Next Fifteen increases revenue thanks to strong US performance

Thanks to strong growth at its North American business and an improved performance by its UK division, Next Fifteen Communications delivered a 6% climb in annual turnover.For the year ended 31 July, the group reported 12% growth in the US, which helped lift overall revenue from £96.1m to £101.5m. On an adjusted basis, profit before tax increased by 36% to £10.5m (2013: £7.7m) and earnings per share increased by 49% to 10.0p (2013: 6.7p).Revenue in the UK climbed 5% to £21.9m, with an operating profit of £1.5m at an operating margin of 7%. However, revenue from Europe, the Middle East and Africa (EMEA) declined by 9% to £9.6m, reflecting a difficult trading environment.As a result of its operational review, the company is implementing a number of initiatives to improve the business's operating performance, resulting in an £7m goodwill write-down against its UK business and exceptional restructuring costs of £1.4m in the UK and EMEA during the period.As such, on a reported basis, the group swung to a loss of £0.95m, compared to profit of £2.09m a year earlier.The company increased its second interim dividend to 2.3p, giving a full year payment of 3.0p per share, compared to 2.55p for the previous year.Chairman Richard Eyre said: "Next 15 continues to make good progress, with strong revenue growth in the US and an improving performance in the UK. The acquisition of Story Worldwide adds an exciting new business in line with the group's strategy of investment in content, insight and technology."Significant steps are being taken to streamline operations whilst preserving first class client service; the simplifying of our international operations in EMEA and Asia Pacific is well under way and we are co-locating our businesses in San Francisco."