Centralnic Share Discussion Threads

[alter ego] 13/9/2023 14:29

Yes new thread for TIG is in use

[hsduk101] 13/9/2023 14:27

Has a new thread been created yet with TIG, or is this still the main one in use?

[alter ego] 13/9/2023 14:01

Boadicea, I sent you a private message, just forgot to tell you. Would like to hear back. Thx

[cyberbub] 04/9/2023 10:23

I'm in the process of creating a new thread over on TIG.

[rik shaw] 04/9/2023 08:26

09:23 CentralNic Group rebrands as Team Internet Group
Further to the announcement released at 7:00am this morning, the ticker change has been made effective immediately and the Company now trades under the ticker "TIG".

[adamb1978] 04/9/2023 07:35

I'm not a massive fan of rebrandings however CNIC/TIG is now a completely different company to before so makes sense in a way to draw a line under the past and move on

[cyberbub] 04/9/2023 07:25

Looks like ADVFN are idiots, they've already changed the ticker to TIG! Meaning that all the CNIC threads are now redundant...? This hasn't been handled well.

[cyberbub] 04/9/2023 07:12

Not a very imaginative name at all - surely the management could have paid someone a few quid to come up with something more memorable??

[weatherman] 04/9/2023 06:09

The Wonderful thing about Tiggers...

Maybe the EPIC TIG will better reflect the stock performance.

[cyberbub] 01/9/2023 09:36

Yes I see this as a bit of housekeeping also, brings a very small partner in-house. It does smell slightly dubious in terms of some sort of related-party transaction possibly. Not something to worry about IMO.

[adamb1978] 01/9/2023 08:12

Hi Dean

Well, the $400k difference between gross profit and EBITDA suggests minimal people so sounds right! The RNS mentions that the and CNIC have operated closely together before so I'm guessing that they must be a supplier/partner of some description and relatively low value add...hence the multiple, the CEO doing something part-time etc. There's probably also some two-way dependency, meaning CNIC were able to dictate terms

Lots of companies have the chance to enhance earnings by buying partners or people up/down the supply chain. They're generally cheap, unexciting deals but earnings enhancing and low risk

By some rough maths this might increase EPS by 0.1p, so its general house-keeping rather than anything else!

Adam

[deanowls] 01/9/2023 08:01

I don’t know if it’s the very nature of these businesses but 4 employees, CEO listed as doing something else on LinkedIn, one of them left, no posts.

Website is basic, no phone number, office is listed as closed.

I know it’s not a large transaction but the level of detail is missing, feels like the one from Israel a couple of years ago

[adamb1978] 01/9/2023 07:38

Very very cheap deal! c3.5x EBITDA!

[cornishman33] 01/9/2023 06:27

Acquisition of Adrenalads for $2.35m in cash. Immediately earnings accretive. Nice.👍

[cyberbub] 31/8/2023 15:14

Disappointing here, given the financial upside. Looks like a seller must be overcoming the buyback... At least it means hopefully that the buyback process will be able to take an increased number of shares off the market...

[melloteam] 29/8/2023 13:53

Just to let shareholders and prospective investors know that CentralNic Group plc and Manx Financial Group plc will be presenting on the MelloMonday webinar at 5pm on Monday 11th September 2023.

There will be over 500 investors attending and these are very popular shows with company presentations, fund manager and investor interviews, and panel sessions.

Tickets are still available and if you would like one at half price then enter the code MMTADVFN50.

For more information, click here:

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[adamb1978] 23/8/2023 12:43

I think it will cyberbub. Once the cash which CNIC throws off is seen more clearly, investors will buy it on that basis. Sometimes investors over-think things.

I could see the buyback taking the price up closer to 200p and then the company switching in favour of an increased divi

[adamb1978] 23/8/2023 08:51

Happy for people to continue to sell here Boadicea - no complaints from me about it at all!

[boadicea] 23/8/2023 08:27

Clearly the market is happy to surrender shares at a steady rate of about 170k per day in the 125-130p price range. Is the company giving too much cash away? If it held off for a few days perhaps we could get them cheaper.

Eventually this cheap share supply must run out leaving you (collectively), me, Kestrel and the directors as the only remaining holders!

More seriously, this is shouting out for a pe offer.

[adamb1978] 22/8/2023 10:29

I've seen someone post what are, in essence, league tables of the various domain registrars on here before and was trying to find them on tinternet.

Would someone be kind enough to point me in the right direction to find them?
Thanks

Adam

[adamb1978] 17/8/2023 07:43

cyberbub -

Yes, agreed. Getting to a say 12x multiple I dont think would be unreasonable and assuming we do that next year and using the forecasts which Rivaldo posted above leads to a c.240p share price. It would also take FCF yield to around 7% based on my figures - that's not expensive at all, but feels fair.

CNIC just need to keep plugging away...getting some growth, being tough on the cost base and throwing off cash.

Adam

[deanowls] 17/8/2023 07:39

I’m sure the company are also aware of that and look to diversify, VGL being one, previously it was just domain names so they are looking to diversify business as well as customers and geographies.

[rivaldo] 17/8/2023 07:33

Edison have a new note out - they've raised their forecasts as follows:

this year : 21.29c EPS (from 20.31c)
next year : 25.00c EPS (from 22.68c)

Here's the summary and an interesting extract or two:

"CentralNic’s H123 results showed continuing revenue growth and margin expansion, with growth now being driven more organically and across both operating segments. Partnerships could be key to unlocking growth from underutilised brands, with management winning several notable deals during the period. Our operational forecasts remain unchanged, with increases in EPS and net debt reflecting the recent £30m uplift to the share buyback programme. We believe that the current rating does not reflect the company’s cash generative mode and diverse growth prospects."

"Clear strategy for sustainable long-term growth

Currently only a concentrated portion of CentralNic’s brand portfolio drives growth. Management sees partnerships as crucial to unlocking organic growth from its underutilised assets, and it secured key partnerships with notable names such
Sovrn, Klarna, Booking.com and Shopify in the period. In Online Presence, it has
partnered with Crown Commercial Services to support the UK government’s domain infrastructure.

Management believes its Online Marketing business can capitalise on the growing social commerce market, which it forecasts will reach $80bn in sales by 2025, as social media and e-commerce giants vertically integrate into this space. Additionally, the company is aiming to better integrate operations to reduce consumer friction, potentially improving margins through operating leverage.

Valuation: Upside potential remains

On a EV/EBITDA basis, CentralNic trades at an average discount to peers of 22%
across FY1e and FY2e. We believe the current rating does not reflect the growth
prospects of the business, its increasingly diverse business mix and cash generative model. In addition, the share price does not yet fully factor in the impact of its share buyback programme."

"Over the long term, management has identified several market trends that should support continued top-line growth and margin expansion.

The first is the growing trend towards social e-commerce, illustrated by social media giants like Meta and TikTok expanding into commerce and Amazon attempting to move to social media. The company’s current marketing capabilities in social media makes it well placed to capture this trend, where management believes the market could reach sales of US$80bn by 2025.

Secondly, the company is aiming to better combine its business units to provide fewer steps and less friction for consumers. This optimisation may also lead to improved operating leverage, which could support further margin expansion.

CentralNic is also investing in its AI capabilities, which have already led to higher conversion rates and sales efficiency, according to management. These include creating an innovation hub and an internal AI Academy, supporting further technological advancements to its product portfolio."