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.
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.
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--