Sparks

The big news from Next 15 was the announcement earlier this month that the substantial contract in subsidiary Mach49 was coming to an abrupt end in December 2024, which shifted the dial on performance expectations for the rest of the current year and future periods. First half trading across the rest of the group has been mixed, with continuing pressure on spend from its tech clients (revenues here were down 13%) and from the UK government, where the calling of the general election had a considerable negative impact. Both impacts should settle with time and other group companies are performing well, with the net effect of flat group revenues year-on-year but at notably lower operating margins. Management is focused on simplifying the group  structure and has taken significant steps to reduce the cost base to move towards the restoration of margins.