Centralnic Share Discussion Threads

[dunns_river_falls] 21/1/2021 10:22

Bit of movement today. I like the fact they want to tap the bond market 1st before any share issues for future acquisitions. As long as they can keep costs manageable. Hopefully they can replace the bonds with new ones with a lower coupon rate in the future.

[rivaldo] 19/1/2021 08:24

New Proactive Investors interview with the CEO - CNIC are now "the major non-US company in the space":

- this acquisition establishes a domain name management footprint in France in addition to CNIC's existing presence in Germany, the USA and elsewhere
- SafeBrands have "fantastic" software to protect against illicit use of brand names and IP, including reporting and enforcement thereof
- CNIC have already been involved with Safebrands for five years, so know the company well



"CentralNic Group PLC's (LON:CNIC) Ben Crawford talks to Proactive London about acquiring French firm SafeBrands.

After five years of getting to know the brand, Crawford is thrilled to now add the provider of online brand protection software and corporate internet services to their firm.

Crawford explains that CentralNic is already a leader in Germany and the United States and with France now in the mix, 'making us the major non-US company in the space'."

[simon gordon] 15/1/2021 14:55

Edison flash note on Safebrands acquisition - 15/1/21:

[rivaldo] 15/1/2021 11:59

Interesting RNS just out - good news imo.

CNIC want to expand their bond issuance substantially "to facilitate the Company's continued strong growth by making further acquisitions while not diluting its existing shareholder base":



Nice closing CEO comment too:

"With a demonstrated track record of putting investor funds to excellent use, our subscription-based, recurring revenue businesses provide a solid basis from which to generate strong returns for all holders of securities of our Company."

[rivaldo] 14/1/2021 15:33

Good to see 28,000 shares just bought at 105.51p - well above the 105p published offer price. Which normally means there's a lack of stock and/or a determined buyer around.

[dunns_river_falls] 14/1/2021 10:09

Looking perky this morning, going for that breakout again

[rivaldo] 14/1/2021 07:38

The new issue of Techinvest is now out, so it should be OK to post here the update from the prior issue (Cyberbub, simply read this and then back on the thread for info. It's a quiet thread and is all here for you):

"CentralNic

CentralNic has reported further financial growth, organically and through acquisitions, for the nine months ended September 30. Revenue increased by 118% to US$168.5m, while gross profit was up 74% to US$53.3m. Adjusted EBITDA was 68% higher at US$22.1m and operating profit increased to US£1.9m. Cashflow from operations remained strong at US$13.5m with adjusted operating cash conversion of 93%. CentralNic made four acquisitions in the second half of fiscal 2019, and excluding their contribution revenue increased by 17% to US$169.9m, with adjusted EBITDA up 4% to US$22.2m.

Healthy demand was reported for the company’s two largest service lines, Wholesale domains and Monetisation, with the latter also driven by the rollout of a patented SSL monetisation solution. During the period CentralNic also completed a successful placing of 40 million shares at 75p per share for total net proceeds of approximately US$37.3m.

Post period-end the company has completed the acquisitions of Zeropark and Voluum for US$36.0m. Both businesses add complementary products and skills to the group. Zeropark is an Ad Exchange platform offering real-time-bidding solutions, connecting marketers with domain investors and publishers via its marketplace. Voluum is a SaaS online marketing management suite for small/medium businesses and brands, enabling online ad analytics, tracking and media buying.

Organic growth of 17% was a record for CentralNic and is further evidence that management is able to keep the core business moving forward while also successfully integrating a range of bolt-on acquisitions. New product launches and further integration activities should support and potentially improve revenue growth and margins in future periods, and there remains considerable scope to continue the company’s successful consolidation strategy in what is a largely fragmented and growing market.

Moreover, as the business scales up rapidly, CentralNic’s underlying qualities of high recurring revenues and excellent cash conversion become increasingly meaningful.

Continue to buy."

[boadicea] 12/1/2021 12:44

Rivaldo - Yes, I had forgotten the tips that were enough to explain the share price movement.
Obviously my paranoia is showing through!

The main point is that it's a good deal.

[rivaldo] 12/1/2021 10:17

Cheers boadicea, nice analysis of the figures.

Have to disagree about any "leak" though - yesterday's rise was caused by not only CNIC's being one of Techinvest's tips for 2021 (and further helped by being the first on the list alphabetically!), but also by a very nice update in SCSW, concluding with "Hold/Buy" (most updates only get a Hold).

Today's acquisition is encouraging, but merely adds to the feel-good factor here imo.

[boadicea] 12/1/2021 09:37

In terms of price to historic turnover, the deal is at less than half its own rating (x0.9 as against x2.2). Apart from the opportunities noted by Rivaldo, they only need to obtain a similar performance to their existing business for it to look a cheap buy.
I make it they have added ~4.2% to revenue for ~1.74% of their captalisation.

Unfortunate that the news obviously leaked over the week-end.

[rivaldo] 12/1/2021 07:21

A new $4.4m acquisition from cash - I like the sound of this one.

Though relatively small, as a "leading online brand protection software provider" it has the feel of a product which can be rolled out across CNIC's existing client base, and using its own IP too:

"This positions CentralNic as the European champion for corporate domain portfolio management and online brand protection, as well as one of the top three global leaders available to serve customers in any country".

And in addition, there's a new and impressive-sounding "reciprocal reseller agreement for domain names and brand protection services" with Novagraaf, who are "one of the world's largest trademark and patent filers". They manage "more than one million IP assets on behalf of customers, and represents many of the world's major trademark and patent owners" - this could be another big source of new revenues for CNIC:

[rivaldo] 11/1/2021 13:12

Surging, with buying coming in at the full 103p offer price now.

[taffer87] 11/1/2021 11:41

thanks makes sense

[gerihatrick] 11/1/2021 10:19

Maybe next week when all us subscribers have had a chance to digest and decide on the information we have paid for! Both newsletters clearly state the copyright rules so anyone copying and pasting becomes liable for breach and the host site becomes liable for allowing it to happen. Both newsletters are excellent and well worth the subscription.

[taffer87] 11/1/2021 10:05

anyone with access to the two tippers be kind enought to copy paste the relevant bits here?

[dunns_river_falls] 11/1/2021 09:30

Thanks rivaldo. Moving up nicely

[rivaldo] 11/1/2021 09:07

There are those new 7-year highs.....

Not only did SCSW have a rather nice write-up on CNIC (concluding Hold/Buy - most of their updates are usually simply Holds), but CNIC were also one of Techinvest's top tips for 2021, with a very bullish summary.

CNIC remains on a pretty modest rating compared to most tech stocks and to its North American sector comparators. Much more to come here imho.

[slogsweep] 11/1/2021 08:33

SCSW mentioned it

[dunns_river_falls] 11/1/2021 08:25

Breakout ? Looking good so far

[saucepan] 11/1/2021 08:22

Finally ready to break resistance? I presume some favourable comment in the tip sheets?

[rivaldo] 08/1/2021 12:11

Thanks for the reminder cornishman33 - hopefully it'll be in their nap tips for 2021 along with a few others in my portfolio!

It just needs a little push to establish new 7-year highs - once that happens it's blue sky upwards.

[cornishman33] 06/1/2021 09:01

These are also in the SCSW portfolio, so could get a double boost this weekend.

[tole] 30/12/2020 15:32

Have been hoping for it drift a bit further as have been picking up a few as of late in the low 80's.