This afternoon Enero Group Ltd (ASX: EGG) reported its half-year results for the period ending December 31 2018. Below is a summary of the results with comparisons to the prior corresponding half.
- Not profit after tax of $6.1 million
- Revenue of $63.7 million, up 33%
- Operating EBITDA of $10 million, up 75%
- Operating EBITDA margin of 15.7%, up from 11.9%
- Earnings per share before significant items of 7.2 cents, up from 3.7 cents
- Interim dividend of 2.5 cents per share
- Excluding the impact of acquisitions revenue was up 15% and operating EBITDA up 40%
- Net cash position of $10.5 million
The market has sent the Enero share price 16% higher to $1.49 in response to what looks a strong result for the media, public relations, online marketing, and communications group that aims to grow organically and by acquisition.
Around half of the group's operations are now outside Australia where it sees more opportunity for growth, with North America representing around one third of group EBITDA.
On a conventional valuation basis the stock looks reasonably cheap on less than 11x annualised earnings, with a 3.4% dividend yield. The business also enjoys some digital tailwinds, but operates in a competitive space.
