CentralNic announced 2018 results

CentralNic (AIM: CNIC) announced audited results ahead of consensus forecasts for the year ended 31 December 2018.

Financial Summary

• Revenue up 100% to £42.7m (2017 £21.4m*)
• Gross Profit up 69% to £19.7m (2017: £11.6m*)
• Adjusted EBITDA** up 66% to £7.0m (2017: £4.2m)
• Cash balance up 66% to £18.0m (2017: £10.9m)
• Net interest bearing debt reduced by 66% to £2.5m (2017: £7.2m)

*Excluding premium domain sales – no longer a core activity of the Group

**Excludes impact of share based payments expense for options, premium domain sales, foreign exchange, and non core operating costs

Operational Highlights

• Transformational acquisition of KeyDrive, which is integrating to plan:

o  Doubled size of Group with additional staff in Germany, USA, and Luxembourg

o  Augments CentralNic’s market strength, doubling customer numbers

o  Diversifies business providing cross-selling opportunities

o  Provides market leading technology which facilitates future acquisitions

o  Cost synergies being realised

• Acquisition of GlobeHosting increased presence in Romania and Brazil
• SK-NIC integration successfully completed with pleasing contribution to the Group
• Global customer footprint expanded
• Recurring revenues stable at 90% (2017: 91%)

Post year end events

• Michael Riedl (former CFO of KeyDrive) appointed CFO of CentralNic
• Don Baladasan appointed MD of CentralNic to focus on integrations
• CentralNic awarded management of c. 680,000 domain names by ICANN

 Commenting on the results, Mike Turner, Chairman of CentralNic, said:

“Results to date in the new financial year, together with the Group’s high percentage of recurring revenues, provide the Board with every confidence of meeting market expectations for 2019.

Furthermore, the continued availability of attractive acquisition targets, coupled with the Group’s proven ability to source, complete, and integrate complex acquisitions around the world, provides an excellent opportunity to build a sizeable global business to rival the largest industry players. Given its equity position has substantially improved and its current trading is favorable to market expectations, the Company is currently reviewing its capital structure for efficiency in view of its continued acquisition strategy.”