Enero’s mystery million
Curious goings on at what was once Australia’s most colourful marketing holding group.
Enero has handed over a million bucks to somebody, but won’t say who, or indeed exactly why.
The company – known in unhappier days as Photon Group – flogged off a number of businesses in recent years in its struggle to survive the aftermath of previous chairman Tim Hughes’ top-of-the-market, pre-GFC spending spree.
It look like somebody who picked up one of those assets didn’t like what they saw once they got their head under the bonnet.
Enero – which has a handful of assets left now including BMF, Frank PR, Hotwire, The Leading Edge and the remains of Naked Communications – has issued to the ASX a somewhat opaque statement saying:
“Enero Group Limited today announced that it has agreed to pay an amount of $1,150,000 in respect of warranty claims notified in relation to a prior divestment.”
Dr Mumbo’s interpretation: Someone was sold a business that wasn’t in as good a shape as was described. And many lawyers letters were written as a result.
Enero boss Matthew Melhuish, the man who currently has the unenviable job of fixing what he inherited from his predecessors declined to elucidate, on grounds of confidentiality.
What? Just the one? Now that’s the real surprise.
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“The remains of Naked”
Nice journalistic support of an agency with the will, mettle and ability to try and succeed in Australia. Support the industry, don’t slander it with tack.
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Surely as a publicly listed company this “confidentiality” crap is unacceptable. Shareholders – and dare I say the ever leaking stream of staff from Enero owned companies – deserve better. But from what I hear – true to form.
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I imagine its a one off payment to BMF to make up the shortfall in funds the prior owners (incl Mr M) were owed?
This is however, pure speculation.
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The payment could be for anything, it could have been made to save a long and costly legal battle over nothing that may have cost shareholders a lot more than the actual payment in time, energy and legal costs. It’s not great – but it’s also not a big deal.
Melhuish is playing this with a straight bat, he has cleaned up the business, he has improved margins, and the company seems to be progressing nicely. If he keeps doing what he has been doing for the last year – the share price will see north of $1.50.
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