engage:BDR (ASX: EN1) has unveiled its full year accounts for 2019, which the company claims was a pivotal and successful year.
For the period, engage:BDR achieved a $1.6 million profit and 50% increase in revenue to $17.1 million – up from $11.4 million in 2018.
There was also a substantial 216% rise in gross profit which came in at $9.3 million for FY 2019 from $4.3 million in 2018.
Earnings before interest tax depreciation and amortisation reached $1.6 million, while the company’s net profit after tax for the period was -$1.2 million.
NPAT was a $9.6 million improvement on the previous year’s -$10.8 million.
In addition to the higher revenue and profit, engage:BDR pointed out its cost-saving initiatives had resulted in a 43% reduction in staff costs, while operating and administrative expenses were 26% lower.
Another positive result was an increase in net assets to $3.4 million from -$6.6 million in the previous year.
Net tangible assets also improved to $384,000 from -$9.1 million in 2018.
Commenting on engage:BDR’s results, executive chairman and chief executive officer Ted Dhanik said 2019 had been a pivotal year for the company.
Underpinning the company’s turnaround was the implementation of its strategic plan to achieve profitability, which was announced in February last year.
The plan set out specific milestones within certain timeframes to become profitable.
As part of this, Mr Dhanik said the company had achieved 100% of the initial milestones outlined in the strategy in addition to upgraded milestones.
He added he believed the company had “moved several mountains” by executing the plan.
“We grew revenues 50%, grew gross margins 42%, achieved profitability and consistently signed key customers and new partnerships, previously unattainable.”
“We are positioned well with a strong balance sheet, key and unique partnerships and most importantly, the winning team.”
Looking ahead into 2020
engage:BDR expects to continue growing its revenue, EBITDA, net after tax profit and gross margins.
The company will focus on its NetZero publisher boarding, AdCel growth, and new integrations for its programmatic ad exchange.
Mr Dhanik pointed out the company had currently achieved three times the revenue in the first few months of 2020 than it had during the same period last year.
“We’re focused on keeping that momentum growing,” he added.