Next 15, a firm specialising in digital and communications services, experienced a significant drop in its share price today following the announcement that a major client will not be renewing its contract.
Shares in Next 15 plummeted by 50 per cent today after it was disclosed that one of its largest clients has opted not to renew a three-year agreement. This decision is expected to result in a substantial revenue shortfall of £80 million in the financial year 2026 for the company’s venture building division, Mach49.
This development has prompted Next 15 to adjust its financial forecasts downward, which in turn triggered a sharp decline in its share price during early trading sessions. In a statement to the London Stock Exchange, Next 15 remarked: “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.”
The company also stated: “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.”
In its most recent full-year results, published in April, Next 15 reported a revenue of £577.8 million, an increase of 2.5 per cent from the previous year, primarily driven by growth through acquisitions. The group’s adjusted operating profit rose by 6.1 per cent to £121.1 million. Furthermore, the group’s liabilities concerning earn-out payments decreased by £44 million, with £32.3 million being associated with Mach49. The underlying profit margin also improved, increasing by 80 basis points to reach 21 per cent.
As one of Next 15’s largest clients exits, the firm faces a challenging road ahead with revised revenue and profit forecasts reflecting significant impacts. The company’s financial adjustments and market reaction underscore the vulnerability of relying heavily on major client contracts.