Trading Statement

Next 15 Group plc (AIM: NFG) provides the following update on trading for the four months ended 31 May 2026, ahead of its Annual General Meeting today.

Trading is in line with expectations, supported by a particularly strong performance in Digital Transformation.

Transform’s strong performance is supported by its appointment as a lead delivery partner within i10, a public sector transformation specialist, for the Department for Environment, Food and Rural Affairs’ ADMS+ programme. This significant contract is expected to extend over multiple years and reflects the strength of Transform’s AI-enabled digital transformation capabilities and the value it delivers on complex, nationally important digital programmes. The nature of the contract awarded to Transform aligns with Next 15’s focus on the businesses within the Group where it sees the strongest potential for sustained growth and long-term value.

At its Capital Markets Day in January, the Group introduced the new strategy; portfolio simplification, margin improvement, investment in growth capabilities and operational efficiency. This included a track-based framework, aligning capital allocation to its most data, technology and AI-enabled businesses where it sees the strongest potential for sustained growth and long-term value under its ownership. Among those Track 1 businesses, including Digital Transformation, the Group continues to see good growth albeit with the market backdrop for its B2B tech focused agencies remaining subdued.

The Group has also made further progress against its simplification strategy by agreeing the partial sale of our Track 2 business, Elvis Communications, to Wonderhood Studios. The transaction streamlines the portfolio and supports a focus on higher-growth, higher-margin opportunities. Following completion, Next 15 will retain a profitable core representing approximately half of Elvis’ current revenues, including its profitable customer experience capabilities.

The Mach49 arbitration remains ongoing and the Company maintains its position regarding the non-payment of the remaining earnout and has counterclaimed for previously paid earnout payments. Our assessment of the strength of our legal position is unchanged.

Sam Knights, CEO commented “This has been an encouraging start to the year, as we continue to transform Next 15 into a more streamlined, data-driven business fit for an AI future. Trading is in line with expectations, led by growth in our Digital Transformation business. Transform's role on Defra's ADMS+ programme and the partial asset sale of Elvis demonstrate continued progress against our strategy. This momentum, combined with our strong balance sheet, gives us confidence for the year ahead.”

Outlook

Trading is in line with expectations and the Group continues to forecast like-for-like revenue and profit growth in the year.