Pinned straw:
Circa $0.7 million in net operating profit for the past 12 months — thus ENA is now trading on a PE of approx 25x at the current market cap of $17.6M or a PE of approx 17x on a cash-adjusted basis (approx $5.5 million in net cash on the balance sheet). For a company growing the top line (GWP) at 40% YoY, that seems like reasonable value to me.
Q4 results very positive from ENA.
The numbers released provide confirmation into the decision to sell UK operations being the correct choice and the accelerated growth reflects the quality of the team Tom Kent has built which will propel growth and profitability for many quarters to some
2022
Revenue was $2,462,730
Gross Written Premiums were $16,080,000
This means for each $1 of revenue ENA needed to write $6.53 of premiums.
2023
Revenue was $3,555,421
Gross Written Premiums were $22,525,000
This means for each $1 of revenue ENA needed to write $6.33 of premiums.
Diving deeper we
Looking at the Q1 to Q4 numbers in 2023 the story is more positive .
Q4 saw margin improvement of over 25.7% compared to Q1.
This data validates the decision to sell the UK operations and sure up the balance sheet and invest into the Australian operations.
This simplification of the business is a real credit to Tom and the team enabling them to focus in Australia and recruit quality individuals to build a cohesive team.
Add to the result the acceleration in fees earnt via " the launch of a new environmental insurance product range (refer ASX Announcement dated 5th April 2023). The Professional Risks division delivered strong revenue growth buoyed by the Company’s longterm investment in the appointment of senior Underwriting staff, and its continuing East Coast expansion, with a new office opening in Melbourne in July. "
Q4 saw fees and commissions increase by 65% and great platform for 2024......
Disc :
Held 12.4% on SM , 20.3% IRL