Beware the fairy tale of EBITDA
We have always questioned the appropriateness of companies using adjusted EBITDA as a credible performance measure, and it looks particularly out of place for those incurring large amounts of capital expenditure on a regular basis – there are a few of those covered here!
Next Fifteen: strong growth, but adjustment mania Next Fifteen Communications (AIM:NFC), the tech and data-driven growth consultancy, reported strong growth in revenue and profits for its first half ending 31 July 2022. Net revenues increased by 65% to £274.0m, benefiting from the acquisition of Engine in the period, while adjusted profit before tax rose 73% to £60.7m. On an organic basis net revenues still grew by an impressive 31%. Business Transformation was their fastest growing segment following the recently announced very significant contract win from Mach49, which was acquired in September 2020. We commented in our update here (’Whopper of…