Small Cap Feast
MJ Hudson Group PLC, the financial services support provider to Alternatives fund managers and asset owners, is planning an AIM IPO. Deal details TBC but expected admission date mid-December. Octopus Renewables - Raising £350m. Will seek to provide investors with an attractive and sustainable level of income returns, with an element of capital growth by investing in a geographically and technologically diversified spread of renewable energy assets—Due 10 Dec. SulNOx Group - The Group has developed a methodology and process capable of emulsifying hydrocarbon fuels such as diesel and heavy fuel oil . By January 2014, following preliminary laboratory testing, SulNOx was in a position to suggest that its products resulted in up to a 50% reduction of Nitrogen Oxide (NOx) and a 90% reduction in particulate matter Due 17 Dec, mkt cap £42.3m.
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09 Dec 19
Small Cap Feast
The Pebble Group, a provider of products, services and technology to the global promotional products industry, announces its intention to seek admission of its shares to trading on the AIM market of the London Stock Exchange, which is expected to take place in early December 2019.The Group delivered revenue of £99.8 million in the year ended 31 December 2018.No mention of bottom line and a suggestion that funds raised would provide an exit to private equity shareholders and the repayment of debt. Offer TBA. Longboat Energy raising £10m. Expected admission November 2019. The company has been established by the former management team of Faroe Petroleum to create a new full-cycle North Sea oil and gas company .The strategy to achieve this will initially be through the acquisition of assets where the management team can add value through subsurface and operational improvements, follow-up deal opportunities and nearfield exploration; and by value creation through the drill bit.
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18 Nov 19
Acquisition of Team Internet
CentralNic has announced the acquisition of Team Internet for a total consideration of $48m. The acquisition will be financed in part by a further €40m bond issue under identical terms to the €50m issue announced on 23 May 2019. Team Internet operates a ‘domain monetisation’ platform, allowing domain name owners to monetise dormant domains to generate recurring income to offset renewal fees and earn a profit. This provides a complimentary service to existing CNIC services: clients currently pay CentralNic subscription fees to register and renew domain names. Team Internet had revenues of $66.7m in the 12 months to June 2019, with EBITDA of $10.6m. We expect this transaction to have an immaterial impact to 2019E due to timing and be 43.8% accretive to 2020E earnings. Post completion, we estimate net debt:EBITDA will be 2.1x in 2020E falling to 1.6x in 2021E.
18 Nov 19
CentralNic Group - Consolidating a growth market
CentralNic (CNIC) is executing on its strategy to build a global domain name and web services provider, acting as a consolidator in a fragmented market. Its key focus is expanding in emerging markets, where internet penetration is lower than in developed economies and the growth rates are higher. The company has spent £41.7m on acquisitions in FY16–18, and a further US$28.9m so far in FY19 (note the company’s reporting currency changed from pounds sterling to US dollars in FY19). Management is confident of ongoing organic revenue growth and highlights a strong pipeline of potential future M&A deals.
11 Nov 19
CentralNic Group has a solid set of interim results for the first six months of FY2019E, it was a busy period with the group completing 3 acquisitions immediately post the period end, issuing a €50m listed bond instrument and making solid progress in delivering on its stated accelerated strategy. Revenue for the first six months is up 225% yoy, with c.6% organic growth, in line with long term trends for the group. These results are the first time the group have reported in US Dollars. The group’s main functional currency is USD and we believe this is a sensible decision and should remove some currency related risk from the forecasts. CentralNic has made significant progress in delivering on its stated strategy of supplementing organic growth with quality acquisitions, focusing on recurring revenue businesses, in attractive regions. On our new USD based forecasts, the group trades on a 2019E EV/EBITDA of 8.7x (falling to 7.0x in 2020E) and a P/E of 11.0x.
02 Sep 19
CentralNic Group has announced the strategic acquisition of Idegeeo, a privately-owned domain name retailer registered in New Zealand. This acquisition creates value through vertical integration, creates upselling and cross selling opportunities and brings operational synergies. This is another positive announcement from the group in our view as they proactively deploy the capital raised through the recent €50m bond issue. We update forecasts following the announcements that all three acquisitions are now complete and the funds from the €50m (c.£45m) bond placement have now been released. We expect adj. EBITDA in 2019E of £14.5m (vs. £12.8m previously) growing to £17.5m by 2021E. We see these acquisitions as evidence of the group’s progress in delivering on the strategy of supplementing the organic growth through effective M&A. Based on our updated forecasts, the group trades on a 2019E EV/EBITDA of 9.4x (falling to 7.5x in 2020E) and a P/E of 13.2x.
07 Aug 19
Acquisition of TPP Wholesale complete
We note the announcement this morning from CentralNic confirming that funds from the bond placement have been received and the acquisition of TPP Wholesale is now complete, with the acquisition of Hexonet due to complete on the 5th August. We leave our forecasts unchanged for now and will factor in the acquisitions and bond placement when the completion of the Hexonet acquisition is confirmed, which we expect on the 5th August.
01 Aug 19
Small Cap Feast
ReAssure Group plc - The Group is a leading closed book life insurance consolidator in the United Kingdom with 4.3m policies, £68.7 billionof assets under administration on a Post-L&G Illustrative Basis. It is considering a premium listing segment of the main market. Voyager AIR The Company will focus on the acquisition, leasing and management of primarily widebody aircraft, with asset management services to be provided by Amedeo Limited he IPO will comprise a Placing and Offer for Subscription of Shares to raise up to approximately US$200m· IMC Exploration Group (NEX: IMCP), focused on acquiring and exploring prospecting licence areas which have high potential for natural resource, is looking to admit its shares to the standard list and will withdraw for the NEX Exchange. TBC Uniphar, a diversified healthcare services business with a workforce of over 2,000, is looking to join AIM. Raise TBC, expected mid-July 2019
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04 Jul 19
Acquisition of Hexonet
CentralNic Group has announced the acquisition of Hexonet, a leading international platform for resellers of domain names based in Canada and Germany. Hexonet benefits from recurring revenue streams as well as a high degree of customer stickiness and generated EBITDA of €0.8m on revenue of €16.5m in FY18. Total consideration payable of up to €10.0m includes €7.0 on completion and a €3.0m contingent earn-out, equating to 9.0x EBITDA adjusting for €0.3m cost savings already delivered YTD. Today’s announcement represents ongoing execution of the Group’s stated strategy of growing rapidly through global consolidation, being the fourth acquisition made in the last 12 months and follows the acquisition of domain name and hosting reseller TPP Wholesale in May. Our forecasts are unchanged today but will be reset on receipt of the bond proceeds and completion of both deals in the coming weeks.
01 Jul 19
Trading ahead of expectations, successful €50m senior secured bond issue
Following the announcement on the 23rd May that the group was seeking to raise a 4-year senior secured non-convertible bond issue with a volume of approximately €50m the group has confirmed this morning that they have successfully raised the full amount, showing good investor appetite for the issue. The settlement date is expected to be in early July, we leave forecasts unchanged until this happens, and the acquisition is complete. The acquisition of TPP Wholesale is the group’s third acquisition in 12 months as they continue to execute their consolidation strategy. We see this is a positive announcement and a clear sign that the management team are continuing to execute the stated acquisition strategy successfully. The group has also confirmed strong trading in the first four months of the year and management now expect the full year performance to be ahead of consensus expectations. At the current share price, the group trades on a 2019E EV/EBITDA of 9.0x and a P/E of 14.9x.
24 Jun 19
Earnings accretive acquisition
CentralNic has announced this morning the acquisition of TPP Wholesale, the leading Australian and New Zealand domain name and hosting reseller business for a consideration of $24m AUD, subject to financing. This acquisition is a good example of CNIC’s strategy to acquire high recurring revenue businesses, with potential synergies that exist in new markets. We leave forecasts unchanged for now, preferring to wait until the financing condition is satisfied, but management have stated that they believe this transaction will be immediately earnings accretive for 2019E with double digit earnings accretion in 2020E. This is the group’s third acquisition in 12 months as they continue to execute their consolidation strategy.
20 May 19
Allenby Capital TMT Update 20.05.19 (CNIC.L, SMRT.L, BIRD.L)
CentralNic plc (CNIC.L, 57p/£97.3m) FY results and acquisition: Executing buy and build strategy (13.05.19) | SmartSpace Software plc (SMRT.L, 84p/£18.5m) Management meeting: Targeting space management (08.05.19) | Blackbird plc/Forbidden Technologies plc* (BIRD.L, 6.0p/£17.9m) Formal name change (14.05.19)
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20 May 19
FY18 ahead of expectations
CentralNic has delivered a solid set of FY18 results this morning that are 3.8% ahead of our forecasts and up 66% YoY at the adj. EBITDA level (excluding the one off domain name sales business discontinued in 2017). This has been a transformative year for the group following a number of acquisitions including KeyDrive which effectively doubled the size of the group and significantly improved earnings quality. Recurring revenues are now at 90% and cash conversion in 2018A approaching 100%, highlighting this quality. We leave trading assumptions unchanged for 2019E and 2020E but update our working capital assumptions to reflect the cash outperformance and negative working capital cycle in the business. We now expect net debt at the end of 2019E of £2.9m growing to £3.0m in 2020E. At the current share price, the group trades on a 2019E EV/EBITDA of 5.9x and a P/E of 11.7x with a FCF yield of 7.6% based on 2019E forecasts.
13 May 19
Pre-close trading update
CentralNic has delivered a solid performance across the group in 2018 and expects to report full year results in line with market expectations. 2018 has been a year of significant progress for the group, successfully completing the acquisition of Germany-based domain names service provider KeyDrive, effectively doubling the size of the group and improving underlying earnings quality. We leave our FY19 and FY20 P&L estimates unchanged but update net debt forecast to reflect the outperformance in cash conversion through H2 2018. We now expect net debt of £2.4m for FY18 with net cash of £2.7m in FY19. CentralNic is trading on an FY19 P/E of 12.3x (fully diluted) falling to 11.2x and EV/EBITDA of 6.8x falling to 6.0x which is undemanding given the high quality of earnings, in our view.
04 Feb 19
Small Cap Feast
United Oil & Gas (UOG.L) an oil and gas exploration and development company brought to the Official List (Standard Segment) in July 2017 by way of a reverse takeover of Senterra Energy plc. No capital to be raised, expected market cap of £17m and expected 28 Feb Techniplas –global producer and support services company providing highly engineered and technically complex components, making the supply chain to original equipment manufacturers more efficient. FYDec17 rev $515m
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04 Feb 19
Strong organic growth in H1, delivering on strategy
During the first six months of FY18, CentralNic has delivered strong underlying organic growth as it continues to deliver against the long-term strategy of building recurring, high quality revenues. In terms of headline numbers, sales have increased by 5.5% to £11.2m (H1 17: £10.6m), while gross profit increased by 30.7% to £3.9m (H1 17: £3.0m), with margin increasing from 27.9% to 34.6%. Adj. EBITDA, excluding FX gains/losses, increased 65.3% to £2.3m (H1 17: £1.4m). The acquisition of SK-NIC in December 2017 brought quality, high margin, recurring revenues to the Group and this has been reflected in the H1 numbers.
26 Sep 18
AIM MARKET UPDATE June, July, August 2018
AIM showed no signs of a summer slowdown with three strong months with regards to total funds raised (new and further issues). June, July and August averaged over £700m per month, boosted by a particularly strong June which delivered 14 IPOs (historically AIM has 5-6 new joiners per month). Through the end of August 2018, the total amount raised (new and further issues) of £4.80bn is +15% on the same period in 2017 which itself was the best year since 2007.
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20 Sep 18
Accretive bolt-on acquisition of GlobeHosting Inc.
CentralNic has announced the acquisition of GlobeHosting Inc. for a total consideration of €2.6m to be funded from existing cash resources. This bolton acquisition is hot on the heels of the $55.0m transformational KeyDrive deal completed in July and expands the business further into key growth markets delivering recurring revenues. GlobeHosting generated revenues of €0.8m and EBITDA of €0.4m in the 12 months to 31 July 2018 implying a 6.2x EBITDA multiple. The deal will be accretive from FY19 onwards. The total consideration comprises an initial consideration of €1.5m, coupled with deferred payments of €0.6m and €0.5m on the first and second anniversaries of completion.
06 Sep 18
Small Cap Breakfast
Green Man Gaming—pure play e-commerce and technology company in the digital video games industry. revenue CAGR growth of 26.7% in the last three years to £47.5m. Due late Sep. EBITDA Profitable. Offer TBA Crossword Cybersecurity PLC* (NEX:CCS)—the technology commercialisation company focusing exclusively on the cyber security sector is exploring its options in relation to a potential move to the AIM market of the London Stock Exchange which, if it were to proceed, would likely take place over the next few months. Path Investments (PATH) -RTO of a 50 per cent. participating interest in the producing Alfeld-Elze II gas field located 22 kilometres south of Hannover in Germany. Seeking £10m. Offer TBA. Due Mid September Kropz PLC-Intention to float by the emerging plant nutrient producer with an advanced stage phosphate mining project in South Africa and exploration assets in West Africa
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06 Sep 18
AIM shares were allowed into Individual Savings Accounts (ISAs) five years ago in early August 2013. This change has certainly helped to boost trading levels in AIM shares, although there are likely to be other factors involved in the improvement. In the first half of 2013, before the ISA rule change, there was an average of 18,910 trades each day and the average daily value was £115.4m. Higher trading levels in the second half meant that the 2013 average trades figure was 25,396 a day, while average value of daily trades was £156.5m.
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08 Aug 18
Small Cap Breakfast
Jadestone Energy (JSE.TO)—an independent oil and gas production and development company focused on the Asia-Pacific region. Pro-forma production of 13.9 mboe/d, 2P reserves of 45.3 MMboe, and a 2P NPV10 of US$563.7 million . Offer TBA. Current mkt cap C$135m. Due early August. Ovoca Gold (to be renamed Ovoca Bio PLC) - RTO of IVIX, a Russian company developing a drug candidate for the treatment of female sexual dysfunctions. No monies to be raised, market cap of £8.5m, due 30 July Kropz PLC-Intention to float by the emerging plant nutrient producer with an advanced stage phosphate mining project in South Africa and exploration assets in West Africa
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02 Aug 18
Strategic acquisition of KeyDrive transforms quality of earnings
CentralNic is acquiring KeyDrive S.A. (an existing strategic partner since 2017) for an initial enterprise value of $44.5m or c.£33.6m, with an additional earnout of up to $10.5m or c.£7.9m implying a maximum Enterprise Value of $55.0m or c.£41.5m. Founded in 1998, KeyDrive has established itself as one of the leading European companies for the distribution and management of domain names, administering over 6.0m domains via its internally developed software platform for over 1,700 retailers and 40,000 direct customers across 160 countries. The largest division of KeyDrive is its reseller platform RRPproxy, which is one of the top two providers globally with a range of blue chip customers.
16 Jul 18
Small Cap Brunch
CentralNic-Schedule 1 from the business operating in proprietary retail platforms selling domain names and associated web presence services including hosting and email on a subscription basis, has acquired KeyDrive S.A which constitutes a RTO. Raising £24m at 52p, combined market cap of £88.7m Trackwise—established business that manufactures specialist products using printed circuit technology. Offer TBA. Due Late July Ovoca Gold (to be renamed Ovoca Bio PLC) - RTO of IVIX, a Russian com pany developing a drug candidate for the treatment of female sexual dysfunctions. No monies to be raised, market cap of £8.5m, due 30 July Nucleus Financial—independent wrap platform provider . FYDec17 revs £40.36m and PBT of £5.1m. Offer TBA. Due late July. Kropz PLC-Intention to float by the emerging plant nutrient producer with an advanced stage phosphate mining project in South Africa and exploration assets in West Africa
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16 Jul 18
Small Cap Breakfast
Kore Potash— advanced stage mineral exploration and development company whose primary asset is its interest in the Sintoukola Project, a potash project located in the Republic of Congo. ) Measured, Indicated and Inferred Mineral Resource of 5,953Mt at an average grade of 22.0% KCl. Offer TBA. Due end March. Perfomatrix PLC, a global end to end Performance Marketing technology and services company headquartered in the UK, is looking to join AIM in early April 2018, offer TBC Crusader Resources, an ASX-listed public company incorporated in Australia, which is primarily focused on the exploration and development of gold assets in Brazil. Offer TBC, expected late March. SimplyBiz, a Financial Services Firm, looking to join AIM raising £30m via placing and £34.6m via a sale of existing ordinary shares at 170p giving a market cap of £130m. Expected 4 April Bacanora Lithium—Readmission. No new money. Mkt cap £140m. Due 21 March. the new holding company for Bacanora Minerals Ltd Core Industrial REIT—established to invest in Irish-based industrial properties, predominantly located in the Greater Dublin Area. Vendor placing and new funds to a total of €225m, Target gross proceeds €207m. Expected Mid March Polarean - Medical drug-device combination company operating in the high resolution medical imaging market. Offer TBC. Due26 March
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19 Mar 18
Purchase of premium domain name portfolios for £2.5m
CentralNic has announced the purchase of multiple portfolios of premium ‘.com’ domain names, for an aggregate consideration of £2.5m, satisfied from existing cash resources. The portfolios, which are comprised of mid-priced domains where trading is relatively liquid, have been opportunistically acquired at an attractive discount to current market rates. This significant restocking of the inventory of premium domains for trading, which is part of the Enterprise division, is evidence that the contribution from premium domain sales, as seen over the past few years, is set to continue to reduce as a proportion of overall group revenue, and supports CentralNic’s core diversified revenue strategy.
09 Jan 18
Changes to terms of SK-NIC acquisition, FY18 unchanged
CentralNic announced on 25th August that it was to acquire SK-NIC, the manager of the exclusive country code top-level domain for Slovakia. Since then, the structure of the acquisition has changed with the previous asset purchase agreement lapsing and a new share purchase agreement being entered into on 30th November 2017 following which CentralNic will acquire SK-NIC as a legal entity and its associated assets and liabilities.
01 Dec 17
Sale of premium domain names for US$3.4m
CentralNic has announced that it has entered into an agreement to sell a number of premium domain names for a total consideration of US$3.4m in cash. The proceeds will be used to accelerate growth within the Group, as the business continues to focus on growing the recurring revenue base.
07 Nov 17
TMT UPDATE - (BOOM.L, CCT.L, CNIC.L, MWE.L)
Audioboom plc (BOOM.L, 2.075p/£19.3m) Q3 Update - Continued substantial growth | The Character Group plc (CCT.L, 532p/£112.6m) Pokemon broadens portfolio | CentralNic plc (CNIC.L, 68p/£64.7m) Interims: Building recurring revenue streams | MTI Wireless Edge plc (MWE.L, 31.75p/£17.0m) Distribution agreement broadens Mottech's reach
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11 Sep 17
FY17 Interims – long-term growth strategy continues, FY on track
During the first six months of FY17, CentralNic delivered good underlying organic growth across the business as it continues to deliver against the long-term growth strategy of building recurring, high quality revenues. In terms of headline numbers, sales have increased by 18.5% to £10.6m (H1 16: £8.9m), while gross profit increased by 29.5% to £3.0m (H1 16: £2.3m), with margin increasing from 25.5% to 27.9%. Currency headwinds resulted in an FX loss of £0.3m versus a £0.4m gain in H1 16, and excluding this, adj. EBITDA increased 50% to £1.4m (H1 16: £0.9m) and adj. PBT by 79% to £1.0m (H1 16: £0.55m). Post period-end, the business demonstrated that it continues to diversify as a global internet software company with the transformational acquisition of SK-NIC that brings quality, high margin, recurring revenues to the Group, as well as the favourable renegotiation of the .xyz contract. In keeping with consistent H2 weighting, the business remains on track to meet full year market expectations.
07 Sep 17
TMT Update 29.08.17 (MIRA.L, ACC.L, CNIC.L) RM
Mirada plc (MIRA.L, 1.375p/£1.9m) Contract win: Second large deployment secured (29.08.17) | Access Intelligence plc (ACC.L, 4.1p/£14.4m) Interim results: encouraging signs of growth (25.08.17) | CentralNic plc (CNIC.L, 68p/£65.2m) H1 trading update and acquisition: In line, .sk adds scale and growth opportunity (25.08.17)
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30 Aug 17
Major earnings enhancing acquisition boosts recurring revenues, H1 in-line
CentralNic has announced the major acquisition of SK-NIC, the manager of the exclusive country code top-level domain for Slovakia, .sk. The deal is for an initial consideration of €21.3m, with deferred cash consideration of up to €4.9m dependent on hitting defined three year growth targets. In unaudited accounts for the first half of 2017, with SK NIC establishing new cost and revenue baselines, it achieved revenue of €1.9m, EBITDA of €1.0m and PBT of €1.1m, all of which are expected to grow under CentralNic ownership. The deal will be immediately earnings enhancing (we forecast 15% accretion to our PBT forecast in the first full year of ownership) and is being funded by an £18m term loan and £3m overdraft, with deferred consideration paid from the profits of the enlarged group.
25 Aug 17
Small Cap Breakfast
appScatter Group—Sch1 from the B2BSaaS platform that allows its paying users to distribute their apps to, and manage their apps on, multiple app stores. Following admission, appScatter intends to launch the public version of the platform, at which point the platform will be available to all app developers and publishers worldwide. Offer TBC, expected early Sept 2017 | Warehouse REIT - The Company will invest in a diversified portfolio of UK warehouse assets located in urban areas. The Company is targeting a dividend yield of 5.5p equivalent to a yield of 5.5 per cent. for the year ending 31 March 2019. Issue price 100p. Raising up to £150m. | Destiny Pharma—A clinical stage biotechnology company - lead asset (XF-73) targets antibiotic-resistant bacterial infections in hospitals. Offer TBA. Due early September. | Avingtrans (AVG.L) Sch1 on its Reverse Takeover of Hayward Tyler (HAYT). Combined market cap of c.£75m. Expected 01 September 2017 | OnTheMarket—Intention to float on AIM to raise c. £50m which will be used to fund the growth of the OnTheMarket.com portal, already the third biggest UK residential property portal provider. Expected valuation £200m to £250m. | Chesterfield Resources-newly established company formed for the purpose of acquiring a company, business or asset that has operations in the mining sector that it will then look to develop and expand. Raising £1.3m at 5p. Due 29 Aug. Mkt cap £1.4m. | Hipgnosis Songs Fund investment Company offering pure-play exposure to Songs and associated musical intellectual property rights. Offer raising £200m at 100p. The Company has decided to extend the closing date for the Placing, Offer for Subscription and Intermediaries Offer to 1 August 2017. The Company may bring forward this closing date at any time. Admission 15 September 2017
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25 Aug 17
FY16 in line, strategy focussed on acquisitions, driving recurring earnings
FY16 results show that CentralNic has delivered revenue of £22.1m (+113%), adj. EBITDA of £5.5m (+68%) and adj. PBT of £4.7m (+60%), in line with market expectations as announced at the March trading update. The successful acquisition of Instra in January for £18.6m contributed sales of £10.3m and adj. EBITDA of £2.2m, implying a multiple paid of c.8x, with improved performance expected this year. Recurring/subscription revenues also increased to 81% of overall revenues (2015: 67%). Management are confident in the outlook as increased renewal revenues are expected in FY17 as the base of domains due to renew or expire has increased to c.10m in the Wholesale business (2016: 3.4m) and c.1.3m in the Retail business (2016: 0.7m). Trading on 5.0x EV/EBITDA to December 2017 with a FCF yield of 9.0%, in our view the shares remain extremely good value versus the two listed peers GoDaddy and Verisign.
09 May 17
Small Cap Breakfast
Opera Investments –Reverse Takeover of Kibo Mining’s subsidiary Kibo Gold. Raising £1.5m. Expected mkt Cap £6.5m. 23 May. Eve Sleep— Schedule 1 from the e-commerce focused, direct to consumer European sleep brand. Offer details TBC. Expected Mid May Velocity Composites—Schedule 1. Manufactures advanced carbon fibre and ancillary material kits (predominantly carbon fibre) for use in the production of aircraft. Mid May admission expected. Offer details TBC. Verditek— Schedule 1 update. On Admission, the Company's subsidiaries will be involved in advanced solar photovoltaic, filtration and absorption technologies specialising in providing environmental services. Issue price 10p. Admission in May. Alfa Financial Software –Intention to float. Mission-critical software platform purpose-built for asset finance enterprises. Vendor sale of 25% plus. FYDec16 rev £73.3m (CAGR of 24% from 2012). Adjusted EBIT £32.8m. Kuwait Energy— $150m raise plus vendor offer. Admission due June. 2p reserves 810.0 mmboe ADES International— Provider of offshore and onshore oil and gas drilling and production services in the Middle East and Africa, seeking raise up to $170m plus vendor sale under a Standard Listing of the Main Market. Admission due May 2017. Global Ports Holding—Intention to float on Standard List of the Main Market. International cruise ports operator. Seeking $200m+ raise including $75m primary offer. Expected price range 735p to 875p. Mkt cap up to £539m Tufton Oceanic Assets– Offer extended to 9 May on specialist funds segment of Main Market to enable investors to complete further due diligence. PRS REIT—Private rental sector REIT raising up to £250m. Admission due 31 May
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09 May 17
Small Cap Breakfast
Eddie Stobart Logistics—Intention to float on AIM. Intends to float in April. 49% held by Stobart Group (STOB.L) K3 Capital Group—Schedule 1 from the Group of business and company sales specialists across business transfer, business brokerage and corporate finance. Admission date and fundraise details TBC. Integumen— Schedule 1 from the personal health company developing and commercialising technology and products for the human integumentary system. Raising £2.16m at 5p. Expected market cap £8.16m. Admission expected 5 April. BioPharma Credit—Expected Gross Initial Acquisition Proceeds now c.$338m. Gross Cash Proceeds capped at $423m with placing and open offer. Results expected 23 March with admission now due 30 march. Tufton Oceanic Assets- The Company intends to invest in a diversified portfolio of second hand commercial sea-going vessels where the Investment Manager believes that an attractive opportunity exists in shipping. $150m raise. Admission 3 April.
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24 Mar 17
Trading update: FY16 in line, continuing to execute on growth strategy
CentralNic has provided a trading update confirming that trading for the year to December 2016 was in line with market expectations. Revenue increased by over 110% to £22.1m (Zeus £22.3m), with recurring/subscription revenues increasing to c.80% of overall revenues, from 67% in FY15. Adj. EBITDA increased by over 65% to £5.5m (Zeus £5.7m), while the company ended the year with £7.3m net cash (Zeus £7.0m). Trading so far in the new year is in line with expectations. Management are confident in the outlook as increased renewal revenues are expected in FY17 as the base of domains due to renew or expire has increased to c.10m in the Wholesale business (2016: 3.3m) and c.1.3m in the Retail business (2016: 0.7m). Trading on 5x EV/EBITDA for next year the shares are extremely good value versus the two listed peers GoDaddy and Verisign.
07 Mar 17
Small Cap Breakfast
RedstoneConnect (REDS.L) | Paysafe Group (PAYS.L) | 1Spatial (SPA.L) | MayAIR Group (MAYA.L) | Staffline (STAF.L) | Autins Group (AUTG.L) | Tandem group (TND.L) | Kromek (KMK.L) | CentralNic (CNIC.L) | Coinsilium (NEX:COIN)
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07 Mar 17
Sale of premium domain name for US$4.5m, pre-close trading update
CentralNic has announced that it has sold a premium domain name for a total consideration of US$4.5m in cash, representing its largest premium domain sale to date. The business has also issued a pre-close statement in which it confirms that it expects to finish the year with earnings in line with market expectations. While the business continues to grow recurring revenues in its Wholesale and Retail divisions, new corporate customer acquisition is taking longer than expected in the corporate market segment. Hence we have decided to defer some of the earnings growth in our projections beyond FY17 as outlined below. Despite reducing numbers in FY17, in our view, trading on 5x EV/EBITDA for next year the shares are extremely good value versus the sector. If the shares traded on 9x EV/EBITDA, which is below the sector, the price would be 74p, 58% upside to the current share price.
14 Dec 16
.XYZ domain one of first to receive accreditation for local hosting in China
CentralNic today announces that the .XYZ TLD, for which they act as exclusive distributor, has received official accreditation from the Ministry of Industry and Information Technology (MIIT) in China. What this means is that businesses and individuals in China can now use .XYZ domain names to host their websites locally. CentralNic worked closely with .XYZ to put in place a customised technology platform that has been approved by both ICANN (the global internet regulator) and MIIT, succeeding in securing .XYZ a ranking among the first batch of non-Chinese new gTLDs approved for Chinese citizens. MIIT accredited .XYZ web addresses will be available via Chinese domain registrars from 16th December 2016. The MIIT accreditation was a planned development for the group and is positive news in the context of one of the strategic objectives to increase recurring earnings. We are leaving our forecasts unchanged however we note that the approval opens up significant new opportunities for CentralNic to drive further domain growth within the large Chinese market. The Group continues to evolve at a pace and updated forecasts beyond FY17 will form part of the year-end updates expected in the Spring.
07 Dec 16
Small Cap Breakfast
Creo Medical group—Schedule 1 update.. £20m raise. Expected market cap £61.2m, admission expected 9 December. ECSC—Schedule 1 from provider of cyber security services. Raising £5m. Vendor sale £0.8m. Target date 14 Dec. Expected market cap £15m. RM Secured Direct Lending - The secured direct lending fund intends to float on the Main Market on 15 December raising up to £100m
CNIC CPX AUTG JOUL LID PCF BHRD CHOC FIPP KMK
07 Dec 16
FY16 Interims – improving quality of earnings, FY on track
During the first six months of FY16, CentralNic has demonstrated how the acquisition of Instra has driven the company’s growth strategy by both increasing recurring revenues (now 60% of sales versus 51% in H115) and improving the quality of earnings. In terms of headline numbers, sales have increased by 101% to £8.9m (£4.4m), adj. EBITDA by 29% to £1.3m (£1.0m) and adj. PBT by 12% to £0.9m (£0.8m). The Retail division was significantly enhanced by the contribution from Instra, while there were minimal premium domain name sales in H116 compared to £0.7m H115, which diluted the overall gross margin to 26% from 43%. Management are in advanced discussions with trade buyers for premium domains and anticipate securing significant high value and high margin sales in H2, and as a result, remain confident of achieving FY numbers.
07 Sep 16
AVACTA GROUP PLC (AVCT LN) | BIOMED REALTY TRUST INC (BMR US) | CENTRALNIC GROUP PLC (CNIC LN) | FORBIDDEN TECHNOLOGIES (FBT LN) | GEMFIELDS PLC (GEM LN) | GEMFIELDS PLC (GEM LN) | GFINITY PLC (GFIN LN) | LOK'N STORE GROUP (LOK LN) | OPG POWER VENTURE PLC (OPG LN) | PROSHARES ULTRA SILVER (AGQ US) | SIERRA RUTILE LTD (SRX LN)
CNIC GFIN SRX OPG GEM GEM BIRD BMR LOK AGQ AVCT
01 Aug 16
FY15 Finals – strong performance with much more to come
FY15 results show that CentralNic has delivered revenue of £10.4m (+71%), adj. EBITDA of £3.3m (+47%) and adj. PBT of £3.0m (+113%), with growth in both revenues and profits experienced across all three group divisions. In our view, the business is well positioned for continued growth, thanks to a growing and impressive track record of diversification and M&A.
25 May 16
Hybridan - Small Cap Wrap
ABDP Interim Results, ALSP Interim Dividend*, CGNR Financing Update*, COG FDA Clearance*, CNIC World's First, ELA Placing, ITM Grant, LID Launch, LRM Trading Update, , MSG Contract and Agreement*, PLI New Data*, TPG Final Results, TRAK Trading Update, VLG Agreements, VENN Final Results*, VER Fundraise, VIP Results
CNIC ABDP ALSP COG ELA ITM LID LRM CTEA PLI TPG TRAK ORPH VLG VER VIP CGNR
10 May 16
First company to achieve landmark of two million new TLD registrations
CentralNic is the first ‘registry backend’ to achieve two million sales of new TLD domain names, according to the domain industry stats website ntdstats.com. As the chart below illustrates, CentralNic is ranked number one globally with a 21.2% market share of new TLD domains registered using its platform.
10 Nov 15
FY15 Interims – progress continues
During the first six months of FY15 CentralNic has continued to successfully diversify and develop its three business streams, and as a result sales have increased by 171% to £4.4m, generating adj. EBITDA of £1.0m (H1 14 (£0.0m)). Through prudent use of funds raised and by investing earnings, CentralNic has created profitable exposure to multiple aspects of the internet domain supply chain, building on the proven long-term annuity style earnings streams of the Wholesale business, and at a time of significant expansion in the internet. Results are in-line with expectations, and management confirm trading since the half year has also remained in-line with expectations.
15 Sep 15
Eastern European ATTRAQTion, MX Oil* to roll out the barrels, GOAL exports real football stateside
ATQT New Contract Win, BOOM Agreement, AVN Contract Win, CNIC Agreement, COS Final Results and Partnership, GOAL Trading Statement, IVO Funding Found, MIRA Final Results, MXO Investment and Placing, NRR Acquisition, OPTI Contract Signed, PNA Market update, RSTR Partnership, STAF Trading Update
CNIC ATQT AVN COS GOAL IVO MXO OPTI PNA BBSN STAF NRR BOOM MIRA
17 Jul 15
Sale of Premium Domain Names for $1m
CentralNic’s Premium Domain Trading business, which forms part of the Enterprise division, has entered into a premium domain name sales agreement for a total consideration of $1m. The proceeds will be used to further accelerate growth within the business, as well as within the Premium Domain trading business via investment in additional premium domains to augment the existing portfolio. Today’s announcement follows on from the sale of a premium domain names portfolio for $2.5m that was announced in December 2014.
01 Jul 15
£2.3m placing at a 16% premium
CentralNic has successfully raised £2.3m at 40p, representing a significant 16% premium to yesterday’s closing price of 34.5p. The new shares have been subscribed by a new institutional holder as well as from existing shareholders. The business continues to focus on growth, both organically and through acquisition, and the placing strengthens CentralNic’s balance sheet which will enable the company to act quickly as and when investment and M&A opportunities arise.
17 Jun 15