Thursday 13 February was a particularly busy day on the ASX with a large number of companies reporting their interim results (there were a few full-year results reported too). Here’s a quick re-cap of a few lesser followed companies that are in the small to mid-cap range and released their financial results that day.
1) Enero Group Ltd (ASX: EGG) is a revitalised marketing and communications company that is recovering from a “near-death” experience. The firm operates from three key hubs namely Sydney, London and New York. While Enero reported a decline in revenue of 6%, the EBITDA margin expanded from 3.2% to 8.1% allowing the company to report a pro-forma operating EBITDA of $5 million for the half year, up 119% on the prior corresponding period (pcp).
2) STW Communications Group Ltd (ASX: SGN) was one of those few companies releasing full-year results. STW is a full service advertising, marketing and communications agency operating under many well-known brands including JWT and Ogilvy. The double-digit revenue and profit growth from the firm was impressive however the underlying earnings per share growth was a more muted 2.5%.
3) Tassal Group Limited (ASX: TGR) is somewhat of a household name these days thanks to its smoke salmon products which retail across Australia. Perhaps less well known is that Tassal also farms all its own salmon in Tasmanian waters. Over the past few years the company has altered its business model so that it is more heavily focused on the domestic market rather than export markets. The results of the change in strategy speak for themselves with operating profits for the half year up 25.5% to $15.3 million and the dividend up 22% to 5.5 cents per share.
4) RXP Services Ltd (ASX: RXP) is a fast growing IT service provider, however RXP’s reported half-year numbers underwhelmed the market because actual earnings and margins came in below company forecasts. Although the earnings number missed, revenue was higher than forecast and importantly management expects a strong second-half contribution. Guidance provided for the full year is for RXP to exceed revenue of $48 million at an EBITDA margin above 16.3%.
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Motley Fool contributor Tim McArthur owns shares in Tassal Group Ltd.
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