Next Fifteen’s business model proves its resilience, says Berenberg

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Next Fifteen PLC (LON:NFC), the digital marketer, has proved again that its business model is more resilient than the market gives it credit for, according to broker Berenberg.

First-half profits rose by 16% on an underlying basis, which has prompted Berenberg to increase its full-year estimate by 9% and making a 20% hike since 25 June.

Berenberg, though, suggests its forecast is conservative and further upgrades are likely.

Yesterday’s better than expected numbers were the result of a skew towards B2B technology clients and a growing focus on technology-enabled media services, said the broker.

Buy is its investment stance with a 520p target price.

The group’s trading statement said revenues for the six months to the end of July 2020, are expected to be up by around 6.5% year-on-year to £126mln, while adjusted profit before tax is expected to be more than 16% higher at a minimum of £20mln.

The company added that its operating margin has climbed above 16%, having been 14.7% in the first half of the previous financial year.

Shares today eased 3% to 437p.

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