Next Fifteen Communicati... Share Discussion Threads

[markie7] 13/10/2015 07:51

Excellent numbers. Should breach £2 today

[qs99] 13/10/2015 07:47

imo, pretty stunning increases when compared to peer group...DYOR etc

[battlebus2] 13/10/2015 07:46

Excellent numbers.....

[darlocst] 09/10/2015 09:05

Interim results announcement: 13 October 2015

[qs99] 09/10/2015 08:14

be interesting whether next update is due soon and whether it can breach £2! ANy views?

[gargleblaster] 29/7/2015 02:08

Continues to fly under the radar - neither the IC article nor the positive TU had any effect on the share price Management seems to be doing all the right things though - so a case of just sitting tight!

[cfro] 14/7/2015 08:19

Bullish update this morning. :-)

[cfro] 10/7/2015 15:05

Worth remembering that these went ex-div yesterday.

2.5p to be paid Aug 7th.

[gargleblaster] 09/7/2015 02:18

Buy recommendation in Shares mag;

Ride the momentum behind PR and marketing firm Next Fifteen Communications (NFC:AIM) which continues to roll out a digitally-focused strategy supported by the astute looking £1.6 million capture of IncrediBull (2 Jul).

The £126 million cap earns a significant chunk of its profits in the US (with a bias towards the tech space) but the bolt-on deal for IncrediBull strengthens its London operations. House broker Investec expects the deal to add up to 2.5% to earnings per share in the January 2016 and January 2017 financial years respectively.

Crucially it also adds new talent with the capacity for generating new business in the form of IncrediBull’s managing director Richard Parkinson.

The acquisition will be absorbed into the Text 100 subsidiary and will add brand marketing expertise to a current strategic communication focus. Based on consensus forecasts the stock is on a January 2017 price to earnings ratio of 12.4 which understates the strong growth trajectory.

Next Fifteen has been on a tear since we flagged its potential four months ago (see Stocks Beating the Market, Shares 12 Mar ’15) but we see further upside at 193.5p. Investec has a price target of 222p.

[cfro] 03/7/2015 18:15

A very reasonable day here today. Lets hope the IC article brings in some more punters on Monday.

[cfro] 03/7/2015 08:26

Thanks for reproducing the IC article here Gargleblaster. I dont receive my paper copy till late this afternoon, so saves me now reading it! :-)

A very bullish article which seems to have moved the share price up straight off this morning.

[gargleblaster] 02/7/2015 18:52

IC have made NFC one of their week's share tips;

Bull points
Benefiting from resurgent US economy
Strong sales and profit growth
Savvy investments and acquisitions
Shares are cheaply rated

Bear points
Peripheral businesses have struggled
Restructuring costs and write-downs

Next Fifteen Communications (NFC), a marketing company made up of 16 specialist agencies, is benefiting from the resurgent US economy and its focus on high-growth technology clients, such as Google and Amazon, that make up 70 per cent of revenues. Strong organic growth prospects in the UK and US are also being supplemented with savvy 'bolt-on' acquisitions. Meanwhile operations elsewhere have been revitalised through restructuring and focusing on key clients. Yet despite its stellar progress, the group's shares trade at just 12 times forecast earnings, leaving ample room for a re-rating.

Next Fifteen offers services such as digital marketing, PR and market research in 18 countries. Digital investments, the closure of underperforming offices and dropping unprofitable clients widened the group's underlying operating margins last year from 8.6 per cent to 11.7 per cent, while helping win new blue-chip clients, such as Twitter and Time Warner Cable. Next Fifteen also raised average return from clients by 10 per cent and increased the number of clients generating over $1m (£0.64m) in fees from 25 to 28.

All this fuelled a strong financial performance in 2014. Organic sales rose 11 per cent in the US, which accounts for 58 per cent of group turnover and 78 per cent of profit. Investment, reorganisation and acquisitions sent the UK operating margin soaring from 4.1 per cent to 10.6 per cent. And the group's other operations bounced back after widescale restructuring. For instance, its businesses in Europe and Africa swung from a loss in 2014 to an operating profit of £0.8m. The upshot was a 44 per cent rise in total adjusted operating profit to £12.7m.

Acquisitions have played a key role in allowing Next Fifteen to tap into growth markets and widen its digital offering. For example, it recently acquired Encore, an agency specialising in automated advertising technology. It also bought content-focused marketer Story Worldwide in 2014 and recently took a significant stake in digital agency Animl, whose clients include Unilever.
The combination of organic growth and acquisitions has strengthened Next Fifteen's prospects. Trading has remained strong this year and the business pipeline in the US and UK is bulging. Those trends should underpin broker Investec's expectations of 9 per cent compound annual earnings growth between 2015 and 2018, and based on recent trading and the likelihood of further acquisitions, there's good potential for upgrades to these forecasts.
Investors might be worried about the costs of Next Fifteen's transformation. Last year, the group wrote down £7m in goodwill, incurred a £1.8m restructuring charge, and cash outflow from investing more than tripled to £17.9m. But management's efforts have paid off handsomely so far. And fears about acquisitions driving up debt should be eased by Next Fifteen's improved cash generation, which together with £4.3m in net proceeds from a placing in January kept year-end net debt at just £8.6m.

IC VIEW:
Next Fifteen's streamlined operations, presence in multiple growth markets and taste for acquisitions should accelerate top-line growth and widen profit margins. We don't think its shares' depressed rating does justice to the company's revitalised potential. Buy.
Last IC view: Buy, 176p, 29 April 2015

[interceptor2] 02/7/2015 08:09

Correct cfro, have amended previous mail to £1.6m, but workings out the same as I had used the £1.6m figure before I posted :o)

[cfro] 02/7/2015 08:00

I think it is £1.6m in total but nevertheless this looks a great buy.

Earnings enhancing too.

[interceptor2] 02/7/2015 07:48

Another nice small acquisition expected to immediately earnings enhancing. Paying £1.6m for revenues of £2.4m and adjusted PBT of £0.5m gives a PSR of 0.67 and net margin of 16.6%, looks like a very good deal to me.

[battlebus2] 09/6/2015 15:56

All looks good to me also, just shuffling a few funds around, basically robbing Peter to pay Paul.

[gargleblaster] 09/6/2015 14:18

And stats all look good imv - Fwd PE of 12.9, alt rolling PEG 0.68, ROCE 27, forecast eps growth 24%.

[cfro] 09/6/2015 14:07

Ticking back up slowly almost day by day....

Chart looking poised once more.

[cfro] 04/6/2015 13:38

Good luck with pastures new BB2.


I have a firm hold/buy more strategy on this stock. I believe this share has much further to go and there's not many shares out there that offer the combination that NFC has of cheap pe and excellent growth prospects.

I have a first base target price of £2.40, which is using conservative eps of 16p and pe of 15.

Easy to see much higher profits and earnings with the growth coming through and further potential acquisitions particularly in America.

[battlebus2] 03/6/2015 18:59

I've taken some profits to invest elsewhere.

[cfro] 03/6/2015 18:53

Bound to have a small pull-back at some point, after all it has virtually been a one way ride! :-)

[petersinthemarket] 03/6/2015 10:11

Looks as if it might revisit the lower support line first but I think the generally rising trend will stay intact for a long time yet.
GL all, pete

[battlebus2] 20/5/2015 12:21

Closing in on £2...

[petersinthemarket] 20/5/2015 10:28

My timing is not usually too smart but I also took a stake yesterday. Brill.
GL all, pete

[baxter99] 20/5/2015 09:59

agreed cfro - I added yesterday with a small spread bet as a side dish