Enero Group Limited · ASX:EGG
Enero — FY2019 Earnings Presentation
21 slides from Enero's earnings presentation, Aug 15, 2019
Slide 1: ASX Announcement: Results for the year ended 30 June 2019
Enero Group Limited ABN 97 091 524 515 Level 2, 100 Harris Street Pyrmont NSW 2009 Australia t. +61 2 8213 3031 ASX ANNOUNCEMENT Results for the year ended 30 June 2019 15 August 2019 Enero Group Limited (ASX: EGG) today announced its results for the year ended 30 June 2019. Summary Net Revenue up
Slide 2: CEO comments, business operating performance and dividend
Enero Group CEO, Matthew Melhuish said: “We have delivered an excellent set of results for FY2019 with strong numbers across our key financial metrics in all markets. There is positive momentum in many areas of the Group coming from new business wins and new talent joining the Group. The achievement
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Slide 4: Enero Group FY19 Full Year Results
ENERO GROUP FY19 FULL YEAR RESULTS 15 AUGUST 2019
Slide 5: FY19 Full Year Highlights
FY19 FULL YEAR HIGHLIGHTS Delivering growth Net Revenue up 25% to $129.5m. Operating EBITDA up 53% to $20.7m. Operating EBITDA margin at 16.0%. Net Profit before significant items to equity holders up 54% to $12.1m¹. Earnings Per Share (EPS) before significant items up 53% to 14.2 cps. Capital Manag
Slide 6: Operating Companies
OPERATING COMPANIES Insight, Strategy, Creative & PR & Integrated Digital & Data & Analytics Content Communications Technology 4
Slide 7: Key Financial Metrics
FY19 KEY FINANCIAL METRICS Year ended 30 June ($M) Key Financial Metrics 2019 2018 Variance Net Revenue 129.5 103.7 24.9% Operating EBITDA¹ 20.7 13.5 53.3% Operating EBITDA margin² 16.0% 13.0% 3.0bp Net Profit after tax before significant items to equity holders³ 12.1 7.9 53.2% Statutory Net Profit
Slide 8: Group Financial Performance
FY19 GROUP FINANCIAL PERFORMANCE Revenue and Operating EBITDA Year ended 30 June ($M) • Impact of Orchard Marketing acquisition – 2019 2018 Variance acquired in February 2018 and therefore in comparative period for five months. Net Revenue 129.5 103.7 24.9% • 14% Organic revenue growth in existing b
Slide 9: Group Financial Performance: Profit and Loss Summary
FY19 GROUP FINANCIAL PERFORMANCE Year ended 30 June ($M) Profit and Loss Summary 2019 2018 Net Revenue 129.5 103.7 Other Revenue 0.1 0.2 Staff costs (88.1) (72.3) Operating expenses (20.8) (18.1) Operating EBITDA¹ 20.7 13.5 Depreciation (2.2) (2.5) Amortisation of intangible asset (1.0) (0.7) Net In
Slide 10: Group Financial Performance: Significant Items
FY19 GROUP FINANCIAL PERFORMANCE Year ended 30 June ($M) Significant Items 2019 2018 Contingent consideration fair value loss¹ (6.4) - Gain on sale of asset² - 0.6 Total significant items (6.4) 0.6 1. The contingent consideration fair value loss is in relation to the re-estimation of future payments
Slide 11: Geographical Results
FY19 GEOGRAPHICAL RESULTS Operating Companies only Year ended 30 June ($M) Constant 2019 2018 Variance Currency Variance • International operations accounted for 54% of total revenue and 61% of Operating Companies EBITDA. The Net Revenue Group’s exposure to overseas markets continues to Australia 60
Slide 12: Geographical Results: Contribution from operating companies
FY19 GEOGRAPHICAL RESULTS Geographical contribution from operating companies Net Revenue FY2019 Net Revenue FY2018 Australia 24% 20% 46% 46% UK and Europe 30% 34% USA Operating EBITDA FY2019 Operating EBITDA FY2018 18% 37% 39% 46% 36% 24% 10
Slide 13: Geographical Results: Australia
FY19 GEOGRAPHICAL RESULTS Australia Year ended 30 June ($M) Constant Highlights 2019 2018 Variance Currency Variance • Strong results despite slight margin decrease year on year. Margins in line with expected industry range. Net Revenue 60.0 48.2 24.5% - • Orchard inclusion for full FY19 (vs five mo
Slide 14: Geographical Results: UK and Europe
FY19 GEOGRAPHICAL RESULTS UK and Europe Year ended 30 June ($M) Constant Highlights 2019 2018 Variance Currency Variance • Increased efforts on new business have led to a 10% increase in revenue year on year (6% on constant Net Revenue 38.6 35.1 10.0% 5.6% currency basis). Operating EBITDA 6.5 6.9 (
Slide 15: Geographical Results: USA
FY19 GEOGRAPHICAL RESULTS USA Year ended 30 June ($M) Constant Highlights 2019 2018 Variance Currency Variance • Material revenue improvement in USA market including constant currency impacts along with significant margin Net Revenue 30.9 20.4 51.5% 51.8% acceleration from greater scale. Operating E
Slide 16: Client Analysis
FY19 CLIENT ANALYSIS Revenue diversification Revenue by industry • Strong client diversification with mix of clients Telecommunications Utilities & Energy Property & 4% 1% Construction across market industries and sectors. Transportation, Airlines & 1% Automotive • Largest client represents 12% of g
Slide 17: Balance Sheet & Capital Management
BALANCE SHEET & CAPITAL MANAGEMENT Summary Balance Sheet As at ($M) 30 Jun 2019 30 Jun 2018 • Refer to slide 17 for analysis of contingent consideration including maturity profile. Cash 43.8 34.4 • Refer to slide 16 for Net Cash analysis. Net Working Capital 0.8 (0.4) • Final dividend of 3.0 cps ful
Slide 18: Balance Sheet & Capital Management: Leverage
BALANCE SHEET & CAPITAL MANAGEMENT Leverage As at ($M) • Net Cash of $9.5m (30 June 2018 - $6.7m) at 30 Jun 2019 30 Jun 2018 balance date. Cash 43.8 34.4 • Balance sheet retains flexibility to pursue further Finance Leases (0.5) (1.9) acquisitions enhancing geographical presence in hubs or expansion
Slide 19: Contingent Consideration movement and maturity profile
BALANCE SHEET & CAPITAL MANAGEMENT Contingent Consideration – movement during period ($M) Contingent • Recognised contingent consideration relating to Consideration both the Eastwick Communications and Orchard Opening 1 July 2018 (at present value) 25.8 Marketing acquisitions. FX revaluations/ prese
Slide 20: Cash Flow & Working Capital
CASH FLOW & WORKING CAPITAL Year ended 30 June ($M) 2019 2018 • Small working capital unwind in the period however working capital remains comparatively Operating EBITDA 20.7 13.5 low. Movement in working capital (0.1) 1.7 • Cash conversion at 103% of Operating EBITDA. Equity incentive expense 0.7 0
Slide 21: Disclaimer
DISCLAIMER This document has been prepared by Enero Group Limited (Enero) and comprises written materials/slides for a presentation concerning Enero. This is not a prospectus, disclosure document or offering document. This document is for information purposes only and does not constitute or form par