TIG named as potential bid candidate7 May 2024 08:27
Https://www.ii.co.uk/analysis-commentary/four-aim-shares-are-potential-bid-targets-ii531587?
"Team Internet Group (TIG)
Share price: 138.6p
Market cap: £346.7 million
Domain name and online marketing business Team Internet Group remains modestly rated despite the strong growth exhibited in the past couple of years. Most of that growth has come from the online marketing division, and it may be that the earnings are not thought to be high quality. Even if that is so, a prospective multiple of seven appears mean, particularly given the strong cash generation.
Acquisitions have been important in accelerating growth, but there is organic growth. In 2023, revenues were 15% ahead at $836.9 million, including organic growth of 13%. Underlying pre-tax profit improved from $70 million to $77.2 million. Net debt increased to $95.3 million because of share buy backs and acquisition payments. The company has also commenced paying dividends.
This year nearly $90 million in cash is likely to be generated by operations. Team Internet has spent $41.8 million acquisition of Shinez, which creates and promotes content across social media and search engines.
First-quarter figures will be published on 13 May. These are expected to show continued growth. The acquisition of Shinez was not completed until the end of April so will not be included. If the valuation does not improve then Team Internet’s strong position in the domain names sector and the cash generative growth of the business would make it an attractive bid candidate for a private equity firm."