Jigsaw / TLE Parent Back on Firm Ground

Marketing group Enero - the parent of insight agencies Jigsaw and The Leading Edge (TLE), has followed strong 2016 results with an announcement that it is back in the mood for acquisitions - following a seven-year period in which it battled for survival.

Previously known as Photon Group, the company struggled with massive debts after over-extending itself with its previous buying activity, including an incautious build-up of earn-out payments. Restructuring and the sale of 31 businesses followed, but the two successful research agencies were among the fourteen that stayed with the Group.

As recently as February 2015 the Group was reporting a decline in net revenue and a fall in profits, but this year it has seen a net profit rise of 336% to $6.6m, with operating EBITDA up from $9.2m to $13.2m. CEO Matthew Melhuish (pictured) told www.mumbrella.com.au this month the company was debt-free, with cash reserves of $37.6m, and in 'exceedingly good health', adding: 'We are going to move into a phase where we are looking to deploy some of the capital and consider some very targeted acquisitions here or there'. With an eye on the past, Melhuish added: 'we won't go crazy, we will be very considered and anything we do is definitely put through many lenses and only with a very strategic intent', and said North America was a possible location for a first buy, as the Group's presence there is 'really sort of under-weight compared with [Europe and Australia]'.

Melhiush also says that all the firm's Sydney-based businesses will be moved to a new hub in early 2017, illustrating the good health of the business: 'It's going to be a fantastic facility and all the staff are very excited', he adds. Both TLE and Jigsaw have their Australian HQs in Sydney.

Web sites: www.enero.com , www.jigsawresearch.com.au and www.theleadingedge.com.au .