Enprise Group Limited (NZX: ENS) Investor Update

Wednesday 23rd December 2020

2020 has been a challenging year where we faced unexpected events of dramatic global impact, creating market uncertainty and volatility but also opportunities to grow and improve. Enprise is confident it has implemented measures to mitigate further impacts, consolidate existing business units and support an ambitious growth strategy over the coming years.

Working from home became the norm due to lockdowns implemented by governments around the world. Organisations that did not have all their software applications available to enable their teams to work remotely had to adopt cloud computing to allow their businesses to operate.

Enprise initially suffered, like many other entities, a sharp drop in revenue (over 30%) and qualified for wage support in both New Zealand and Australia. In response to the COVID-19 lockdown, cost cutting measures were implemented across the group. The Government support enabled us to retain our full team despite the downturn.

To shore up our capital base, a $1 million capital raise was completed in May 2020 positioning the business well for the future.

At 30 November 2020, Enprise had no debt and cash reserves of $2.48m (after increasing our share of iSell from 50 to 67%).

Enprise has decided to move its banking from ASB/CBA to BNZ/NAB. BNZ has committed to providing Enprise Group with a three year loan of $2 million and an overdraft facility of $1 million to facilitate future growth. These facilities have not yet been drawn.

Group Results

Unaudited Management Information 5 months to 30 November 2020

Revenue $ 6,612,898 - 8% Decrease

EBITDA $ 221,031 - 728% Increase

Share of Datagate losses ($199,912) - 24% decrease

Government Assistance: Australia $ 753,284

Net Profit before tax $ 510,093 - 282% Increase

See the link below for more details:

Investor Update 23 Dec 2020

Source: Enprise Group Limited

Comments from our readers

No comments yet