Centaur Media (LSE: CAU)

Currency in GBP

Last close As at 03/02/2023

GBP0.50

0.00 (0.00%)

Market capitalisation

GBP73m

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.

The marketing sector is undergoing a rapid, disruptive transformation which provides a fertile backdrop for demand for B2B market intelligence. With increasing penetration of digital solutions, employee 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 also supports demand at The Lawyer, which continues to build its market presence and pursue further growth opportunities particularly with in-house corporate lawyers.

Centaur Media_resized

Sector

TMT

Equity Analyst

Fiona Orford-Williams

Fiona Orford-Williams

Director, TMT

Key Management

  • Colin Jones

    Chairman

  • Longfield, Simon

    CFO

  • Mukerji, Swagatam

    CEO

Balance Sheet

Forecast net cash (£m)

15.8

Forecast gearing ratio (%)

N/A

Share Price Performance

Price Performance
% 1M 3M 12M
Actual 36.4 31.3 9.4
Relative 29.2 19.3 8.2
52 week high/low 54.5p/38.5p

Financials

Centaur’s year-end trading update indicated revenue of at least £41m and an EBITDA margin of more than 19.5%. Our FY22e EBITDA, PBT and EPS numbers are unchanged, showing strong growth over the prior year, albeit with a slower H222. Notwithstanding the reduced momentum, Centaur should still be able to meet its FY23 MAP23 targets of £45m in revenue and an EBITDA margin of 23%. Given the strong cash performance, with year-end net cash of £16.0m (excluding lease debt), management has announced the payment of a special dividend of 3.0p per share, payable in February. This still leaves the group with plenty of cash to invest and grow.

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) 0.2 262.5 36.0
2021A 39.1 6.4 3.0 1.9 27.6 8.0
2022E 41.5 8.1 4.5 2.4 21.9 10.2
2023E 45.0 10.3 6.5 3.2 16.4 8.8

Thematics

Digital Marketing and Internet Media Technology Platform

TMT

MediaWatch – January 2023

Consumer

IPO apocalypse

TMT

ESG, moving beyond the box tick

TMT

Direct tech investors

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