Centaur Media posts another half of strong progress as the Group progresses further towards its transformational MAP23 goals (FY’23e revenues and EBITDA margin of >£45m and 23%). Revenues grew +8% y/y to £19.8m (SCMe: £19.8m), supported by continued strong MW Mini MBA performance (+16% y/y; est H1 Mini MBA revs: c£5m), and steady ‘The Lawyer’ growth (+6% y/y to £3.7m; SCMe: £3.8m). Adjusted EBITDA margins expanded +5pp y/y to 17% benefitting from enhanced scale and strong management cost control. Whilst Centaur is not immune from inflationary headwinds, management have successfully driven structured customer price rises, helping to mitigate the inflationary impact alongside continued transition to higher quality revenue streams (Premium Content, Marketing Services and Training/Advisory sales now 78%/revenues; H1’21: 73%). Net cash rose to £14.2m at the HY outturn, with adj FCF of £2.4m again demonstrating the attractive cash generative nature of the business model. We make no material changes to our forecasts, and project £4.4m of FCF in FY’22e representing a 9% FCF yield. Centaur remains a strong BUY, with a 12-month price target of 76p offering c70% upside.
