Enero attracts investor attention from James Packer as share price builds

Enero, once the problem child of the advertising industry which has defied regular predictions of its imminent demise, appears to be finding favour in the market with a series of investors joining its roster and its share price having rallied over the past six months.

enero board

The Enero board

While just a fraction of the size, Enero’s share price now sits comfortably above that of its recently merged global rival WPP (which took over STW Group earlier this year) trading at $1.20 at close on Friday, compared with WPP’s price of $1.03. However its market capitalisation is just over $100m compared to $872m for WPP AUNZ.

Enero’s agencies include ad agency BMF, PR house Frank PR, research specialist The Digital Edge, Naked and issues management company CPR.

Recent market manoeuvres have resulted in former media mogul James Packer and Robert Rankin taking an indirect stake in the business.

Two weeks ago investment specialist Contango Asset Management built its stake to 5%, completing the purchase of extra 29,000 shares to take its holding to 4.3m shares.

Just days later Packer’s investment vehicle Pacific Point Partners backed around 19.9% of a management buyout of Contango.

Earlier this week the market interest in Enero (ASX:EGG) was again highlighted with NAOS Asset Management lifting its stake from 12.14% to 13.41% after adding 1.098m shares to its existing parcel of 10.389m shares.

Between them the investment companies now hold nearly 19% of Enero’s shares.

Enero's share price has soared in the last year (Source: Google Finance)

Enero’s share price has soared in the last year (Source: Google Finance)

Shares began a steady rise in mid January when the company hit a 2016 price low of 75c. They broke through the $1 barrier in late February before dropping back again and then charting a fairly constant rise to a high of $1.30 in mid-June, the highest price in six years for the company.

On July 10 2015 shares were trading at 70c each.

That rise came on the back of the group’s mid-year results, in which it showed an 857% profit spike and 3% net revenue growth, thanks in part to the weak Australian dollar. The recent fall in the British Pound following Brexit may also see the company enjoy another revenue boost.

A spokesperson for Enero said that the market performance was a reflection of the positive outlook presented by the company during its half-year results.

“As highlighted in the half year financial results, for half year ended 31 December 2015, we’ve had pleasing financial results. We attribute this to a more stable revenue base, increased margin and a number of new business wins,” the spokesperson said.

Both Contango and NAOS have been long-term investors in Enero and their recent moves signal a commitment to the brand.


Get the latest media and marketing industry news (and views) direct to your inbox.

Sign up to the free Mumbrella newsletter now.



Sign up to our free daily update to get the latest in media and marketing.