UK's Next 15 warns on profit, shares dive 21%
June 26 (Reuters) - Consultancy and marketing services provider Next 15 Group (NFGN.L), opens new tab warned on Thursday that its fiscal 2026 profit would likely fall materially below market expectations, a day after it disclosed 'potential serious misconduct' at its California-based venture-building firm Mach49.
Shares of the firm tumbled as much as 21% to 228.5 pence, their lowest since April 22.
On Wednesday, Next 15 said it had terminated the employment of three members of the senior management at Mach49 and was in the process of reporting the matters of misconduct to relevant law enforcement agencies.
Next 15 did not disclose what the concerns were. Reuters could not immediately reach Mach49 or the three terminated employees for a comment on Thursday.
The firm said it had uncovered the misconduct while assessing the final earnout payment related to its acquisition of Mach49, and has decided not to make any further payments to Mach49's selling shareholder under the earnout agreement.
London-based consultancy Next 15, which acquired Mach49 in September 2020 as part of its innovation strategy, sharply cut its outlook in September 2024 after Mach49's largest client chose not to renew its contract following a three-year term.
The warning triggered a steep sell-off, with shares plunging around 50% at the time. They have since fallen a further 32% through Wednesday's close.
On Thursday, the company said that allegations of misconduct at its venture arm have reduced the likelihood of converting pipeline opportunities into revenue.
Analysts expect Next 15 to post an adjusted operating profit of 80.5 million pounds for the year ending January 2026, according to a company compiled poll.
Separately, it also said CEO Tim Dyson will retire after 33 years at the firm, and Sam Knights, currently CEO of a Next 15 subsidiary, has been appointed as his successor.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily Mail
3 hours ago
- Daily Mail
How the future of the Right is being shaped... over exquisite lunches at London's most exclusive clubs
The future of Right-wing politics in Britain is being decided on the cigar terraces of Mayfair. As the opinion poll surge of Nigel Farage 's Reform UK shakes the foundations of the Conservatives, power-brokers from both parties are cutting deals and war-gaming defections on adjoining tables in the capital's most salubrious salons. The Tories have been described as the most successful political party in the world, on the back of 200 years of near-electoral dominance. But if leader Kemi Badenoch is going to maintain that reputation until the next election, it will require a revival of Lazarus-like dimensions. According to a YouGov poll last week, Mr Farage would win 271 seats if an election were held now – well ahead of Labour on 178. The Conservatives would trail the Liberal Democrats on a dismal rump of just 48 seats. It has led to long, dark nights of the soul for Tory grandees and donors: do they stick with the Conservatives, even if they are sleepwalking to electoral doom? Do they try to form a pact with Mr Farage? Or do they just jump ship completely? The result has been a series of lunches and dinners in ultra-exclusive clubs such as 5 Hertford Street and its sister institution Oswald's, both owned by entrepreneur Robin Birley. Oswald's, which is frequented by the likes of the Prince of Wales, Tony Blair, Boris Johnson and the Beckhams, was the venue for a splashy £1 million fundraising event for Reform earlier this year. And on a single day this month, the same lunch service at Oswald's boasted former prime minister David Cameron, his ex-chancellor George Osborne and Tory leadership hopeful Robert Jenrick all dining together, next to Mr Farage and his treasurer Nick Candy in deep conversation on a nearby table – and with former Tory Cabinet minister Jacob Rees-Mogg, who has urged the two parties to form a pact, offering greetings from a third table. In the same week, a short walk across Berkley Square at 5 Hertford Street, popular with Eurocrats and stars such as Hugh Grant, a single lunch sitting offered the spectacle of billionaire Michael Spencer, Lord Cameron's former treasurer, dining with Francis Maude, an ex-Tory chairman, under the watchful eyes of Mr Farage's inner circle, including Arron Banks and Andy Wigmore – the self-styled 'bad boys of Brexit' who helped fund Mr Farage's Brexit campaign in the 2016 referendum – and Mr Farage's mysterious fixer, 'Posh' George Cottrell. As the wine flowed – full-bodied red for the Tories, chablis for the Faragistes – it represented a neat microcosm of the shifting tectonic plates: Lord Maude – tipped to return to the chairman role – is understood to have been lobbying Lord Spencer for funds for the party, while the Faragistes were drawing up a list of Tory donors to target for defection. At the centre of this venn diagram of plotting is Mr Jenrick, who is more open than Mrs Badenoch to cutting a deal with Reform – and is said to have received Lord Cameron's backing to succeed her as leader. Meanwhile, at The In & Out private members' club, a more traditional Armed Forces venue situated at the other end of Piccadilly, allies of Mr Farage and Mr Jenrick have met for informal discussions about 'uniting the Right'. Conspirators have even floated the idea of Mr Jenrick acting as chancellor in a Farage administration, although both sides furiously deny any such plans. Mr Jenrick has also lunched at 5 Hertford Street with Rupert Lowe, the Great Yarmouth MP who lost the Reform whip after a spectacular bust-up with Mr Farage. Even many moderate Conservatives, facing the loss of their seats, are now considering a merger. One member of the Leftish One Nation group said: 'A pact with Reform is inevitable now.' The MP added: 'There should be a non-aggression pact where we agree to not stand in the five seats Reform already have, and we let Nigel take his pick of seats where he is coming second to Labour. And Reform would stand down in seats we are more likely to win. 'It would end up giving them the North to save the Home Counties.' An insider said Tory leader Mrs Badenoch 'would not be able to do the deal' but added that the timing had to be right for her successor to do so. The source said: 'At the moment there no point doing any type of deal because Reform is on a high. Labour has imploded too early – all the benefit is going to Reform. Kemi isn't nimble enough to capitalise on it.' Mrs Badenoch is continuing to pursue a 'slow and steady' approach, and regularly speaks to Lord Maude. 'He tells her to be patient and give the public the chance to come around,' the source said. Even Mrs Badenoch's most vociferous critics say a leadership challenge is unlikely in the near future. Says one: 'She's 99 per cent safe until May. 'No one will want to own the next disaster – and there are a number coming down the line.'
Daily Mail
3 hours ago
- Daily Mail
EXCLUSIVE Just what is Meghan trying to hide? After months of fruitless investigation, CAROLINE GRAHAM discovers a shocking new theory on what's REALLY behind the Duchess's jam brand
It is unquestionably the Duchess of Sussex 's most famous product, and the one she lovingly refers to on her As Ever website as 'where it all began'. Yet, three months on from the public launch of her in-demand raspberry spread, mystery still surrounds the provenance of the £6.50-a-jar product.
Daily Mail
3 hours ago
- Daily Mail
Anti-drone lasers will be fitted to military vehicles to protect the UK from swarm attacks by terror groups or hostile nations
Laser weapons capable of shooting down drones will be fitted to military vehicles to help protect the UK from swarm attacks by terror groups or hostile nations, The Mail On Sunday can reveal. Defence experts have said the laser-armed vehicles could guard airfields, sensitive locations such as GCHQ and other areas of critical national infrastructure. Tanks, armoured personnel carriers and reconnaissance vehicles will be equipped with the lasers, which are designed to blast drones out of the sky from more than half a mile. Details of the laser plans emerged as Britain begins ramping up its defence spending to counter threats from Russia and China. After criticism from US President Donald Trump, the UK aims to spend 4.1 per cent of its GDP on defence by 2027, and 5 per cent by 2035. At a Nato summit last week, Sir Keir Starmer said increased defence spending was vital to counter threats at home and abroad. The lasers, known as direct energy weapons, fire an intense beam of infrared light, causing a target to heat up and explode. They will be equipped with sensors capable of tracking drones to ensure the weapon remains locked-on to its target. Tanks, armoured personnel carriers and reconnaissance vehicles will be equipped with the lasers, which are designed to blast drones out of the sky from more than half a mile Unlike conventional weapons, they strike at the speed of light and are virtually limitless in terms of ammunition. Earlier this month, the Ministry of Defence announced that it would invest £1 billion in lasers. Details of the laser plan have been revealed by the MoD in a 'preliminary market engagement notice' to defence companies. The document, seen by The Mail on Sunday, said the MoD was seeking a 'laser direct energy weapon to destroy small unmanned air systems (drones) at ranges of 1km-plus'. It adds that 'availability to deliver within 12 months ideally' will be required. Defence firms will have to demonstrate the capability of their systems as they bid for the £20 million contract. Earlier this month, the MoD also revealed plans to develop a fleet of drones capable of being launched from Transit vans. Col Philip Ingram, a former Army intelligence officer, said the lasers were vital for national security and 'can't come quickly enough'. The MoD said the laser weapons will be 'created this decade', adding: 'Following the successful trial of a high-energy laser mounted to a Wolfhound armoured vehicle, we are engaging the market to help inform decisions on procurement.'
