Enero hovers at $30m
The market capitalisation of Enero – the marketing company formerly known as Photon Group – has finished the week near to a low for the year after finishing 2012 with half year revenues of $67.8m and EBITDA profits of just over $2m, according to results announced on Friday.
The numbers are down from revenues of $139m in the same period the year before, or $75.1 taking into account only companies still within the group.
The company’s share price of 0.35 values it on the ASX as just $29.96m – well below the likely break up value of its assets which include PR agency Frank, Hotwire PR, Naked Communications, ad agency BMF and consultancy The Leading Edge. The valuation of the company is up fractionally on the start of the year but less than half that of 12 months ago.
The company said particular issues were the loss of CommBank as a retained client for BMF and difficult conditions for Naked. Because of writedowns the company declared a net loss of$77m.
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Not sure the current val is below the break up price … it’s trading at 15x EBITDA which is frankly pretty generous given its current results and cash it has available.
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Shamma you do know the difference between “half year” and “full year” and that you don’t calculate an EBITDA multiple based on the former?
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Its actually trading closer to 2x EBITDA. It has almost $19m at bank and EBITDA for 12 months of approx $5 mil. This works out to about $30m. Cheap cheap. Perhaps STW would like to take a bite.
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And buy what, precisely? Largely a stable of agencies withering on the vine. I think $30 mil is pretty pricey, actually.
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$19million at the bank (net of debt?). which means if you pay $30million, the net value you are putting on the company is $11million. On a trailing 12month EBITDA of $5million, its definitely trading at below breakup value and a prime target for the Sorrells.
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Steve P – fair point, my oversight.
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