Centaur Media

LN: CAU

Market Cap£66m

Last Close 45p

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 to help them add value by raising standards for insight, interaction and impact.

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Investment summary

Centaur is making good progress towards management’s MAP23 goals for FY23 revenues of £45m and adjusted EBITDA margins of 23%, both of which should be achieved under our modelled scenario, despite potential headwinds of rising costs. Iterative improvements in the client offering and a greater emphasis on cross-selling underpin the forecast top-line growth, funded from the cash-positive balance sheet. A group-wide data strategy is now being implemented to support scaling of the operations beyond the MAP23 horizon. The group now has an additional non-executive director, Richard Staveley, who is an advisor to Harwood Capital (23.8% shareholding) and a fund manager at Rockwood (5.9%). 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) 0.2 232.5 31.9
2021A 39.1 6.4 3.0 1.9 24.5 7.1
2022E 43.9 8.1 4.5 2.4 19.4 9.8
2023E 47.0 10.8 7.0 3.4 13.7 7.1
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 23/06/2022
Content on Centaur Media
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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Centaur Media – Simplification and innovation
TMT | research Update | 11 November 2021
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Share price graph
Balance sheet
Forecast net cash (£m) 15.2
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (1.1) (3.1) 13.4
Relative* 3.3 3.2 17.3
52-week high/low 57.5p/40.5p
*% relative to local index
Key management
Colin Jones Chairman
Mukerji, Swagatam CEO
Longfield, Simon CFO