Australia's largest stock trading and investment forum Australia's #1 stock forum

ENA

Click for more information

0.00%

27.0¢ ensurance ltd

Ann: Quarterly Activities Report, page-7

First 7 Last

Share
Profile

Follow
mystikal

1,692 Posts.

826

28/01/22

15:21

Post #: 59195179
Share

Originally posted by T.E.P.: ↑

Good observations, @reecevan. There is a lot of seasonality in the industry — which is why ENA report quarter on quarter PCP. June and Sept are the biggest quarters for the Australian business and December is the biggest quarter for the UK business. The lag of revenue to receipts varies a lot because different broking houses are all on different credit terms (varies from 30 to 60 days credit terms). But, ENA has 90 days in total to pay the insurers. Growth in CF will be dependent on how much investment the team makes as they continue aggressive expansion. But, compared to a typical professional services business (like law or consulting) there is more operating leverage here in an MGA insurance underwriting business. This will shine through with higher margins and ultimately higher levels of EBITDA in time. My hypothesis is that lean and agile MGAs building thriving niche businesses, such as ENA, will end up growing profits faster than the industry as a whole, at higher margins.

Expand

big chomp today at 0.24

ENA Price at posting: 24.0¢ Sentiment: Buy Disclosure: Held
3 Upvote

0 Great analysis

Reply

Top Stories

EVN

Evolution shares up 3% on quarterly results for June showing rise in gold production

FMG

Andrew Forrest was seemingly possessed by the spirit of hydrogen – now he's cut 700 jobs and canned FFI

DMP

Domino's locks in biggest faller status on Thursday as it closes stores in Asia, Europe

HIQ

HITIQ's sensor-containing mouthguard OK'd by World Rugby specifications board

AI stocks: What to expect in 2024-25

There are more pages in this discussion • 7 more messages in this thread...

First 7 Last

Add ENA (ASX) to my watchlist