Centaur Media

LSE: CAU

Market Cap£57m

Last Close 39p

Centaur Media is an international provider of business information, training and specialist consultancy. Its Xeim and The Lawyer business units serve the marketing and legal sectors respectively and offer customers a wide range of products and services targeted at helping them add value.

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Investment summary

Centaur’s H122 revenues were up 8% on H121, with a strong uplift in EBITDA margin from 12% to 17%, well on the way to achieving the 23% targeted within management’s MAP23 objectives. The emphasis on driving higher-quality revenues from premium content, marketing services and training and advisory is giving the group a resilient earnings base. High subscription renewal levels indicate the utility to clients, with continued investment in content and products ensuring that these stay relevant and value-adding. The recent in-person Festival of Marketing was very successful, reaching 35 of the 100 top spending UK CMOs. The half-year balance sheet net cash was £14.2m and the valuation remains at a marked discount to peers.

Y/E Dec
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (fd) (p)
P/E (x)
P/CF (x)
2020A 32.4 3.8 (0.3) 0.2 195.0 26.7
2021A 39.1 6.4 3.0 1.9 20.5 6.0
2022E 43.5 8.1 4.5 2.4 16.3 8.0
2023E 47.0 10.8 7.0 3.4 11.5 5.9
Industry outlook

Disruption to the marketing sector is providing a fertile backdrop for demand for B2B market intelligence. With a greater propensity for clients to adopt digital solutions, those clients’ digital skill sets need constant enhancement, a process that may be accelerated in the face of a softening economy. The need for comprehensive and timely market intelligence should also support demand at The Lawyer, with further growth opportunities particularly with in-house corporate lawyers.

Last updated on 23/11/2022
Content on Centaur Media
Centaur Media – Flagship 4 showing their strengths
TMT | research Update | 20 July 2022
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Centaur Media – Targeted connectivity
TMT | research Update | 16 March 2022
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Centaur Media – Strong Q421 shows MAP23 progress
TMT | research Update | 19 January 2022
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Share price graph
Balance sheet
Forecast net cash (£m) 15.3
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (4.9) (15.2) (31.6)
Relative* (11.8) (14.3) (30.7)
52-week high/low 57.5p/39.0p
*% relative to local index
Key management
Colin Jones Chairman
Mukerji, Swagatam CEO
Longfield, Simon CFO