, Rush, Whitespace, and Williams Commerce, with an additional £4.5m spent on the acquisition of Studio La Plage post the year end. The company also returned £4.5m to shareholders via a share buyback program.
In terms of current trading and outlook, Next 15 stated that trading in the new financial year is in line with management expectations. The company expressed confidence in further growth in the year ahead and in meeting management expectations, citing significant new client wins such as Asda for SMG and the Mach49 contract won in early 2022.
Tim Dyson, CEO of Next 15, commented on the results, emphasizing the benefit of the decentralized and diversified business model in delivering record revenues and profits despite a turbulent macro-economic environment. He also highlighted strategic investments in AI strategy at both a Group level and within the operating businesses, which have resulted in new products designed to create greater efficiency and accuracy of the work being produced.
Next 15 will host an analyst and investor webcast to discuss the results further. The company's strong financial strength and liquidity provide scope for further investments in AI and bolt-on M&A opportunities to accelerate long-term growth, with one bolt-on already completed since the year-end.