Centralnic Share Discussion Threads

[adamb1978] 16/5/2023 08:17

Just eyeballing the shareholdings on sharepad, the main instis and directors etc hold 82% of the shares. If you add in institutions which are below that list and long-term retail holders, its probably c.90% stable register

Therefore taking out this 1% of the share capital is probably equivalent to 10% of the actively traded shares. Huge proportion

[diesel] 16/5/2023 08:04

If JTC are selling out completely then this will balance out the buyback, may not see much share price movement until the seller is finished!

[adamb1978] 16/5/2023 08:00

GOod that its begun, though they'll rattle through the SBB in c.20 days

I think the way to think about the buyback though is in terms of % of shares in loose hands, rather than % of overall shares

What I mean by that is that a very large proportion of shares are with institutions, kestrel, management and long-term holders whereas only a small minority are with traders and short-term holders.

On that basis the 3m or so shares which they take out I think will be a relatively decent % of actively traded shares

[slogsweep] 16/5/2023 07:46

share taken from market are in treasury. they still exist but don't have voting or dividend rights so effectively they are not dilutive.

[ichitrader] 16/5/2023 07:45

The shares haven't been cancelled so they are still technically issued. Think of it as they've just been moved to treasury. Shares held in treasury don't attract dividends or voting rights and can't be bought/sold. So whilst the number of shares in issue is the same, the number of tradable shares in the market is lower.

[lkstls] 16/5/2023 07:33

Im having trouble understanding this part:

Following the Transaction, the issued share capital of the Company
remains unchanged at 288,660,084 and the Company now holds 2,720,160
shares in treasury.

How can it remain unchanged??

[spectoacc] 16/5/2023 07:15

Better to repurchase low than high - good work:


Date of purchase

15 May 2023

Number of ordinary shares purchased

150,000

Highest price paid per ordinary share

112.8017 pence

Lowest price paid per ordinary share

111.8 pence


Volume weighted average price paid per ordinary share

112.6458 pence

[adamb1978] 15/5/2023 13:06

Could be though that would be a little naive way of looking at it given that its entirely accounted for by the amortisation increase!

Classic example of needing to focus on cashflow rather than P&L given it tells a truer story

[hsduk101] 15/5/2023 12:58

I'm guessing the share price is reflecting at a holistic level that Operating Profit and Profit after Tax is down from 12 months ago

[diesel] 15/5/2023 12:38

If you needed to sell then why wouldn’t you wait till the buyback was underway and the price had steadied/recovered?

[ggrantsu] 15/5/2023 10:36

These are stunning results today. Not just the FCF generation and other good headliners...but the outlook statement and capital allocation. This is a team who are very focused on growth and understand about allocating capital. There are big growth opportunities here and not just in PubTonic. Let's not forget what a brilliant business the domain name side is also...that is still chugging away in the background throwing off cash.

I'd been really psyching myself out of this position...became a bit sleepless over it and it just felt a bit weird. However, today's reading and the buyback announced have eased my concerns and I'm back to absolutely resolute that the upside here is MULTIPLES of where we are now. And I'm convinced we will get an offer in the short-term...not that I'd want to to sell-out here at only 2x but it could be a helpful wake-up catalyst to the value on offer here.

The Market reaction today is of course bland, but honestly I do not care - it is the future value of how big this business could become which is what I care about. And today has just reinforced the case.

[adamb1978] 15/5/2023 10:23

Lots of companies are seeing share prices come off when they put out ok-to-decent results at the moment, so actually a flat share price (before the broker wades in with the SBB) isn't a bad result for the day so far

[melody9999] 15/5/2023 08:55

when no-one can figure why the share price would rise, we are probably at the bottom!

[adamb1978] 15/5/2023 08:48

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

[doobz] 15/5/2023 08:42

Something needs to, struggling to see what's gonna prop this up now. Think they've done everything they can with no real market results.

[adamb1978] 15/5/2023 08:38

The buyback will presumably be beginning today. Should help the price over the coming couple months I'd imagine

[melody9999] 15/5/2023 08:31

good time to be buying a few of the 4M ?

[diesel] 15/5/2023 08:25

And there’s the market reaction, err?

[gswredland] 15/5/2023 08:12

Same again.
Thank you

[gswredland] 15/5/2023 08:06

How many million of buy backs were there last time please?

[adamb1978] 15/5/2023 08:04

And now the buyback announced as beginning today. Only 1% of market cap but all helpful

[rivaldo] 15/5/2023 07:31

Looks encouraging to me too, for similar reasons. Zeus Capital have increased their forecasts for revenues whilst "conservatively" leaving their EBITDA forecasts unchanged.

They've raised their EPS forecasts slightly to 20.8c EPS this year. That's a P/E of just 6.8.

Good to see another £4m of buybacks being confirmed. Also encouraging to see the VGL operation having now commenced in France, "the second largest European market for Amazon, its key partner".

[rik shaw] 15/5/2023 07:26

Yes and launch of second buy back programme of £4m should help.

[adamb1978] 15/5/2023 07:13

That certainly works!!Trading at least in line with expectations...EPS of 5.5p for the quarter so simple annualisation would be around 18pFCF pre-M&A of $13m (after interest costs)