Financial Analysis of Enero Group Limited (2015-2017)
Added on 2019-11-12
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RUNNING HEAD: INTRODUCTION TO ACCOUNTING AND FINANCEINTRODUCTION TO ACCOUNTING AND FINANCE
INTRODUCTION TO ACCOUNTING AND FINANCE1ContentsEnero Group Limited.............................................................................................................................2Introduction.......................................................................................................................................2Industry situation and company plans...............................................................................................2Financial statement Analysis.............................................................................................................3Ratio Analysis...................................................................................................................................10Conclusion.......................................................................................................................................19Bibliography.....................................................................................................................................20
INTRODUCTION TO ACCOUNTING AND FINANCE2Enero Group LimitedIntroduction Enero is a company providing joined services of marketing and communication. The services include advertisement, media planning, research, public relations, direct marketing and design and event management (Bloomberg, 2017)1. It mainly operates from Sydney, London and New York, and many other locations (Enero, 2017)2. Enero group limited is based in Pyrmont, New South Wales, Australia. The CEO of the company is Matthew Melhuish. The most recent share price is A$ 1.04 (date 30.06.2017) and the dividend per share is 5 cents (date 26.06.2017). Independent auditor of the company is KPMG. Their opinion on the company’s financial statements is that Enero group limited has prepared its financial statements for the year ended 30 June 2017 in accordance with Australian Accounting standards and the Corporations Regulations 2001. Industry situation and company plansEnero Group limited has strong clients across the industry and sector group validates expansion of revenue. It has been observed that largest client represents only 13% of the total net revenue. Further the company has more than 700 client relationships.This company has awarded with an 84 industry awards across the group. The future plans of the company are as follows: Fetch additional new resources.Discover new sectors to sell the services Expand the business in new geographies for the purpose to enhance the networked clients.1Bloomberg. 2017. Company Overview of Enero Group Limited. Retrieved on 13 September 2017 from http://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=11190588.2Enero Group Limited. 2017. Annual Report. Retrieved on 13 September 2017 from http://enero.com/images/enero/annual-reports/Enero_Annual_Report_FY17.PDF.
INTRODUCTION TO ACCOUNTING AND FINANCE3Looking forward to connect the bigger client teams for the motive of acquisition.Last but not the least integrate the services for the better public relations.Financial statement AnalysisStatement of financial performanceParticulars2017 (AUD’000)2016 (AUD’000)2015(AUD’000)Gross Profit/ Net revenue100,172113,488110,347Net income19308115-1615
INTRODUCTION TO ACCOUNTING AND FINANCE4Income from operations343610073576(Source: Annual Report, 2017;2016;2015)345.Comment:Gross Profit: It has been observed from the above table that in 2017 gross profit is least among previous two years (2016 and 2015).Gross Profit/ Net revenue90,00095,000100,000105,000110,000115,000100,172113,488110,347AUD $' 000201720162015Net Income: It has been observed from the above table that in 2017 the net income is very less from 2016 but more than 2015. The net income is highest in 2016 which shows that the profitability position is sound in 2016 in comparison to 2017. 3Enero Group Limited. 2017. Annual Report. Retrieved on 13 September 2017 from http://enero.com/images/enero/annual-reports/Enero_Annual_Report_FY17.PDF.4Enero Group Limited. 2016. Annual Report. Retrieved on 13 September 2017 from http://enero.com/images/enero/annual-reports/Enero_Annual_Report_FY16.PDF.5Enero Group Limited. 2015. Annual Report. Retrieved on 13 September 2017 from http://www.enero.com/images/enero/annual-reports/Enero_Annual_Report_FY15.pdf.
INTRODUCTION TO ACCOUNTING AND FINANCE5Net income-4000-2000020004000600080001000019308115-1615AUD $' 000201720162015Income from operations: It has been observed from the above table that in 2017the income from operations is very less from 2016 whereas more than 2015. Thus, income from operations is highest in 2016 among three years.Income from operations020004000600080001000012000343610073576AUD $' 000201720162015Common Size analysisParticularsAmount (AUD $' 000)2017%2016%2015%Gross Revenue180666180.36%213632188.24%212332192.42%
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