Currency in GBP
Last close As at 09/06/2023
GBP1.10
▲ −0.80 (−0.72%)
Market capitalisation
GBP311m
Research: TMT
CentralNic has delivered another record quarter, with pro forma last 12 months organic revenue growth of 62% to 30 June 2022 (53% to 31 March 2022), driven by the performance of the Online Marketing division. CentralNic’s privacy-safe approach to online marketing has proved resilient and to be high growth. As a result, H122 revenue is expected to be US$335m (H121: US$175m), with adjusted EBITDA of US$38m (H121: US$20.5m), a margin of 11.3% (Q122: 11.8%). Both H122 revenue and adjusted EBITDA figures represent 58% of our FY22 estimates (revenues US$573m, adjusted EBITDA US$66m). Management is guiding towards CentralNic meeting at least the upper end of market expectations for FY22, disclosed as revenues of US$603m and adjusted EBITDA of US$70m, although this appears conservative given the annual run-rate. CentralNic trades on an undemanding rating given its growth (FY22 EV/adjusted EBITDA of 6.8x and P/E of 9.5x). We will review our forecasts with the full H122 results due on 30 August.
CentralNic Group |
Flying high with 62% organic revenue growth |
H122 trading update |
Software & comp services |
21 July 2022 |
Share price performance Business description
Analysts
CentralNic Group is a research client of Edison Investment Research Limited |
CentralNic has delivered another record quarter, with pro forma last 12 months organic revenue growth of 62% to 30 June 2022 (53% to 31 March 2022), driven by the performance of the Online Marketing division. CentralNic’s privacy-safe approach to online marketing has proved resilient and to be high growth. As a result, H122 revenue is expected to be US$335m (H121: US$175m), with adjusted EBITDA of US$38m (H121: US$20.5m), a margin of 11.3% (Q122: 11.8%). Both H122 revenue and adjusted EBITDA figures represent 58% of our FY22 estimates (revenues US$573m, adjusted EBITDA US$66m). Management is guiding towards CentralNic meeting at least the upper end of market expectations for FY22, disclosed as revenues of US$603m and adjusted EBITDA of US$70m, although this appears conservative given the annual run-rate. CentralNic trades on an undemanding rating given its growth (FY22 EV/adjusted EBITDA of 6.8x and P/E of 9.5x). We will review our forecasts with the full H122 results due on 30 August.
Year end |
Revenue (US$m) |
Adjusted EBITDA* |
PBT* |
EPS** |
DPS |
P/E |
12/19 |
240.0 |
29.4 |
18.6 |
10.0 |
0.0 |
16.5 |
12/20 |
410.5 |
46.3 |
31.9 |
11.8 |
0.0 |
13.9 |
12/22e |
573.5 |
65.9 |
51.1 |
15.5 |
0.0 |
10.6 |
12/23e |
672.4 |
76.0 |
62.5 |
17.3 |
0.0 |
9.5 |
Note: *Excludes impact of share-based payments, share option expense, foreign exchange charges and non-core operating costs. **FY22e and FY23e EPS figures reflect 271.2m voting shares in issue.
Net debt was down 20% at the end of the first half to US$65m versus FY21 (US$81m) and up marginally from US$61.3m as at the end of Q122. Adjusted cash conversion remained above 100%. As of June 2022, CentralNic joined the AIM 100 and AIM UK 50 indices.
In parallel with the trading update, CentralNic also confirmed a final US$1.14m deferred cash payment for the August 2018 acquisition of KeyDrive (Online Presence). inter.services, KeyDrive’s major selling shareholder, has agreed to a 180-day lock-up on its shares. inter.services is a company through which Horst Siffrin, one of CentralNic’s non-executive directors, holds a 12.84% stake in CentralNic.
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Research: Industrials
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