Enero shares rocket as profits surge

Chris Pash
By Chris Pash | 11 February 2021

Shares in Enero jumped after the boutique marketing and communications company posted a stong rise in revenue and profit for the half year to December.

The shares were up 14.5% to $2.45. 

Statutory net profit was up 233% to $13.3 million and net revenue was 19% higher at $81 million.

Enero includes creative agency BMF, PR agencies Hotwire, Frank and CPR, strategic data consultancies The Leading Edge  and The Digital Edge, digital agency Orchard and programmatic marketing specialist OBMedia.\

EBITDA (earnings before interest, taxes, depreciation, and amortisation) was up 129.2%.

Operating costs were cut by 11.3% relating to remote working arrangements and reduced travel expenses. Jobkeeper subsidies came to $1.1 million. Enero share price Feb 11 2021

“The group delivered an excellent performance in the first half of the year, with all agency brands exceeding expectations despite the obvious challenging health and economic environments faced in all of our key geographies," says Enero group CEO Brent Scrimshaw.

"Our strong client sector exposure to technology, healthcare and consumer staples, where activity level remains high, resulted in 19% organic revenue growth.

"Whilst there was also some benefit received from an operating cost perspective due to travel restrictions, this is a result to be  proud of and I want to acknowledge the incredible efforts from all our brands and their teams during this period.

“These results demonstrate the group’s strategy of integration, transformation and acceleration is working and we will continue to focus on growing our core brands in the second half of the year, building further scale and additional digital capabilities across markets with more integrated services from our complimentary brands.

"We have a pro active M&A strategy in play, however, with on going travel restrictions we are stepping through any future opportunities cautiously to ensure the right business and cultural alignment." 

A fully franked dividend of 10.5 cents per share was declared. 

enero half year to dec 2020

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