Trimantium GrowthOps announces $13.6m statutory loss and $7.1m pro-forma net profit

Trimantium GrowthOps – the operating company which now oversees creative agency AJF Partnership and a number of marketing and technology outfits including Khemistry and Voodoo Creative – has released its first financial results since listing on the ASX in March.

The group announced revenue of $19.5m for the three and a half months it was listed, compared to the $30.6m it projected for a six and a half month period. It reported a statutory loss of $11.1m before interest, tax, depreciation and amortisation (EBITDA), compared to the projected $13.5m statutory loss, and had a net statutory loss after tax of $13.6m, compared to the projected $16.2m statutory loss.

GrowthOps’ leadership team: Dustine Pang (CFO), Kait McCann (head of investor relations), Paul Mansfield (managing partner) Phillip Kingston (managing director) and Dominique Fisher (non-executive chairman)

The company said, however, its pro forma results would be more useful for investors as they could be directly compared on a like-for-like basis against the pro forma prospectus forecast. The pro forma results are adjusted for one-off costs and report as if all acquired entities had been owned for a full year.

Trimantium’s ASX release states that the pro forma period relates to 1 July, 2016 to 30 June, 2018.

The pro forma results reported revenue of $61.8m, above the projected $61.3m and pro forma EBITDA was $15.5m, compared to the projected $14.3m.

Trimantium GrowthOps’ statutory and pro forma financial results

Pro forma net profit after tax was $7.1m, against a forecast of $8.0m.

Trimantium GrowthOps’ projections were based on the assumption the group would be listed on the ASX for six and a half months of the 2018 financial year, however, due to delays – including a hold-up in international money – it didn’t successfully list until mid March.

Executive director and managing partner Paul Mansfield has focused on driving collaboration and revenue synergies (including customer relationship and sales pipeline management), the selective co-location of businesses within major hub cities to foster collaboration, and rebranding GrowthOps businesses “as and when it has been opportunistic to do so”, the group’s ASX release said.

Mansfield said the group had outperformed expectations.

“We’ve outperformed our original expectations for integrating the business largely because the group established an operating rhythm and began building a GrowthOps culture at a grassroots level, really even before the IPO was completed,” he said.

Managing director and founder Phillip Kingston said the results reflected the positive outcomes of its broad employee ownership structure.

“So many of our employees are also shareholders, and they share a real commitment to solving problems for our clients and growing TGO. That mentality has facilitated a positive feedback loop across both the sales and operations side of the business.”

The company said it expects its near-term growth to be driven in large part by “organic opportunities arising from the group’s combined client portfolio, the benefits of listing, and revenue synergies captures through collaboration”.


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