Centralnic Share Discussion Threads

[buffythebuffoon] 07/9/2016 10:34

I wonder what Glasshalfull makes of the results. I've constantly complained at the lack of visibility of earnings, and GHF is content to accept it's commercially sensitive. Well that's just nonsense. We have no idea, outside of lump sum sales of domains, what sort of earnings CNIC might earn in the future.

We know it's a good model as the recurring revenue eventually will be multiples of where they are now, and they'd need to be!

I have sold my spreadbets,but will hold my shares for another year to see the impact that Instra will have, and the next batch of renewals. I have the sense that this will multi-bag at some stage, but how long is an important issue for me.

Buffy

[battlebus2] 07/9/2016 10:29

Not sure why your all hung up on the billings figure the revenue numbers are there, and increased by 100% to 9 million. Sure there are negatives and I'm not one to argue when one should sell but I do think the reaction to this mornings results are overdone.

[saucepan] 07/9/2016 10:19

AdamB1978: well made, insightful, points. Sorry about your loss. In my experience, it usually works to try to make up losses elsewhere - hope it does for you.

[adamb1978] 07/9/2016 10:14

I also sold out this morning, for a c.20% loss. There's so much not to like in the results and having historically held on in this sort of situation hoping for an improvement, I've learned its better to sell and move on. You dont have to make the money back the same way. Things I didnt like:

- the fantasy billings number which is 'prior to discounts or rebates and prior to allocation of revenue share between registry operator and registry service provider' is just nonsense and impacts management's credibility
- the vast majority of the increase in turnover is from the Instra acquisition, rather than CNIC generating organic growth
- gross margin is heavily down and if it reflects the ongoing GM, then its going to be much harder work to grow the bottom lime
- just 1p EPS if you make the various adjustments vs 4.1p expected for the full year...lots of work to do to hit that figure
- the comment about confidence of hitting full year expectations is caveated so there has to be a good chance that they miss the target

Far too much uncertainty in there. The one saving grace which will limit the share price falls is that the company is solvent with £9m cash on the books, though offsetting that is the £4.5m net receivables/payables inflows over the last 18 months which isnt sustainable for a growing business and could be expected to unwind.

All the best for holders; I'll watch from the sidelines - I could see myself buying back in in due course but the above risks mean its not one for me currently.

Adam

[woodcutter] 07/9/2016 09:24

sorry bb2 but it just doesn't look right to me and i held a decent slug of shares which took me four trades to sell and given the illquidity, at times, i didn't wish to get caught, been there before.

yes they generated cash but the working capital just looks out of sync.

I may be wrong but i can always come back if i am wrong. At present, like rivaldo, preservation of remaining capital was my driver. good luck if you continue to hold, i hope it comes good and if it does I'll give it some further consideration.

woody

[battlebus2] 07/9/2016 09:15

Disappointing to see you sell up, I suppose it goes some way to explain the share price.

[woodcutter] 07/9/2016 09:08

sold my entire holding this morning in several trades for a small loss. I agree with saucepan the headline figures look fantasy to me and the size of trade receivables and payables relative to revenue are very questionable.

If something doesn't look right then it probably isn't right

aimho woody

[rivaldo] 07/9/2016 09:04

I sold this morning too. Just too many uncertainties. I had hoped the reliance on sales of premium domain name sales would be solved by the Instra purchase and other core business growth, but this hasn't yet been the case.

I think the share price might slip a fair bit further, so best to protect oneself.

[battlebus2] 07/9/2016 08:44

Although the shares have reacted negatively i'm happy with this mornings results, revenue has increased 100% from 4.5 to 9 million and gross profit was also up. Increased cash of 9 million, lots to come here with those recurring revenues likely to rack up over the coming years and significant sales to come in the second half from their premium domains. Lots to come with channel partners and telcos. We are still at early stages in some ways but i'm confident it will reflect in the share price at some point. Peel Hunt have reiterated their buy stance and the target price of 70p.

[imranawan] 07/9/2016 08:00

Don't hold but why are receivables so high relative to revenues. Note 11 suggests accrued revenue of £16.2m. Aggressive booking of sales? I don't hold but looks odd.

[adamb1978] 07/9/2016 07:57

Figures need a little working through this morning....

[saucepan] 07/9/2016 07:49

A headline figure of "Billings", which, by the Company's own explanation, "does not relate to Statutory revenue" struck me as verging on twaddle and seems indicative of a crude attempt to gloss performance.

Personally, from reading the results, I am no clearer in my understanding of how the business works and revenue is generated. A lot of "new speak" in there does not help.

I was open minded about re-investing this morning, but will pass on the basis of what has been presented.

Good luck to holders and I shall keep CNIC on my radar.

[ggbarabajagal] 06/9/2016 23:19

if that is all they do it will be a short

[adamb1978] 06/9/2016 22:53

What do people expect? I'll go for £11m turnover and 1.9p EPS

[nk104] 06/9/2016 15:25

Slight uptick on the day before results is encouraging.

[johnv] 06/9/2016 14:30

What I find interesting is that their Price/cash flow ratio is 5.9, very low,

[battlebus2] 06/9/2016 14:23

We should see continued progress with tomorrows results imv leaving these increasingly cheap...

[cheshire man] 06/9/2016 13:51

From the May Finals,,,,,,,,,


CentralNic Is Confident For 2016 As Profit Near Triples In 2015
LONDON (Alliance News) - Internet domain name seller CentralNic PLC on Wednesday said it remains confident in its outlook for 2016, as it reported a near tripling in pretax profit for 2015.

CentralNic recorded pretax profit of GBP1.5 million for the year, nearly tripled from the GBP520,000 it posted in 2014, as revenue rose 70% to GBP10.4 million from GBP6.1 million.

The company said all three of its divisions saw growth in revenue and profits. The roll out of new top-level domains sped up, and its Wholesale business benefited from the expansion, with 14 new generic top level domains launching during the year. Additionally, new top-level domain .xyz continued to occupy the market-leading position by volume.

CentralNic said it remains its intention to install a "progressive and commercially prudent" dividend policy in the future. However due to the continued expansion opportunities in its sector, it said it does not propose a dividend for 2015.

The company said that whilst there remains an ongoing "awareness shortfall" for consumers in terms of the new top level domains, adoption from high profile brands, such as Alphabet Inc taking up the abc.xyz domain name, has stimulated additional demand for .xyz domain names as well as media interest.

Following the year end, CentralNic acquired Instra Group for GBP16.0 million and it said the acquisition was "transformational", providing it with access to new markets, additional products, a strong customer base, well established brands and a white label offering.

"There is still work to be done to transform our business, but we have demonstrated positive steps with the acquisition and integration of Instra. Assuming continued progress in all areas of our business, at this stage of the year, we remain confident in the outlook for 2016," said Chairman Mike Turner in a statement.

Shares in CentralNic were up 1.6% at 46.22 pence Wednesday morning.

By Hana Stewart-Smith; [e-mail]; @HanaSSAllNews

[cheshire man] 06/9/2016 13:40

Let's hope tomorrow's results will be positive :-)

25 Aug 16 Peel Hunt Buy 43.50 70.00 70.00 Reiterates

[johnv] 06/9/2016 13:24

Its woken up

[battlebus2] 05/9/2016 14:42

You need to really stop deramping these, the here and now will all be in the upcoming results.

[rubberbullets] 05/9/2016 14:30

important Security Notice Regarding Fraudulent Invoices
We have recently become aware of a postal fraud campaign targeting domain name registrants, and registrars.

We have received copies of several fake invoices sent by post to domain registrants, which claim to be issued by CentralNic, but which direct the recipient to remit payment to bank accounts that are not ours.

These invoices are different from the well-known "Renewal Notice" scams, in that they are not an attempt to obtain transfer authorisation, but are simple fraud by impersonation.

A sample of the fake invoices can be found here.

If you have received an invoice like this, please send us a copy so we can pass it on the police, who are investigating the case.

Any invoice issued by CentralNic can be viewed on the Registrar Console at hxxps://registrar-console.centralnic.com. However, should you have any doubts regarding our communications, please do not hesitate to contact your account manager or our 24-hour support via [e-mail], [phone], or via the Live Chat feature of the Registrar Console.

If you have any questions or information about this issue, please get in touch.


hxxps://www.centralnic.com/company/news/2015/important-security-notice-regarding-fraudulent-invoices


Fraud and investment doesn't sit well as bedfellows

[battlebus2] 03/9/2016 09:38

No point in talking carp now, who knows why anyone sells. Let's wait for those results.

[extrader] 03/9/2016 09:01

Hi rubberbullets,

(1) The trade was 15,000 out of total trades for the day of 26,000 and an NMS of 3,000.
(2) The advisory is dated 2015. Your point is....?

ATB