Shares in engage:BDR surge on the back of exceptional revenue growth
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.
Short-term positions in small, early stage ASX companies,
with high potential and near term price catalysts.
Focusing on resource exploration, early-stage tech, and biotech.
Exceptional opportunities across a broad range of
early-stage growth sectors with strong management.
Seeking 1,000% plus returns across medium to long-term holds.
Longer-term positions in a variety of sectors.
Seeking strong management where traction is established and have entered into a growth phase.
S3 Consortium Pty Ltd (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 only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.
Conflict of Interest Notice
S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.
The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.