Finance
UK's Next 15 warns on profit, shares dive 21%
Published by Global Banking & Finance Review®
Posted on June 26, 2025
2 min readLast updated: January 23, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on June 26, 2025
2 min readLast updated: January 23, 2026
Next 15 warns of a profit drop below expectations due to misconduct at Mach49, leading to a 21% share decline. CEO Tim Dyson to retire.
(Reuters) -Consultancy and marketing services provider Next 15 Group 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.
(Reporting by Chandini Monnappa and Raechel Thankam Job in Bengaluru; Editing by Shailesh Kuber)
Next 15 Group's shares fell 21% after the company warned that its fiscal 2026 profit would likely fall materially below market expectations.
Next 15 Group terminated the employment of three senior management members at Mach49 due to undisclosed misconduct, which was uncovered during an assessment of an earnout payment.
Analysts expect Next 15 to post an adjusted operating profit of 80.5 million pounds for the year ending January 2026.
Sam Knights, currently the CEO of a Next 15 subsidiary, has been appointed as the successor to Tim Dyson, who will retire after 33 years at the firm.
The warning triggered a steep sell-off, with shares plunging around 50% initially, followed by a further 32% decline through Wednesday's close.
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