Next 15 Group plc (LON:NFG) has been notified that the contract with Mach49’s largest customer has not been renewed after its initial three-year term and will now end on 31 December 2024. This contract had been expected to contribute just over £80m of revenue in FY26. While we anticipate that the client will continue to use Mach49’s services in the future, we believe it is prudent to materially reduce forecasts for the financial year to 31 January 2026. This will in turn reduce the earnout obligation to Mach49’s shareholders due over the next three years.
While the Group has seen strong performances from a number of its consumer-facing businesses, it has continued to see an ongoing weakness in spend from its technology customers as well as a reduction in revenues from its public sector clients.
As a result of these factors and the contract ending which will impact the last month of the fiscal year, the Board now believes FY25 revenue will be lower than planned, and profits to be materially below management expectations.
Next 15 Group will announce its interim results on 17 September 2024.
