Marketing, technology and communications group Enero lifted net revenue almost 25% to $241.6 million for the year to June.
However, the owner of creative agency BMF, Hotwire Group, digital and experiential agency Orchard and adtech platform OBMedia posted a 10% drop to $24.4 million in net profit after tax.
And agency revenue was weaker at the start of the new financial year in July, with technology clients delaying spending in the face of economic headwinds.
AdNews Agency of the Year BMF reported 4% revenue growth for the year, excluding once-off federal government work.
And in July, health and consumer agencies, Orchard and BMF, had combined revenue growth of 4%.
CEO Brent Scrimshaw says the results reflect the continued focus and refinement of long-term operating strategy and response to a dynamic market.
“The group continued to win clients across the world, which is a great indicator that our transformation strategy is working, even during these challenging times,” he says.
He says 31% of revenue now comes from clients who have relationships with more than one Enero brand.
“Throughout FY23 we’ve continued to make necessary cost reduction decisions whilst continually sharpening our offering to be the most effective and unique set of modern-marketing services around the globe,” Scrimshaw says
“Given our track record and diversified portfolio, we remain confident that we will continue to build momentum in FY24 and beyond, as macroeconomic pressures ease.”
The company says trading for July remained resilient, despite ongoing challenging macroeconomic conditions.
And current expectations are that technology clients will begin to return to more normalised trading in 2024.
In July, agencies are cycling a strong comparative period and revenue has fallen by 8% due to client reorganisations and delays in spend predominately in the technology vertical.
The group’s health and consumer agencies, Orchard and BMF, have grown revenue 4%.
“Enero is a distinctively positioned creative technology company driving reputational and commercial growth for well-known global brands,” says Scrimshaw.
“Although macroeconomic headwinds impacted some client spending and led to a number of delayed projects in FY23, we remain confident that our growth strategy including the integration and experimenting of new technology - such as AI - to position us for future success.”
The company declared a final dividend of 4.5 cents a share, fully franked.
Full year numbers:
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