Aussie-based marketing and communications conglomerate Enero Group has reported some very dour results for FY17, citing a “challenging” last 12 months.
The company witnessed a 26 per cent drop in net profit after tax to $4.9 million for the last financial year, with net revenue down 12 per cent to $100.2 million.
Enero’s expenses before interest, tax, depreciation and amortisation (EBITDA) fell 22 per cent to $10.4 million.
The group’s Aussie division, which includes agencies such as BMF, Naked, Frankie, Hotwire and The Leading Edge, saw a 6.7 per cent fall in revenue in FY17, while EBITDA was up 6.2 per cent to $7.0 million.
Enero CEO Matthew Melhuish said: “While it was a challenging trading year, an improvement in the second-half resulted in a full year operating margin of 10.4 per cent.
“We faced difficult UK trading conditions in the first half after the Brexit vote, with uncertainty affecting client confidence.
“We had some client losses and also encountered currency headwinds from the stronger Australian dollar, which impacted the Operating EBITDA line by $1.5 million on a constant currency basis.
“We continued to push hard to recover the year and also remained focussed on long-term value creation.
Melhuish said Enero’s recent acquisition of Eastwick Communications in the US and the release of capital restrictions in May gives the company more flexibility as it moves into the “re-imagined” stage of its strategic plan.