The next focusIR Investor Webinar takes places on 14th May with guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
New interview with Zeus Capital's analyst re CNIC's very bullish trading update and upgrade:
"CentralNic Group Upgraded outlook and further upside (Analyst Interview)"
Https://www.***************************/centralnic-group-upgraded-outlook-and-further-upside-analyst-interview/4121028819
Stifel already had a 256p price target here, whilst Berenberg had a 200p target - I assume they'll wait until the year end update to further upgrade.
Techmarketview update this morning on CNIC's "blistering" progress:
Https://www.techmarketview.com/ukhotviews/archive/2021/10/18/centralnic-goes-from-strength-to-strength
"Monday 18 October 2021
CentralNic goes from strength to strength
The relentless progress of internet domain name and web services provider CentralNic Group plc continues to build momentum. The company’s latest trading update reveals that the already blistering rate of growth achieved in H121 (see here) has risen further during the third quarter. Turnover for the first the nine months of the current financial year is expected to be up 66% yoy to $280m. This means that Q3 sales have almost doubled compared to the same period in FY20.
Acquisitions remain responsible for the majority of this top line improvement. The pace of expansion of CentralNic’s organic revenue has, however, also advanced. This is estimated to have increased from 25% yoy in H1 to 29% during the first nine months of 2021. It is anticipated that adjusted EBITDA between January and September will have jumped by at least by 44% to $32m.
When commenting on the internet platform provider’s first half figures, we thought it likely that management’s full year guidance would be revised upwards come the end of Q3. CentralNic now expects to trade comfortably at or above the upper end of market expectations for the FY21. The company will provide more detail on its performance during the first three quarters of this year when publishes interim results for this period later next month."
Zeus Capital have an update note out - they keep their estimates unchanged for the moment, but are pretty bullish about the outlook:
Https://*********************/companies/uk/multiservice-media-agencies/centralnic-group-plc/research/zeus-capital/centralnic-group-plc-cnic-ln-further-acceleration-in-growth/075958b3-28d6-45d1-a7a8-19c1fd4d94c9
Extracts:
"9M FY21 results tracking ahead of expectations: CentralNic expects to 9M FY21 revenue to be at least $280m and adjusted EBITDA to be at least $32m. These figures indicate that the company is on track to exceed our full year 2021 revenue and adjusted EBITDA estimates. 9M FY21 revenue and adjusted EBITDA represent over 79% and over 77% of our current full year revenue and adjusted EBITDA estimates, respectively."
"We are encouraged to see profit upgrades following several revenue outlook upgrades since the beginning of the year. The company appears positioned for further earnings upgrades, given that 9M FY21 results are tracking ahead of our forecasts."
"Valuation: We see an increasingly strong profit growth profile for CentralNic. The Online Marketing division continues to take market share, the Direct and Indirect divisions are accelerating growth through investment and, longer term, we expect to see operating leverage as the company elevated investment levels plateau. We believe this outlook is not reflected in CentralNic’s earnings multiples. Shares trade at only 11x our conservative 2021 EBITDA estimates and 7% FCFF yield."
Yet another excellent trading statement for Q3 just finished, setting things up nicely for the year end.
Organic growth has accelerated further to a record 29%, and now CNIC "expects to trade comfortably at or above the upper end of market expectations for the year* for both revenue and adjusted EBITDA".....
And once again "Adjusted operating cash conversion continues to be in excess of 100%", giving humungous cash inflows and leading to sizeable quarterly debt reduction despite the two acquisitions.
The share price should respond rather nicely:
Https://uk.advfn.com/stock-market/london/centralnic-CNIC/share-news/CentralNic-Group-PLC-Q3-Trading-Update-and-Notice/86303905