CentralNic Group PLC (LON:CNIC) has said trading in the first quarter of 2020 was in line with expectations despite the spread of the coronavirus (COVID-19) as it reported record 2019 results.
The provider of internet domain names and internet services also said it does not expect its business to be significantly hit by COVID-19.
In its results statement covering the year ended December 31, 2019, CentralNic celebrated a record year with revenue up 95% to US$109.2mln from US$56.0mln in 2018; excluding the effect of acquisitions, revenue rose 61% year-on-year. Adjusted underlying earnings (EBITDA) were up 96% to US$17.9mln from US$9.1mln the previous year.
Net finance costs rose to US$7.76mln from US$1.43mln, resulting in the loss before tax widening to US$8.12mln from US$1.43mln in 2019. Net cash ﬂow from operating activities after tax was higher than the previous year at US$16.3mln (2018: US$8.8mln).
Investing activities were mainly related to the four acquisitions completed during the financial year. The net cash outflow totalled US$79.4mln in 2019 as compared with US$17.6mln in 2018 when the KeyDrive acquisition was largely financed through an issue of equity.
The group's cash balance at the end of 2019 stood at US$26.2mln, up from US$23.1mln a year earlier while net debt, including pre-paid finance costs, had expanded to US$75.0mln from US$3.2mln a year earlier.
“All divisions continued to grow organically during 2019, through a combination of new client wins and increased business from existing customers, with continued healthy profit margins generating high levels of operating cash flow,” Ian McDonald, the chairman of CentralNic said in the statement.
The group said it has chosen to defer the declaration of its maiden dividend in the current circumstances.