Enero Group posts net revenue of $160m while global operations prove a mixed bag
Enero Group has released its financial results for the year ending 30 June 2021, reporting net revenue of $160.6 million, up 18.3% on last year.
The results see a continuation of Enero’s growth, which has risen five straight financial years. Brands in Enero’s portfolio include BMF, Hotwire and Orchard.
This year marked Enero’s first year under the stewardship of new CEO Brent Scrimshaw, who took up the role on 1 July 2020, with significant leadership changes also coming over the year.
The operating EBITDA was reported as $45.6 million, up 87.1% year-on-year, while it also posted a $22.8 million profit after tax attributable to equity holders.
Enero Group CEO, Brent Scrimshaw, said: “It is pleasing to see Enero Group’s progress in the last twelve months as we have accelerated the sustainable growth opportunities available to us around the globe.
“It has been our utmost priority to establish a new operating framework, supported by our new executive leadership team, strong culture and diverse talent pool, to deliver on that growth vision. Client expectations are changing in today’s world, and Enero is delivering new solutions that drive smarter and more effective outcomes.”
Financial breakdown [click to enlarge]
Enero Group chair, Ann Sherry, said that it was an exciting financial year for Enero. “Under the new leadership of CEO Brent Scrimshaw, the company has begun a transition into a forward-looking, progressive global business, with a refined operating model that responds to the enormous changes underway in the worldwide environment.
Scrimshaw
“Despite the ongoing challenges of the COVID-19 pandemic, Enero delivered underlying organic net revenue growth of 14%, and significant profit growth for the year. The group benefited from its unique positioning within high growth global verticals – technology, healthcare and consumer – and the hard work and commitment of our talented global teams. The client-focus and creativity of our people have delivered world-class work, new client wins, and recognition through numerous global awards for creativity, effectiveness and culture”
This year has seen Scrimshaw implement a new strategy for Enero, as he and new M&A director Nick Burton told Mumbrella in July, with a focus on global acquisitions and local martech. This included the acquisition of McDonald Butler Associates in the UK in April, and the divestment of shares in Frank PR in March which resulted in recognising a loss of $9.9 million.
Enero reported that the results were thanks to a focus on its existing clients across its agencies, including Hotwire, BMF, Orchard, OBMedia, The Leading Edge, The Digital Edge and CPR, with strong client relationships also driving this momentum, “evidenced by 60% of the overall client base being with the Group for four years or longer”.
Enero Group five year growth [click to enlarge]
In Australia, Enero posted a net revenue of $65 million, up 10.9%, with an operating EBITA of $13.1 million – a rise of 13.9%. During the year, creative agency BMF saw business wins including Transport for NSW, Petbarn and Nine Entertainment Co mastheads The Sydney Morning Herald, The Age and The Australian Financial Review. BMF also won work with the Department of Health, creating several campaigns in relation to the COVID-19 pandemic and mental health, as well as being appointed as the creative agency for the 2021 Census campaign. Orchard had client wins including Boston Scientific, GSK and Palmerbet.
The business said in its financial statement that profitability in Australia was impacted by “a one-time vendor incentive and the foreign exchange impact on US clients”.
Revenue split by region [click to enlarge]
The group also said that the first six weeks of FY22 have seen the growth continue.
Over the course of the year, following Scrimshaw’s arrival, other senior hires included Carla Webb-Sear as the group’s CFO, the appointment of Heather Kernahan as global CEO of Hotwire, Burton as M&A director and Wai Kwok’s appointment as CEO of Orchard.
Enero Group has a current market capitalisation of $272.96 million and a daily share price of $3.03.
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Calum Jaspan was news editor at Mumbrella, based in Melbourne. He was also the producer and host of the Mumbrellacast. He left Mumbrella in May 2023.
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