CentralNic Group (AIM: CNIC)

Currency in GBP

Last close As at 06/02/2023

GBP1.46

3.50 (2.46%)

Market capitalisation

GBP406m

CentralNic’s two divisions help businesses go online: Online Presence (reseller, corporate and SME) and Online Marketing. Services include domain name reselling, hosting, website building, security certification and website monetisation.

Online Marketing is CNIC’s largest and fastest growing division, with its privacy-focused targeted advertising platform providing strong scope to capture market share. In FY22, the global Online Marketing market generated revenues of $616bn, growing 15% y-o-y, highlighting the significant opportunity for the company. The Online Presence market, its other area of operations, grew at a slower rate and reported $60bn in total revenues.

CentralNic Group_resized

Sector

TMT

Equity Analyst

Max Hayes

Max Hayes

Associate Analyst

Key Management

  • Ben Crawford

    CEO

  • Don Baladasan

    Group managing director

  • Iain McDonald

    Chairman

  • Michael Riedl

    CFO

Balance Sheet

Forecast net debt (US$m)

57

Forecast gearing ratio (%)

30

Share Price Performance

Price Performance
% 1M 3M 12M
Actual (8.3) 11.3 12.7
Relative (13.2) 1.1 11.5
52 week high/low 159.0p/111.0p

Financials

CentralNic (CNIC) had a transformative FY22, ending the year with CEO Ben Crawford’s retirement from the CNIC board, with group CFO Michael Riedl appointed as his successor. Alongside this management change, the company is reviewing cash flow deployment within the business and expects to have a greater focus on returns to shareholders versus M&A, which it began with a £4m share buyback programme launched on 30 December. We have upgraded our FY22 and FY23 revenue and profit forecasts to reflect these recent announcements, as well as the group’s strong trading.

Y/E Dec Revenue (US$m) EBITDA (US$m) PBT (US$m) EPS (fd) (c) P/E (x) P/CF (x)
2020A 240.0 29.4 17.6 6.86 25.4 85.8
2021A 410.5 46.3 31.9 10.91 15.9 16.9
2022E 728.0 85.2 69.5 18.04 9.6 7.0
2023E 833.7 94.4 79.6 19.35 9.0 7.5

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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