Energo Group, the owner of creative agency BMF, reported strong momentum in the new business pipeline in Australia with new large clients including Endeavour (Dan Murphy's and BWS).
This has resulted in increased pitch costs during the quarter, the company told shareholders in a trading update at the AGM.
However, these pitch costs have been more than offset by ongoing cost cutting.
This has led to improved margins in the September quarter of 16%, compared to 14% in the half year to June.
Overall, revenue has continued to be impacted by the challenging international technology marketplace.
Net revenue was down 11.8% to $43.5 million in the September quarter.
CEO Brent Scrimshaw, who has given notice he is leaving the company, told the AGM that BMF’s market leading
position is matched by its robust new business pipeline which includes pitching for a number of large scaled
and highly visible Australian brands.
"Our Australian agencies now drive 60% of revenue from clients who have relationships with both BMF and Orchard," he said.
He said the sale of OBMedia remains on track to conclude in the December quarter.
Enero posted a 7% rise to $10.3 million in like-for-like net profit for the year to June but reported a statutory loss from writedowns on the value of acquisitions. Net revenue fell 6.2% to $189.7 million, largely driven by challenging technology and adtech markets.
The September quarter numbers:
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