Enero hemorrhaged $83m in the last financial year as revenues plunged 75% pro forma with the group blaming “key client losses”, trading conditions as well as a change in relationships.
In its end-of-year financial report, released quietly to the market yesterday, Enero which has agencies in 11 countries, says it is focusing its business on the Sydney, London and New York markets.
Agencies held by the group include Naked Communications, BMF, Frank PR and The Leading Edge, as well as research group Auspoll.
CEO Matthew Melhuish (pictured) said: “While we are naturally disappointed with the results for the financial year, we continue to build our operating structure and are working hard to get the fundamentals of a high performance group right.
“We have strengthened our executive team, the operating brands are now working collaboratively across new business, existing clients and sharing of talent, and importantly we are focused on delivering outstanding work for our clients in this rapidly changing marketing landscape.”
BMF’s loss of Commonwealth Bank and the restructuring and investment across the Naked network were also cited as key factors, as we “subdued client spend”, as more clients move to project as opposed to retainercontracts.
Revenue from continuing operations dropped to $127m, from $174m the year before, although losses were actually less at $82m, from $101m.
Last August BWM’s former owners took the agency back from the group, one of a number of companies to split with them over the last 12 months.
This year Australia accounted for 59% of the group’s revenues, from 62% last year.