CentralNic Group PLC - London-based online marketing services - Raises GBP42 million in share placing to pay for the acquisition of an e-commerce services firm in Germany. Placing is run as an accelerated bookbuild by Zeus Capital and Berenberg and is at 120 pence per share. CentralNic now plans an open offer of shares to existing shareholders to raise another GBP3 million at the same price. The 37.5 million total new shares will represent 13% of the enlarged share capital. Kestrel Partners LLP takes 6.5 million of the placing shares.
CentralNic will buy Berlin-based VGL Verlagsgesellschaft mbH for an enterprise value of EUR60 million. VGL provides comparisons for more than 150,000 product listings. It recorded adjusted earnings before interest, tax, depreciation and amortisation of USD10.9 million on USD55.3 million in revenue in 2021. CentralNic says the acquisition will be double-digit earnings enhancing in 2022 before synergies. "The acquisition of VGL is a natural extension of CentralNic's online marketing business and a major step in adding content-based marketing solutions to its comprehensive suite of services," says Chief Executive Officer Ben Crawford.
CentralNic also reports its own 2021 results. It swings to a pretax profit of USD1.6 million from a USD11.8 million loss, as revenue nearly doubles to USD410.5 million from USD240.0 million. Net debt is reduced to USD75.0 million from USD85.0 million a year before. The company declares no dividend.
Current stock price: 127.28 pence, down 4.7% on Monday
12-month change: up 43%
By Tom Waite; thomaslwaite@alliancenews.com
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