Enero CEO Matthew Melhuish’s last financial results see the group post a 6.8% rise in net revenue

Enero CEO Matthew Melhuish is bowing out on a high after the group posted a 6.8% increase in net revenue and 10% rise in operating earnings before interest, tax, depreciation and amortisation (EBITDA) for the first half of the 2020 financial year.

Net revenue for the first half of the financial year was $68m, compared to $63.7m for the same period in the last financial year. EBITDA for the first half of the 2020 financial year was $11m.

Enero posted net revenue and EBITDA values that were up on the same period last financial year. (Source: Enero) [Click to enlarge]

The company did note in its reporting that the weaker Australian dollar positively impacting the net revenue figures by $1.3m.

Enero’s figures showed that the USA operation contributed almost the same amount of EBITDA as Australia. Australia’s $5.8m amounted to 41% and the USA contributed 40%.

The size of the US operation has grown by 5% (Source: Enero)  

Melhuish announced he was stepping down from the CEO role at the end of December last year. He took up the role in January 2012 when the company, under its previous name Photon Group, was recovering from its acquisition spree under previous management.

Enero is home to the creative agency BMF, founded by Melhuish in 1996, PR agencies Hotwire – which absorbed fellow agency Precinct last year – and Frank, digital agency Orchard, and data company The Leading Edge.

The latest financial results give shareholders an earnings per share of 6.8 cents and fully franked interim dividend per share of 2.5 cents. Over the past six months, Enero has been trading at a record high since Melhuish took over. It hit a peak of $2.28 in September 2018. At the time of writing it sits at $1.85.

Enero’s market capitalisation is just under $160m, almost double the value of the business when Melhuish started as CEO. The group posted a net assets value of $123m.

Melhuish finishes up on 31 March.

Enero Group chair Ann Sherry – who took over the role on 1 January this year – noted the organic revenue growth figure of 7%.

“The Group delivered a very strong set of results for the half year, most importantly achieving organic revenue growth of 7% and delivering above benchmark margins. In my short time in the role, I have met many of the teams, particularly those in Sydney, and have been very impressed with their energy and enthusiasm. We are well underway with our CEO search to replace Matthew Melhuish, who will be leaving us on 31 March 2020. I am confident we are going to have some outstanding candidates to choose from,” Sherry said.

At the end of the 2019 financial year,  Enero posted a 25% increase in net revenue, and a 53% jump in earnings before interest, tax, depreciation and amortisation (EBITDA). It also attributed a 24.5% increase in net revenue in Australia to its acquisition of Orchard that occurred in February 2018.


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