Latest news with #Mach49
Times
3 hours ago
- Business
- Times
Next 15 sacks three executives over potential misconduct at Mach49
A marketing company quoted on London's junior Aim market has warned on profits and said that its chief executive would step down after uncovering 'potential serious misconduct' relating to a company that it previously acquired. The potential misconduct was discovered by Next 15 after a review of a big contract for Mach49, an advisory company based in Silicon Valley, which was cancelled early in September. The loss of part of the contract lowered the earnout for the sellers of the business, which was based on how profitable the agency was between 2020, when it was acquired, and January 2025. Next 15 said it expected 'a lower conversion of opportunities within this brand's pipeline' after uncovering the potential issues, which together with a weakening in the dollar, meant that adjusted operating profit for the current financial year would be 'materially below' market expectations of £80.5 million. The company generates about half of its revenue in dollars. Three members of Mach49's senior management team have been sacked, including Linda Yates, Mach49's founder and chief executive, and no further payments will be made to Yates, the company said. Next 15 said it was in the process of reporting the matters to relevant law enforcement agencies and would 'ensure that full co-operation is provided to those agencies'. Tim Dyson, the company's chief executive of more than 30 years, will retire from the business and be replaced by Sam Knights, who is the boss of Shopper Media Group, a marketing company owned by Next 15. Dyson's exit came on the same day as the company's annual meeting, which meant a resolution for his re-election as a director was withdrawn. The $400 million contract, which was announced 18 months after Next 15 acquired the company in 2020, was cancelled at the end of last year and not in 2026, as had been expected previously. Winning the contract had increased the earnout due to the owners of Mach49 by £107 million, according to Next 15's 2022 full-year results, which pushed the company to a £80.1 million pre-tax loss that year. The shares, which have fallen 76 per cent over the past 12 months, were down 77p, or 27 per cent, to 212p in afternoon trading. Next 15 is best known in the City as the owner of MHP Group, which handles the financial communications for dozens of companies listed on the stock market, including its parent. It also owns other consultancies, advising clients on everything from marketing to technology to communications. Next 15's agencies have worked with some of the world's best-known brands and companies, including Apple, BAE Systems and Pepsi.
Reuters
10 hours ago
- Business
- Reuters
UK's Next 15 warns on profit, shares dive 21%
June 26 (Reuters) - Consultancy and marketing services provider Next 15 Group (NFGN.L), opens new tab 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.
Business Wire
a day ago
- Business
- Business Wire
Statement re Mach49 LLC
LONDON--(BUSINESS WIRE)-- THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED UNDER THE MARKET ABUSE REGULATION (EU NO. 596/2014) AS IT FORMS PART OF UK DOMESTIC LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018. Next 15 Group plc ("Next 15") Statement RE: Mach49 LLC ("Mach49") Next 15, the tech and data-driven growth consultancy, has been working to assess the final earnout payment due to be made in connection with its acquisition of Mach49. Through this process, Next 15 has become aware of potential serious misconduct concerning the Mach49 business. As a consequence, Next 15 has terminated the employment of three members of the senior management at Mach49 – Linda Yates, Russ Lampert and Paul Holland. David Charpie, currently co-CEO of Mach49, will become sole CEO with immediate effect. Next 15, on behalf of Mach49, is in the process of reporting the matters to relevant law enforcement agencies. It is too early to know the outcome, but Next 15 will ensure that full co-operation is provided to those agencies. As a result of the potential misconduct, Next 15 will not make any further payment to Mach49's selling shareholder under the earnout agreement. The ultimate earnout position may only be finally determined following the outcome of legal proceedings. Next 15 will make further announcements as appropriate. Enquiries: Next 15 Group plc Deutsche Numis (Nomad & Joint Broker) Mark Lander Hugo Rubinstein George De Felice + 44 (0)20 7260 1000 Berenberg (Joint Broker) Ben Wright Mark Whitmore Brunswick – for media enquiries Paul Durman Imran Jina MHP Group – for investor enquiries +44 (0)20 3207 7800 +44 (0)7793 522824 +44 (0)7587 037076 Oliver Hughes Eleni Menikou Veronica Farah +44 (0)7885 224532 +44 (0)7701 308818 Expand The person responsible for making this announcement on behalf of Next 15 is Mark Sanford, Company Secretary. Background On 1 September 2020, Next 15 acquired Mach49 as part of plans to create an innovation business. On 23 February 2022, Next 15 announced that Mach49 had signed a material five-year contract, resulting in a significant increase in the earnout payable to the vendors of Mach49. Subsequently, on 6 September 2024, Next 15 was notified that Mach49's contract with its customer had not been renewed after its initial three-year term and would end on 31 December 2024. The current earnout liability related to Mach49 in Next 15's accounts for the year ended 31 January 2025 is $91.2m.
Yahoo
a day ago
- Business
- Yahoo
Statement re Mach49 LLC
LONDON, June 25, 2025--(BUSINESS WIRE)-- THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED UNDER THE MARKET ABUSE REGULATION (EU NO. 596/2014) AS IT FORMS PART OF UK DOMESTIC LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018. Next 15 Group plc ("Next 15") Statement RE: Mach49 LLC ("Mach49") Next 15, the tech and data-driven growth consultancy, has been working to assess the final earnout payment due to be made in connection with its acquisition of Mach49. Through this process, Next 15 has become aware of potential serious misconduct concerning the Mach49 business. As a consequence, Next 15 has terminated the employment of three members of the senior management at Mach49 – Linda Yates, Russ Lampert and Paul Holland. David Charpie, currently co-CEO of Mach49, will become sole CEO with immediate effect. Next 15, on behalf of Mach49, is in the process of reporting the matters to relevant law enforcement agencies. It is too early to know the outcome, but Next 15 will ensure that full co-operation is provided to those agencies. As a result of the potential misconduct, Next 15 will not make any further payment to Mach49's selling shareholder under the earnout agreement. The ultimate earnout position may only be finally determined following the outcome of legal proceedings. Next 15 will make further announcements as appropriate. Enquiries: Next 15 Group plc Deutsche Numis (Nomad & Joint Broker) Mark Lander Hugo Rubinstein George De Felice + 44 (0)20 7260 1000 Berenberg (Joint Broker) Ben Wright Mark Whitmore Brunswick – for media enquiries Paul Durman Imran Jina MHP Group – for investor enquiries +44 (0)20 3207 7800 +44 (0)7793 522824 +44 (0)7587 037076 Oliver Hughes Eleni Menikou Veronica Farah +44 (0)7885 224532 +44 (0)7701 308818 The person responsible for making this announcement on behalf of Next 15 is Mark Sanford, Company Secretary. Background On 1 September 2020, Next 15 acquired Mach49 as part of plans to create an innovation business. On 23 February 2022, Next 15 announced that Mach49 had signed a material five-year contract, resulting in a significant increase in the earnout payable to the vendors of Mach49. Subsequently, on 6 September 2024, Next 15 was notified that Mach49's contract with its customer had not been renewed after its initial three-year term and would end on 31 December 2024. The current earnout liability related to Mach49 in Next 15's accounts for the year ended 31 January 2025 is $91.2m. View source version on Contacts Next 15 Group plc Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
