CentralNic swings to operating profit after surge in revenue

(Sharecast News) - Domain name and web services company CentralNic reported a 121% improvement in audited revenue to $241.2m (£173.3m) in its final results on Monday.
The AIM-traded firm said its gross profit increased 78% to $76.3m for the year ended 31 December, while adjusted EBITDA was ahead 71% at $30.6m.

Operating profit grew by $3.2m to end the year at $0.4m, swinging from an operating loss of $2.8m in 2019.

The board noted some adjustments arising from the audit process, including an improvement in operating cash flow to $22.7m from $20.0m.

Its adjusted cash conversion improved to 115% from 106%, and goodwill reduced to $257.0m from $260.6m.

Trade and other payables and accruals decreased to $87.3m from $90.8m as a result of the audit.

"CentralNic's results for 2020 evidence the resilience of the group's businesses, even in the face of the Covid-19 economic crisis," said chief executive officer Ben Crawford.

"As we scale up rapidly, the underlying qualities of high recurring revenues and high cash conversion, calculated at 115% on an adjusted basis in the 2020 financial year, become increasingly meaningful.

"The board takes into account environmental, social and governance issues raised by stakeholders in its decision-making process."

At 0927 BST, shares in CentralNic were up 0.24% at 85.2p.