In the Perpetual Pure Microcap Fund monthly investor update, we profile Enero Group, which is a global media services and advertising company. They operate 10 businesses and their key brands include Hotwire, Frank PR, Naked and BMF. Management are conservatively building scale across 3 key areas; Strategy and Research, Creative Agency, and PR.
Sixty percent of revenues are earned offshore and this figure is expected to grow over time. This international exposure is attractive as currency headwinds soften and sentiment around Brexit improves in the UK.
Hotwire, based in Silicon Valley, acquired PR firm Eastwick Communications last year. The business has been successfully integrated and Hotwire is starting to see the benefits of Eastwick’s client connections and the groups larger scale flow into the network.
Capital management restrictions have been in place since 2010 but have recently been closed out with a 5c fully franked special dividend due to be paid this month. The remaining cash balance of approximately $30m will be used in combination to build further scale, buy back stock and reinstate regular dividend payments to shareholders.
Perpetual Limited is an independent and diversified financial services group providing specialised investment management, wealth advice and corporate fiduciary services to individuals, families, financial advisers and institutions.