TLE / Jigsaw Parent Reports Revenue Nosedive

Revenue at Sydney-based research and marcoms group Enero plunged in the last financial year, with the total figure dropping from $AUD 225.2m to $AUD 127.3m. Revenue from continuing operations was down from $AUD 174m last year; and the group's reported loss was $AUD 83m.

The company, until recently known as Photon, owns a portfolio of agencies, including market research firms TLE (formerly known as The Leading Edge) and Jigsaw Research.

In 2010, the group announced it was struggling to pay the $AUD 176m worth of earn-out payments due to the owners of several agencies it had acquired, and later that year it completed a recapitalisation through the issue of $AUD 103m worth of new shares.

For the last financial year, the firm's EBITDA dropped from $AUD 20.8m to $AUD 3.6m. Net revenue for agencies still within the group dropped 15% from $148m to $125.6m, while the horrendous net loss after tax figure ($AUD 83m as above) was actually 42% down on last year's $AUD 143.3m.

CEO Matthew Melhuish commented: '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.'

Web site: www.enero.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.

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