Director, RaaS Research Group, Research as a Service (RaaS)

Research as a Service (RaaS)

Director, RaaS Research Group

Insightful Financial Models and Research Analysis

Connect to the right investors through smart and insightful financial models and research analysis.

Equity Bottom-Up

<div>
<div>
<div>
<div>
<h2>Enero Group Ltd</h2>
<h3>Reaping the benefit of macro tailwinds &amp; finetuning</h3>
<div class="content-highlight">Enero Group Limited (ASX:EGG) is a creative technology company providing a range of marketing and communication services, via businesses located in 13 cities across seven countries with more than 600 employees. Group companies work with high growth businesses through two specialist capabilities: Brand Transformation, and Creative data and Technology. In FY2021, EEG has finetuned its portfolio and focused on delivering growth via greater integration across geographies, improving digital advertising and marketing capabilities and accelerating entry into innovative areas of digital marketing. Enero’s global technology sector clients include Adobe, ebay, facebook, Honeywell and LinkedIn. In Australia, the high quality client list includes Aldi, Tourism Tasmania and Rest Super. With significant client wins during 2021, Enero is well positioned for further growth.</div>
</div>
<div></div>
</div>
</div>
<div>
<div>
<div>
<div>
<div>
<p><strong>Business model</strong><br>Key businesses in the group include Hotwire, focused on communications for technology companies globally, BMF a creative, campaign focused, agency in Australia, Orchard, delivering digital campaigns and marketing automation in Australia and the US and, OB Media, a programmatic marketing platform delivering targeted advertising to potential on- line customers. In FY21, the largest revenue segments were 26% from technology related businesses and 21% from online media. Retainers (recurring revenue) from clients comprised 54% of revenue with project-based revenues the remaining 46%. Client retention is high with almost one-third of Enero’s clients with the group for six years or more and 78% with the company for more than two years. Nearly half of operating EBITDA came from the US (48%), with Australia contributing 33% and UK &amp; Europe 19%.</p>
<p><strong>FY21 result evidence of a sector and company turnaround</strong><br>Enero grew net revenues by 18.3% to $160.6m, and from continuing businesses +14%, and improved EBITDA margin from 11% to 22% through growth in higher margin businesses and improved cost management. Underlying net profit after tax was $22.8m, up 76.7% on the prior year. Non-cash and non-recurring items totalled $23.2m after tax. Through the course of FY21, Enero sold the Frank PR agency for an accounting loss of $9.9m, closed 12 dormant foreign subsidiaries and recognised non-cash currency reserve losses of $13.1m. EGG acquired a specialist technology sector marketing business in the UK for £3.5m and deferred payments over 3.5 years to be integrated with Hotwire. The company noted that the first six weeks of FY22 continued to deliver strong year-on-year revenue momentum and that organic and inorganic opportunities will remain the focus for FY22.</p>
<p><strong>EGG is delivering on digital marketing opportunities globally</strong><br>Despite ongoing COVID-related uncertainty, Enero has delivered strong organic and acquired growth and strengthened the suite of services on offer with continuing strength in technology related business one of the tail-winds for advertising and marketing. EGG’s geographic diversity and technology focus have delivered dividends. Based on consensus EBITDA for FY22, Enero is trading around 30% below the median EV/EBITDA of its listed Australian peers.</p>
</div>
</div>
</div>
</div>
</div>
</div>





Enero Group Ltd
Reaping the benefit of macro tailwinds &amp; finetuning
Enero Group Limited (ASX:EGG) is a creative technology company providing a range of marketing and communication services, via businesses located in 13 cities across seven countries with more than 600 employees. Group companies work with high growth businesses through two specialist capabilities: Brand Transformation, and Creative data and Technology. In FY2021, EEG has finetuned its portfolio and focused on delivering growth via greater integration across geographies, improving digital advertising and marketing capabilities and accelerating entry into innovative areas of digital marketing. Enero’s global technology sector clients include Adobe, ebay, facebook, Honeywell and LinkedIn. In Australia, the high quality client list includes Aldi, Tourism Tasmania and Rest Super. With significant client wins during 2021, Enero is well positioned for further growth.









Business model Key businesses in the group include Hotwire, focused on communications for technology companies globally, BMF a creative, campaign focused, agency in Australia, Orchard, delivering digital campaigns and marketing automation in Australia and the US and, OB Media, a programmatic marketing platform delivering targeted advertising to potential on- line customers. In FY21, the largest revenue segments were 26% from technology related businesses and 21% from online media. Retainers (recurring revenue) from clients comprised 54% of revenue with project-based revenues the remaining 46%. Client retention is high with almost one-third of Enero’s clients with the group for six years or more and 78% with the company for more than two years. Nearly half of operating EBITDA came from the US (48%), with Australia contributing 33% and UK &amp; Europe 19%.
FY21 result evidence of a sector and company turnaround Enero grew net revenues by 18.3% to $160.6m, and from continuing businesses +14%, and improved EBITDA margin from 11% to 22% through growth in higher margin businesses and improved cost management. Underlying net profit after tax was $22.8m, up 76.7% on the prior year. Non-cash and non-recurring items totalled $23.2m after tax. Through the course of FY21, Enero sold the Frank PR agency for an accounting loss of $9.9m, closed 12 dormant foreign subsidiaries and recognised non-cash currency reserve losses of $13.1m. EGG acquired a specialist technology sector marketing business in the UK for £3.5m and deferred payments over 3.5 years to be integrated with Hotwire. The company noted that the first six weeks of FY22 continued to deliver strong year-on-year revenue momentum and that organic and inorganic opportunities will remain the focus for FY22.
EGG is delivering on digital marketing opportunities globally Despite ongoing COVID-related uncertainty, Enero has delivered strong organic and acquired growth and strengthened the suite of services on offer with continuing strength in technology related business one of the tail-winds for advertising and marketing. EGG’s geographic diversity and technology focus have delivered dividends. Based on consensus EBITDA for FY22, Enero is trading around 30% below the median EV/EBITDA of its listed Australian peers.







Enero Group Ltd: Reaping the Benefit of Macro Tailwinds & Finetuning

Australia

Enero Group Limited provides specialist marketing services.  The Company's services build and leverage customer relationships, develop brands and generate sales.  Enero's services include advertising services, media planning and communications, public relations, research services, direct marketing, specialist design and event management.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Enero Group Ltd (EGG AU)

Enero Group Ltd: Reaping the Benefit of Macro Tailwinds & Finetuning

Enero Group Ltd Reaping the benefit of macro tailwinds & finetuning Enero Group Limited (ASX:EGG) is a creative technology company...

Research as a Service (RaaS)

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)