Shares in engage:BDR surge on the back of exceptional revenue growth
Published 03-AUG-2020 12:31 P.M.
1 minute read
Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.
In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.
The below articles were written under our previous business model. We have kept these articles online here for your reference.
Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.
Click Here to View Latest Articles
engage:BDR in (ASX: EN1; EN1O) opened nearly 30% higher on Monday morning after the company provided a positive trading update for July which featured year-on-year revenue growth of 36%.
As the multi-disciplined advertising group commences the second half of fiscal 2020 (EN1 reports on a calendar year basis), the generation of $10.3 million in income represents a very strong start.
As the following bar graph shows, not only has this been a substantial outperformance relative to the previous corresponding period in 2019, it is more than 50% up on the same period in fiscal 2018.
This comes hot on the heels of the company generating revenues of $9 million for the six months to June 30, 2020, up nearly 50% on the previous corresponding period.
This was an outstanding performance given that the company has had to deal with the impact of COVID-19, particularly in the June quarter.
With the company having branched out into new areas and management making decided changes in the last six months to right-size the business, there could be further good news ahead.
It is worth noting that the advertising industry traditionally generates up to 70% of its revenues in the December half, and this degree of seasonality has been indicative of EN1’s past performances.
This suggests that EN1 could substantially exceed first half revenues, particularly given that in July alone the group has already overtaken income received in the prior six months.
General Information Only
S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.
Conflicts of Interest Notice
S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.
Publication Notice and Disclaimer
The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.
Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.
This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.