RNS Number:6881J
Next Fifteen Communications Grp PLC
07 April 2003

7 April 2003

Contact:      David Dewhurst                                                                07974 161183
              Tim Dyson                                                                 001 415 350 2801
              Next Fifteen Communications Group plc                                        020 8996 4154

              David Bick                                                                   07831 381 201
              Chris Steele
              Holborn                                                                      020 7929 5599







                       Next Fifteen Communications Group

                            Interim Profits Top #1m

                    Technology Markets Remain Flat Worldwide


Highlights

*   Further recovery in profitability as interim result tops #1m

*   Significant new business wins for each group brand

*   New operations opened in Beijing and Copenhagen

*   Core technology markets remain flat worldwide

*   Margins improved on efficiency gains

*   Interim dividend restored at 0.3p per share


Commenting, Tim Dyson, Chief Executive Officer, said:

"Our focus on improved efficiencies has delivered an excellent result in the
most testing trading conditions we have ever seen. The strength of our client
base and our people should continue to provide the platform for further
progress.  Our commitment to mainly organic development rather than acquisitions
and our strong balance sheet gives us confidence in our ability to benefit
further from any upturn in the underlying market."



CHAIRMAN AND CHIEF EXECUTIVE OFFICER'S STATEMENT

Next Fifteen Communications Group, the global technology public relations
specialist, is pleased to report another satisfactory performance in the six
months to 31 January 2003, despite the difficult markets in which it operates.
Pre-tax profit has risen to #1.024m up from #230k in the comparative period last
year, after further  reorganisation costs of #173k (2002: #250k), In view of the
continued recovery in Group profits and the strong financial position, the Board
has decided to restore the interim dividend, with a payment of 0.3p per share
(2002: nil).

Despite flat net revenues of #17.3m (2002: #17.4m), we have increased
profitability by further improvements in operating margins which, before
reorganisation costs have increased to 6.8% from 5.6% in the last full financial
year. The reasons for this improvement are the better utilisation of staff
coupled with continued scrutiny of the operating cost base. Reorganisation
costs, which will again be a feature of the full-year results, predominantly
reflect surplus office space but also include some redundancy cost and the cost
of reorganising the South African operations of Text 100.

The Group last updated investors and analysts at the time of the AGM at the end
of January, and the pattern of our trading has remained little changed since
then. The Group is operating profitably and generating cash despite the global
uncertainties and market conditions which show no signs of  significant
improvement, with generally depressed levels of spending on public relations and
marketing services in all major geographical markets.  The only change in market
conditions since January is a modest further strengthening in North America,
which has been offset by deterioration in demand in mainland Europe.

More importantly the Group continues to perform well in its two major markets.
This is most apparent in North America, where Text 100's new business wins over
the past six months include NTT Verio and Brocade.  In the UK, AUGUST.ONE, Bite
Communications and latterly, Text 100 are all performing strongly. AUGUST.ONE
has commenced work for Jordans and Bite Communications has recently added
Deutsche Post, Metastorm and London Underground to its previously announced new
business wins, which include Duracell and Lycos. During recent months Joe Public
Relations has been focused on the UK launch of third generation mobile phone
operator, 3.

The Text 100 brand has established two new operations in recent months - in
Beijing and Copenhagen.   The Beijing office extends the Group's geographical
offering into mainland China, a potentially massive market, while the Copenhagen
investment was made in response to specific client opportunities, including the
Group's largest client, IBM.

Finally, it seems that most results announcements end with a reference to the
prospects for substantial improvements in profitability that can be achieved
once markets return to growth, and our Group can make this statement with
substantial justification.  Next Fifteen is  holding its own and increasing its
profitability in a technology public relations market which is still shedding
capacity as several of its competitors shrink  or else go out of business
altogether.  With its robust balance sheet including a significant cash balance,
strong client list and an absence of any deferred payment considerations
relating to acquisitions, the Board is confident that the Group's full year
outcome will show progress, and that this progress will accelerate once a
measure of growth returns to global technology markets

Tom Lewis                             Tim Dyson
Chairman                              Chief Executive Officer



7 April 2003


INDEPENDENT REVIEW REPORT TO NEXT FIFTEEN COMMUNICATIONS GROUP PLC

Introduction

We have been instructed by the Company to review the financial information for
the six months ended 31 January 2003, which comprises the profit and loss
account, the balance sheet, the cash flow statement and related notes 1 to 9.
We have read the other information contained in the interim report and
considered whether it contains any apparent misstatements or material
inconsistencies with the financial information.

This report is made solely to the Company in accordance with Bulletin 1999/4
issued by the Auditing Practices Board.  Our work has been undertaken so that we
might state to the Company those matters we are required to state to them in an
independent review report and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone other than
the Company, for our review work, for this report, or for the conclusions we
have formed.

Directors' responsibilities

The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by, the directors. The directors
are responsible for preparing the interim report in accordance with the Listing
Rules of the Financial Services Authority which require that the accounting
policies and presentation applied to the interim figures are consistent with
those applied in preparing the preceding annual accounts except where any
changes, and the reasons for them, are disclosed.

Review work performed

We conducted our review in accordance with the guidance contained in Bulletin
1999/4 issued by the Auditing Practices Board for use in the United Kingdom.  A
review consists principally of making enquiries of group management and applying
analytical procedures to the financial information and underlying financial data
and, based thereon, assessing whether the accounting policies and presentation
have been consistently applied unless otherwise disclosed.  A review excludes
audit procedures such as tests of controls and verification of assets,
liabilities and transactions.  It is substantially less in scope than an audit
performed in accordance with United Kingdom auditing standards and therefore
provides a lower level of assurance than an audit.  Accordingly, we do not
express an audit opinion on the financial information.

Review conclusion

On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 31 January 2003.

Deloitte & Touche
Chartered Accountants
7 April 2003


CONSOLIDATED PROFIT AND LOSS ACCOUNT

FOR THE SIX MONTHS ENDED 31 JANUARY 2003


                                                     Six Months ended     Six Months ended            Year ended
                                                      31 January 2003      31 January 2002          31 July 2002
                                                           (UNAUDITED)          (UNAUDITED)             (AUDITED)
                                                                #'000                #'000                 #'000

Turnover (Note 2) - Continuing Operations          19,242               19,373                40,172
                  - Discontinued Operations             -                   78                    78

                                                               19,242               19,451                40,250

Other external charges                                        (1,979)              (2,090)               (4,458)

Net Revenue                                                    17,263               17,361                35,792

Staff costs                                        10,815               11,523                22,610
Depreciation                                          813                  861                 1,820
Other operating charges:
     Reorganisation Costs (Note 3)                    173                  250                   947
     Other operating charges                        4,462                4,378                 9,364

                                                             (16,263)             (17,012)              (34,741)

Operating Profit - Continuing Operations            1,000                  527                 1,249
                 - Discontinued Operations              -                (178)                 (198)

                                                                1,000                  349                 1,051

Exceptional profit relating to sale of trademark                    -                    -                 3,132
Interest receivable and similar income                             52                   26                    62
Interest payable and similar charges                             (28)                (145)                 (178)

Profit on Ordinary Activities before Taxation                   1,024                  230
(Note 2)
                                                                                                           4,067

Tax on profit on ordinary activities  (Note 4)                  (385)                (356)               (1,614)

Profit/ (Loss) on Ordinary Activities after                       639                (126)                 2,453
Taxation

Equity Minority Interests                                        (25)                 (56)                  (72)

Profit/ (Loss) Attributable to Members of the                     614                (182)                 2,381
Holding Company
Equity dividends paid and proposed (Note 5)                     (100)                    -                 (361)

Retained Profit/ (Loss) for the Period                            514                (182)                 2,020

Basic Earnings/ (Loss) per Share (Note 6)                      1.602p              (0.46)p                5.937p
Diluted Earnings/ (Loss)  per Share (Note 6)                   1.573p              (0.46)p                5.781p
Adjusted Earnings per Share (Note 6)                           1.962p                 0.1p                2.184p






CONSOLIDATED BALANCE SHEET

AS AT 31 JANUARY 2003

                                                       31 January 2003           31 July 2002      31 January 2002
                                                            (UNAUDITED              (AUDITED)          (UNAUDITED)
                                                                 #'000                  #'000                #'000
FIXED ASSETS

Intangible assets (Note 7)                                          48                      -                    -
Tangible assets                                                  2,731                  3,228                3,773
Investments (Note 8)                                             2,036                  1,509                1,509
                                                                 4,815                  4,737                5,282

CURRENT ASSETS

Debtors                                                7,338               6,470                 7,079
Cash at bank and in hand                               3,385               4,724                 1,760

                                                      10,723              11,194                 8,839

CREDITORS - Amounts falling due within one year      (6,265)             (6,941)               (5,346)

NET CURRENT ASSETS                                               4,458                  4,253                3,493

TOTAL ASSETS LESS                                                9,273                  8,990                8,775

CURRENT LIABILITIES

CREDITORS - Amounts falling due after more than                   (76)                  (208)              (2,482)
one year
Provisions for liabilities and charges                           (285)                  (410)                 (29)


NET ASSETS (Note 2)                                              8,912                  8,372                6,264

EQUITY CAPITAL AND RESERVES

Called up share capital                                          1,121                  1,121                1,121
Share premium account                                            2,711                  2,711                2,711
Profit and loss account                                          4,999                  4,465                2,302
                                                                 8,831                  8,297                6,134

EQUITY SHAREHOLDERS' FUNDS

EQUITY MINORITY INTERESTS                                           81                     75                  130
                                                                 8,912                  8,372                6,264


CONSOLIDATED CASH FLOW STATEMENT

FOR THE SIX MONTHS ENDED 31 JANUARY 2003


                                                      Six Months ended     Six Months ended            Year ended
                                                       31 January 2003      31 January 2002          31 July 2002
                                                           (UNAUDITED)          (UNAUDITED)            (AUDITED)
                                                                 #'000                #'000                 #'000
Net cash inflow from operating activities (Note
9 (1))                                                           1,594                1,053                 4,284
                                                                 
Returns on investments and servicing of finance
Interest received                                       52                    26                   62
Interest paid                                         (28)                 (145)                (178)
Minority interest dividends paid                      (69)                  (29)                 (36)

Net cash outflow from returns on investments and                  (45)                (148)                 (152)
servicing of finance

Corporation tax (paid)/ received                               (1,246)                   99                 (702)

Capital expenditure and investing activities
Long term deposits                                    (21)                  (54)                 (53)
Payments relating to sale of trademark                   -                     -                 (73)
Payments to acquire tangible fixed assets            (363)                 (936)                (977)
Payments to acquire own shares                       (527)                     -                    -
Proceeds from sale of own shares                        11                     4                    8
Proceeds from sale of trademark                          -                     -                3,205
Receipts from sales of tangible fixed assets             -                    66                  209

Net cash (outflow)/ inflow from capital                          (900)                (920)                 2,319
expenditure and investing activities

Acquisitions and disposals
Purchase of minority interest                                     (61)                    -                     -

Equity dividends paid                                            (346)                    -                     -

Net cash (outflow)/inflow before financing                     (1,004)                   84                 5,749

Financing
Net capital outflow from bank loans                   (75)                     -              (2,256)
Capital element of finance lease rental payments     (127)                   211                (415)

Net cash (outflow)/ inflow from financing                        (202)                  211               (2,671)

(Decrease)/ increase in cash                                   (1,206)                  295                 3,078

for the period (Note 9 (2))


NOTES TO THE INTERIM ACCOUNTS

FOR THE SIX MONTHS ENDED 31 JANUARY 2003



1.       FINANCIAL INFORMATION

The financial information is for the six months ended 31 January 2003 and is not
audited as defined by APB Bulletin 1993/1 and 1998/6.  The financial information
in this report does not constitute statutory financial statements within the
meaning of section 240 of the Companies Act 1985 (as amended).  The results for
the year ended 31 July 2002 have been extracted from the financial statements of
the Group on which an unqualified audit report has been received which did not
contain a statement under section 237 of the Companies Act 1985 and which have
been filed with the Registrar of Companies.

2.       SEGMENTAL INFORMATION

Analysis of turnover, profit before taxation and net assets by geographic origin
and destination.

                                                     Turnover       Profit before          Net Assets
                                                                         taxation
                                                        #'000               #'000               #'000
Six Months ended 31 January 2003


Continuing activities:
Europe, Middle East and Africa                         10,768                 780               6,214
North America                                           6,678                 259                 883
Asia Pacific                                            1,796                (26)               (249)
Non-allocated assets                                        -                  11               2,064

                                                       19,242               1,024               8,912



Year ended 31 July 2002


Continuing activities:
Europe, Middle East and Africa                         22,433              *3,985              *6,382
North America                                          13,179                 432               1,499
Asia Pacific                                            4,560               (154)               (208)
Non-allocated assets                                        -                   2               1,450

                                                       40,172               4,265               9,123

Discontinued Activities:

Europe, Middle East and Africa                             71               (143)                (41)

North America                                               7                (55)               (710)

                                                           78               (198)               (751)

                                                       40,250               4,067               8,372



Six Months ended 31 January 2002

Continuing activities:
Europe, Middle East and Africa                         11,074                 455               4,328
North America                                           6,026                 247               1,166
Asia Pacific                                            2,273               (284)               (188)
Non-allocated assets                                        -                 (2)               1,246

                                                       19,373                 416               6,552

Discontinued Activities:

Europe, Middle East and Africa                             71               (138)                (54)

North America                                               7                (48)               (234)

                                                           78               (186)               (288)

                                                       19,451                 230               6,264



The turnover relates to one class of business.  The directors consider these
regions to be separate geographic markets and the markets within which the Group
operates.

*For the year ended 31 July 2002, the Europe, Middle East and Africa region
includes, in its profit before tax, the exceptional profit on sale of the
trademark of #3,132k and in its net assets, the exceptional profit after tax on
sale of the trademark of #2,192k.


NOTES TO THE INTERIM ACCOUNTS

FOR THE SIX MONTHS ENDED 31 JANUARY 2003

3.       REORGANISATION COSTS

The majority of the reorganisation costs relate to further provisions for
onerous lease costs where excess space cannot be sublet.  In addition, a small
number of redundancies have been made.

4.       TAX ON PROFIT ON ORDINARY ACTIVITIES

The tax charge is higher than a standard UK rate as a result of profits being
generated in high tax regimes and unrelieved overseas losses.

5.       DIVIDENDS

An interim dividend of 0.3p (2002: nil) will be paid on 28 May 2003 to
shareholders on the register of members on 22 April 2003.  Shares will go ex
dividend on 16 April 2003.  The Employee Share Ownership Trust has waived its
rights to dividends in the six months ended 31 January 2003 (#19k) and in the
year ended 31 July 2002 (#42k).

6.       EARNINGS PER SHARE

Earnings per share has been calculated in accordance with FRS14, using earnings
of #614k (2002 full year: earnings of #2,381k and 2002 interim: loss of #182k)
and the weighted average number of shares in issue of 38,323,457 (2002 year end:
40,108,105; 2002 interim: 40,038,457). Diluted earnings per share has also been
calculated on the weighted average number of shares in issue, as adjusted by
dilutive potential ordinary shares, of 39,023,172 (2002 year end: 41,188,087;
2002 interim: Nil).

The adjusted earnings per share has been calculated by adding #138k of
reorganisation costs after tax to the profit attributable to members of #614k in
2003.  In the full year 2002, #687k of reorganisation costs, after tax, was
added and #2,192k exceptional profit arising from the sale of the OneMonday
trademark, after tax, was deducted from the profit attributable to members of
#2,381k.  In the interim 2002, #222k of exceptional reorganisation costs, after
tax, was added to the loss attributable to members of #182k.

7.       GOODWILL

Goodwill has been created as a result of the company purchasing a small part of
the minority interest of Bite Communications Group Ltd during the period.

8.       INVESTMENTS

This represents investment in own shares and is the cost of shares held by the
Company Employee Share Ownership Plan Trust (ESOP) in the Company. The market
value at 31 January 2003 was #2,019k (31 July 2002 was #1,149k and 31 January
2002 was #2,182k).

NOTES TO THE INTERIM ACCOUNTS

FOR THE SIX MONTHS ENDED 31 JANUARY 2003

9.       NOTES TO THE CASH FLOW STATEMENT



(1)        Reconciliation of Operating Profit to net cash inflow from Operating
Activities.


                                                    Six Months ended         Six Months ended           Year ended
                                                     31 January 2003          31 January 2002         31 July 2002
                                                         (Unaudited)              (Unaudited)            (Audited)
                                                               #'000                    #'000                #'000

Operating profit                                               1,000                      349                1,051
Depreciation                                                     813                      861                1,820
Profit on sale of own shares                                    (11)                      (4)                  (8)
Loss on sale of tangible fixed assets                             15                       24                   33
Loss on disposal of investments                                    -                        -                   14
Loss on disposal of investments                                    -                       14                    -
(Increase)/ decrease in debtors                                (894)                      172                1,065
Increase in creditors                                            846                       56                  297
(Decrease)/increase in provisions                              (175)                    (419)                   12

Net cash inflow from operating activities                      1,594                    1,053                4,284

                                                               

(2)        Reconciliation of Net Cash Flow to movement in Net Funds.

                                                 Six Months ended        Six Months ended             Year ended
                                                  31 January 2003         31 January 2002           31 July 2002
                                                      (Unaudited)             (Unaudited)              (Audited)
                                                            #'000                   #'000                  #'000

(Decrease)/ increase in cash at bank and                  (1,362)                   (657)                  2,283
in hand in the period
Cash inflow from decrease in overdraft                        156                     952                    795
(Decrease)/ increase in cash for the
period                                                    (1,206)                     295                  3,078

Cash inflow from bank loan                                     75                       -                  2,256
Net movement on finance leases                                127                   (211)                  (129)
Changes in net funds from cash flows                      (1,004)                      84                  5,205
Exchange movement                                              35                    (39)                   (69)
                                                            
Movement in net debt in the period                          (969)                      45                  5,136
                                                            
Net funds/ (debt) at period beginning                       4,020                 (1,116)                (1,116)

Net funds/ (debt) at period end                             3,051                 (1,071)                   4,020





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