Enero profits drop 26% in ‘difficult trading year’
Australian based marketing and communications group Enero has seen net profit drop 26% for the 2016/2017 financial year on the back of a 12% drop in revenue.
Enero’s board, John Porter, Anouk Darling, Matthew Melhuish, Susan McIntosh and Roger Amos
Citing a “challenging trading year” the group which includes BMF, Frank PR, Naked, The Leading Edge and Hotwire, saw net revenue drop from $113.5m in 2015/16 to $100.2m in the 2017 financial year.
Operating earnings before interest, tax, depreciation and amortisation dropped 22% while net profit after tax was $4.9m.
Steady as she sinks
Aus profit up 6%, Aus revenue down 6%
am guessing $/hrs worked may have taken a hit this year
Sheep in sheep’s clothing
Another year, another Enero agency (Naked) hits the rocks, at this rate they’ll need to keep buying just to stand still
love it – Enero’s big strategic play is hiring a sales and marketing director!
maybe they could also give employees access to the internet
do you think staff got bonuses and share options for failure?
Stay away!
how do you build a small agency, sell a large one to Enero
Enero’s recovery was built on a fragile platform of aggressive cost cutting. That only takes you so far in the absence of anything else and Enero’s return to the black has come at the price of many a burnt bridge. Just look at the well publicized employee turnover at group companies and the implosions at many of its agency brands. For a group that’s meant to help brands build their reputations it isn’t a great starting point when your own reputation is so poor. Not exactly a great calling card for talent or clients. Hard to see them going anywhere but backwards.
Could not have said it better myself.
Note that it is the operating Companies that have high staff turnover (or closure) at the senior level, whereas the holding company has close to zero staff turnover. This tells you everything you need to know.
they’ve only hired and fired about 30 CEO, I’m sure they will find the winning formula eventually