Centaur Media PLC 2020 trading update and full-year outlook (3990D)
October 28 2020 - 3:00AM
UK Regulatory
TIDMCAU
RNS Number : 3990D
Centaur Media PLC
28 October 2020
Centaur Media plc
Incorporated in England and Wales
Registration number: 04948078
LEI: 2138005WK87G7DQRQI62
ISIN: GB0034291418
28 October 2020
Centaur Media Plc
(the "Company" or the "Group")
2020 trading update and full-year outlook
Centaur Media Plc, an international provider of business
information and specialist consultancy, is pleased to announce an
update on trading up to the period ended 30 September 2020. The
Company is also providing its outlook for the year to 31 December
2020.
Trading update
Despite the severe impact of COVID-19, the Group's overall
performance has been resilient. Excluding the telemarketing
activities of MarketMakers which closed in August 2020, revenue in
the third quarter was 16% down on the same period in 2019 (compared
to down 24% in Q2) and the Group ended the quarter with a strong
cash balance of GBP9.3m at 30 September 2020. This performance
reflects decisive action taken following the onset of the pandemic
to protect the Group's brands, conserve cash and adapt to the new
environment.
2020 full-year outlook
The Board expects to report full-year revenues from continuing
operations(1) of at least GBP32m with an adjusted(2) EBITDA margin
of c.10%, which includes an improved H2 margin compared to H1
2020.
Xeim, our business serving the marketing sector, is expected to
report a year-on-year underlying(3) revenue decline of 15%,
excluding MarketMakers. The Lawyer is expected to report
year-on-year underlying(3) revenue decline of 22%.
Across both business units, the decline in revenues reflects the
loss of event delegates and recruitment advertising sales due to
the pandemic. However, in most cases, premium content revenues
continue to increase with some recovery of subscription rates being
experienced in the second half of the year. Of note, the Marketing
Week Mini-MBA has continued to perform well with strong demand
across its product offering; The Festival of Marketing, which ran
as an online event this year, attracted over 2,700 delegates; and
The Lawyer is anticipated to achieve a full-year renewal rate of
105%, demonstrating the continued value national and international
law firms place in The Lawyer.
Financial
The full-year results will include a further exceptional charge
of GBP0.6m in addition to the GBP0.6m of staff restructuring costs
announced at the half year. Of the total GBP1.2m exceptional
charge, GBP1.1m relates to the closure of MarketMakers and GBP0.9m
had been paid by the end of Q3.
The Group has maintained prudent financial management, ensuring
good cash collection and a reduction in debtor days. The current
cash balance is at the same level as at the start of the year and
GBP0.9m higher than the half year. This is despite paying out
exceptional items of GBP3.4m relating to 2019 and GBP0.9m for the
current year. As reported at the half year, the Group has also
renegotiated its bank facility to provide up to GBP10m of
borrowings with waived covenant tests to 30 September 2021.
The Board plans on providing guidance to analysts for 2021 along
with a full-year trading update in January 2021.
Swag Mukerji, Chief Executive Officer, commented:
"Despite the impact of the COVID-19 pandemic, I am pleased that
Centaur has remained resilient. Mini-MBA continues to grow very
strongly, the Festival of Marketing successfully transitioned to an
online format, and The Lawyer maintained strong renewals and
increased its revenues from premium content. Although market
conditions remain uncertain, Centaur has a strong cash position and
a strengthening EBITDA margin, and we are confident that we will
emerge from 2020 a more resilient and agile business. I would like
to thank our amazing customers and staff and our patient
shareholders for their support in these difficult times."
(1) Continuing operations exclude the telemarketing activities
of MarketMakers which were closed in August 2020.
(2) Adjusted EBITDA is adjusted operating profit before
depreciation and amortisation on a post-IFRS 16 basis. Adjusted
results exclude adjusting items, such as exceptional items, as
detailed in note 4 of the Interim Report for the period ended 30
June 2020.
(3) Underlying revenues exclude the impact of Venture Business
Research which was sold in the first half of 2019, and Marketing
Week Live which was closed in the first half of 2019.
-Ends-
Enquiries:
Centaur Media plc 0207 970 4000
Swag Mukerji, Chief Executive Officer
Simon Longfield, Chief Financial
Officer
Teneo
07793 522 824 / 07785 528
Paul Durman / Matthew Thomlinson 363
Note to editors
Centaur is an international provider of business information and
specialist consultancy that inspires and enables people to excel at
what they do, raising the standard for insight, interaction and
impact. Leading brands include: Econsultancy, MiniMBA, Influencer
Intelligence, Marketing Week, Festival of Marketing, Really B2B,
Creative Review, Fashion & Beauty Monitor, Oystercatchers and
The Lawyer.
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