Name: CentralNic's debt refinancing strategy
Uploaded: 2023-01-19T19:01:28.050148+00:00
Duration: 2105 s
Channel: Master Investor
Description: CentralNic raised debt in 2019 when it carried out four acquisitions, and it has done a couple of tap issues since. The company has improved its net debt to EBITDA, from 2.5 times in 2019 to below 1 times currently. CentralNic also has $90.6 million in cash, and expects to drop its current coupon rate of 7% when refinancing.

CentralNic raised debt in 2019 when it carried out four acquisitions, and it has done a couple of tap issues since. The company has improved its net debt to EBITDA, from 2.5 times in 2019 to below 1 times currently. CentralNic also has $90.6 million in cash, and expects to drop its current coupon rate of 7% when refinancing.

CentralNic raised debt in 2019 when it carried out four acquisitions, and it has done a couple of tap issues since. The company has improved its net debt to EBITDA, from 2.5 times in 2019 to below 1 times currently. CentralNic also has $90.6 million in cash, and expects to drop its current coupon rate of 7% when refinancing.

https://d3ev5earl6dvd0.cloudfront.net/public-media/videos/004/111/004111/video_kShptpt.mp4#t=1766

Master Investor

CentralNic's debt refinancing strategy

About CentralNic

CentralNic's growth story

CentralNic's business model

CentralNic's profit turnaround

CentralNic's acquisition plans

CentralNic's competitors

CentralNic's outlook and main risks

CentralNic Group PLC (AIM:CNIC) global operator and developer of software systems reports on its fantastic start to the year. Revenues were up 86% to $156.6m ($84.4m), its adjusted EBITDA was 83% better at $18.5m ($10.1m), its operating profit was $10.0m ($1.4m), while its net debt was down 18% to $61.3m.

The figures reflect the potential of its strong marketplace for Online Presence and Online Marketing services.

Ben Crawford, CEO of CentralNic Group PLC, joins us to discuss its successes, the future and what potential acquisitions may lie ahead.

CentralNic Group PLC (AIM:CNIC) global operator and developer of software systems reports on its fantastic start to the year. Revenues were up 86% to $156.6m ($84.4m), its adjusted EBITDA was 83% better at $18.5m ($10.1m), its operating profit was $10.0m ($1.4m), while its net debt was down 18% to $61.3m.The figures reflect the potential of its strong marketplace for Online Presence and Online Marketing services.Ben Crawford, CEO of CentralNic Group PLC, joins us to discuss its successes, the future and what potential acquisitions may lie ahead.

https://d3ev5earl6dvd0.cloudfront.net/public-media/videos/004/111/004111/video_kShptpt.mp4

Ben Crawford, CEO of CentralNic, joins Jonathan Davis for a discussion around his company's successes and future plans. CentralNic is an AIM-listed technology company. It started as a UK innovation back in the 1990s when it was the first network information centre to be privately owned to manage multiple domain names.

As a private company, CentralNic paid out its entire profits as dividends every year. Since its IPO, when revenues were $3 million, the company has grown to around $600 million revenues, through a combination of organic growth and a number of acquisitions.

CentralNic focusses on two key business areas: 1) provision of Internet-based tools to companies; 2) provision of online marketing services. The company is platform neutral, which gives it a competitive advantage. Due to the fact that both business areas are based on a recurring subscription model, CentralNic finds that its chosen business approach has proven resilient.

CentralNic has experienced strong growth at the top line over the past few years; after $56 million revenue in 2018, 2021 saw over $400 million in revenue while $550 million or more are forecast for 2022. The company attributes its turnaround from small operating losses to operating profits to acquisitions and corresponding amortisations that often distorted its operating profits. With the scaling up of the business, acquisitions played a smaller role on the company's balance sheet.

CentralNic intends to continue with its acquisition approach. The company sees further acquisitions as a means to create a more robust business and gain more critical mass in high-growth markets around the world, rather than necessary to sustain its organic growth.

CentralNic's competitors in the domain name business include listed companies Tucows, Verizon and GoDaddy while in the marketing business, System1 offers many similarities to CentralNic. Tucows and System1 represent the most interesting peer combination to the company.

CentralNic has managed continuous growth over the past few years, even though the company's major competitors include some heavyweights such as Facebook, Amazon, Apple, or Google. With a robust business plan and its major focus on innovation, CentralNic envisages plenty of milestones ahead.