Enero Group is still facing challenges but is through the worst, boss Matthew Melhuish told shareholders at the company’s AGM.
Enero rebranded earlier this year as a way of moving on from the negative messages around its troubled history as Photon Group which almost collapsed because of its big debts. Enero’s key agencies include BMF, Naked Communications and Frank PR.
Melhuish warned that trading conditions were still difficult though. He said: “The market conditions in our sector continue to be very tough. which is resulting in challenging operating conditions for our business. We are taking a longer term view on the financial results of the group and in the short term we expect challenges to continue until we have the optimal structure in place and more confidence builds across our key hubs and in the sector generally.”
He added: “It is now time for Enero to look forward to the future with optimism and confidence. We have a solid financial position with no debt. We have great brands and talent and our sights are set firmly on growth and carving out a unique and premium offer for our clients.”
The last financial year saw the company declare a loss after tax, including its closed and divested businesses, of $142m. It declared a profit figure of earnings before tax, interest, amortisation and depreciation of $14m, half of the previous year.
Enero on ASX | Source: Google Finance
This morning Enero shares dropped to 46c, their lowest point in the year to date, taking the company’s market capitalisation to just below $40m.