Centralnic Group Plc

-0.60 (-0.55%)
Share Name Share Symbol Market Stock Type
Centralnic Group Plc CNIC London Ordinary Share
  Price Change Price Change % Share Price Last Trade
-0.60 -0.55% 109.00 16:35:14
Open Price Low Price High Price Close Price Previous Close
109.60 108.00 109.60 109.00 109.60
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Industry Sector

Centralnic CNIC Dividends History

Announcement Date Type Currency Dividend Amount Ex Date Record Date Payment Date

Top Dividend Posts

Top Posts
Posted at 08/6/2023 09:46 by king suarez
Shares held in Treasury (bought back but not cancelled) don't have voting rights, nor dividend rights, so will make any dividends cheaper for CNIC in future.

Don't think Treasury shares count towards mcap calculation so should lower the mcap if share price doesn't rise. The shares could potentially be sold back to market in future without the need for an official equity raise - so company could potentially make a profit on them at a later date if sold above the buyback prices.

Posted at 31/5/2023 10:39 by rivaldo
Excellent news last night as another validation of CNIC's reputation and quality.

In case anyone missed it:


"Network Services 3 is the latest iteration of the CCS's Network Services framework. The agreement will provide telecommunication services including Critical Domain Services to Central Government Departments and all other UK Public Sector Bodies. This includes Local Authorities, Health, Police, Fire and Rescue, Education, and Devolved Administrations."

Posted at 15/5/2023 08:48 by adamb1978
I think you need to give the capital actions (divi and buybacks) a bit of time Doobz

The buyback will help drive the price over coming weeks so there hasnt really been any impact of that yet, whilst the price needs to stablise before yield focussed investors will look at it.

CNIC will be broadly debt free at end of 2024 even factoring in the deferred consideration just paid, the bit due next year, a ramping dividend etc

Therefore once they've burned through this £4m buyback, they could easily do the same or increased volumes in H2 and even more, say £20m, next year

Posted at 24/4/2023 19:28 by earwacks
PS, by his own admission is mainly a retail specialist, and seems to like hospitality, two of the worst sectors since lockdown. Boo, Asos and countless dreadful bars etc. there again he does confess he is a dreadful stock picker. His speciality was Saga and how it doesnt really have much debt.just 10 times as much as Cnic! All these companies he ramped and invested in have crashed by about 80%. He has been negative about Cnic since it was around 80p, which briefly doubled from there this year. Absolute gift to market makers. I should think a load of stop losses were taken out and then the ensuing army of BOT trades carried on the handy work. Nobody has a crystal ball and clearly visibility about what lies ahead is pretty foggy. Lets not forget the FT and others opined this to be one of the fastest growing companies in Europe.
I currently hold three companies with take over offers coming out of their ears. Expecting Niox to be next and at this rate Cnic will be the 5th. I havent had a takeover in years. I’m no genius but I do try and pay attention to what is actually going on.
Someone is aving a larf here. Good luck all.i

Posted at 24/4/2023 16:56 by se81
I mean the comments on stockopedia are bordering on laughable (see below)

"Q1 update today shows continued growth, and sounds upbeat saying, “the Directors remain confident that the Group will continue to trade at least in line with current market expectations.”

We’re told that a partnership with Microsoft is good news. Also something about ChatGPT.

Paul’s view - I’ve just reviewed the FY 12/2022 accounts, which we didn’t report on here previously. I just don’t like the numbers at all. In particular, how massive EBITDA actually turns into a negative lower down, at the profit after tax level. So all the profit above ($86m EBITDA) disappears by the time you reach the bottom. That scares me off, as I like clean accounts with no funnies, not a valuation that’s all based on adjustments.

Also the balance sheet is awful, with very big negative NTAV. Lots of cash, but lots more debt, so even though year end net debt seems reasonable, it looks window-dressed to me.

Staggering growth, but are profits sustainable? What happens when cookies are phased out? Tiny dividend yield suggests there isn’t much genuine cash generation to me.

It all mounts up to too many question marks, and a business model I don’t understand. Hence for me personally, it’s an avoid, but that’s just what suits me - you may understand it better, and be more bullish. The low PER is certainly superficially attractive. Good luck whatever you decide!"

"What happen when cookies are phased out?" Yikes! I hope no one is making any investment decisions off the back of what appears to be a 5 min glance at the accounts...

Posted at 20/4/2023 11:42 by ggrantsu
In regard to the ChatGPT know I think this is a pretty disruptive area and its my number 1 listed risk for CNIC that one day we suddenly are axed in favour of another technological marketing process...its a risk but there is fabulous upside here if they can run forward for the next 3/4 years. Its a good risk/reward balance at these prices.

Adam - I'm not entirely convinced Kestrel is not a long-term view holder...I wouldn't be surprised if they push for a sale in the future, but also have no doubt that Max sees the upside here in OM and certainly isn't looking for just a 100% premium vs. where we are sat now. I get the strong impression, and he pretty much said it, that he wants this business to run forward independently and see OM flourish with a market re-rating before he checks out of this. He's the ex head of technology desk at Peel, with an address book which will be top notch...will stand us in good stead in the future.

Always like when I see a sector specialist like Royde or Herald on the register...very different operators vs. the typical spiv from BlackRock/Schroders. Also have Slater here as well - I re-read the Zulu Principle (the one for growth companies) the other week...chuckled thinking it read like the absolute playbook for CNIC.

Horrible to be sat at these prices...but hopefully we can turn a corner this year. One thing I really am disappointed about is this obsession with a dividend - absolutely crazy they are not spending that money on more buy-backs.

Posted at 13/4/2023 11:28 by ggrantsu
Hello All. Joining here over from LSE where I've always usually been. Background: work in private equity but privately invest in AIM which is my main passion...CNIC by far my biggest holding. Like to think of myself as patient but this process is becoming very very difficult to sit through...particularly when so many loss making non-FCF generating bunk is flying on a daily basis...

Always invest alone...analysis on CNIC has been what I believe to be thorough, including real deep dives into OM (which even the institutional investors here don't seem to really get e.g. Herald and Slater still refer to CNIC as just a domain name led business...I know from that world that in public equities that a lot of the analysis done is less than in-depth).

Starting to wonder if I'm missing something here or we are just witnessing a true anomaly which its wise to further load up on.

Posted at 05/4/2023 17:07 by adamb1978
Probably owned with his spouse for tax reasons.

Looking at Linkedin, he's been at CNIC since 2003. CNIC was founded in 1996 and floated in 2013, so he was obviously an early employee. Moreover given the doctom bust CNIC might have retrenched in 2000 so perhaps him joining in 2003 was after something of a re-start for the company somewhere during 2001-2

Posted at 27/2/2023 08:54 by davebowler
Growth opportunities ahead
CentralNic delivered 2022 results slightly ahead of our upgraded estimates and expects to surpass expectations for the year ahead. Strong gross margins indicate that signs of increased competition or pricing pressure in the Online Marketing division are limited. Indeed, the division’s organic growth accelerated to 86% from 65% in 2021. The company’s strong growth appears set to continue, particularly with a new management team that is more focused on developing new growth opportunities. We believe CentralNic’s outstanding growth and track record of earnings outperformance are not factored into its shares’ low multiples.

Expanding margins, reducing net debt and maiden dividend: Revenue was $728m, exactly in line with our forecast, and pro forma EBITDA was $86.0m, slightly ahead of our upgraded forecast of $85.2m. CentralNic benefited from scale in 2022, with pro forma EBITDA/ net revenue margin rising to 48% in 2022 from 39% in 2021. SG&A fell to 13% of sales from 18% in 2021. Adjusted EPS was 20.1 cents, slightly ahead our forecast of 19.9 cents. Adjusted operating cash conversion was 110%, leading to net debt falling to $56.6m, broadly in line with our estimate of $56.8m. As a result, the company reduced financial leverage (net debt including deferred consideration/ pro forma EBITDA) to only 0.9x from 2.2x at the end of 2021. Strong results and outlook have led CentralNic to propose a dividend of 1.0p for the year.

Outstanding growth: CentralNic delivered 60% organic revenue growth accelerating from 37% in 2021. The company indicated that the Online Marketing division is “largely decorrelated from the softer performance reported by some of the major online marketing players”. The division accelerated organic growth to 86% from 65% in 2021, predominantly driven by TONIC. Strong gross margins indicate signs of increased competition and pricing pressure are limited. Gross margin was 22.0% in H2 2022, up from 21.5% in H1 2022. Divisional KPIs show the company continues to benefit from the ban of third-party cookies in browsers. The number of visitor sessions increased 77% from 2.6bn in 2021 to 4.6bn in 2022 and the revenue per thousand sessions (called “RPM” by CentralNic) increased 37% from $76.40 to $105.00.

The Online Presence division continued to grow reliably, delivering 4% organic growth in 2022. The company processed 2% fewer domain registrations (12.3m v 12.6m) as it avoided lower margin, high volume transactions. As a result, the fall in registrations was more than offset by 5% increase in average revenue per domain year from $9.40 in 2021 to $9.90 in 2022.

Developing growth opportunities: Encouragingly, the new management team appears more focused on developing new growth opportunities. We see opportunities for new products to vertically integrate and diversify its customer base and geographic reach in TONIC and VGL, respectively. The company expects to surpass 2023 expectations. However, we conservatively leave our recently upgraded profit estimates (+4% EBITDA) unchanged, given the early stage in the year.

Underrated: CentralNic trades at only 5.5x 2023 EBITDA and 8.0x PE, at the bottom of its peer group range, despite having a FY22 FCFF yield of 13.7% and delivering strong growth and earnings outperformance. In our view, the current valuation is at odds with the substantial cash generation that we forecast.

Posted at 25/2/2023 07:05 by earwacks
Adamant. It’s a bit of a double edged sword. Generally young companies in their early growth years concentrate on using any profits to build the company to multiply earnings. Once a more established footing has been reached they may consider returning profits to shareholders with as a one off dividend or a smaller regular payment. Cnic currently have told us they current have about 1 percent of market share in their sector. So their is still lots to play for. They have stated that acquisitions although not out of the question are unlikely to happen at the rate they have been buying in previous years. Another method of enhancing shareholder value is to buy shares in their own company as they have been doing recently. This obviously spiked the share price considerably at the beginning of this year but also enabled many investors to take advantage of selling into the strengthening share price. Dividend payments are money that disappears from the company where as buybacks keep the value in the company. The big question is how sustainable the current rate of growth is. Should they continue to expand or sit back and reap the benefits of what has been achieved so far, or can they manage both. Some tech companies are finding that after paying dividends for a while they actually need that surplus money to get them through these difficult time and can see great opportunities ahead. It’s not an easy call. Cnic are doing phenomenally well. I’m sure they will have an eye on paying a dividend but also won’t wNt to miss an opportunity to bolt on another earning enhancing acquisition that could propel us further into the big league and eventually a multi bagging market cap. I am happy to view this this in the same way as a scrip dividend which is payment in shares. If they can grow at the rate that’s for a few more yeArs, I would prefer that to some paltry dividend just for the sake of it.
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