UK marketing firm Next 15 in talks to sell select brands, shares rise

(Reuters) -Embattled consultancy and marketing group Next 15 said on Friday it is in early discussions regarding a potential sale of some of its brands, capping a tumultuous week in which it warned about its profit and disclosed issues at a unit.

The British company, whose brands include elvis, Outcast and Shopper Media Group, did not name the businesses it was contemplating selling or the parties it may be in talks with.

Next 15 sold its private equity consultancy, Palladium, earlier this month as part of its ongoing efforts to streamline operations.

Its shares jumped as much as 14.7% to 238.5 pence, their biggest intra-day gain since October 2022, after the group confirmed a Sky News report that Next 15 was in talks about a sale of "legacy" assets, including financial PR agency MHP.

The stock took a dive on Thursday after the company warned that its fiscal 2026 profit would likely fall materially below the market view. Next 15 also named a new CEO to succeed Tim Dyson following his retirement.

The company on Wednesday disclosed a "potential serious misconduct" at its U.S.-based venture-building firm, Mach49, which it bought in 2020.

Since cutting its profit forecast in September and including Thursday's losses, the group has shed roughly three quarters of its value.

Next 15's market capitalisation stood at about 209 million pounds ($286.87 million) as of Thursday's close of 208 pence per share, far from its peak of 1,476 pence in 2022.

($1 = 0.7285 pounds)

(Reporting by Raechel Thankam Job and Pushkala Aripaka in Bengaluru; Editing by Shreya Biswas)