Internet domain name registration. Online url address for business company. Com, biz, info, edu and other domains in hexes on abstract background.

VGL acquisition follows a strong FY21

CentralNic Group 9 March 2022 Update
Download PDF

CentralNic Group

VGL acquisition follows a strong FY21

FY21 results and M&A

Software & comp services

9 March 2022

Price

128.5p

Market cap

£345m

£1.31/US$

Net debt (US$m) at 31 December 2021

75

Shares in issue (pre-open offer) excludes 17.4m EBT shares

268.7m

Free float

76%

Code

CNIC

Primary exchange

AIM

Secondary exchange

N/A

Share price performance

%

1m

3m

12m

Abs

5.4

(12.5)

55.9

Rel (local)

15.4

(5.5)

54.0

52-week high/low

149.9p

81.9p

Business description

CentralNic Group provides the essential tools for businesses to go online, operating through two divisions: Online Presence (reseller, corporate, and SME) and Online Marketing. Services include domain name reselling, hosting, website building, security certification and website monetisation.

Next events

Report and accounts

Early April 2022

Q122 update

25 April 2022

Analysts

Richard Williamson

+44 (0)20 3077 5700

Dan Ridsdale

+44 (0)20 3077 5700

CentralNic Group is a research client of Edison Investment Research Limited

Through a programme of investment in systems and staff, CentralNic deliver 39% organic revenue growth in FY21, with gross revenues rising 71% y-o-y to US$411m. Net revenues rose 58% to US$118m, with gross margins easing to 29% (FY20: 31%). Adjusted EBITDA rose 57% to US$46m, with margins falling to 11.3% (FY20: 12.2%). Tightening margins are a factor of changing product mix, with the privacy-safe Online Marketing division growing 133% y-o-y versus 17% for Online Presence. CentralNic has also completed the €60m acquisition of VGL, a product comparison website, funded by a £42m placing (at 120p per share), a €21m bond issue, with a £3m open offer outstanding.

Year end

Revenue (US$m)

Adjusted

EBITDA* (US$m)

PBT*
(US$m)

EPS*
(c)

DPS
(c)

P/E
(x)

12/20

240.0

29.4

18.6

10.0

-

16.9

12/21

410.5

46.3

31.9

11.8

-

14.3

12/22e**

516.1

60.6

46.3

15.4

-

10.9

12/23e**

605.2

69.9

57.0

17.3

-

9.7

Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items, share-based payments and non-core operating expenses. **FY22e and FY23e EPS figures reflect 268.7m voting shares in issue (post-placing).

VGL funded by placing, bond issue and open offer

VGL is CentralNic’s largest acquisition to date and completed on 7 March 2022. It is an online marketing business working principally with German e-commerce companies and delivered 65% organic growth in FY21 and US$55m in sales. CentralNic has paid €60m upfront (net of cash), with an earn-out of up to €38m payable over the next three years. The initial acquisition multiples are 1.2x historic sales and 6.2x EV/adjusted EBITDA. The acquisition lifts CentralNic’s unaudited FY21 proforma revenues to US$471m and adjusted EBITDA to US$58m and is expected to lead to ‘double-digit’ earnings enhancement for FY22, before synergies. The acquisition has been funded by a £42m placing at 120p per share, as well as a €21m bond issue, with a £3m open offer outstanding.

Raised estimates reflect growth of Online Marketing

Even before considering VGL, Online Marketing represented 64% of FY21 gross revenues and 55% of net revenues. Reflecting the continuing strong growth of Online Marketing, FY21 growth of 133% y-o-y versus 17% for Online Presence, we are raising our estimates for FY22/23. Including VGL (FY21 revenues of US$55m, EBITDA of US$11m), forecast gross revenues rise 23% and 33% to US$516m and US$605m in FY22 and FY23, respectively, delivering adjusted EBITDA of US$61m and US$70m.

Valuation: Growth at a reasonable price

On our updated estimates, CentralNic trades on an FY22 P/E of 10.9x and on 8.7x FY22 EV/adjusted EBITDA, markedly below its peer group. It has a seven-year revenue CAGR of 73%, putting it in the top 50 fastest growing technology companies in Europe (FT, 2022). CentralNic offers strong growth, with our estimate of 26% revenue growth for FY22, cash conversion over 100% and recurring revenue products contributing over 99% of total gross revenues.

FY21 results

Strong growth driven by Online Marketing

CentralNic’s FY21 results confirm what was disclosed in the two trading updates since year end. Driven by its investment programme, CentralNic delivered 39% organic revenue growth, with FY21 gross revenues rising 71% to US$411m (FY20: US$240m). Net revenues rose 58% to US$118m (FY20: US$75m), with gross margins stepping down to 29% (FY20: 31%). Adjusted EBITDA rose 57% to US$46m (FY20: US$31m), with margins contracting to 11.3% (FY20: 12.2%). The reason for the tightening margins was the continuing growth of its privacy-safe Online Marketing solution, with revenues growing 133% y-o-y (to US$261.3m) versus 17% for Online Presence (to US$149.3m). Online Marketing now represents 64% of group revenues and 55% of gross profits (before VGL), with gross margins of 25% versus 36% for Online Presence.

On a statutory basis, CentralNic reported an FY21 PBT of US$1.6m (FY20: loss of US$11.8m), leading to a loss after tax of US$3.5m (FY20: loss of US$10.9m) and a basic EPS loss of 1.6 cents (FY20: loss of 5.5 cents). This compares to FY21 adjusted PAT of US$26.8m (FY20: US$19.6m) and FY21 adjusted EPS of 11.8 cents (FY20: 10.0 cents). We include the 16.9m remaining shares held by the employee benefit trust in the fully diluted EPS, but because they are non-voting shares, we do not include them in the basic EPS calculation.

Given the c US$30m difference between reported and adjusted earnings in FY21, we note that adjusted earnings exclude non-cash charges and non-core operating expenses related primarily to acquisitions, integration and other related costs not incurred as part of the underlying trading performance of the group. The primary adjustments relate to amortisation of intangibles, non-core operating expenses and share-based payments (Note 7 to the accounts).

CentralNic reported adjusted operating cash conversion of 116%, with recurring revenue products contributing over 99% of revenues. This strong cash conversion contributed to a fall in net debt to US$75m (gross interest-bearing debt of US$131m, cash of US$56m) from US$85m for FY20, despite CentralNic making four acquisitions with a combined value of US$18m in FY21 and the settlement of US$2m of deferred consideration.

Management expects to continue its M&A-driven strategy, consolidating a large, global and fragmented market.

Segmental analysis: Online Marketing and Online Presence

The group’s segmental reporting has simplified considerably over the last few years, with CentralNic now reporting on two core divisions:

Online Presence, which incorporates CentralNic’s Indirect segment, the wholesale and registry businesses, selling to domain name retailers, as well as the group’s direct segment, which incorporates the small business and enterprise segments.

Online Marketing, incorporating the domain monetisation and performance advertising business for domain investors. Online Marketing was only established in December 2019, with the acquisition of Team Internet. However, since then, through strong organic growth (FY21: 65%), together with a range of acquisitions (including Zeropark, Voluum, Wando Internet and most recently Fireball Search and NameAction), Online Marketing now represents 64% of group revenue and 55% of net revenues.

Exhibit 1: FY21 net revenue split

Exhibit 2: FY21 geographical split

Source: CentralNic

Source: CentralNic. Note: The chart shows channel partner location and not the breakdown of end users.

Exhibit 1: FY21 net revenue split

Source: CentralNic

Exhibit 2: FY21 geographical split

Source: CentralNic. Note: The chart shows channel partner location and not the breakdown of end users.

Online Presence. FY21 gross revenues of US$149m, 17% growth, 9% organic growth. Growth was led by the group’s wholesale and enterprise segments, with enterprise benefiting from the SafeBrands acquisition (January 2021). The average annual revenue per domain increased from US$9.02 to US$9.24, with value-added service revenue rising by 8.3% in FY21.

Online Marketing. FY21 gross revenues of US$261m, 133% growth, 65% organic growth. Growth was predominantly driven by CentralNic’s PubTONIC media buying business (part of the Team Internet acquisition in December 2019), with the M&A-driven growth arising from the full-year impact of the Zeropark and Voluum acquisitions in September 2020 and the acquisitions of Wando and the White & Case website portfolio in FY21. Importantly, none of CentralNic’s marketing platforms use third-party cookies or collect personal data. As the provider of an alternative means of online monetisation, CentralNic hopes to benefit from any ban by Google on third-party cookies and App Tracking Transparency in Apple's iOS 14.5. Revenue per thousand sessions increased by 36% y-o-y from US$48 to US$65.

VGL acquisition: Earnings and margin enhancing

VGL Verlagsgesellschaft (VGL) is CentralNic’s largest acquisition to date, lifting CentralNic’s FY21 pro forma revenues and EBITDA to US$471m and US$58m, respectively.

Exhibit 3: Pro forma FY21 gross revenue breakdown by segment (post-VGL)

Source: CentralNIc, Edison Investment Research

VGL is an online marketing business working principally with German e-commerce companies that delivered 65% organic growth in FY21. Management expects future annual growth to be above that for the CentralNic group, but slightly below that of the Online Marketing division. With FY21 gross revenues of US$55.3m and adjusted EBITDA of US$10.9m, FY21 margins were 19.7%, significantly above CentralNic group margins (FY21: 11.3%) and those for Online Marketing.

CentralNic has paid €60m upfront (net of cash on the VGL balance sheet), with an earn-out of up to €38m payable over the next three years. The acquisition multiples for the initial consideration are 1.2x FY21 sales and 6.2x FY21 EV/adjusted EBITDA. Management expects the deal to be ‘double-digit’ earnings enhancing for FY22, before synergies.

The acquisition has been funded through a £42m placing at 120p per share, as well as a €21m bond issue, together with a £3m open offer (due to complete on 21 March 2022, also at 120p per share), Together, these have funded the €67m initial cash consideration, with the earn-out expected to be funded from operating cash flows.

The placing has led to the issue of 35m new shares (with a further 2.5m due to be issued under the open offer), taking the total number of voting shares to 269.2m (286.6m fully diluted, including 17.4m non-voting shares held by the employee benefit trust). In total, the new shares will represent c 14% of the enlarged voting share capital.

Bond refinancing could lead to US$2.5m of annualised savings

At 31 December 2021, CentralNic had US$117m of outstanding bonds. With a further c US$23m added through the acquisition of VGL, there are a total of US$140m of bonds outstanding post-VGL. Management has indicated there is an opportunity to refinance these bonds between H222 and Q123. The bonds were issued in 2019 when the group was smaller and less well established, with a coupon of 7% above Euribor. As such, management hopes to attract considerably better financing terms, with recent tap issues confirming demand at a 5% coupon and below. A saving of 2% on US$140m of bonds would equate to annual interest savings of over US$2.5m.

Estimates updated for growth of Online Marketing

Despite the early stage of the year, management guidance is for FY22 revenues and adjusted EBITDA at or above the high end of analyst expectations (FY22 revenues US$469m and adjusted EBITDA US$51m), before factoring in the impact of the VGL acquisition, which delivered FY21 revenues of US$55m and adjusted EBITDA of US$11m. In line with management guidance, and incorporating VGL, we have updated our estimates for FY22/23.

Exhibit 4: Edison’s revised estimates

Year end 31 December

US$'000

Actual
2021

Change (%)

Old
2022e

New
2022e

Change (%)

Old
2023e

New
2023e

Change (%)

Gross revenue

410,540

70%

420,183

516,125

23%

453,797

605,201

33%

Net revenue

118,499

55%

138,660

144,515

4%

149,753

166,430

11%

Adj. EBITDA

46,251

51%

48,006

60,634

26%

51,846

69,888

35%

Profit before tax (norm)

31,939

61%

33,635

46,316

38%

37,181

56,990

53%

Profit before tax (reported)

1,555

14,174

15,361

21,413

28,143

Reported tax

(5,097)

(5,437)

(5,986)

(6,424)

(10,429)

Net income (normalised)

26,842

29%

28,198

40,329

43%

30,757

46,561

51%

Basic average number of shares outstanding (m)

227,381

16%

230,381

261,321

13%

230,381

268,692

17%

EPS - basic normalised (c)

11.80

12%

12.24

15.43

26%

13.35

17.33

30%

*EPS - diluted normalised (c)

10.69

5%

11.16

14.35

29%

12.17

16.15

33%

Revenue growth (%)

71.0

9.4

25.7

8.0

17.3

Gross margin (%)

28.9

33.0

28.0

33.0

27.5

Adj. EBITDA margin (%)

11.3

11.4

11.7

11.4

11.5

Capex

(3,555)

(17)%

(4,747)

(5,830)

23%

(5,126)

(6,837)

33%

Closing net debt/(cash)

74,975

(12)%

59,873

68,359

14%

30,690

35,526

16%

Source: CentralNic accounts, Edison Investment Research. Note: *Edison assumes a total of 288.4m fully-diluted shares (after the placing), including employee benefit trust shares in the fully-diluted EPS calculation.

As a result, we have revised our estimates, reflecting the following principal changes:

Gross revenue growth. We have raised our organic growth rate for CentralNic in FY22 and FY23 from 10.0% to 12.5%, having updated the FY21 revenue run-rate for the strong end to the year. Including VGL, this translates to a 23% rise in our FY22 gross revenue estimate to US$516m, with a 33% rise in FY23 to US$605m.

Gross margin. CentralNic’s FY21 gross margin was 28.9%, meaningfully below our prior FY22 forecast of 33%. We have decreased our FY22 gross margin to 28.0%, with FY23 at 27.5%, assuming a degree of ongoing group margin erosion as Online Marketing continues to outgrow Online Presence.

Adjusted EBITDA and adjusted EBITDA margins. Despite our base assumption for ongoing margin erosion as long as Online Marketing continues to outgrow Online Presence, we have raised our FY22 margin assumption to 11.7% (from 11.3% in FY21) and 11.5% in FY23 to reflect the higher margin contribution from VGL (FY21: 20%). This leads to an FY22 adjusted EBITDA of US$61m (26% increase) and US$70m in FY23 (35% increase).

We assume operating cash conversion of 110–120% for FY22/23.

M&A: Continued consolidation of a fragmented market

In our note, A scaling player in online services, we discussed the first three acquisitions of FY21: SafeBrands (Direct), a French-based brand protection software provider for US$3.7m (plus a US$0.7m earn-out); Wando Internet Solutions (Online Marketing), for US$13.0m in cash (including a US$6.5m earn-out); and a publishing network of revenue generating websites from White & Case for US$6.5m in cash (Online Marketing).

CentralNic completed one more acquisition in FY21, with two further small deals in FY22:

NameAction (December 2021):

CentralNic acquired the assets of NameAction, a domain name and brand protection business based in Chile, for US$1m in cash. Management expects NameAction to provide a springboard for CentralNic to expand in Latin America, contributing c US$2m in annual recurring revenues and US$0.2m in adjusted EBITDA from FY22 and implying acquisition multiples of 0.5x sales and 5x adjusted EBITDA.

Fireball Search (February 2022): the Fireball Search and .ruhr top-level domain (TLD) deals were acquired for a total cash consideration of €0.5m, at multiples of c 0.3x sales and c 0.6x EBITDA. Fireball was the leading search engine in Germany before it was bought by Lycos Europe in 2000. It was relaunched as an independent company in 2016. Fireball offers new traffic sources for CentralNic to monetise and adds alternative monetisation channels to generate revenues from internet traffic.

.ruhr TLD (February 2022): .ruhr is the geographical TLD for the area around the river Ruhr in Germany, with c 50 cities, including Dortmund and Essen, roughly five million inhabitants and c 10k registered domain names. .ruhr will be fully managed by CentralNic, alongside existing regional TLDs, .saarland and .London, as part of CentralNic’s expanding portfolio of geographic TLDs. The acquisition is expected to close by the end of May 2022.

Valuation: Growth at a reasonable price

With a compelling mix of sticky revenues, strong cash conversion and high growth, CentralNic continues to offer an attractive balance of growth at a reasonable price.

In its latest 2022 index, the Financial Times listed CentralNic as one of the top 250 fastest-growing companies and among the top 50 fastest-growing technology companies in Europe, with a CAGR of 73% over the past seven years, since its AIM IPO.

Whether we compare CentralNic to web services (CentralNic’s Online Presence) or online marketing companies, the group continues to trade at a material discount to its peers, despite the growth it has delivered in FY21, organic growth of 39% and 71% overall revenue growth. Including VGL, we see FY22 revenues of US$522m, or 27% prospective growth year-on-year.

With the superior growth of Online Marketing, which we expect to continue for the foreseeable future, the group is leaning ever more heavily towards digital marketing. We have identified a combination of European and North American peers and are choosing to disregard the large-cap peers, focusing instead on those companies with an enterprise value below US$3bn (Exhibit 4).

Average current year sales growth for the peer group is c 17%, with average EV/EBITDA multiples of 11x and 9x for FY1 and FY2, respectively, and P/E multiples of 26x for FY1 and 21x for FY2. We estimate that CentralNic will deliver 26% sales growth in FY22 (post VGL), meaning it would offer amongst the strongest growth in the group and yet trades on an FY22 P/E multiple of 10.9x and an FY23 P/E multiple of 9.7x, a discount to the online marketing peer group averages of c 30%.

Exhibit 5: Online Marketing peer group

Year end

Share price

Quoted Ccy

EV (US$m)

Sales Growth FY1 (%)

EBITDA margin FY1 (%)

EBIT margin FY1 (%)

EV/ sales FY1(x)

EV/ sales FY2 (x)

EV/ EBITDA FY1 (x)

EV/ EBITDA FY2 (x)

P/E 1FY (x)

P/E 2FY (x)

CentralNic Group

Dec-22

128.5

GBp

527.3

25.7

11.7

10.9

1.02

0.87

8.7

7.5

10.9

9.7

Online marketing peers

Magnite

Dec-22

12.7

USD

2,166

29.3

32.3

10.4

4.0

3.3

12.5

9.8

16.9

12.4

Taboola.com

Dec-22

5.6

USD

1,277

21.4

12.3

1.7

0.8

0.7

6.2

5.3

NM

34.9

PubMatic

Dec-22

21.7

USD

989

25.2

36.3

16.4

3.5

2.8

9.6

7.5

32.5

24.4

Media and Games Invest

Dec-22

3.3

EUR

757

20.9

28.1

17.8

2.3

2.0

8.1

6.8

15.1

12.7

Tremor International

Dec-22

534.0

GBp

738

8.5

41.3

25.8

2.0

1.7

4.8

4.7

9.9

8.4

dotDigital Group

Jun-22

58.0

GBp

180

9.4

32.5

22.1

2.1

1.9

6.6

6.1

14.7

14.1

Quinstreet Inc

Jun-22

10.5

USD

456

5.1

7.0

3.5

0.7

0.7

10.7

7.8

20.9

15.1

Viant Technology Inc

Dec-21

7.4

USD

435

29.8

15.8

(23.3)

2.0

1.7

12.9

11.3

NM

NM

Dianomi PLC

Dec-21

345.0

GBp

127

NM

8.2

7.8

2.7

2.1

32.3

25.1

46.2

35.8

AcuityAds Holdings Inc

Dec-21

3.5

CAD

97

16.0

17.1

9.2

1.0

0.8

5.9

5.7

18.8

24.1

Ad Pepper Media

Dec-21

3.9

EUR

70

7.7

15.9

11.6

2.3

2.1

14.6

11.2

55.7

32.5

Mean

17

22

9

2.1

1.8

11

9

26

21

Median

18

17

10

2.1

1.9

10

7

19

20

Source: Refinitiv. Note: Priced at 8 March 2022; CentralNic estimates are from Edison Investment Research.

Given the group’s domain name and web services origins, we also look at international web services pers. Disregarding Verisign, which we include for completeness, the web services peer group in Exhibit 5 trades at average EV/sales multiples of 2.3x for FY1 and 2.1x for FY2 and EV/EBITDA multiples of 8x for FY1 and 7x FY2. In terms of P/E, the peer group trades at 16x for FY1 and 14x for FY2, with CentralNic trading at a c 30% discount.

Exhibit 6: Online Presence peer group

Year end

Share price

Quoted Ccy

EV (US$m)

Sales Growth FY1 (%)

EBITDA margin FY1 (%)

EBIT margin FY1 (%)

EV/ sales FY1(x)

EV/ sales FY2 (x)

EV/ EBITDA FY1 (x)

EV/ EBITDA FY2 (x)

P/E 1FY (x)

P/E 2FY (x)

CentralNic Group

Dec-22

128.5

GBp

527.3

25.7

11.7

10.9

1.02

0.87

8.7

7.5

10.9

9.7

Web services / Online Presence peers

Verisign

Dec-22

217.9

USD

24,582

8.2

66.8

65.0

17.1

15.5

25.6

21.4

36.1

29.9

GoDaddy

Dec-22

80.5

USD

16,111

8.9

22.5

11.6

3.9

3.5

17.2

15.2

37.7

29.2

Criteo

Dec-22

29.7

USD

1,273

13.0

31.1

21.2

1.2

1.1

3.9

3.5

9.7

8.5

Catena Media

Dec-22

41.4

SEK

384

16.1

46.8

39.2

2.2

2.1

4.8

4.3

8.0

6.9

iomart group

Mar-22

151.6

GBp

286

(5.9)

36.8

17.6

2.1

2.0

5.6

5.6

12.1

12.2

R22

Jun-22

41.5

PLN

173

NM

26.6

21.3

2.2

2.0

8.1

7.4

14.3

13.4

Mean

8

38

29

4.8

4.4

11

10

20

17

Mean (ex Verisign)

8

33

22

2.3

2.1

8

7

16

14

Median

9

34

21

2.2

2.0

7

7

13

13

Source: Refinitiv. Note: Priced at 8 March 2022; CentralNic estimates are from Edison Investment Research.

Exhibit 7: Financial summary

31-December

US$’000

2019

2020

2021

2022e

2023e

INCOME STATEMENT

IFRS

IFRS

IFRS

IFRS

IFRS

Gross revenue

 

 

109,194

240,012

410,540

516,125

605,201

Cost of Sales

(66,419)

(164,894)

(292,041)

(371,610)

(438,771)

Net revenue

42,775

75,118

118,499

144,515

166,430

Adj. EBITDA

 

 

17,921

29,394

46,251

60,634

69,888

Normalised operating profit

 

 

16,615

27,310

42,737

56,216

64,708

Amortisation of acquired intangibles

(8,299)

(13,747)

(18,291)

(23,004)

(23,347)

Exceptionals

(8,259)

(10,529)

(7,087)

(4,000)

-

Share-based payments

(2,878)

(5,113)

(5,006)

-

-

Reported operating profit

(2,821)

(2,079)

12,353

29,212

41,360

Net Interest

(471)

(8,693)

(10,798)

(9,900)

(7,718)

Joint ventures & associates (post tax)

74

79

-

-

-

Exceptionals

-

-

-

(3,950)

(5,500)

Profit Before Tax (norm)

 

 

16,144

18,617

31,939

46,316

56,990

Profit Before Tax (reported)

 

 

(6,616)

(11,834)

1,555

15,361

28,143

Reported tax

39

975

(5,097)

(5,986)

(10,429)

Profit After Tax (norm)

16,119

19,592

26,842

40,329

46,561

Profit After Tax (reported)

(6,577)

(10,859)

(3,542)

9,375

17,713

Minority interests

64

-

-

-

-

Discontinued operations

-

-

-

-

-

Net income (normalised)

16,183

19,592

26,842

40,329

46,561

Net income (reported)

(6,513)

(10,859)

(3,542)

9,375

17,713

Basic average number of shares outstanding (m)

175,084

196,680

227,381

261,321

268,692

EPS - basic normalised (c)

 

 

9.24

9.96

11.80

15.43

17.33

EPS - diluted normalised (c)

 

 

8.97

9.57

10.69

14.35

16.15

EPS - basic reported (c)

 

 

(3.72)

(5.52)

(1.56)

3.59

6.59

Dividend (c)

0.00

0.00

0.00

0.00

0.00

Revenue growth (%)

155.9

119.8

71.0

25.7

17.3

Gross Margin (%)

39.2

31.3

28.9

28.0

27.5

Adj. EBITDA Margin (%)

16.4

12.2

11.3

11.7

11.5

Normalised Operating Margin

15.2

11.4

10.4

10.9

10.7

BALANCE SHEET

Fixed Assets

 

 

217,544

270,578

271,830

329,188

312,610

Intangible Assets

206,055

255,716

254,169

313,364

298,351

Tangible and Right-of-use Assets

6,427

8,677

8,601

6,764

5,638

Investments & other

5,062

6,185

9,060

9,060

8,621

Current Assets

 

 

67,433

77,606

128,391

158,527

192,432

Stocks

491

1,011

895

895

1,967

Debtors

40,760

47,941

71,363

71,363

71,363

Cash & cash equivalents

26,182

28,654

56,133

86,269

119,102

Other

-

-

-

-

-

Current Liabilities

 

 

(78,767)

(96,421)

(137,129)

(130,710)

(131,242)

Creditors

(75,683)

(89,256)

(117,016)

(117,016)

(117,016)

Tax and social security

-

-

-

-

-

Short term borrowings

(3,084)

(7,165)

(13,694)

(13,694)

(14,226)

Other

-

-

(6,419)

-

-

Long Term Liabilities

 

 

(129,206)

(137,867)

(149,110)

(172,630)

(172,630)

Long term borrowings

(102,799)

(113,024)

(124,356)

(147,876)

(147,876)

Other long term liabilities

(26,407)

(24,843)

(24,754)

(24,754)

(24,754)

Net Assets

 

 

77,004

113,896

113,982

184,376

201,170

Minority interests

69

-

-

-

-

Shareholders' equity

 

 

77,073

113,896

113,982

184,376

201,170

CASH FLOW

PBT

(6,616)

(11,834)

1,555

15,361

28,143

Depreciation and amortisation

9,605

15,831

21,805

27,422

28,528

Share-based payments

2,878

5,113

5,006

-

-

Working capital

8,963

4,129

1,503

-

(1,072)

Exceptional & other

3,795

9,413

10,798

9,900

7,718

Tax

(2,309)

(1,957)

(2,230)

(5,986)

(10,429)

Net operating cash flow

 

 

16,316

20,695

38,437

46,697

52,887

Capex

(15,497)

(4,259)

(3,555)

(5,830)

(6,837)

Acquisitions/disposals

(63,840)

(40,718)

(20,063)

(78,950)

(5,500)

Net interest

(1,970)

(9,512)

(8,647)

(9,900)

(7,718)

Equity financing

2,133

34,667

-

54,600

-

Dividends

-

-

-

-

-

Other

-

-

-

-

-

Net Cash Flow

(62,858)

873

6,172

6,616

32,832

Opening net debt/(cash)

 

 

2,115

74,998

84,985

74,975

68,359

FX

(6,730)

1,117

(2,718)

-

-

Other non-cash movements

(3,295)

(11,977)

6,556

-

-

Closing net debt/(cash)

 

 

74,998

84,985

74,975

68,359

35,526

Source: Company accounts, Edison Investment Research

General disclaimer and copyright

This report has been commissioned by CentralNic Group and prepared and issued by Edison, in consideration of a fee payable by CentralNic Group. Edison Investment Research standard fees are £60,000 pa for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services.

Accuracy of content: All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report and have not sought for this information to be independently verified. Opinions contained in this report represent those of the research department of Edison at the time of publication. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations.

Exclusion of Liability: To the fullest extent allowed by law, Edison shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained on this note.

No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The securities described in the report may not be eligible for sale in all jurisdictions or to certain categories of investors.

Investment in securities mentioned: Edison has a restrictive policy relating to personal dealing and conflicts of interest. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report, subject to Edison's policies on personal dealing and conflicts of interest.

Copyright: Copyright 2022 Edison Investment Research Limited (Edison).

Australia

Edison Investment Research Pty Ltd (Edison AU) is the Australian subsidiary of Edison. Edison AU is a Corporate Authorised Representative (1252501) of Crown Wealth Group Pty Ltd who holds an Australian Financial Services Licence (Number: 494274). This research is issued in Australia by Edison AU and any access to it, is intended only for ‘wholesale clients’ within the meaning of the Corporations Act 2001 of Australia. Any advice given by Edison AU is general advice only and does not take into account your personal circumstances, needs or objectives. You should, before acting on this advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If our advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument.

New Zealand

The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are ‘wholesale clients’ for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a ‘personalised service’ and, to the extent that it contains any financial advice, is intended only as a ‘class service’ provided by Edison within the meaning of the FAA (i.e. without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision.

United Kingdom

This document is prepared and provided by Edison for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the ‘FPO’) (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document.

This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.

United States

Edison relies upon the ‘publishers' exclusion’ from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. This report is a bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Edison does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

General disclaimer and copyright

This report has been commissioned by CentralNic Group and prepared and issued by Edison, in consideration of a fee payable by CentralNic Group. Edison Investment Research standard fees are £60,000 pa for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services.

Accuracy of content: All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report and have not sought for this information to be independently verified. Opinions contained in this report represent those of the research department of Edison at the time of publication. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations.

Exclusion of Liability: To the fullest extent allowed by law, Edison shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained on this note.

No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The securities described in the report may not be eligible for sale in all jurisdictions or to certain categories of investors.

Investment in securities mentioned: Edison has a restrictive policy relating to personal dealing and conflicts of interest. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report, subject to Edison's policies on personal dealing and conflicts of interest.

Copyright: Copyright 2022 Edison Investment Research Limited (Edison).

Australia

Edison Investment Research Pty Ltd (Edison AU) is the Australian subsidiary of Edison. Edison AU is a Corporate Authorised Representative (1252501) of Crown Wealth Group Pty Ltd who holds an Australian Financial Services Licence (Number: 494274). This research is issued in Australia by Edison AU and any access to it, is intended only for ‘wholesale clients’ within the meaning of the Corporations Act 2001 of Australia. Any advice given by Edison AU is general advice only and does not take into account your personal circumstances, needs or objectives. You should, before acting on this advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If our advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument.

New Zealand

The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are ‘wholesale clients’ for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a ‘personalised service’ and, to the extent that it contains any financial advice, is intended only as a ‘class service’ provided by Edison within the meaning of the FAA (i.e. without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision.

United Kingdom

This document is prepared and provided by Edison for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the ‘FPO’) (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document.

This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.

United States

Edison relies upon the ‘publishers' exclusion’ from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. This report is a bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Edison does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

Share this with friends and colleagues

You may be interested in