CentralNic Group PLC (AIM:CNIC) expressed confidence that it will “materially exceed” market expectations for 2022 as organic growth further accelerated during the first quarter.
The provider of internet domain names, hosting, monetisation and marketing tools said it expects to report revenue of roughly US$156mln and underlying earnings (adjusted EBITDA) of circa US$18mln for the three months to 31 March 2022.
“CentralNic has enjoyed a strong start to the year with year-on-year organic growth now reaching a record 51%, gaining market share in a growing market,” said chief executive Ben Crawford.
“At the same time, we have continued to add scale and capability through the completion of three strategic acquisitions in the period, including VGL, our largest acquisition to date, funded by an oversubscribed equity placing and tap bond issue."
The performance in the quarter was largely driven by the growth of the Online Marketing segment, which the AIM-listed company said reflected increased demand for its privacy-safe online customer acquisition services.
Following the acquisition of German group VGL last month, which included a £42mln share subscription, a €21mln senior bond issue and a £3mln open offer, cash stood at US$86.9mln at the end of March, up from US$55.6mln at the end of December, with net debt down to around US$65mln from circa US$75mln.
Adjusted operating cash conversion continued to be in excess of 100%, it said.