Enero Group Limited · ASX:EGG
Enero — FY2020 Earnings Presentation
20 slides from Enero's earnings presentation, Aug 13, 2020
Slide 1: ASX Announcement: Results for the year ended 30 June 2020
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 2020 13 August 2020 Enero Group Limited (ASX: EGG) today announced its results for the year ended 30 June 2020. Summary Net Revenue up
Slide 2: Chair and CEO comments, operating performance and dividend
Enero Group Chair, Ann Sherry said: “The Group delivered an outstanding result particularly during challenging times in the second half of the year. All of our markets were impacted in some shape by Covid-19, however everyone who works in our businesses showed great spirit, flexibility and resilienc
Slide 3: Enero Group FY20 Full Year Results
ENERO GROUP FY20 FULL YEAR RESULTS 13 AUGUST 2020
Slide 4: FY20 Highlights
FY20 HIGHLIGHTS THE BOUTIQUE FORCE IN MODERN MARKETING • Higher sector exposure to technology, healthcare and • Net Revenue up 4.9% to $135.8m. consumer staples clients (lower sector exposure to travel & • Operating EBITDA up 17.7% to $24.4m². tourism clients). GROWTH • Operating EBITDA margin at 18
Slide 5: A Consistent Return
A CONSISTENT RETURN The Group has delivered double digit CAGR Net Revenue and Operating EBITDA over the past 3 years. Net Revenue Operating EBITDA and margin 140,000 30,000 20.0% 18.0% 120,000 25,000 16.0% 100,000 14.0% 20,000 12.0% 80,000 AUD AUD 15,000 10.0% 3 Year CAGR $’000s 3 Year CAGR $’000s –
Slide 6: Key Financial Metrics
FY20 KEY FINANCIAL METRICS Year ended 30 June ($M) Key Financial Metrics 2020 2019 Variance Net Revenue 135.8 129.5 4.9% Operating EBITDA¹ 24.4 20.7 17.7% Operating EBITDA margin² 18.0% 16.0% 2.0bp Net Profit after tax before significant items to equity holders³ 12.9 12.1 6.6% Statutory Net Profit a
Slide 7: Group Financial Performance
FY20 GROUP FINANCIAL PERFORMANCE Revenue and Operating EBITDA Year ended 30 June ($M) • 4.9% Organic revenue growth (2.2% net of 2020 2019 Variance currency assistance). 1HFY2020 and 2HFY2020 consistent despite Covid-19 impacts. Net Revenue 135.8 129.5 4.9% • Staff costs ratio consistent at 68.9% (F
Slide 8: Group Financial Performance: Profit and Loss Summary
FY20 GROUP FINANCIAL PERFORMANCE Year ended 30 June ($M) Profit and Loss Summary 2020 2019 Net Revenue 135.8 129.5 Other Revenue 1.2 0.1 Staff costs (93.6) (88.1) Operating expenses (14.2) (20.8) Right-of-use assets depreciation charge⁴ (4.8) - Operating EBITDA¹ 24.4 20.7 Depreciation of plant & equ
Slide 9: Client Analysis
FY20 CLIENT ANALYSIS Revenue diversification Revenue by industry • Strong client diversification with mix of clients Banking, Finance & Utilities & Energy Insurance 1% Property & Construction across market industries and sectors and largest Telecommunications 4% 1% client represents 12% of group Net
Slide 10: Geographical Results
FY20 GEOGRAPHICAL RESULTS The USA region continues to deliver both geographic scale and profitable growth Year ended 30 June ($M) – Operating Companies only Constant 2020 2019 Variance Currency Variance • International operations accounted for 57% of total revenue and 62% of Operating Companies EBIT
Slide 11: Geographical Results: Contribution from Operating Companies
FY20 GEOGRAPHICAL RESULTS Geographical contribution from operating companies Net Revenue FY2020 Net Revenue FY2019 Australia 29% 27% 43% 45% UK and Europe USA 28% 28% Operating EBITDA FY2020 Operating EBITDA FY2019 38% 40% 43% 41% 19% 19% 9
Slide 12: Australia Results
FY20 AUSTRALIA RESULTS Australia Year ended 30 June ($M) Constant Highlights 2020 2019 Variance Currency Variance • Small revenue contraction year-on-year, however increased margin from simplified business portfolio in Net Revenue 58.6 60.0 (2.3%) - Australian market. Margin continues to be in line
Slide 13: UK and Europe Results
FY20 UK AND EUROPE RESULTS UK and Europe Year ended 30 June ($M) Constant Highlights 2020 2019 Variance Currency Variance • Marginally lower revenue year-on-year as Covid-19 revenue impacts more pronounced than other Net Revenue 37.7 38.6 (2.3%) (5.2%) geographic markets. This, coupled with investme
Slide 14: USA Results
FY20 USA RESULTS USA Year ended 30 June ($M) Constant Highlights 2020 2019 Variance Currency Variance • Material revenue improvement in USA market including constant currency impacts along with significant margin Net Revenue 39.5 30.9 27.8% 19.7% acceleration from greater scale. Operating EBITDA 13.
Slide 15: Balance Sheet & Capital Management
BALANCE SHEET & CAPITAL MANAGEMENT Summary Balance Sheet As at ($M) 30 Jun 2020 30 Jun 2019 • Refer to slide 14 for Net Cash analysis. Cash 47.6 43.8 • Refer to slide 15 for analysis of contingent Net Working Capital (4.2) 0.8 consideration including maturity profile. Other Assets 3.1 2.7 • Final di
Slide 16: Balance Sheet & Capital Management: Net Cash/Debt
BALANCE SHEET & CAPITAL MANAGEMENT Net Cash/Debt As at ($M) • Net Cash of $22.1m (30 June 2019 - $9.5m) at 30 Jun 2020 30 Jun 2019 balance date. Cash 47.6 43.8 • Balance sheet retains flexibility to pursue further Hire purchase liabilities - (0.5) acquisitions enhancing geographical presence in hubs
Slide 17: Contingent Consideration
BALANCE SHEET & CAPITAL MANAGEMENT Contingent Consideration – movement during period ($M) Contingent • Recognised contingent consideration relating to Consideration both the Eastwick Communications (completed at Opening 1 July 2019 (at present value) 33.8 30 June 2020) and Orchard acquisitions. FX r
Slide 18: Cash Flow & Working Capital
CASH FLOW & WORKING CAPITAL Year ended 30 June ($M) 2020 2019 Operating EBITDA 24.4 20.7 • Material working capital reduction in 2HFY2020 linked with strong cash conversion. No material Right-of-use asset depreciation charge 4.8 - tax deferrals from Covid-19 government Movement in working capital 4.
Slide 19: AASB 16 Transition
AASB 16 TRANSITION Effective 1 July 2019 Reporting changes Single application of leases with no distinction between Fundamental shift in the way results are reported finance and operating leases. however no economic impact to the Group, its cash flows or shareholder value. Impact for the Group is in
Slide 20: 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