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(Sharecast News) - Tech consultancy Next 15 warned on Thursday that "a number of adverse factors" had affected both profit margins and its FY outlook.
Next 15 said that following Wednesday's announcement relating to "potential serious misconduct" concerning its Mach49 subsidiary, it now expects "a lower conversion of opportunities" within the unit's pipeline.
The AIM-listed group also pointed to impacts stemming from adverse movements in the dollar rate, with over 50% of revenues being dollar-denominated.
As a result, Next 15 now believes that FY26 profits will be "materially below" current expectations. Revenues were still expected to be broadly in line with market expectations.
Separately, Next 15 said that chief executive Tim Dyson will step down from the role after 33 years at the helm. Dyson will be succeeded by Sam Knights, currently CEO of Shopper Media Group, with the two set to work together for a transitional period. Dyson will remain an adviser to Knights and the board for the remainder of the financial year.
As of 0935 BST, Next15 shares were down 18.69% at 235.0p.
Reporting by Iain Gilbert at Sharecast.com
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