Strong growth in Australia has helped Enero Group strengthen its balance sheet and profitability following the acquisition of digital agency Orchard Marketing in FY18.
The holding group, which has BMF, Naked, Hotwire, the Leading Edge and others on its books, improved its operational net profit by 61% to $7.9 million after shoring up its EBITDA by 30% to $13.5 million.
It achieved this in spite of modest revenue growth of 3.5% to $103.7 million due to operational cost savings and five months of results from Orchard. On a like for like basis, EBITDA grew by 10%.
The results are a turnaround from the 6.6% decline in half-yearly revenue the group reported earlier this year.
Its Australian operations contribute 46% of revenue, followed by the UK and Europe (34%) and the US (20%).
Australian operations also had the strongest growth of 12.4%, followed by the US (5.7%) while UK and European revenue dropped 7.6% (see below).
Naked Communications closed offices in the UK and US, impacting results in those regions.
Enero noted BMF had grown its client list, including the Australian Federal Government win.
The top 10 clients of Energo Group contribute 24% of revenue with the largest client accounting for 13%.
Enero Group chief executive Matthew Melhuish described FY18 as a “significant step forward in our strategic ambitions”.
He singled out the addition of Orchard as important to bolster digital capabilities in Australia and the US and said the group would be eyeing more acquisitions.
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