NFC.L Share News (NFC)

Interim profits are likely to be substantially ahead of last year at Next Fifteen Communications Group, despite an absence of revenue growth.Tim Dyson, chief executive of the public relations group, explained that the uplift in pre-tax profits was down to the company emerging from the recession as a leaner, 'more cost-centric' organisation, while it was also enjoying the benefit of some tailwinds from currency movements, compared to last year when it paid a heavy price for an ill-judged hedging position.'Those hedging arrangements have now unwound,' Dyson told Sharecast, adding that the decision to enter into them was a decision taken at a board meeting 'which I wish had never taken place.''We've always made provision for exchange rate movements, and over a long period of time the dollar gradually weakened and weakened and weakened, until it reached about $2.10 [to the pound], I think. Then, suddenly, it strengthened to $1.40 in a matter of months, leaving us in an uncomfortable position,' Dyson recalled. The experience has not put the company off extending its global reach, though it may have soured its view of hedging programmes. 'We are globalists,' Dyson said. 'That does not mean that we have to be in every country in the world, but if you look at the major clients in the PR world, they'll probably have a presence in about ten countries round the world; maybe not the same ten countries, but mostly the obvious ones.'Dyson identified Brazil, Mexico and Eastern European companies as the nations likely to join the list of important global markets.The company said the climate for new business is steadily improving, opening the door for increased spend by existing customers and also business from new customers. 'During the current financial year we have won new business from Schneider Electric, Bloom Energy, Harman International, Kellogg's, EZShield and Polycom,' chairman Will Whitehorn said.Whitehorn added that whereas at this time last year customers were reining in their budgets, many clients are now increasing their spend relative to last year.Whitehorn said the board remains confident it will meet market expectations for the full year. Current market consensus is for pre-tax profit for fiscal 09/10 of £6.43m, up from £3.16m in the year to 31 July, 2009.