Centaur Media has provided a trading update for FY’Dec23 with yoy growth in both adjusted EBITDA and margin. This is a strong performance, and consistent with Centaur’s Margin Acceleration Plan 2023 (‘MAP23’) target. The Centaur business today, is unrecognisable to that of just a few year ago with a focus on higher-margin, recurring revenue streams and a c.25%+ EBITDA margin vs the c.10% margin delivered four years ago. Over that same period, Centaur has generated impressive shareholder returns, and returned a total of £8.9m (13.6% of the market cap) of ordinary and special dividends in FY23 alone. We have reduced our FY23 revenue forecasts 8% (reflecting the closure of Really B2B and Design Week), but upgraded adj EPS double digits reflecting the strong margin performance, lower expected amortisation and tax charge in the period. We view the current 11% FY24 FCF Yield as a highly attractive entry point for a proven management team that is moving Centaur Media towards higher-margin, recurring revenue products.
