Enero Group (EGG) AGM 2024 summary

Opening remarks and agenda

• Meeting opened with acknowledgment of traditional land owners, specifically the Gadigal people, and confirmation of quorum.

• Directors, CFO, Company Secretary, share registry, and auditors present; hybrid format enabled both in-person and online participation.

• Introduction of Ann Sherry AO as Chair and overview of the Board of Directors.

• Agenda included Chair address, CEO business review and trading update, formal business (financial and directors' reports), resolutions, and Q&A.

Strategic initiatives and plans

• Significant portfolio transformation achieved, shifting from legacy businesses to a unified suite of specialist brands in technology, healthcare, and consumer sectors.

• FY25–FY27 strategic plan emphasizes industry specialism, differentiated services, empowered teams, and organic investment.

• Sale of OBMedia in final due diligence, expected to conclude in Q2 FY25, marking the last stage of portfolio transformation.

• Ongoing cost reductions and expansion of offshore delivery centers to drive margin growth.

• Continued emphasis on cash conversion and delivering shareholder returns.

Financial performance review

• FY24 net revenue was AUD 189.7 million, EBITDA AUD 37.4 million, and net profit AUD 10.3 million, all down significantly YoY.

• Free cash flow for FY24 was AUD 21.7 million, a 60.1% decrease YoY, with strong cash conversion at 88% of EBITDA.

• Total dividends for FY24 were AUD 0.05 per share, fully franked, representing a 44% payout ratio and 4.0% yield.

• Australian agencies delivered double-digit revenue growth and improved EBITDA; international businesses faced headwinds in the tech sector.

• Q1 FY25 net revenue declined 11.8% YoY; EBITDA margin improved to 16% from 14% in H2 FY24, but down from 22.3% YoY.