CentralNic Group PLC (LON:CNIC) said revenues and underlying profits soared in 2020 helped by organic growth combined with acquisitions.
Revenues jumped by 121% US$241mln in the year to end-December 2020, which the website and domain name specialist said was more than the past five years added together.
The AIM-listed group said it saw healthy demand for its two largest service lines, Wholesale domains and, most importantly, Monetisation - the latter also driven by the rollout of a patented SSL monetisation solution in late 2019.
Underlying profits rose by 71% to US$36mln, with an operating profit of US$0.4mln. Pre-tax losses were US$9.4mln (US$6.6mln) after higher amortisation costs, share-based payment adjustments and finance costs.
Net debt at the year-end was US$85mln reflecting five acquisitions made by the group over the past two years.
Ben Crawford, chief executive, said: “These outstanding results not only demonstrate that CentralNic can source and complete transformative acquisitions, but that it can also integrate them successfully while delivering record organic growth.
“Moreover, as we scale up rapidly, the underlying qualities of high recurring revenues with 99% of revenue derived from sales of recurring products and services and high cash conversion calculated at 106% on an adjusted basis become increasingly meaningful.”
"Our pipeline of future deals remains strong, while our net debt level remains comfortable particularly given the profitability and healthy cash flow from the existing CentralNic Group and the expected contribution from recent acquisitions.