Enero Group (EGG) AGM 2024 summary

Opening remarks and agenda

• Chair welcomed attendees, acknowledged the Gadigal people as Traditional Owners, and confirmed quorum for the hybrid AGM.

• Directors, CFO, Company Secretary, share registry, and auditors were introduced as present and available for questions.

• Meeting procedures, including online participation, question submission, and voting instructions, were outlined.

• Agenda included Chair address, business review, trading update, formal resolutions, and Q&A.

Strategic initiatives and plans

• Significant progress in portfolio transformation, focusing on technology, healthcare, and consumer sectors.

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

• Ongoing cost reductions, expansion of offshore delivery centers, and a leaner group structure to drive margin growth.

• Ongoing strategic review and planned sale of OBMedia, expected to conclude in Q2 FY25.

• Emphasis on organic investment in innovation, market expansion, and maximizing shareholder value.

Financial performance review

• FY24 net revenue was AUD 189.7 million, down 21.5% YoY; EBITDA AUD 37.4 million, down 52.6% YoY; net profit AUD 10.3 million, down 57.8% YoY.

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

• Dividend per share was 5.0 cents, with a 44% payout ratio and 4.0% yield.

• Q1 FY25 net revenue declined 11.8% YoY; EBITDA margin decreased to 16.8% from 22.3%.

• Australian agencies delivered double-digit revenue growth and improved EBITDA margins, while international businesses faced headwinds.