Centaur Media

LN: CAU

Market Cap£74.2m

Last Close 50.5p

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 Media’s H121 results showed revenue and EBITDA margin picking up strongly, with the group on track to meet its FY23 targets, as set out in January in its MAP23 strategy. This envisages group revenue of £45m, with a 23% EBITDA margin. The Flagship 4 brands are leading the way, posting 26% revenue growth over H120. Econsultancy’s blended learning is achieving good traction, while events across the group are benefiting from attractive digital propositions. We edged our revenue forecast up on the figures by £1m in both FY21e and FY22e, retaining earlier expectations on adjusted EBITDA. The H121 cash performance was particularly strong, and we expect year-end net cash of £11.0m.

Y/E Dec
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2019A 39.6 4.0 (1.5) (1.4) N/A 15.4
2020A 32.4 3.8 (0.3) 0.2 252.5 34.6
2021E 37.2 5.1 1.2 0.6 84.2 9.8
2022E 42.5 7.6 3.6 2.0 25.3 9.4
Industry outlook

The pandemic-accelerated disruption to the marketing sector should provide a fertile backdrop for demand for B2B market intelligence, with a greater propensity for clients to adopt digital solutions, albeit on a slower sales conversion cycle, provided they deliver greater efficiencies. Forecasts from the major commentators for FY21 global ad spend growth have again been revised upwards, further supporting the trading environment.

Last updated on 17/08/2021
Content on Centaur Media
Centaur Media – Robust rebound
TMT | Update | 21 July 2021
social-media-5187243_1920
Centaur Media – Resilient performance
TMT | Update | 17 March 2021
social-media-5187243_1920
Centaur Media – executive interview
TMT | Edison TV | 26 January 2021
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Share price graph
Balance sheet
Forecast net cash (£m) 11
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 24.7 20.2 140.5
Relative* 21.4 17.3 98.7
52-week high/low 51.5p/21.0p
*% relative to local index
Key management
Colin Jones Chairman
Mukerji, Swagatam CEO
Longfield, Simon CFO