Proactiveinvestors United Kingdom Centralnic Group PLC https://www.proactiveinvestors.co.uk Proactiveinvestors United Kingdom Centralnic Group PLC RSS feed en Mon, 20 May 2019 02:02:41 +0100 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - CentralNic ticks up as it inks partnership with ‘.blog’ domain ]]> https://www.proactiveinvestors.co.uk/companies/news/220515/centralnic-ticks-up-as-it-inks-partnership-with-blog-domain-220515.html CentralNic Group PLC (LON:CNIC) shares ticked up on Friday after it entered into a partnership with ‘.blog’ to provide registry services for the domain.

In a statement, ‘.blog’ said it looked forward to working with CentralNic, which controls around 30% of the top-level domain (TLD) market and manages 8mln domains, to “further advance” the domain through the company’s tools and services.

WATCH: CentralNic looking to again double in size in 2019 after transformational year

“We strongly believe that this new partnership will enhance the .blog experience for our registrar, reseller partners, and registrants”, ‘.blog’ said.

The change is currently awaiting approval from the Internet Corporation for Assigned Names and Numbers (ICANN), which coordinates and maintains internet name databases, but the migration is expected to complete in late August or early September this year.

In lunchtime trading, CentralNic shares were up 1.7% at 57.5p.

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Fri, 17 May 2019 12:07:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/220515/centralnic-ticks-up-as-it-inks-partnership-with-blog-domain-220515.html
<![CDATA[Media files - CentralNic looking to again double in size in 2019 after transformational year ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/13335/centralnic-looking-to-again-double-in-size-in-2019-after-transformational-year-13335.html Tue, 14 May 2019 13:02:00 +0100 https://www.proactiveinvestors.co.uk/companies/stocktube/13335/centralnic-looking-to-again-double-in-size-in-2019-after-transformational-year-13335.html <![CDATA[News - CentralNic confident of meeting full-year expectations ]]> https://www.proactiveinvestors.co.uk/companies/news/220116/centralnic-confident-of-meeting-full-year-expectations-220116.html Internet domain name seller CentralNic Group PLC (LON:CNIC) saw revenue double in 2018.

In the current year, results to date combined with a strong level of recurring revenues have underpinned the board's confidence in meeting market expectations.

WATCH: CentralNic looking to again double in size in 2019 after transformational year

Revenue rose to £42.7mln in 2018 from £21.4mln (excluding premium domain sales, as selling premium domains is no longer a core activity of the group) in 2017.

Adjusted underlying earnings (EBITDA) grew to £7.0mln from £4.2mln (again, excluding premium domain sales).

Administrative expenses, which includes acquisition-related costs, rose to £22.1mln from £12.3mln, leading to a loss before tax of £3.8mln versus a profit in 2017 of £1.4mln.

$CNIC CentralNic shares up more than 9%. Board seem very bullish. https://t.co/jlR1FnriLQ via @proactive_uk @Centralnic #CNIC #brighterir #AndrewScottTV #CapitalNetwork1

— John Harrington (@JournoJohnH) May 13, 2019

The group ended the year with a cash balance of £18.0mln, up from £10.9mln a year earlier, after an oversubscribed £24mln share issue. Net debt, including pre-paid costs, narrowed to £1.7mln from £6.5mln at the end of 2017.

Net cash flow from operating activities after tax was higher than the previous year at £6.7mln (2017: £3.8mln).

READ CentralNic acquires Romania and Brazil-focused domain host provider GlobeHosting READ CentralNic joins the domain name big boys with Keydrive acquisition

"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,” said Mike Turner, the chairman of CentralNic.

“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,” he continued.

$CNIC #CentralNic Group CentralNic Group plc (CNIC LN): 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… https://t.co/HNK91qFd3A pic.twitter.com/HQbpd8yYxd

— ResearchPool (@ResearchPool) May 13, 2019 ]]>
Mon, 13 May 2019 08:31:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/220116/centralnic-confident-of-meeting-full-year-expectations-220116.html
<![CDATA[RNS press release - Final Results ]]> https://www.proactiveinvestors.co.uk/companies/rns/3651/LSE20190513070007_14070693/ Mon, 13 May 2019 07:00:07 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3651/LSE20190513070007_14070693/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/3651/LSE20190507143001_14065168/ Tue, 07 May 2019 14:30:01 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3651/LSE20190507143001_14065168/ <![CDATA[RNS press release - Notice of Results ]]> https://www.proactiveinvestors.co.uk/companies/rns/3651/LSE20190502070005_14060245/ Thu, 02 May 2019 07:00:05 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3651/LSE20190502070005_14060245/ <![CDATA[RNS press release - Exercise of Share Options & Total Voting Rights ]]> https://www.proactiveinvestors.co.uk/companies/rns/3651/LSE20190329172504_14022200/ Fri, 29 Mar 2019 17:25:04 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3651/LSE20190329172504_14022200/ <![CDATA[News - CentralNic to receive 680,000 domain names ]]> https://www.proactiveinvestors.co.uk/companies/news/217498/centralnic-to-receive-680000-domain-names-217498.html CentralNic Group PLC (LON:CNIC) said it will receive around 680,000 domain names as part of a bulk transfer from a former registrar.

The company, which provides internet domain registry services, said the Internet Corporation for Assigned Names and Numbers (ICANN), a non-profit responsible for maintaining domain name databases, had selected the firm to receive 679,840 domain names from a registrar that was no longer accredited.

READ: CentralNic reports “solid” 2018 performance as KeyDrive integration continues

CentralNic said the new domains would be transferred to three of its subsidiaries and provide revenues when they are renewed by the end users.

The group added that the transfer would be at no cost with any additional servicing expenditure expected to be “minimal”.

“This was a competitive process and our selection is a huge endorsement of the quality of our scalable platform, our exemplary track record and excellent reputation in the industry. We hope to be able to announce further successes of this kind in future", said Ben Crawford, chief executive of CentralNic.

In early trading Friday, CentralNic shares were down 2.2% at 45p.

--Adds share price--

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Fri, 29 Mar 2019 07:56:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/217498/centralnic-to-receive-680000-domain-names-217498.html
<![CDATA[RNS press release - CentralNic to receive 680,000 domain names ]]> https://www.proactiveinvestors.co.uk/companies/rns/3651/LSE20190329070009_14020474/ Fri, 29 Mar 2019 07:00:09 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3651/LSE20190329070009_14020474/ <![CDATA[RNS press release - Exercise of Share Options & Total Voting Rights ]]> https://www.proactiveinvestors.co.uk/companies/rns/3651/LSE20190329070006_14020430/ Fri, 29 Mar 2019 07:00:06 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3651/LSE20190329070006_14020430/ <![CDATA[News - CentralNic “well positioned” for next stage of development ]]> https://www.proactiveinvestors.co.uk/companies/news/214717/centralnic-well-positioned-for-next-stage-of-development-214717.html CentralNic Group PLC (LON:CNIC) is a provider of registry services for internet domains, a string of characters (e.g. ‘.com’, ‘.net’, or ‘.gov’) used to identify administrative authority or control of different websites online.

CentralNic is headquartered in London but also has offices in New York, Dubai and Los Angeles with account executives in Hong Kong, Abu Dhabi and Melbourne.

What it owns

CentralNic operates its own proprietary registry engine that uses in-house IT systems to distribute its portfolio of domains across a network of 1,500 registrars such as domain retailer GoDaddy.

The firm also owns domain name technology firm KeyDrive, which it acquired last year in a reverse takeover for an initial sum of US£35.8mln.

KeyDrive develops and operates software platforms used for selling subscription-based tools for businesses to operate online, including domain names, hosting, email, domain portfolio management and online advertising services.

Inflexion points

• In a February trading update, the firm said it had delivered a “strong” performance in 2018 with revenues for the year ended 31 December expected to be around £42.5mln compared to £24.3mln the year before

• In September, the company acquired the business assets of GlobeHosting Inc, a Romania and Brazil-focused registrar and domain hosting provider based in Delaware, for €2.56mln (£2.2mln)

• Chief executive Ben Crawford said the acquisition of KeyDrive had led to a “significant improvement” in the quality of company earnings

Blue Sky

Going forward, Crawford said that the company was “well positioned for the next stage of developing a global company that drives the growth of the digital economy, giving shareholders exposure to the fastest-growing customers, products and markets in our sector, worldwide”.

In the near-term the firm is progressing with the integration of KeyDrive’s systems into its own structure.

As a result of migrating its largest retail and reseller businesses onto the KeyDrive platform as well migrating most of KeyDrive’s registry clients onto its own software platform, CentralNic said it expected to generate £1mln in cost synergies during the 2019 fiscal year.

The company has also managed to cut its net debt to £2.4mln from £7.2mln in 2017 back of strong cash conversion in the second half of 2018, which if it continued could give it more financial firepower to further expand its market share through acquisitions.

With shares trading at 49.5p as of 15 February 2019, CentralNic has a market cap of around £85mln.

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Fri, 15 Feb 2019 07:00:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/214717/centralnic-well-positioned-for-next-stage-of-development-214717.html
<![CDATA[RNS press release - Update on Directorships ]]> https://www.proactiveinvestors.co.uk/companies/rns/3651/LSE20190208142540_13963709/ Fri, 08 Feb 2019 14:25:40 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3651/LSE20190208142540_13963709/ <![CDATA[News - CentralNic reports “solid” 2018 performance as KeyDrive integration continues ]]> https://www.proactiveinvestors.co.uk/companies/news/213878/centralnic-reports-solid-2018-performance-as-keydrive-integration-continues-213878.html CentralNic Group PLC (LON:CNIC) said it had delivered “strong” trading in 2018 as it issued an update on the integration of technology group KeyDrive.

The internet domain services provider said trading for the year ended 31 December had been in line with market expectations with revenues expected to be around £42.5mln compared to £24.3mln the year before, while adjusted underlying earnings (EBITDA) were up to £6.7mln from £6.6mln.

READ: CentralNic acquires Romania and Brazil-focused domain host provider GlobeHosting

Net debt was also expected to be lower than expected, falling to £2.4mln from £7.2mln in 2017 on the back of strong cash conversion in the second half of the year.

The company added that its full year results would be released in the week of 13 May 2019.

For KeyDrive, which CentralNic acquired in July 2018 in a reverse takeover, the company said it had progressed the migration of its largest retail and reseller businesses onto the KeyDrive platform as well migrating most of KeyDrive’s registry clients onto its own software platform.

As a result of the migration, CentralNic said it expected £1mln in cost synergies during the 2019 financial year, in line with initial estimates.

READ: CentralNic closes transformational acquisition of KeyDrive

The firm also said that Michael Riedl, the former chief financial officer of KeyDrive, would be appointed as CFO with immediate effect to replace Don Baladasan, who will become group managing director.

Baladasan in his new role would be responsible for managing the ongoing integration of the two companies, as well as reviewing current business practices.

Ben Crawford, chief executive of CentralNic, said 2018 had seen a “significant improvement” in the firm’s quality of earnings, and that the KeyDrive acquisition would move it to a business model where over 90% of revenues came from the sale of subscription products.

“We are well positioned for the next stage of developing a global company that drives the growth of the digital economy, giving shareholders exposure to the fastest-growing customers, products and markets in our sector, worldwide."

In early trading Monday, CentralNic shares were steady at 50.5p.

--Adds share price--

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Mon, 04 Feb 2019 08:09:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/213878/centralnic-reports-solid-2018-performance-as-keydrive-integration-continues-213878.html
<![CDATA[RNS press release - Trading and Integration Update and Board Changes ]]> https://www.proactiveinvestors.co.uk/companies/rns/3651/LSE20190204070006_13956324/ Mon, 04 Feb 2019 07:00:06 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3651/LSE20190204070006_13956324/ <![CDATA[RNS press release - Director Disclosure Update ]]> https://www.proactiveinvestors.co.uk/companies/rns/3651/LSE20181221070003_13912375/ Fri, 21 Dec 2018 07:00:03 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3651/LSE20181221070003_13912375/ <![CDATA[RNS press release - TR-1 Notification of major holdings ]]> https://www.proactiveinvestors.co.uk/companies/rns/3651/LSE20181023170244_13839647/ Tue, 23 Oct 2018 17:02:44 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3651/LSE20181023170244_13839647/ <![CDATA[RNS press release - TR-1 Notification of major holdings ]]> https://www.proactiveinvestors.co.uk/companies/rns/3651/LSE20181005110548_13818426/ Fri, 05 Oct 2018 11:05:48 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3651/LSE20181005110548_13818426/ <![CDATA[News - CentralNic earnings double in first half as it eyes further acquisitions following KeyDrive ]]> https://www.proactiveinvestors.co.uk/companies/news/205734/centralnic-earnings-double-in-first-half-as-it-eyes-further-acquisitions-following-keydrive-205734.html CentralNic Group PLC (LON:CNIC) saw its adjusted earnings nearly double in the first half of the year, with the company saying it was eyeing further acquisitions going forward.

The web domain services group reported adjusted underlying earnings (EBITDA) for the period of £2.1mln, up 95% on the same period a year ago, while revenues climbed 30.7% to £3.9mln.

READ: CentralNic acquires Romania and Brazil-focused domain host provider GlobeHosting

In its outlook, CentralNic said future acquisitions would align well with one of its four industry channels of corporate, registry, and reseller & retail, with the technology platform “very strong” following its post-period end acquisition of KeyDrive in July.

The firm added that it also had access to funding following a £24mln equity raise in August to fund the KeyDrive acquisition.

Looking ahead, the firm said trading would be in line with expectations for the year with an initial dividend to be paid in the 2019 financial year.

Mike Turner, chairman of CentralNic, said "2018 will be backend loaded following the KeyDrive acquisition occurring in August, second-half results will show a heavier weighting than those of the first-half. The Board is confident that the Company is on track to meet market expectations for the full year to 31 December 2018."

WATCH: CentralNic Group PLC set to double in size with KeyDrive acquisition

CentralNic entered an agreement to acquire KeyDrive, a firm that develops and operates software platforms used for selling subscription-based tools for businesses to operate online, in July for US$35.8mln, representing an enterprise value of US$44.5mln, plus a performance-based earn-out of up to US$10.5mln.

Earlier in September, the group boosted its acquisition portfolio further with the business assets of GlobeHosting Inc, a Romania and Brazil-focused registrar and domain hosting provider based in Delaware.

READ: CentralNic acquires Romania and Brazil-focused domain host provider GlobeHosting

At the time, CentralNic said the €2.56mln transaction would “fit comfortably” into its retail and reseller divisions, adding that significant adjustments in Romania’s ‘.RO’ country code would benefit GlobeHosting as internet penetration in the country increased.

Shares were steady in early morning trading Wednesday at around 52p.

CentralNic carries a market cap of around £90mln.

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Wed, 26 Sep 2018 08:49:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/205734/centralnic-earnings-double-in-first-half-as-it-eyes-further-acquisitions-following-keydrive-205734.html
<![CDATA[RNS press release - Interim Results to 30 June 2018 ]]> https://www.proactiveinvestors.co.uk/companies/rns/3651/LSE20180926070003_13804526/ Wed, 26 Sep 2018 07:00:03 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3651/LSE20180926070003_13804526/ <![CDATA[RNS press release - Notice of Interim Results ]]> https://www.proactiveinvestors.co.uk/companies/rns/3651/LSE20180914113440_13791553/ Fri, 14 Sep 2018 11:34:40 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3651/LSE20180914113440_13791553/ <![CDATA[News - CentralNic acquires Romania and Brazil-focused domain host provider GlobeHosting ]]> https://www.proactiveinvestors.co.uk/companies/news/204307/centralnic-acquires-romania-and-brazil-focused-domain-host-provider-globehosting-204307.html CentralNic Group PLC (LON:CNIC) has acquired the business assets of GlobeHosting Inc, a Romania and Brazil-focused registrar and domain hosting provider based in Delaware.

The AIM-listed web domain services firm said the €2.56mln transaction, to be paid through an initial payment of €1.5mln with €608,000 and €450,000 to be paid on the first and second anniversaries of completion respectively.

READ: CentralNic closes transformational acquisition of KeyDrive

CentralNic said the purchase would “fit comfortably” into its retail and reseller divisions, adding that significant adjustments in Romania’s ‘.RO’ country code would benefit GlobeHosting as internet penetration in the country increased.

The purchase is CentralNic’s third in nine months and follows its acquisition of subscription-based online business services provider KeyDrive in July.

Ben Crawford, chief executive of CentralNic, said the purchase would plug “very easily” into the company’s business operations and would enhance the quality of its earnings.

He added that the purchase added to the firm’s access to the Romanian and Brazilian markets, which “exhibit attractive characteristics for sustained growth”, as well as taking advantage of upselling capabilities and economies of scale the CentralNic would bring to GlobeHosting.

In early morning trading Thursday, CentralNic shares were steady around 50p.

--Adds share price--

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Thu, 06 Sep 2018 07:59:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/204307/centralnic-acquires-romania-and-brazil-focused-domain-host-provider-globehosting-204307.html
<![CDATA[RNS press release - Acquisition of GlobeHosting ]]> https://www.proactiveinvestors.co.uk/companies/rns/3651/LSE20180906070002_13780486/ Thu, 06 Sep 2018 07:00:02 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3651/LSE20180906070002_13780486/ <![CDATA[RNS press release - TR-1 Notification of major holdings ]]> https://www.proactiveinvestors.co.uk/companies/rns/3651/LSE20180803163105_13743848/ Fri, 03 Aug 2018 16:31:05 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3651/LSE20180803163105_13743848/ <![CDATA[RNS press release - TR-1 Notification of major holdings ]]> https://www.proactiveinvestors.co.uk/companies/rns/3651/LSE20180803122655_13743467/ Fri, 03 Aug 2018 12:26:55 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3651/LSE20180803122655_13743467/ <![CDATA[RNS press release - Completion of the acquisition of KeyDrive S.A. ]]> https://www.proactiveinvestors.co.uk/companies/rns/3651/LSE20180802080001_13741088/ Thu, 02 Aug 2018 08:00:01 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3651/LSE20180802080001_13741088/ <![CDATA[RNS press release - Result of GM ]]> https://www.proactiveinvestors.co.uk/companies/rns/3651/LSE20180801102312_13739630/ Wed, 01 Aug 2018 10:23:12 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3651/LSE20180801102312_13739630/ <![CDATA[RNS press release - Posting of revised form of proxy ]]> https://www.proactiveinvestors.co.uk/companies/rns/3651/LSE20180723070005_13726692/ Mon, 23 Jul 2018 07:00:05 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3651/LSE20180723070005_13726692/ <![CDATA[News - Centralnic joins the domain name big boys with Keydrive acquisition ]]> https://www.proactiveinvestors.co.uk/companies/news/200948/centralnic-joins-the-domain-name-big-boys-with-keydrive-acquisition-200948.html CentralNic Group PLC (LON:CNIC) is a fast-growing wholesale, retail and enterprise supplier of domain names and associated services, that has global ambitions.

For the uninitiated, in the internet world, the top-level domain (TLD) is the label given to the very last section of a web address, located after the last dot – so suffixes such as .com, .org and .gov.

WATCH: CENTRALNIC GROUP PLC SET TO DOUBLE IN SIZE WITH KEYDRIVE ACQUISITION

Back in 2011, a body called the Internet Corporation for Assigned Names and Numbers (ICANN) ended the restrictions on naming TLDs, ushering a new era for many companies such as CentralNic that had prepared properly for this revolution.

Crucial to this has been its relationship with XYZ.COM, which owns the .xyz TLD, one of the most popular in the world.

In September, the company renegotiated and renewed its exclusive wholesaler contract with XYZ.COM.

CentralNic will receive a fixed fee based on the volume of .xyz registrations and subscriptions managed.

Acquisitions have also pulled their weight

CentralNic’s longer-term vision is to “join the ranks of world leaders in its industry, which include a number of multi-billion-dollar companies”.

Its growth strategy will focus on developing and scaling up its software platforms, while concentrating on growth areas, including China.

Hence the most recent and largest acquisition to date – Keydrive for US$35.8mln plus an earn-out of up to US$10.5mln.

KeyDrive develops and operates software platforms to operate domain names, hosting, email, domain portfolio management and online advertising services.

Revenues in 2017 were US$58.3mln and adjusted underlying earnings (EBITDA) US$5.9mln.

“KeyDrive's values and reputation within the industry match CentralNic's. The acquisition makes strong strategic sense to CentralNic and is a leap forward towards becoming a global leader,” said Ben Crawford, chief executive of CentralNic.”

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Tue, 17 Jul 2018 10:19:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/200948/centralnic-joins-the-domain-name-big-boys-with-keydrive-acquisition-200948.html
<![CDATA[Media files - CentralNic Group PLC set to double in size with KeyDrive acquisition ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/9857/centralnic-group-plc-set-to-double-in-size-with-keydrive-acquisition-9857.html Mon, 16 Jul 2018 10:20:00 +0100 https://www.proactiveinvestors.co.uk/companies/stocktube/9857/centralnic-group-plc-set-to-double-in-size-with-keydrive-acquisition-9857.html <![CDATA[News - CentralNic closes transformational acquisition of KeyDrive ]]> https://www.proactiveinvestors.co.uk/companies/news/200828/centralnic-closes-transformational-acquisition-of-keydrive-200828.html CentralNic Group PLC (LON:CNIC) has entered into a conditional agreement to acquire the entire share capital of KeyDrive.

The initial consideration is US$35.8mln, representing an enterprise value of US$44.5mln, plus a performance-based earn-out of up to US$10.5mln.

READ: CentralNic Group PLC has entered into a conditional agreement to acquire the entire share capital of KeyDrive

KeyDrive is a global technology business that operates in the internet domain name services industry. KeyDrive develops and operates software platforms used for selling subscription-based tools for businesses to operate online, including domain names, hosting, email, domain portfolio management and online advertising services.

In 2017, KeyDrive generated revenues of US$58.26mln and adjusted underlying earnings (EBITDA) of US$5.87mln.

CentralNic, which derives its revenue from the worldwide sales of internet domain names and associated web presence services, said the acquisition would substantially increase its scale and product range, adding KeyDrive's strength in the domain reseller and corporate services market to CentralNic's existing expertise in the domain registry and retail registrar segments.

The directors believe that opportunities for both cost and revenue synergies exist, which the board expects to be realised as the two businesses are integrated.

The consideration for the acquisition comprises US$16.5mln in cash funded from a proposed placing of 46.1mln shares at 52p a share plus the issue of 28mln shares, valued at US$19.3mln (based on a value of 52p a share) to Inter.Services, a holding company whose largest shareholder is Alex Siffrin, the chief executive officer (CEO) of KeyDrive.

A performance-based earn-out of up to US$10.5mln will be put in place, of which a minimum of 15% will be settled in cash with the rest settled by the issue of CentralNic shares at the prevailing market price.

Trading in CentralNic's shares, which had been suspended pending the KeyDrive announcement, resumed at 8.00am on Monday, June 16, down 2.5p at 55.5p.

"The acquisition of KeyDrive is transformative for CentralNic, significantly increasing the Company's scale and giving it significant extra firepower in the domain name industry to rival the traditional major players. KeyDrive's values and reputation within the industry match CentralNic's. The acquisition makes strong strategic sense to CentralNic and is a leap forward towards becoming a global leader,” said Ben Crawford, CEO of CentralNic.

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Mon, 16 Jul 2018 08:08:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/200828/centralnic-closes-transformational-acquisition-of-keydrive-200828.html
<![CDATA[RNS press release - Schedule 1 - CenralNic Group Plc ]]> https://www.proactiveinvestors.co.uk/companies/rns/3651/LSE20180716080002_13718663/ Mon, 16 Jul 2018 08:00:02 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3651/LSE20180716080002_13718663/ <![CDATA[RNS press release - Restoration - CentralNic Group Plc ]]> https://www.proactiveinvestors.co.uk/companies/rns/3651/LSE20180716073005_13718592/ Mon, 16 Jul 2018 07:30:05 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3651/LSE20180716073005_13718592/ <![CDATA[RNS press release - CentralNic Group Plc acquisition of KeyDrive S.A. ]]> https://www.proactiveinvestors.co.uk/companies/rns/3651/LSE20180716070005_13718211/ Mon, 16 Jul 2018 07:00:05 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3651/LSE20180716070005_13718211/ <![CDATA[RNS press release - Result of Annual General Meeting ]]> https://www.proactiveinvestors.co.uk/companies/rns/3651/LSE20180625101611_13692101/ Mon, 25 Jun 2018 10:16:11 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3651/LSE20180625101611_13692101/ <![CDATA[News - CentralNic hails strong year of revenue growth ]]> https://www.proactiveinvestors.co.uk/companies/news/197983/centralnic-hails-strong-year-of-revenue-growth-197983.html Internet domains firm CentralNic Group PLC (LON:CNIC) saw significant growth in its wholesale and retail divisions in 2017.

Revenues for the group as a whole rose by 10% to £24.35mln from £22.13mln in 2016, with the proportion of recurring revenues increasing to 84% (2016: 81%).

READ: CentralNic secures ‘.ooo’ distribution contract from Indian e-commerce giant Infibeam

The wholesale division’s revenues were up 48% and the retail side’s up 9% year-on-year.

The increase of revenue in the wholesale division was driven predominately by the .xyz and radix top-level domains (TLDs), along with registry consultancy.

Adjusted underlying earnings (Ebitda) in 2017 rose 20% to £6.61mln from £5.48mln the previous year, with the Ebitda margin rising by two percentage points to 27%.

Profit before tax rose to £1.37mln from £1.16mln in 2016.

Cash flow was positive during the year with year-end cash balances of £10.9 million (2016: £9.9 million) and net debt (excluding prepaid costs) of £7.2mln (2016: net cash £7.3mln).

The board intends at some point in the future to recommend the payment of dividends but for now, believes the money is better off being ploughed back into the business.

“The group continued its strategy to build a diversified internet services business of size and scale through an acquisitive roll-up programme which delivers high-levels of recurring revenues, quality of earnings and strong cash generation,” said Mike Turner, the chairman of CentralNic.

READ: Completion of SK-NIC acquisition

"SK-NIC, the manager of the exclusive country code top-level domain for Slovakia, was acquired in mid-December 2017 for a maximum cash consideration of €25.7 million (£22.6 million). The board anticipates SK-NIC to be earnings enhancing in line with expectations at the time of the acquisition, as well as providing access to a new international market with sustainable growth characteristics, a high renewal rate of over 86%, and the opportunity to leverage CentralNic's existing expertise and bespoke technical platforms in the domain management business,” Turner added.

"Significant growth was delivered in the Wholesale and Retail divisions, which contributed to an increase in recurring revenues and an improvement in the quality of the Group's earnings.

"Whilst the Enterprise Division made a significant contribution to the group's profits in the year under review, its contribution through one-off domain name sales reduced when compared to the prior year,” Turner explained.

"The directors are confident that the group will continue to deliver on its strategic goals in 2018, to deliver growth both organically and by expansion of the business, and further improve the percentage of recurring revenues and the group's quality of earnings," Turner said.  

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Thu, 31 May 2018 07:41:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/197983/centralnic-hails-strong-year-of-revenue-growth-197983.html
<![CDATA[RNS press release - Final Results ]]> https://www.proactiveinvestors.co.uk/companies/rns/3651/LSE20180531070101_13660796/ Thu, 31 May 2018 07:01:01 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3651/LSE20180531070101_13660796/ <![CDATA[RNS press release - Appointment of Joint Broker ]]> https://www.proactiveinvestors.co.uk/companies/rns/3651/LSE20180531070007_13660758/ Thu, 31 May 2018 07:00:07 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3651/LSE20180531070007_13660758/ <![CDATA[News - CentralNic secures ‘.ooo’ distribution contract from Indian e-commerce giant Infibeam ]]> https://www.proactiveinvestors.co.uk/companies/news/193353/centralnic-secures-ooo-distribution-contract-from-indian-e-commerce-giant-infibeam-193353.html CentralNic Group PLC (LON:CNIC) has secured the distribution contract for the Top Level Domain (TLD) ‘.ooo’ from Indian e-commerce conglomerate, Infibeam Incorporation Limited.

The AIM-listed global software platform company said the ‘.ooo’ registry business has placed Infibeam in a strong position as an affordable alternative to ‘.com’ domains and is tailor-made for large-scale usage in existing and emerging markets.

READ: CentralNic confirms in talks on potential combination with Luxembourg-based KeyDrive; shares temporarily suspended

The company added that the '.ooo' registry would be a digital transformation tool for existing businesses to find online markets alongside allowing new business ideas to be realised.

Since its listing in September 2013, CentralNic has won contracts to distribute fifty TLDs.

Infibeam is listed on the Indian Stock Exchange and operates a business model including an online e-commerce platform, payments, logistics and digital marketing to merchants globally. The company has a market cap of over US$1bln.

Ben Crawford, CentralNic chief executive, said: "Anyone who has followed the Infibeam story from its launch only ten years ago to its current scale and growth rate could not doubt that Vishal Mehta and his team have the expertise, resources and track record of success to make .ooo a leading global domain.

"We are delighted to have been chosen as their partner for the global expansion phase of this business, as the first step towards a closer cooperation between our companies."

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Mon, 19 Mar 2018 07:23:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/193353/centralnic-secures-ooo-distribution-contract-from-indian-e-commerce-giant-infibeam-193353.html
<![CDATA[RNS press release - Infibeam selects CentralNic for .ooo distribution ]]> https://www.proactiveinvestors.co.uk/companies/rns/3651/LSE20180319070007_13571102/ Mon, 19 Mar 2018 07:00:07 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3651/LSE20180319070007_13571102/ <![CDATA[News - CentralNic confirms in talks on potential combination with Luxembourg-based KeyDrive; shares temporarily suspended ]]> https://www.proactiveinvestors.co.uk/companies/news/193148/centralnic-confirms-in-talks-on-potential-combination-with-luxembourg-based-keydrive-shares-temporarily-suspended-193148.html CentralNic Group PLC (LON:CNIC) has confirmed that discussions are taking place regarding the potential combination of the AIM-listed firm and Luxembourg-based KeyDrive S.A. and its subsidiaries including leading domain reseller platforms and the corporate registrar BrandShelter.

In a statement noting industry speculation, the domain names and services group said the two firm’s boards “believe that the combination of the two businesses would have strong strategic logic and economies of scale, and would represent an opportunity to create a group with advanced technology platforms delivering significant recurring revenues for every major customer type within the industry.“

READ: CentralNic's acquisition strategy augmenting its growth surge

CentralNic added that it currently anticipates the transaction will be completed in the second quarter of 2018, although with discussions still ongoing and there can be no certainty that a transaction will occur. 

If the deal proceeds, the firm said, it will constitute a reverse takeover by CentralNic, accordingly, trading in the group’s shares have been suspended on AIM with immediate effect.

The group added that a further announcement will be made when appropriate.

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Wed, 14 Mar 2018 10:38:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/193148/centralnic-confirms-in-talks-on-potential-combination-with-luxembourg-based-keydrive-shares-temporarily-suspended-193148.html
<![CDATA[RNS press release - Speculation over potential acquisition ]]> https://www.proactiveinvestors.co.uk/companies/rns/3651/LSE20180314102238_13566603/ Wed, 14 Mar 2018 10:22:38 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3651/LSE20180314102238_13566603/ <![CDATA[RNS press release - Suspension - CentralNic Group Plc ]]> https://www.proactiveinvestors.co.uk/companies/rns/3651/LSE20180314095001_13566527/ Wed, 14 Mar 2018 09:50:01 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3651/LSE20180314095001_13566527/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/3651/LSE20180220163552_13539855/ Tue, 20 Feb 2018 16:35:52 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3651/LSE20180220163552_13539855/ <![CDATA[News - CentralNic Group's acquisition strategy augmenting its growth surge ]]> https://www.proactiveinvestors.co.uk/companies/news/191851/centralnic-group-s-acquisition-strategy-augmenting-its-growth-surge-191851.html CentralNic Group PLC (LON:CNIC) is a fast-growing wholesale, retail and enterprise supplier of domain names and associated services, that has global ambitions.

For the uninitiated, in the internet world, the top-level domain (TLD) is the label given to the very last section of a web address, located after the last dot – so suffixes such as .com, .org and .gov.

READ: CentralNic secures US$3.4mln contract for sale of premium domain names

Back in 2011, a body called the Internet Corporation for Assigned Names and Numbers (ICANN) ended the restrictions on naming TLDs, ushering a new era for many companies such as CentralNic that had prepared properly for this revolution.

Domains using the new TLDs rose from 11mln at the beginning of 2016 to 27mln at the end with CentralNic riding this wave.

Crucial to this has been its relationship with XYZ.COM, which owns the .xyz TLD, one of the most popular in the world.

In September, the company renegotiated and renewed its exclusive wholesaler contract with XYZ.COM.

CentralNic will receive a fixed fee based on the volume of .xyz registrations and subscriptions managed.

The TLD has seen the most adoption from start-ups and entrepreneurs, as well as from business in emerging internet markets such as Indonesia and China.

Ben Crawford, chief executive of CentralNic, said: "The long-standing excellent relationship between CentralNic and .xyz has been updated to normalise the company's revenues and profits going forward.”

Acquisitions have also pulled their weight

CentralNic’s longer-term vision is to “join the ranks of world leaders in its industry, which include a number of multi-billion-dollar companies”.

Its growth strategy will focus on developing and scaling up its software platforms, while concentrating on growth areas, including China.

It also sees consolidation opportunities and chances to broaden its service offering.

Acquisitions must “meet clear strategic criteria including being earnings accretive in the short term with a strong recurring revenues base”.

Instra Group, acquired at the beginning of 2016, has been something of a star and now makes up the bulk of the retail division, the internet domain company’s largest and most lucrative arm.

During the first half of 2017, the retail business generated revenues of £7.97mln (H1 2016: £6.76mln), thanks to a full contribution from Instra this time around, which was responsible for around three-quarters of those sales.

Total revenues across the business – which also includes the wholesale and enterprise divisions – jumped 19% to £10.6mln (H1 2016: £8.9mln).

A slight improvement in margins saw gross profit surge by almost a third to £3mln (H1 2016: £2.3mln) while adjusted underlying earnings rose by 50% to 1.4mln (H1 2016: £0.9mln).

It is worth noting that the group’s results are traditionally weighted to the second half of the year. In December, the group revealed it was trading in line with expectations for the full year.

The acquisition of the Slovakian domain name manager SK-NIC for up to €26.1mln was another step forward in the group’s consolidation strategy.

The AIM-quoted outfit paid an initial €20.27mln for SK-NIC – which manages the top-level domain for Slovakia, .sk – with up to a further €5.85mln possibly to come in future milestone payments.

CentralNic said the SK-NIC purchase would be double-digit percentage earnings-enhancing in the first full year of ownership.

Given that the majority of Slovakian companies and websites use the .sk domain and 77% of those renew their licences every year, SK-NIC will increase the visibility and predictability of group revenues.

‘Acquisition another step forward’

“SK-NIC is a major, earnings enhancing acquisition for the group, which is wholly consistent with our growth strategy,” said chief executive Ben Crawford.

“The .sk country code adds a substantial new product and SK-NIC's network of over 2,100 local retailers extends our geographic footprint into an important new market with considerable growth potential.

“The acquisition of SK-NIC moves us another step forward in our strategy to increase substantially the proportion of group revenues generated from recurring revenue streams spread across diversified products, territories and customer types.”

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Mon, 19 Feb 2018 14:14:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/191851/centralnic-group-s-acquisition-strategy-augmenting-its-growth-surge-191851.html
<![CDATA[RNS press release - Exercise of Share Options & Total Voting Rights ]]> https://www.proactiveinvestors.co.uk/companies/rns/3651/LSE20180206070004_13522428/ Tue, 06 Feb 2018 07:00:04 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3651/LSE20180206070004_13522428/ <![CDATA[RNS press release - Purchase of premium domain name portfolios ]]> https://www.proactiveinvestors.co.uk/companies/rns/3651/LSE20180109070004_13489250/ Tue, 09 Jan 2018 07:00:04 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3651/LSE20180109070004_13489250/ <![CDATA[RNS press release - Slovakia Comms Head post SK-NIC acquisition ]]> https://www.proactiveinvestors.co.uk/companies/rns/3651/LSE20171214070007_13464950/ Thu, 14 Dec 2017 07:00:07 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3651/LSE20171214070007_13464950/ <![CDATA[RNS press release - Completion of SK-NIC acquisition ]]> https://www.proactiveinvestors.co.uk/companies/rns/3651/LSE20171212113136_13462473/ Tue, 12 Dec 2017 11:31:36 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3651/LSE20171212113136_13462473/ <![CDATA[RNS press release - Appointment of Joint Broker ]]> https://www.proactiveinvestors.co.uk/companies/rns/3651/LSE20171212070005_13461633/ Tue, 12 Dec 2017 07:00:05 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3651/LSE20171212070005_13461633/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/3651/LSE20171205160012_13454944/ Tue, 05 Dec 2017 16:00:12 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3651/LSE20171205160012_13454944/