engage:BDR delivers turnaround result in fiscal 2019
Published 23-MAR-2020 11:13 A.M.
3 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 (ASX: EN1 and EN1O) released its audited financial results for the 12 months to 31 December, 1019 on Monday morning.
For the best part, these had been flagged in late February when management released the company’s unaudited results commentary.
Key takeaways that have not varied included a 50% increase in revenues to $17.1 million and an operating profit of $1.6 million, assisted by a strong improvement in gross margins which were up from 38% in the previous corresponding period to 54%.
In a year of transformation and restructuring, the company had a number of non-cash one-off expenses which are outlined below.
From an operational perspective, it is important to focus on the group’s ability to meet predetermined milestones during 2019.
On 11 February, 2019, EN1 announced the Strategic Plan to Profitability with Key Milestones for 2019.
Within this plan, EN1 committed to achieving specific milestones within certain timeframes, with the ultimate goal of achieving profitability.
All milestones were achieved on or before schedule in 2019, as well as delivering on some other initiatives which were announced later in the year.
This was achieved while still delivering a strong underlying profit.
Central to achieving these goals was a significant reduction in costs, and importantly, management believes this new cost base is sustainable.
Looking to the future
Having delivered such a strong performance, all eyes now turn to 2020, and based on management’s commentary the company is well positioned to build on its achievements in 2019.
On this note, the company is of the view that it has never been positioned better for exponential revenue, profitability and market share growth.
Management noted that EN1 has a healthy balance sheet, is profitable, has scaling revenue and margins and has access to significant capital.
More importantly, it is of the view that EN1 has the partnership integrations which differentiate the company from many US peers.
Management expects revenue, gross margins, EBITDA and NPAT to continue to increase in 2020 as a result of the company’s client and partnership mix.
Strong first-quarter provides platform for growth
More specifically, executive chairman and chief executive Ted Dhanik said, “2019 was a pivotal year for EN1.
‘’At the beginning of the year, we set out to move a mountain with just a strong plan...I believe we moved several mountains by believing in that strategy and consistently executing on that plan.
‘’We grew revenues 50%, grew gross margins 42%, achieved profitability and consistently signed key customers and new partnerships, previously unattainable.
‘’We now have a blank slate, we are positioned well with a strong balance sheet, key and unique partnerships and most importantly, the winning team.
‘’We have a head start on 2020 with about three times the revenue we had this time last year, and we are focused on keeping that momentum growing.
‘’I’m looking forward to enjoying greater wins with you in 2020.”
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.