Enero shares drop as BMF and Naked struggle
Shares in Enero – the parent company of agencies including BMF and Naked Communications – today regained some ground after yesterday recording an 11% fall on the back of poor trading figures.
Yesterday’s update to the ASX saw shares fall from 44c to 39c, but they today recovered to 42c.
The announcement revealed that operating profits for the company in the first four months of the financial year were less than half the same period last year, based on a comparison to the companies remaining within the business. The fall in operating EBITDA (earnings before interest, taxation, depreciation and amortisation) was from $3.8m to $1.7m on a like-for-like basis. These numbers excluded companies that contributed profits last year but have since been sold or closed – including those saw a fall in profit from $9.9m to $1.8m.
According to the update, the fall came in part because of BMF’s loss of Commonwealth Bank as a retained client. It also said that Naked had been “impacted by difficult trading conditions in Europe”.
The update said that Hotwire, Frank PR and The Leading Edge had a “consistent” performance compared to the previous year.
Because individual companies are not broken out, it was not possible to see from the update which agencies were profitable or loss making.
The current capitalisation of Enero on the ASX is $36m. The company has an excess cash balance of $7.5m “for investment purposes”.
The announcement said that “approximately $2m in EBITDA” profits would be invested in “senior leadership and talent management programs across key markets” for Naked along with investment in new systems and “partnerships” with data and technology companies over the second half of the year.
With the company having only delivered operating profits of $1.8m in the year to date, it is unclear whether this $2m will potentially mean the company will record a loss for the financial year. At the time of posting, Enero had not returned Mumbrella’s request for clarification.
Richard Dunmall was named new CEO of Naked earlier this month.
Online trading is the next big thing says Rob Atkinson in a piece that first appeared in
Is the best way of being successful in Australia not be here at all? In a feature that first appeared in
From journos to ad execs and PRs, these days everyone seems to have a book in them. But what does it take to get published and will you actually make any money? In a feature that first appeared in
In an article that first appeared in
From dressing the part to playing the gatekeeper, Leo Burnett Sydney’s Susie Henry tells us how to make it as the face of adland in a piece that first appeared in 
Government funding bodies are lazy and decadent, says industry veteran Michael Thornhill but in a piece that first appeared in
Life is sweet for freelance writer Max Kitchen, but in a feature that first appeared in
First there was the Grand Prix. Next came the reported $500m bid for cricket rights, then Ten secured the 2014 winter Olympics. So, can sport save the ailing network? In a feature that first appeared in 

Cosmo’s Kate Leaver tells us how to bluff it in her job in a feature that first appeared in
Hi Chris,
Brett Clegg, group director – business media, Fairfax Media, in a Q&A that first appeared in 

Comments
28 Nov 12
3:08 pm
“The company has an excess cash balance of $7.5m “for investment purposes” ”
I think it’s a fair bet that’s the same $7.5M that the owners of BWM paid to buy their agency back.
28 Nov 12
5:08 pm
The cash balance at the end of October was $21m. The $7.5m is excess over normal requirements.
28 Nov 12
5:46 pm
It’s painful watching this slow death. No one can save a floored business model like this. Pack up,boys and head home. It’s over.
29 Nov 12
2:17 pm
How much does Reg Grundy own these days?
I wonder if he still talks to Tim Hughes?