Centaur Media

LN: CAU

Market Cap£82.2m

Last Close 56p

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

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Investment summary

Centaur’s year-end trading update indicates the group had a good Q421 and FY21 results will show revenue and EBITDA margin ahead of consensus. We lift our FY21 revenue estimate by £1.0m to £38.5m, which represents 19% growth over FY20, and EBITDA by 5% to £5.9m (+55% y o y). Our increased FY22 projections reflect this higher base. Year-end cash of £13.1m (excluding lease liabilities) was also ahead of our previous forecast of £11.7m. We see management’s MAP23 targets as demanding but achievable, with the valuation overstating the execution risk.

Y/E Dec
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (fd) (p)
P/E (x)
P/CF (x)
2019A 39.6 4.0 (1.5) (1.4) N/A 17.0
2020A 32.4 3.8 (0.3) 0.2 280.0 38.4
2021E 37.5 5.6 2.0 0.9 62.2 10.0
2022E 42.8 7.9 4.2 2.2 25.5 10.2
Industry outlook

Pandemic-accelerated 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. 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 21/01/2022
Content on Centaur Media
Centaur Media – Simplification and innovation
TMT | Update | 11 November 2021
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Centaur Media – Building margin
TMT | Update | 13 October 2021
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Share price graph
Balance sheet
Forecast net cash (£m) 11.7
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 0.0 1.8 69.7
Relative* (1.7) (1.0) 53.0
52-week high/low 57.5p/32.5p
*% relative to local index
Key management
Colin Jones Chairman
Mukerji, Swagatam CEO
Longfield, Simon CFO