New Risk • Aug 24
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 101% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Minor Risks Share price has been volatile over the past 3 months (15% average weekly change). Large one-off items impacting financial results. Revenue is less than US$5m (AU$3.5m revenue, or US$2.3m). Market cap is less than US$100m (AU$23.9m market cap, or US$15.4m). Reported Earnings • Aug 24
Full year 2023 earnings released: EPS: AU$0.064 (vs AU$0.003 in FY 2022) Full year 2023 results: EPS: AU$0.064 (up from AU$0.003 in FY 2022). Revenue: AU$4.02m (down 45% from FY 2022). Net income: AU$445.8k (up 63% from FY 2022). Profit margin: 11% (up from 3.8% in FY 2022). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 127% per year but the company’s share price has only increased by 18% per year, which means it is significantly lagging earnings growth. New Risk • Aug 17
New minor risk - Revenue size The company makes less than US$5m in revenue. Total revenue: AU$7.7m (US$5.0m) This is considered a minor risk. Companies with a small amount of revenue are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Minor Risks Revenue is less than US$5m (AU$7.7m revenue, or US$5.0m). Market cap is less than US$100m (AU$23.9m market cap, or US$15.4m). Board Change • Aug 01
Less than half of directors are independent Following the recent departure of a director, there is only 1 independent director on the board. The company's board is composed of: 1 independent director. 2 non-independent directors. Independent Non-Executive Director Tony Wehby was the last independent director to join the board, commencing their role in 2018. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Mar 04
First half 2023 earnings released: EPS: AU$0.001 (vs AU$0.003 in 1H 2022) First half 2023 results: EPS: AU$0.001 (down from AU$0.003 in 1H 2022). Revenue: AU$1.71m (down 52% from 1H 2022). Net income: AU$78.9k (down 70% from 1H 2022). Profit margin: 4.6% (down from 7.4% in 1H 2022). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 111% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. Recent Insider Transactions • Dec 08
Non-Executive Chairman recently bought AU$56k worth of stock On the 6th of December, Anthony Leibowitz bought around 241k shares on-market at roughly AU$0.23 per share. This transaction amounted to 1.5% of their direct individual holding at the time of the trade. In the last 3 months, there was an even bigger purchase from another insider worth AU$69k. Anthony has been a buyer over the last 12 months, purchasing a net total of AU$264k worth in shares. Announcement • Nov 30
Ensurance Ltd Announces Resignation of Samir Hallab as Director Ensurance Ltd. announced that Mr. Samir (Sam) Hallab has resigned as Non-Executive Director of the Company, effective today. Mr. Hallab will continue in his role as Company Secretary. Board Change • Nov 16
Less than half of directors are independent Following the recent departure of a director, there is only 1 independent director on the board. The company's board is composed of: 1 independent director. 3 non-independent directors. Independent Non-Executive Director Tony Wehby was the last independent director to join the board, commencing their role in 2018. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Recent Insider Transactions • Oct 05
CEO & Executive Director recently bought AU$69k worth of stock On the 3rd of October, Vaughan Kent bought around 300k shares on-market at roughly AU$0.23 per share. This transaction amounted to 2.2% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Vaughan has been a buyer over the last 12 months, purchasing a net total of AU$124k worth in shares. Announcement • Oct 04
Ensurance Limited, Annual General Meeting, Nov 23, 2022 Ensurance Limited, Annual General Meeting, Nov 23, 2022, at 12:00 AUS Eastern Standard Time. Recent Insider Transactions • Sep 07
Insider recently bought AU$56k worth of stock On the 5th of September, Vaughan Kent bought around 250k shares on-market at roughly AU$0.22 per share. This transaction amounted to 1.8% of their direct individual holding at the time of the trade. In the last 3 months, there was an even bigger purchase from another insider worth AU$120k. Insiders have collectively bought AU$194k more in shares than they have sold in the last 12 months. Reported Earnings • Sep 01
Full year 2022 earnings released: EPS: AU$0.003 (vs AU$0.023 loss in FY 2021) Full year 2022 results: EPS: AU$0.003 (up from AU$0.023 loss in FY 2021). Revenue: AU$7.31m (up 69% from FY 2021). Net income: AU$273.7k (up AU$1.58m from FY 2021). Profit margin: 3.7% (up from net loss in FY 2021). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 99% per year but the company’s share price has only increased by 3% per year, which means it is significantly lagging earnings growth. Announcement • Jul 23
PSC Insurance Group Limited (ASX:PSI) entered into a non-binding agreement to acquire Ensurance UK Limited from Ensurance Limited (ASX:ENA) for AUD 8.2 million. PSC Insurance Group Limited (ASX:PSI) entered into a non-binding agreement to acquire Ensurance UK Limited from Ensurance Limited (ASX:ENA) for AUD 8.2 million on July 22, 2022. PSC Insurance Group will satisfy the consideration by paying AUD 6.15 million in cash and AUD 2.05 million, in fully paid ordinary shares of PSC (to be held in escrow for a period of 12 months). Ensurance UK reported revenues of AUD 4.4 million. The transaction is subject to completion of financial, commercial and legal due diligence by PSC on Ensurance UK to the satisfaction of PSC; agreed transaction documentation; change of control approval from the Financial Conduct Authority (UK); Ensurance Limited obtaining all necessary shareholder, statutory and regulatory approvals; and PSC Board approval. The transaction is expected to complete on July 31, 2022. Recent Insider Transactions • Jun 16
Non-Executive Chairman recently bought AU$120k worth of stock On the 14th of June, Anthony Leibowitz bought around 500k shares on-market at roughly AU$0.24 per share. This was the largest purchase by an insider in the last 3 months. Anthony has been a buyer over the last 12 months, purchasing a net total of AU$138k worth in shares. Board Change • Apr 27
Less than half of directors are independent Following the recent departure of a director, there is only 1 independent director on the board. The company's board is composed of: 1 independent director. 3 non-independent directors. Independent Non-Executive Director Tony Wehby was the last independent director to join the board, commencing their role in 2018. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Feb 21
First half 2022 earnings: Revenues and EPS in line with analyst expectations First half 2022 results: EPS: AU$0.003 (up from AU$0.005 loss in 1H 2021). Revenue: AU$3.58m (up 48% from 1H 2021). Net income: AU$263.4k (up AU$570.9k from 1H 2021). Profit margin: 7.4% (up from net loss in 1H 2021). The move to profitability was driven by higher revenue. Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has increased by 82% per year but the company’s share price has fallen by 12% per year, which means it is significantly lagging earnings. Announcement • Feb 18
Ensurance Limited Appoints Tom Kent as Executive Director Ensurance Limited announced that Mr. Tom Kent has been appointed as executive director in addition to his role as chief executive officer, effective February 17, 2022. Mr. Kent's appointment comes as Ensurance continues to build on its growth strategy following the acquisition of TK Specialty Risks Pty Ltd. (TKSR) of which Mr. Kent was founder and managing director. Subsequently, TKSR was rebranded to Ensurance Australia Pty Ltd, and Mr. Kent continued as Managing Director after quickly integrating the business into the wider company. Mr. Kent has worked in the insurance sector for both Australian and global insurers in a number of key roles since 2004. Most recently, prior to establishing TKSR in 2015, Mr. Kent was the professional and financial lines manager for Axis Specialty Australia in South Australia. Mr. Kent currently also serves as an independent director of Lawguard Management Pty Ltd. Announcement • Oct 01
Ensurance Limited announced that it expects to receive AUD 2.145001 million in funding Ensurance Limited announced that it will issue 9,326,092 at a price of AUD 0.23 per share for gross proceeds of AUD 2,145,000 on September 29, 2021. The transaction will include participation from new and existing professional, sophisticated and institutional investors. The transaction is expected to close on October 8, 2021. Reported Earnings • Sep 26
Full year 2021 earnings released: AU$0.023 loss per share (vs AU$0.05 loss in FY 2020) The company reported a solid full year result with reduced losses, improved revenues and improved control over expenses. Full year 2021 results: Revenue: AU$4.34m (up 17% from FY 2020). Net loss: AU$1.30m (loss narrowed 55% from FY 2020). Over the last 3 years on average, earnings per share has increased by 70% per year but the company’s share price has fallen by 10% per year, which means it is significantly lagging earnings. Reported Earnings • Aug 25
Full year 2021 earnings released: AU$0.002 loss per share (vs AU$0.062 loss in FY 2020) The company reported a solid full year result with reduced losses, improved revenues and improved control over expenses. Full year 2021 results: Revenue: AU$4.53m (up 19% from FY 2020). Net loss: AU$1.30m (loss narrowed 55% from FY 2020). Over the last 3 years on average, earnings per share has increased by 77% per year but the company’s share price has fallen by 15% per year, which means it is significantly lagging earnings. Executive Departure • Jul 13
Independent Non-Executive Director Adam Davey has left the company On the 2nd of July, Adam Davey's tenure as Independent Non-Executive Director ended after 8.9 years in the role. As of March 2021, Adam still personally held 6.81m shares (AU$211k worth at the time). Adam is the only executive to leave the company over the last 12 months. Recent Insider Transactions Derivative • Jul 07
Executive Chairman exercised options to buy AU$173k worth of stock. On the 5th of July, Anthony Leibowitz exercised options to buy 7m shares at a strike price of around AU$0.015, costing a total of AU$100k. This transaction amounted to 4.9% of their direct individual holding at the time of the trade. Since September 2020, Anthony's direct individual holding has increased from 119.95m shares to 135.69m. Company insiders have collectively bought AU$1.6m more than they sold, via options and on-market transactions, in the last 12 months. Recent Insider Transactions Derivative • May 26
Executive Chairman exercised options to buy AU$417k worth of stock. On the 21st of May, Anthony Leibowitz exercised options to buy 14m shares at a strike price of around AU$0.02, costing a total of AU$278k. This transaction amounted to 11% of their direct individual holding at the time of the trade. Since June 2020, Anthony's direct individual holding has increased from 119.95m shares to 121.80m. Company insiders have collectively bought AU$1.5m more than they sold, via options and on-market transactions, in the last 12 months. Announcement • May 19
Ensurance Limited (ASX:ENA) agreed to acquire TK Specialty Risks Pty Ltd for AUD 2.5 million. Ensurance Limited (ASX:ENA) agreed to acquire TK Specialty Risks Pty Ltd for AUD 2.5 million on May 17, 2021. In consideration for the acquisition, Ensurance will issue the vendor with 83,333,334 fully paid ordinary shares in the capital of Ensurance at a deemed issue price of AUD 0.03 per Ensurance share. The Consideration Shares will be subject to a voluntary 24-month escrow period on and from settlement of the acquisition and the Vendor will execute, upon settlement, a voluntary escrow deed confirming this arrangement. Settlement of the acquisition is conditional upon the satisfaction or waiver of the following conditions precedent: completion of operational, financial and legal due diligence by Ensurance on TKSR and its assets and operations; Ensurance shareholders approving the issue of the Consideration Shares in accordance with the ASX Listing Rules and Corporations Act 2001 (Cth); and the parties obtaining all third-party approvals and consents necessary to lawfully complete the matters set out in this Agreement. If the Conditions are not satisfied (or waived by Ensurance) on or before June 10, 2021, or any other date agreed in writing between the parties, any party may terminate the Acquisition Agreement by notice in writing to the other parties. Settlement of the acquisition will occur on the date which is 5 business days (as defined pursuant to the ASX Listing Rules,) after the satisfaction (or waiver by the Purchaser) of the Conditions. The acquisition is currently scheduled for completion following shareholder approval, which is expected towards the end of July 2021. Recent Insider Transactions • Apr 25
Insider recently bought AU$1.2m worth of stock On the 16th of April, Vaughan Kent bought around 35m shares on-market at roughly AU$0.033 per share. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought AU$1.2m more in shares than they have sold in the last 12 months. Reported Earnings • Sep 25
Full year earnings released - AU$0.0062 loss per share Over the last 12 months the company has reported total losses of AU$2.86m, with losses narrowing by 42% from the prior year. Total revenue was AU$3.80m over the last 12 months, up 145% from the prior year. 