Enprise Group Limited Analysis

Overview

Enprise Group (ENS) is an investment vehicle for high-growth tech companies that complement its core ERP capability.

Enprise Group is invested in five businesses – the wholly owned companies Enprise Solutions and Kilimanjaro Consulting, subsidiary iSell, joint venture Datagate Innovation, and a holding in Vadacom.

Enprise Solutions. Enprise Solutions is a cloud business software company that is New Zealand’s number one provider of solutions based on the MYOB Advanced and MYOB Exo software platforms. MORE ABOUT ENPRISE SOLUTIONS

Kilimanjaro Consulting. Kilimanjaro Consulting is Australia’s number one implementer of MYOB’s enterprise-level business management solutions. MORE ABOUT KILIMANJARO CONSULTING

iSell. iSell is a primary provider of business systems to the IT Reseller market. iSell databases contain over 4.5 million products representing more than 2000 vendors available from 100+ distributors. MORE ABOUT iSELL

Datagate Innovation. Datagate Innovation provides SaaS Telecom Billing for IT Managed Service Providers. Datagate enables MSPs to automate the rating and billing of all telecommunications services. MORE ABOUT DATAGATE INNOVATION

Vadacom Limited. Vadacom specialises in phone system software development and unified communications solutions for Australian and New Zealand businesses. MORE ABOUT VADACOM

Enprise Group strategy: A platform for profitable growth

The business strategy behind the Enprise Group's listing on the NZX is to create a platform for profitable growth through acquisitions as well as organic growth in existing business divisions.

Major areas of focus are on providing business solutions via the cloud; extending Enprise Solutions' and Kilimanjaro Consulting's network of branches across Australia and New Zealand; building a strong CRM practice based on Microsoft and MYOB offerings; and providing customised online reporting and billing portals for telecom, utility companies and hosted service providers.

Enprise Group's strategy for its investments is to unlock mutual synergies to accelerate growth for all. Vadacom and Enprise Solutions share a significant number of customers and have a similar target market. Datagate and iSell both target the same Managed Service Provider market and can link their sales and marketing functions to give each other sales introductions. The Kilimanjaro acquisition better utilises the cloud skills and infrastructure resources already deployed by Enprise Solutions.

These interlocking characteristics are a hallmark of Enprise Group’s wider growth strategy.

Performance

The following information was extracted from Enprise Group Limited's full year report, released on 28 August 2024:

The Directors are pleased to report that the group has delivered a much-improved performance with a welcome return to profitability. Despite the prevalent economic headwinds, the Directors are confident that the improvements made across all business units will sustain this performance.

Group Revenue grew by $1.347m (6.5%), to $22.098m.

Total comprehensive income for the year ended 30 June 2024 was $0.151m, compared to a loss of $10.967m in 2023. In the prior year, Kilimanjaro had been severely impacted by the write-off of goodwill, based on a worst-case scenario of the dispute with MYOB. We have successfully renegotiated our bank loan.