Next 15's High-Stakes Pivot: Inside the 'Transformative' AI Strategy

LONDON, UK – November 25, 2025

Next 15 Group, the tech and data-driven growth consultancy, has signaled a pivotal moment in its history, announcing a Capital Markets Day for January 28, 2026. While such events are standard corporate procedure, the context surrounding this one is anything but. The announcement comes at the end of what the company itself labels a “transformative year,” marked by a strategic overhaul designed to refocus the business and harness the disruptive power of artificial intelligence. For investors, clients, and industry watchers, this event is more than an update; it's the unveiling of a new blueprint for survival and growth in a rapidly changing market.

Chief Executive Officer Sam Knights and Chief Financial Officer Mickey Kalifa are set to detail the firm's future direction, covering four critical areas: navigating an AI-shaped market, simplifying the group's complex structure, defining its future strategic position, and outlining a new capital allocation framework. The stakes are high, as the firm aims to convince a watchful market that the painful decisions of the past year will pave the way for sustainable long-term value.

A Necessary Overhaul in a Challenging Market

The push for transformation is not born from ambition alone, but from necessity. A look at Next 15’s recent financial performance reveals a company grappling with significant headwinds. The fiscal year ending in January 2025 saw both statutory and net revenue decline, with a 4.0% organic net revenue drop attributed to a slowdown in its key tech sector clients and a challenging macroeconomic environment. Profitability followed suit, with adjusted operating profit falling by 11.3% and statutory operating profit decreasing by a stark 26.6%, burdened by significant restructuring costs.

This financial pressure continued into the first half of fiscal 2026. While the company reported that performance was in line with expectations and highlighted an improved operating margin, the top line remained under pressure, with net revenue down 3.6%. The company's share price has reflected this turbulence, experiencing significant volatility and underperforming both the UK Media industry and the broader market over the past year. Investor sentiment soured as the stock fell 23% by early November 2025.

It is against this backdrop that the firm’s leadership initiated what it calls “decisive actions.” The goal is clear: to build a more focused and resilient business. The upcoming Capital Markets Day is the platform to justify these actions and present a compelling case that the worst is over and a new growth trajectory is taking shape.

Streamlining for Strength: The Strategic Disposal Program

A core pillar of Next 15’s transformation has been a deliberate and aggressive “simplification” of its sprawling portfolio. For years, the group operated as a collection of numerous distinct brands, which at its peak numbered 22 separate businesses. The new strategy has seen that number almost halved to just 12, a move designed to eliminate complexity, reduce overhead, and focus resources on core growth areas.

This streamlining has been executed through a strategic disposal program. In August 2025, the company announced the permanent closure of its corporate venturing subsidiary, Mach49, a move that resulted in significant write-downs. This was followed by the sale of its digital development subsidiary, Beyond, in July, and the divestment of a majority stake in The Blueshirt Group in October. These disposals, while incurring one-off costs totaling £17.0 million in FY25, are fundamental to the new, leaner vision for the company.

This aggressive pruning is not just about cost-cutting; it's about strategic clarity. By shedding non-core or underperforming assets, Next 15 aims to sharpen its identity as a tech- and data-driven consultancy. The simplified structure should enable better integration of services, more effective cross-selling, and a clearer value proposition for clients navigating their own digital transformations. Investors will be looking for evidence that this newfound focus is translating into improved operational efficiency and a stronger foundation for growth.

Racing to an AI-Powered Future

The most critical element of Next 15's strategy is its pivot towards AI and data. The firm is repositioning itself to capitalize on what it sees as a fundamental reshaping of client needs and the competitive landscape. This is not a unique insight; it is a market imperative. Across the consulting and marketing sectors, a high-stakes race is underway to integrate AI into every facet of the business.

Industry giants are making massive financial commitments. WPP, for example, has invested £250 million in AI in 2024 and plans to increase this, developing its proprietary “WPP Open” platform to infuse AI across planning, creative, and media buying. Similarly, Publicis Groupe is investing €300 million over three years to become an “AI-powered Intelligent System,” leveraging its “CoreAI” foundation to connect data and drive everything from strategy to execution. These competitors are not just talking about AI; they are building the infrastructure to make it a core competitive advantage.

For consultancies, AI promises to augment human expertise, not replace it. It can supercharge data analysis, generate predictive models with unprecedented accuracy, and automate repetitive tasks, freeing up human consultants to focus on high-value strategic thinking and client relationships. Next 15's challenge is to demonstrate that it can move beyond the buzzwords and embed these capabilities deeply within its offerings. The market will be looking for more than just a narrative; it will demand proof of tangible, AI-driven solutions that deliver superior outcomes for clients.

Charting the Course for Shareholder Value

Ultimately, the success of this transformation will be measured in shareholder value. Despite the recent stock volatility, analyst consensus remains a cautious “Buy,” with price targets suggesting a significant potential upside if the strategy is executed effectively. This optimism is partly rooted in the company’s disciplined financial management, including a strong balance sheet and a successful reduction of net debt from £74.8 million to £45.3 million over the past year.

The Capital Markets Day will be a critical test of leadership's ability to bridge the gap between current performance and future promise. Investors will scrutinize the details of the ongoing portfolio review and the new financial ambitions that emerge from it. The capital allocation strategy will be particularly telling, revealing how the company plans to balance balance-sheet strength, shareholder returns through dividends or buybacks, and the necessary investments in technology and talent to fuel its AI ambitions.

The narrative of a “transformative year” has been set. Now, Sam Knights and his team must deliver the specifics. They must articulate a clear, credible, and financially sound plan that proves Next 15 is not just reacting to market shifts, but is proactively positioning itself to lead in the new, AI-driven era of growth consultancy. The presentation on January 28th will be about substantiating the vision and convincing stakeholders that the difficult choices of today will generate the growth of tomorrow.