Trimantium GrowthOps posts $65m loss

Trimantium GrowthOps – which now trades as GrowthOps – has revealed it brought in $69.003m in revenue in the 2019 financial year, a climb of 253.7% from the year prior. Its total loss for the year after tax was $65.010m, significantly more than its loss of $13.6m for the 2018 financial year.

GrowthOps was formed in March 2018 with eight technology, advertising, strategy, marketing companies coming together, including Khemistry and AJF Partnership.

GrowthOps’ revenue and losses for the year (Click to enlarge)

The company found $9.5m in annualised cost savings by integrating the foundation companies. $7.5m of this was staff costs. It cost the organisation $2.0m in redundancy payments.

GrowthOps said it had generated pro forma revenue of $71.4m, a fall of 17.9% from $87.0m, and pro forma earnings before interest, tax, depreciation and amortisation (EBITDA) of $8.6m. The pro forma results are calculated as if the holding company had owned its acquired businesses for the full financial year.

In its release to the ASX, GrowthOps said it had experienced a successful year in bringing the businesses together and had achieved several major milestones. It noted, however, that challenging external conditions – including reduced business spending and deferred client purchasing decisions during the lead-up to the May federal election – had impacted its results.

GrowthOps’ financials (Click to enlarge)

“In a year of challenging external conditions, which have impacted our clients’ industries and our own, GrowthOps has achieved ambitious milestones to integrate the entities brought together in the IPO and launched GrowthOps as a challenger to traditional creative agencies and consulting firms,” said chairman Dominique Fisher.

“The GrowthOps service offering – to help organisations grow more effectively through the integration of creative, technology and their people and culture – is underpinned by the entrepreneurial DNA and talent of our people. Our investments in new capabilities and our people position the company for success.”

No dividends will be paid to shareholders.

To understand more about GrowthOps’ financial results, and the trajectory of the company, you can read Best of the Week: An impossible job on Mumbrella Pro. A seven-day free trial is available now for new subscribers. Mumbrella Pro also features audio and video from Mumbrella’s suite of conferences, including Mumbrella360 and the recent Finance Marketing Summit and Health Marketing Summit. 


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