Next 15's Equity Strategy: Fueling Growth by Investing in People

LONDON, UK – December 04, 2025

A regulatory filing from Next 15 Group plc today announced the issuance of just over 104,000 new ordinary shares on the AIM market. On the surface, it’s a routine piece of corporate housekeeping. But for those watching the fiercely competitive tech and data consultancy sector, such announcements are more than just line items. They are windows into a company's core strategy for winning the war for talent and fueling long-term growth. Next 15’s move, though minor in scale, offers a masterclass in how modern, innovation-led firms leverage equity not just as compensation, but as a strategic tool for retention, motivation, and expansion.

Demystifying the Equity Toolbox

For many outside the financial world, terms like 'additional listing', 'LTIP', and 'RSU' can seem like impenetrable jargon. In reality, they are the fundamental building blocks of a modern corporation’s human capital strategy. The recent announcement involves two primary mechanisms: the Long-Term Incentive Plan (LTIP) and Restricted Stock Units (RSUs).

An LTIP is exactly what its name implies: a plan to incentivize performance over the long haul. At Next 15, these aren't simply handed out. Awards are contingent on hitting ambitious targets over a three-year period. These performance metrics are rigorous and directly tied to shareholder value, often including:
* Relative Total Shareholder Return (TSR): How the company's stock performs compared to its peers in the FTSE Small Cap Index.
* Organic Net Revenue Growth: A measure of the company's ability to grow its core business without relying on acquisitions.
* Adjusted Diluted Earnings Per Share (EPS): A key indicator of profitability and financial health.

By linking a significant portion of executive and employee remuneration to these goals, the company ensures that its people are pulling in the same direction as its investors. RSUs operate similarly, representing a promise of company stock that vests over time, typically contingent on continued employment or achieving specific milestones. The newly issued shares will also rank pari passu with existing shares, a Latin term meaning 'on equal footing', ensuring all shareholders have the same rights to dividends and voting.

The Strategic Cost of Talent: Dilution vs. Retention

The issuance of new shares inevitably raises the question of shareholder dilution. When a company creates new stock, the ownership stake of existing shareholders is marginally reduced. This is a valid concern, and one that requires careful management. However, the scale and context of Next 15’s latest issuance are critical.

The 104,122 new shares represent a dilution of approximately 0.103% of the company's total issued share capital. This is a fractional impact, far outweighed by the strategic benefit. In the high-stakes world of tech and data consultancy, the primary asset isn't factories or physical inventory; it's the expertise, creativity, and drive of its people. Attracting and, more importantly, retaining top-tier, entrepreneurial talent is the single most important factor for sustained success.

Equity-based compensation is the primary weapon in this battle. It transforms employees into owners, fostering a culture of accountability and long-term thinking. This is not an isolated event for Next 15 but a consistent part of its operational DNA. The company regularly issues shares to fulfill obligations under its various incentive plans, viewing it as a necessary and powerful investment in its human capital. The minor dilution is the calculated cost of securing the talent that generates the revenue, innovation, and market leadership that ultimately drives the share price up for all stakeholders.

A Case Study in Growth: The M Booth Health Connection

A significant portion of the new share issuance—over 77,000 shares—is tied to the vesting of an RSU award for M Booth Health LLC. This detail illuminates how Next 15's equity strategy directly fuels its strategic expansion. M Booth Health is not just another name on a subsidiary list; it represents a key pillar in the group's push into the lucrative and resilient healthcare communications sector.

Next 15’s journey with the brand began with the acquisition of M Booth in 2009. It then strategically bolstered this capability in 2019 by acquiring the US operations of Health Unlimited, which was subsequently rebranded and integrated to form M Booth Health. Such acquisitions often include deferred or performance-based considerations, frequently paid in shares. The vesting of this RSU award strongly suggests that M Booth Health has met or exceeded the performance targets set during its integration, proving the acquisition's value.

This serves as a powerful example of the equity strategy in action. Next 15 uses shares not only to retain its own talent but also as currency to acquire promising businesses and incentivize their leadership to drive post-acquisition growth. The success of M Booth Health, a specialist agency dedicated to advancing global health and tackling disparities in care, is now directly reflected in the fulfillment of this equity promise, demonstrating a virtuous cycle of investment, performance, and reward.

Navigating Market Headwinds and Future Growth

While Next 15’s internal strategy appears robust, it is operating within a challenging external market. Analyst consensus remains broadly positive, with a majority maintaining a "Buy" rating and seeing significant upside in the stock price. However, the company's stock has seen a recent downturn, and consensus EPS estimates have fallen, reflecting broader economic uncertainty and market sentiment.

In this context, the company's commitment to its long-term incentive strategy becomes even more crucial. These equity plans are designed to look past short-term market volatility and focus employees on delivering sustained, multi-year growth. The recent purchase of £100,000 worth of stock by the company's CFO and a director can also be interpreted as a strong signal of insider confidence in the underlying health and future prospects of the business.

Looking ahead, the market will be watching closely as the company prepares for its Capital Markets Day in January 2026. This event will provide a critical platform for leadership to articulate its updated strategy, detail its capital allocation priorities, and reinforce the rationale behind its growth and talent initiatives. For investors and industry analysts, it will be a key opportunity to assess whether the company's long-term vision, powered by its investment in people, is poised to overcome the current market headwinds and unlock the next phase of value creation.