TIDMCAU
RNS Number : 8353M
Centaur Media PLC
26 January 2021
Centaur Media plc
Incorporated in England and Wales
Registration number: 04948078
LEI: 2138005WK87G7DQRQI62
ISIN: GB0034291418
26 January 2021
Centaur Media Plc
(the "Company" or the "Group")
Trading update and new 2023 targets for its Margin Acceleration
Plan ("MAP23")
Centaur Media Plc, an international provider of business
information, training and specialist consultancy, today provides a
trading update ahead of publishing its results for the full year
ended 31 December 2020. The Board is pleased to report that it
achieved the revenue, profit and cash performance expected at the
time of its last trading update in October.
Despite the severe impact of COVID-19, the Group's overall
performance continues to be resilient and, as the result of clear
and decisive actions undertaken, trading has started to improve
gradually. This has given the Board the confidence to provide new
targets for its Margin Acceleration Plan, previously known as
MAP22. Under Margin Acceleration Plan 2023 ("MAP23"), Centaur is
focused on raising group EBITDA margins to 23% by 2023 while
increasing revenue to at least GBP45m, in line with the strategy
outlined below.
Trading Update
Centaur expects to report revenues from continuing operations of
at least GBP32m for the year ended 31 December 2020, in line with
the full year outlook provided on 28 October. The Group's adjusted
EBITDA(1) margin is expected to be slightly ahead of our 10%
target. Group underlying revenue(2) from continuing operations,
which excludes MarketMakers, the telemarketing business that was
closed in August, is 16% down on the prior year, reflecting the
severe impact of the pandemic on Centaur's customers and its
events.
Trading in the final quarter was modestly ahead of management
expectations at both Xeim, our business unit serving the marketing
sector, and The Lawyer. The drop in year-on-year revenue in the
final quarter largely reflects the change of the Festival of
Marketing from a physical to an online format which saw an
improvement in gross profit margin despite lower turnover.
Excluding the impact of events, revenues in the final quarter were
flat year-on-year. Growth in revenue from Mini MBA, our online
marketing course, continues to outperform expectations, offsetting
COVID-related reductions in some of our premium content and
marketing services.
Through a focus on prudent financial management and continuing
tight control of costs, Centaur ended the year with a cash balance
of GBP8.3m at 31 December 2020. This is after paying GBP1.2m in
exceptional costs in H2 , including those related to the closure of
MarketMakers.
MAP23: EBITDA margins to 23% by 2023 while increasing revenue to
at least GBP45m
The current momentum in the business has provided the Board with
sufficient confidence to review and update its strategy to drive
organic revenue and profit growth over the next three years. The
revenue growth, combined with a relatively fixed cost base, will
increase operational leverage within Centaur and deliver
year-on-year improvements to profit margins. The key drivers of
revenue growth during the period of MAP23 are expected to come from
our "Flagship 4" brands, which will be a priority for investment
and resource allocation. The Flagship 4 comprises:
-- Econsultancy - Our platform that accelerates the performance of customers' marketing and ecommerce through
digital marketing transformation delivered as online training, insight and essential information.
-- Influencer Intelligence - The market-leading data intelligence search and measurement platform for influencer and
talent-led marketing campaigns, providing data-driven information, tools and proprietary analysis. The influencer
marketing industry is forecast to be worth more than US$15 billion in 2022, according to Mediakix data.
-- Mini MBA - Our online MBA-level course in marketing developed under the Marketing Week brand.
-- The Lawyer - The most trusted brand for the UK legal profession and a leading provider of intelligence to the
global legal market.
These brands have demonstrated their resilience through the
pandemic. Econsultancy and Mini MBA have continued to secure
significant new contracts from blue-chip clients. Renewals at The
Lawyer were also encouraging, highlighting its value to national
and international law firms, and its virtual events were
well-received. Influencer Intelligence has seen a recovery in its
renewal rates during the second half after the initial impact of
the pandemic. Customer engagement and usage have improved for each
of the Flagship 4 brands.
The Group's wider portfolio of core brands, including Marketing
Week, the Festival of Marketing, Creative Review, Really B2B and
Xeim Labs, will continue to play an important role in creating
opportunities for Centaur by demonstrating the depth of our
business intelligence and also the understanding of and service to
our customers.
The Company plans to announce its results for the year ended 31
December 2020 on 17 March 2021.
Swag Mukerji, Chief Executive Officer, commented :
"2020 was a difficult year for Centaur and its customers. I am
pleased by the resilience and agility the Group has shown as well
as the excellent commitment demonstrated by our people. Despite the
impact of the pandemic, we ended the year well with trading and
margin ahead of the expectations outlined by the Board in October.
While uncertainty remains, our strong balance sheet and growing
momentum give me confidence that we have the strategy and resources
in place to achieve organic growth and increase our EBITDA margin
substantially, with a target of 23% in 2023 as part of our MAP23
plan."
-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,
training and specialist consultancy that inspires and enables
people to excel at what they do, raising the standard for insight,
interaction and impact.
([1]) 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,
including those detailed in note 4 of the Interim Report for the
period ended 30 June 2020.
([2]) Underlying revenue is derived from continuing operations
excluding the impact of Marketing Week Live which was closed in
2019 and Venture Business Research which was sold in 2019
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