We would love to hear your thoughts about our site and services, please take our survey 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 the CEO on Proactive Investors, sounding positive as ever - good to know the recent bond issue was so easily and heavily oversubscribed, and that their patented technology (SSL Parking) has done so well.
Plus the pipeline of acquisitions remains strong, with CNIC already working with most potential targets so they know those companies inside out:
Https://www.proactiveinvestors.co.uk/companies/news/942684/centralnic-report-a--record-year--after-four-acquisitions-in-the-second-half-of-2019-and-one-in-2020-942684.html
Good summary on the respected Techmarketview:
Https://www.techmarketview.com/ukhotviews/archive/2021/03/01/centralnic-scaling-rapidly
"Monday 01 March 2021
CentralNic scaling rapidly
Full year results from internet domain name and web services provider CentralNic, show the impact of its acquisition-led growth strategy, increasing revenue by 121% in 2020 to $241.2m (FY19 $109.2m). Profitability also grew significantly with adjusted EBITDA up by 71% to $30.6m (FY19 $17.9m). Organic growth was also decent and shows how resilient the “Internet Business” has been to COVID, with revenue increasing by 9% and adjusted EBITDA by 4%.
Since its IPO CentralNic has grown aggressively through a series of international acquisitions to become very much a “house of brands” in the domain services space (see here, here and here). The firm has consolidated a number of businesses in a highly fragmented market and now has more than 45m domains using at least one of its platforms (c.13% of domains worldwide). The trick is then to monetise these domains by layering on a diverse range of monetisation services, again bought in via acquisition, such as online marketing tools, advertising or brand protection. The revenue split now between domain name sales and domain name monetisation is roughly 50/50, almost all (99%) recurring.
Whilst success requires a healthy pipeline of suitable acquisitions that can be consolidated quickly and at low cost, it also needs the identification of an ever-greater range of services that clients want to buy. CentralNic has identified future revenue streams in areas such as hosting, social marketing, cybersecurity and brand protection and has already started the new year with a couple of significant deals. Here SafeBrands adds online brand protection to the portfolio whist Wando offers expertise in the fields of social marketing, display advertising and search engine marketing (SEM). Given its track record we can expect more deals of this nature in the pipeline."
Good summary on the respected Techmarketview:
Https://www.techmarketview.com/ukhotviews/archive/2021/03/01/centralnic-scaling-rapidly
"Monday 01 March 2021
CentralNic scaling rapidly
Full year results from internet domain name and web services provider CentralNic, show the impact of its acquisition-led growth strategy, increasing revenue by 121% in 2020 to $241.2m (FY19 $109.2m). Profitability also grew significantly with adjusted EBITDA up by 71% to $30.6m (FY19 $17.9m). Organic growth was also decent and shows how resilient the “Internet Business” has been to COVID, with revenue increasing by 9% and adjusted EBITDA by 4%.
Since its IPO CentralNic has grown aggressively through a series of international acquisitions to become very much a “house of brands” in the domain services space (see here, here and here). The firm has consolidated a number of businesses in a highly fragmented market and now has more than 45m domains using at least one of its platforms (c.13% of domains worldwide). The trick is then to monetise these domains by layering on a diverse range of monetisation services, again bought in via acquisition, such as online marketing tools, advertising or brand protection. The revenue split now between domain name sales and domain name monetisation is roughly 50/50, almost all (99%) recurring.
Whilst success requires a healthy pipeline of suitable acquisitions that can be consolidated quickly and at low cost, it also needs the identification of an ever-greater range of services that clients want to buy. CentralNic has identified future revenue streams in areas such as hosting, social marketing, cybersecurity and brand protection and has already started the new year with a couple of significant deals. Here SafeBrands adds online brand protection to the portfolio whist Wando offers expertise in the fields of social marketing, display advertising and search engine marketing (SEM). Given its track record we can expect more deals of this nature in the pipeline."
Rivaldo - organic growth of the core business is single digit % so I wouldn't call this spectacular for a tech business. But the overall results are very promising and I still see CNIC as being under valued and under the radar. That's fine by me and I have added another 16,059 shares to my holding today at 93.4p.
Zeus Capital this morning conclude as below that CNIC are "attractively valued" - they've raised their revenue forecast for this year whilst keeping EBITDA the same, and have raised EBITDA forecasts for next year to $45.7m:
"Valuation
CentralNic is attractively valued against both direct and indirect peers. The company trades well below GoDaddy, its closest significant peer, but we are cognisant that it is listed on the highly valued NASDAQ market.
Regardless, CentralNic also appears undervalued against UK managed services peers. CentralNic trades on a PE of 12.5x FY2 compared to a median of 18.6x for this peer group,despite offering significantly higher EPS growth of 26% compared topeergroup median of 6%. The company's EV/ EBITDA FY2 is approximately in line with UK managed services peers while CentralNic offers higher earnings growth. We believe strong earnings performance should lead to multiples expansion while further accretive acquisitions could drive strong earnings growth. We expect these drivers should lead CentralNic shares to outperform over the medium term."
Results are out - revenues are way ahead of expectations at $241.2m against forecast $228m.
And 10.25c adjusted EPS is also way ahead of expectations of 8.9c.
Importantly, this year has begun well with nicely in-line trading. And recurring revenues are at 99% now.....
Of course there are lots of adjustments to get to that adjusted EPS, stripping out amortisation, non-core expenses etc. I'm OK with that to see what the continuing core business is achieving - which shows it's in fine fettle.