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Rose 2.2% today against a falling market. I'm not sure, but the rise may be the news of a big takeover in the media industry, but haven't found the details yet. This rise has brought me almost level at last.
I have decided to hold on to the shares I have and to add when I can if the price stays low. Hope it all goes well for your investment but I don't think you will have many regrets.
Thanks for the post, courtier. I have had CAU on my watch list for a while and I decided to buy a very modest amount of shares today. I will tuck them away for the dividend and potential growth as the company re-focuses their energies :)
Holding steady against a poor market since the disastrous drop last week. 6.5% dividend at this price makes for a good buying opportunity.
From Centaur's last RNS: "Looking ahead, our investment in existing and new products has given us a strong pipeline of new digital platforms and event launches. With print revenues expected to stabilise, digital and events revenues growing well, and deferred revenues of £19m, 32% ahead of the same period last year, we believe that the outlook for the 2014 financial year remains positive." I remain hopeful of steady recovery over the next year.
The market does not like the interim results published Feb 2013 and has punished Centaur with a hefty 27% price fall. There are some good points: Revenue remained good, nominally up 14%. Margins were up 4 percent Interim Dividend up 10%. Digital is now 35% against a target of 50%. EBITDA margin up 4% to 10% Healthy new product pipe line. There are some not so good points: Loss increased to £4.4 million from £1.3 million, including £4million exceptional expenses. Net debt up from £5.4 million to £24.5 million. I have not been following Centaur long enough to comment much but they have been growing strongly through acquisitions which may well account for much of the above. I think that at this new level Centaur is a very good buy indeed. Pity I bought last year...
Numis Securities rate CAU as a BUY with 110% upside potential http://www.igmarkets.co.uk/cfd/uk-ratings.html DYOR and GLA
Centaur Media seems the perfect example of how a rising market lifts all boats regardless. The shares have doubled since July, but the halfway figures, though in no way a disappointment, suggest no particular reason for optimism yet, and a couple of negative brokers' notes saw the shares subside 5�p to 53p again. The business publishing division is still suffering, but digital is now 39% of revenues and margins are improving to an extent that earlier targets of 20% look achievable. Part of the problem is that the financial results are heavily skewed towards the fourth quarter, April to June, when subscriptions are up for renewal. The company had hoped to return to underlying revenue growth this year, but a cautious statement with the interims implies this is not yet certain, and, given the low visibility, nor can it be. The shares sell on less than ten times' earnings, but there looks like no immediate reason why they should head back up again, Tempus writes.
This seems to me to be just what I would hope for from Centaur Media, but the market doesn't like it... http://www.independent.co.uk/news/business/news/digitalfirst-centaur-media-is-back-on-lookout-for-buys-8504025.html?origin=internalSearch I do think their efforts to change with the digital world are to be encouraged.
"The second half of our financial year continues to account for the large majority of our earnings. Although we remain dependent on underlying revenues returning to growth in the second half, we anticipate trading will be in line with our expectations for the current financial year." The group is moving away from publishing and towards digital information and events, and is focusing on investing in innovation across all divisions. Wilmot said that the company plans to increase the contribution to revenue from its Digital business to 50% within the next few years. The company's results also failed to impress broker Westhouse Securities, which downgraded the stock from add to neutral, with its target price at 55p. ................
In an interview with Sharecast and Digitalook, the company's Chief Executive, Geoff Wilmot, stressed that Centaur is making good progress with its transformation, pointing to "significant" increases to margins, but said that it was the seasonal nature of the business that means the majority of revenues are generated in the second half of the year. "We're restructuring in a cost effective and scalable way," he said. "The business is now repositioned and restructured. We are maintaining momentum in improving the quality of our portfolio and remain focused on increasing margins. We have an exciting pipeline of new product development initiatives across each of our three operating divisions, which positions us well for further growth in the medium term.
Centaur Media, a business information, events and marketing services group, failed to impress investors with its half yearly results on Wednesday, despite being firmly upbeat about its outlook. The company, which is midway through a three-year transitional phase, reported a 3.0% drop in underlying growth, but said reported growth was up 14%, following a series of acquisitions. Pre-tax losses widened to 5.0m, from 1.5m a year earlier. The group said despite this decline it is confident about its progress, and underlined this with a 10% increase in the interim dividend to 0.825p from 0.75p for the same period in 2011.
URL for the report on the six months to 31st December 2012 http://hsprod.investis.com/ir/cau/ir.jsp?page=newsitem&item=1307102429579867
These shares have had a great run but todays statement has led Peel Hunt to issue a downgrade. May be an opportune moment to take profits.
Thanks for the link Pabloiom, I am thinking just the opposite. Here we have a proactive company whose managers buy their own shares. They are obviously adapting to the market they are in, which is probably changing as fast as any. They are commited to a mature dividend policy which should bring 5% in the sensible future. I do not have any spare cash at he moment but if I had they would be on my short list still.
Centaur Media (CAU) Director name: Mr Colin Morrison Amount purchased: 100,000 @ 42.20p Value: £42,200
Events firm and trade publisher Centaur Media said it had seen significant improvement in revenues and cost base at the start of its 2012/13 financial year. The firm reported revenues across the group ware up by 14% in the period with EBITDA (earnings before interest, tax, depreciation and amortisation) margins benefitting from recent restructuring initiatives. Digital and events revenues accounted for 38% and 30% of total revenues in the period, up from 32% and 22% in the same period last year. Across the Business Publishing division marketing, legal and financial communities continue to see weakness in advertising revenues. However, its the HR and engineering 'communities' reported good rates of underlying growth. The outlook across Business Publishing for the seasonally stronger second half of the financial year remained relatively uncertain for the Group's advertising-led products, Centaur said. "Whilst trading conditions remain challenging in some markets, we are well placed to deliver further growth in 2013 and continue to make good progress towards our medium-term targets," said Chief Executive Geoff Wilmot. "We anticipate trading to be in line with our expectations for the current financial year."
Geoff Wilmot, Chief Executive, commented: "We have seen a significant improvement in our revenue profile and cost base at the start of the 2013 financial year, and the business has demonstrated strong momentum in growing its revenues from digital and events. Whilst trading conditions remain challenging in some markets, we are well placed to deliver further growth in 2013 and continue to make good progress towards our medium-term targets. We anticipate trading to be in line with our expectations for the current financial year."
CONT The Business Information division continues to maintain good rates of underlying revenue growth, with reported revenues up substantially, reflecting the impact of the VBR, Profile and Econsultancy acquisitions, each of which also continues to report good rates of growth. The Econsultancy integration is progressing well. Underlying revenues across the Exhibitions division grew strongly in the period, with Employee Benefits Live, the National Home Improvement Show and Aidex all performing ahead of expectations and with encouraging re-bookings across all three events. The Group continues to generate good momentum in building a strong pipeline of new event launches. Operating cash out flow in the four months to 31 October 2012 was lower than in the same period last year. Net debt to EBITDA at the end of October 2012 was approximately 1.8 times. With earnings and cash flows heavily weighted towards the second half of the financial year, the Group expects the ratio of net debt to EBITDA to reduce by 30 June 2013. Deferred revenues at 31 October 2012 were £13m, 30% ahead of the same period last year.
Interim Management Statement Centaur Media plc (LSE: CAU, the "Group"), the business information, events and marketing services group, today issues an interim management statement for the period from 1 July 2012, based on results for the four month period to 31 October 2012, with commentary on trading up to 13 November 2012. Reported revenues across the Group increased by 14% in the period with EBITDA margins continuing to benefit from recent restructuring initiatives, including those completed in the past four months. Underlying revenues across the Group declined by 4%, reflecting the impact of stronger comparatives and continued market weakness affecting advertising revenues, principally across the financial and marketing sectors. The Group continues to build strong momentum in growing digital and events revenues, which accounted for 38% and 30% of total revenues in the period, up from 32% and 22% in the same period last year. Across the Business Publishing division, while the marketing, legal and financial communities continue to see weakness in advertising revenues, the HR and engineering communities have reported good rates of underlying growth. This division continues to benefit from the cost savings arising out of the major rationalisation in 2012. The outlook across Business Publishing for the seasonally stronger second half of the financial year remains relatively uncertain for the Group's advertising-led products. However, this division is well placed to take advantage of any recovery in Centaur's markets.
The audience figures will measure audience reach by people, not platform, analysing combined engagement across print and digital. From next year the measure will also include events and mobile. The total audience measure, which will be produced annually, responds to demands of media agencies and B2B marketers for more comprehensive and relevant audience analysis. The figures will be independently assured by PricewaterhouseCoopers LLP UK (PwC), following similar moves by the Financial Times, News International and UBM Built Environment.
Despite a strong rally in the past month business publisher Centaur Media (CAU) still trades on a lowly rating versus its growth potential. At face value a prospective price/earnings (PE) of 7.3 looks cheap for an expanding company which is not carrying an unduly large debt burden. Last month's finals (13 September) revealed net borrowings of just £7.2 million. The PE seems even more attractive when set against prospective earnings per share (EPS) growth of 39.7% for 2013, for a PEG (Price/earnings to growth) ratio of just 0.18. December's purchase of Venture Business Research, February's swoop for Profile and the summer acquisition of Econsultancy skew the picture. Full-year contributions from this trio of digital assets mean 2013's predicted EPS advance to 5.9p will not be a like-for-like gain on 2012's 4.2p turnout for the 12 months to June 2012. But even if underlying growth is closer to the 19.9% EPS advance to 7.0p that consensus is expecting for 2014, the company’s true PEG ratio would be well under 0.5. This remains bargain territory even if the £58 million cap is gearing up to fund acquisitions. The market is taking the view Centaur's planned transformation from a print-orientated advertising business to subscriptions-led digital publisher and events specialist will not succeed. Shares Magazine beg to differ. Print advertising revenues and subscriptions may be falling across the industry but digital ad revenues are bucking the trend. As providers of services to the digital marketing industry, Profile and Econsultancy give Centaur exposure to a rapidly growing market. According to the Internet Advertising Bureau, online advertising grew 14.4% on a like-for-like basis in 2011. The company is in its second year of a three-year strategy to complete the transition from print to digital and is likely to be one of the long-term winners.
Looking at the results just out, at the rapid growth plans and the determination to develop into 'new media', Centaur has to be a buy again.
Adjusted EBITDA up 18% to £11.7m (2011: £9.9m) Adjusted EBITDA margins increased to 18% (2011: 14%) Adjusted profit before tax up 23% to £8.0m (2011: £6.5m) Adjusted basic EPS up 24% to 4.2p (2011: 3.4p) Proposed full year dividend up 12.5% to 2.25p (2011: 2.0 Cash conversion remains strong at 120% (2011: 125%)