engage:BDR bucks market trend: trades higher on strong revenue and earnings
Published 03-MAR-2020 11:29 A.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
Shares in engage:BDR (ASX:EN1) opened 10.5% higher on Tuesday morning, and they have now gained more than 30% in the last two weeks.
The company has particularly come under the spotlight since last Friday when it released an impressive full-year result for the 12 months to December 31, 2019.
Today management has provided a trading update and commentary regarding the group’s financial performance in February with a comparative analysis demonstrating significant improvements against the previous corresponding period.
While these figures are subject to audit they make for impressive reading.
February 2020 revenue of approximately $1.7 million was 322% ahead of the previous corresponding period.
The company is also demonstrating strong growth on a month-on-month basis with February revenues ahead of the $1.55 million generated in January.
The increase in income has been accompanied by strong margin improvement with gross profit margins for February standing at 41% compared with 36% in January.
EBITDA positive in February
From a profitability perspective, it was encouraging to note that February was EBITDA positive.
This is the best measure of earnings for a company such as EN1 as it excludes non-cash items and accurately reflects the company’s operational performance.
Management took the opportunity to note that the advertising industry traditionally generates between 65% and 70% of its revenues in the second half year, and this was case in 2019.
With similar revenue seasonality anticipated in 2020, it would appear that the company is poised to deliver a strong full year result.
General Information Only
This material has been prepared by StocksDigital. StocksDigital is an authorised representative (CAR 000433913) of 62 Consulting Pty Limited (ABN 88 664 809 303) (AFSL 548573).
This material is general advice only and is not an offer for the purchase or sale of any financial product or service. The material is not intended to provide you with personal financial or tax advice and does not take into account your personal objectives, financial situation or needs. Although we believe that the material is correct, no warranty of accuracy, reliability or completeness is given, except for liability under statute which cannot be excluded. Please note that past performance may not be indicative of future performance and that no guarantee of performance, the return of capital or a particular rate of return is given by 62C, StocksDigital, any of their related body corporates or any other person. To the maximum extent possible, 62C, StocksDigital, their related body corporates or any other person do not accept any liability for any statement in this material.
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.
