Centralnic Share Discussion Threads

[simon gordon] 11/6/2021 16:25

Kestrel Partners synopsis of CNIC:

CentralNic is a leading supplier of domain name services via a globally automated software platform. The company provides its services to resellers, multinational corporates as well as nationally based small businesses. Through an acquisition led strategy funded by debt and equity, the company has become a leader in the domain name market servicing 28 million names, representing 13% of the world’s domains.

Investment rationale

-Operates in a non-cyclical growth market with limited churn

-Attractive platform asset in a fragmented but rapidly consolidating industry

-Market dynamics underpinned by rapid growth in internet and mobile data traffic

-High-margin revenues having a strong recurring element (90%)

-Negative working capital arising from advance payment for domain names

-Geographically diversified with non-sterling revenue base

-Cash conversion targeted at over 100%

Kestrel involvement, actions and impact

We acquired an initial 8% stake in CentralNic 2015, and have since increased this holding, acquiring shares in the market and participating in fundraising to support the CentralNic’s acquisition-led growth strategy. As at 31 March 2021, we were the largest shareholder in the company with a 24% holding.

We have actively challenged and supported management in their acquisition strategy, providing finance as deemed appropriate, but also advocating for robust post acquisition integration plans.

[bamboo2] 10/6/2021 20:19

boa, Having attempted, over the years, to keep track of significant shareholders in a number of different shares, I think breaches of the holdings regulations are a continuous problem.

[mcdougall1] 10/6/2021 09:16

Well, if someone had just bought 9% of the company I would have hoped for more of a reaction on the share price!

[rivaldo] 10/6/2021 08:20

Methinks you are correct McDougall1 - good spot!

JTC acquired RBC Cees on 6/4/21. The 1/6/21 RNS notes that RBC Cees are the trustee of the CentralNic Employee Benefit Trust....

Gold star hereby awarded to you.

[mcdougall1] 10/6/2021 08:13

I'd assumed this was related to the shares issued to cover the director and employee options announced on 01.06.2021?

[simon gordon] 10/6/2021 08:02

I thought JTC Group Plc were primarily administrators. I'd be surprised if they've committed a lump of their own cash on CNIC.

[rivaldo] 10/6/2021 07:53

Unlikely - there aren't any other current shareholders even close to that number of shares:



And the RNS specifically ticks the box for "An acquisition or disposal of voting rights" as the reason for the RNS (though at a stretch I suppose this could include intercompany transfers!).

JTC look like a new holder to me, who've taken a large holding off of another holder in one fell swoop, be it from 0%-8.9% or whatever.

[simon gordon] 10/6/2021 07:41

Might it be a change of registrar?

[diesel] 10/6/2021 07:34

Not sure on notification rules whether ‘previous holding of 0%’ means just nota notifiable holding eg less than 5%? Also Ida single holder had reduced by this amount, that would have been notifiable. Either way good to see an enthusiastic supporter.

[rivaldo] 10/6/2021 07:10

JTC Trustee Ltd have declared they now own 8.91% of CNIC - 22.36m shares:



Excellent news. They seem to have come from nowhere with a prior zero holding, so they must have taken a large seller nicely out of the game.

[sharesoc] 09/6/2021 15:32

We are hosting a webinar with CentralNic tomorrow which may be of interest to current shareholders and potential investors. Ben Crawford (CEO) and Michael Riedl (CFO) provide the latest updates:

[simon gordon] 09/6/2021 12:15

Currently have 29 vacancies advertised on their website.

[simon gordon] 09/6/2021 09:14

It appears they are building from the bottom up and now are going up and out. Sticky customers and multiple service offerings. Get the sense that the share will re-rate at some point and easily clear 100p, whether it's this year or next, it looks to be coming.

[mcdougall1] 09/6/2021 09:03

Interesting section towards the end about the additional services the CEO would like to add, such as web hosting, email etc. I guess what they are talking about is similar to that provided on (Which I think is owned by GoDaddy?).

Makes sense and presumably they are already looking at potential acquisitions that will assist in building that capability, rather than trying to start from scratch.

[rivaldo] 09/6/2021 08:18

New interview with the CEO - increased margins as well as range of services to come:



"CentralNic’s CEO, Ben Crawford, explains how the company has driven strong revenue growth (78% five-year CAGR) through a combination of organic growth and acquisitions, and why it remains on a strong growth trajectory. He discusses how CentralNic’s investment in staff and systems in 2020 is now yielding benefits, especially in terms of accelerating organic growth, and how it plans to leverage its global leadership in domain names to drive margins and profitability."

[rivaldo] 04/6/2021 11:17

New update note from Edison. They now go for 9.93c EPS this year, rising to 10.94c EPS next year - that's a forward P/E of only 11.2:



Summary:

"CentralNic is trading in line with management’s expectations and the pipeline of future deals remains strong. The shares trade on an FY21e EV/adjusted EBITDA of 9.1x and P/E of 12.3x, which does not reflect the growth prospects for the group."

[rivaldo] 04/6/2021 07:18

At the end of the day CNIC will be acquired by the likes of GoDaddy et al imo. The purchase price will likely be far ahead of the current share price, and they won't be bothered about having to pay more for the share options and incentives.

Assuming CNIC continues to perform as well as it has been doing, then the incentives will be much diluted anyway as the company grows and acquires. One just has to accept that's what happens with most - though certainly not all - public companies.

[mcdougall1] 03/6/2021 15:51

Any thoughts on the share awards/ options published on 01 June?

At first glance it seemed pretty generous to me, with nearly 10% of the allotted share capital now (mostly) nil cost options to management over the next three years.

[rivaldo] 03/6/2021 09:08

Interesting interview in post 1418 - Q1 revenues are tracking 11% ahead of Zeus' forecasts, and gross profits are tracking 7% ahead. The conclusion is that CNIC are "well positioned to outperform forecasts".....

Coverage of the Q1 results here:



"CentralNic reports 16% organic growth in Q1
by Andrew Allemann — June 1, 2021

Company reports organic growth in all three of its business segments.

CentralNic (London AIM: CNIC) reported earnings for Q1 today.

The company said its organic revenue grew 16% compared to Q1 2019. It said that all three of its business segments grew organically year over year.

With acquisitions, revenue grew 48% to $84.4 million and gross profit increased by 58% to $27.9 million. The company’s adjusted EBITDA number increased by 23% to $10.1 million.

The company expects full-year numbers to be in line with market expectations.

CentralNic is renaming its monetization segment “Online Marketing” because the company added multiple ad businesses last year. It said that none of its marketing platforms use third-party cookies or collect personal data on customers, so it expects them to do well as Chrome blocks third-party cookies and Apple institutes its new privacy controls."

[sharesoc] 02/6/2021 11:18

We are hosting a webinar with CentralNic on the 10th June which may be of interest to current shareholders and potential investors. Ben Crawford (CEO) and Michael Riedl (CFO) provide the latest updates:

[ga_dti] 02/6/2021 08:28

Listen to our exclusive interview with Zeus Capital discussing how strong Q1 results might impact the full year estimates, how the strong growth is a reflection of the company's investment strategy and the potential impact of Google and Apple´s policy changes on Online Marketing:

[weatherman] 01/6/2021 20:22

I bought back in with evidence that the debt is being reduced from cash flows.

[davr0s] 01/6/2021 19:39

Those that have been ubberbullish need to go buy a shed load as the price has done naff all for months now