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LSE:CNIC

Centralnic Group PLC

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Market:
LSE
Market Cap:
£183.32 m
Price
79.00 GBX
Change
-0.32%
52 weeks high
97.99
52 weeks low
40.00

Growth strategy

CentralNic’s growth strategy is to act as the consolidator in a highly fragmented industry, acquiring and integrating highly cash-generative businesses, which have strong levels of recurring revenue and exposure to fast growing emerging markets, including China, Eastern Europe and Latin America. Migrating such businesses onto CentralNic’s proven, scalable, fixed-cost software and operating platforms, will allow us to combine state of the art, secure and resilient technical solutions with significant cost savings and build a business of significant size and scale with quality earnings.

Where other companies in our industry have succeeded in achieving billion dollar market capitalisations focused on the North American and European markets, CentralNic’s ambition is to become the largest scale company in its industry focused on emerging markets.

Core areas of strategic focus:

  • realising cost synergies through the integration of back-end registry platforms to CentralNic’s platform;
  • initiating cross-selling opportunities;
  • implementing an effective business integration of shared corporate services;
  • leveraging its platform by identifying selective value-accretive acquisitions.

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Markets

Domain name industry overview

The domain name and web presence services industry supplies the tools for businesses to get online including domain names, websites, shared hosting, email, security and protection services. The growth of the industry is driven primarily by the global adoption of the internet. As consumers get online, businesses’ need for their own websites, email, and ecommerce capabilities to communicate with and service customers increases. There are currently c.4 billion internet users worldwide*, with the focus now on the next generation of global internet users. This focus is reflected in Goal 9c of the new Sustainable Development Goals adopted by the United Nations, which is to “provide universal and affordable access to the internet in least developed countries by 2020”.

The domain name industry touches anyone that operates or visits a website. The domain name ecosystem comprises corporations, businesses, and individuals involved in the provision, support, and sale of domain names and related services.

There are three main categories of domain name:

Generic Top-Level Domain extensions (gTLDs) like .com and .net;

Country Code Top Level Domain extensions (ccTLDs) such as .la, .cx and .fm;

New generic Top Level Domain extensions (nTLDs) e.g. .XYZ and .online.

 

* Source: Global Digital Report 2018 compiled by We are social Ltd.

Addressable market

$22 -$30bn*

*William Blair Equity Research GoDaddy Inc.

 

Domain name industry stakeholders

There are six main types of stakeholder in the domain industry:

Regulatory authority: ICANN is the organisation that has the responsibility of overseeing the enormous interconnected network of unique identifiers that allow computers on the Internet to find one another.

Registries: are entities with the responsibility for maintaining registry for each Top-Level Domain (TLD). The responsibilities of the registries include processing domain name registration requests from registrars, maintaining a domain name registration database, and  publishing zone file data (i.e., information about the location of a domain name).

Registry Platform Operators: are entities that provide robust technical platforms, infrastructure and services to enable Registries to perform their mandated tasks. Typical services include maintaining a registry platform that can accept and manage domain name registrations, providing an Extensible Provisioning Protocol (EPP) interface to which accredited registrars can connect,  provision of a User Interface through which Registrars can manage domain names, data back-up, abuse mitigation, registry policy services and compliance reporting.

Registrars: are businesses accredited by ICANN (the regulating authority) and certified by the registries to sell domain names. Most registrars also sell associated services such as web hosting and SSL certificates which are not regulated by ICANN.
Resellers: are affiliated with registrars and sell domain names and other services provided by the registrars. ICANN accredited registrars are responsible and accountable for domain name registrations sold by their resellers.

Registrants: are individuals, businesses, and other entities (such as charities and other not-for-profit bodies) that purchase the right  to use a domain name for a time (typically between 1 and 10 years). Registrants typically use the domain name to point to a website, hold the domain name in a portfolio for later use or sell the right to use the domain name to a third party.

United Kingdom.

Iain McDonald

Chairman

Iain is a global expert in technology and e-commerce, having had a strong track record in investing in early stage companies such as ASOS, The Hut Group, Eagle Eye Solutions, Anatwine and Metapack. He is the founder of Belerion Capital, an investor and investment advisor in technology and e-commerce companies. Iain is also a non-executive director of various of his investee companies, as well as other technology companies such as The Hut Group and Boohoo.com. Previously, Iain was a top-ranked retail and e-commerce analyst and held positions in a number of UK investment banks. Iain graduated from the London School of Economics and Political Science (LSE), with a BSc in Economics & Economics History.

Benjamin Crawford

Chief Executive Officer

Under Ben Crawford’s leadership, CentralNic has become the world’s highest-ranking provider of registry services for new gTLDs as well as a leader in registry services for ccTLDs, especially in the Asia-Pacific region. Ben is a specialist in global business and corporate development in complex internet-related business with crucial stakeholder relations requirements, including government relations at up to Ministerial level. His former positions included Founding President of Louise Blouin Media, integrating 11 acquisitions in three countries and personally managed relationships with the Chinese Government; Managing Director of SportBusiness Group; and Executive Producer of the official website of the Sydney Olympic Games, where he first developed extensive experience in working with Governments on highly sensitive internet projects. Ben has an MBA from the Australian Graduate School of Management and a First-Class Honours Degree from the University of Sydney.

Michael Riedl

Group Financial Director

Michael Riedl was Executive Vice President and CFO of KeyDrive S.A. from August 2011, overseeing the growth of the company over the next 7 years. Prior to joining KeyDrive S.A., Michael held managing positions in the private equity and ICT industries. He started his career with Roland Berger Strategy Consultants where he specialised in performance improvement programs. Michael was Chief Restructuring Officer at Group Saint-Paul in Luxembourg from 2004 to 2007 before joining DZ Equity Partners, the private equity firm, in Frankfurt in 2007. In 2008, Michael joined BIP Investment Partners where he worked on private equity opportunities with a focus on buyouts until 2011. Michael holds a Bachelor’s degree in Computer Science from James Madison University, USA, a Master of Science degree in Business Administration from European Business School, Germany, and a LLM from Frankfurt School of Finance and Management. He is also a Chartered Management Accountant.

Don Baladasan

Group Managing Director

Don, a Chartered Management Accountant, has years of experience as a Finance Director of AIM listed companies. Over the last five years he has assisted AIM listed businesses in raising £25 million of equity, in addition to overseeing a series of acquisitions including reverse takeovers. Don has experience of integrating internationally acquired companies from a finance, governance and commercial perspective. Don was Head of Accounting Development at Stemcor, an international steel trader which at the time had operations in 46 countries and a turnover in excess of £6bn.  Don initially studied Medicine at Guys Hospital before completing a BSc in Economics at CASS Business School. He was then awarded a place on the Financial Times graduate scheme where he trained as a Chartered Management Accountant.

Samuel Dayani

Non Executive Director

Samuel Dayani is a partner at the Joseph Samuel Group, where he is responsible for managing the Group’s investments and business development in the Real Estate, Medtech, Energy & Renewables, Fashion and Technology & Telecoms sectors.  Samuel was responsible for purchasing CentralNic in 2003 and managing the restructuring of the business, building the management team and delivering an institutional grade business for its listing in 2013. Previously Samuel was the Chief Operating Officer and later Managing Director of ViaVision Ltd, an interactive TV company on Sky, when it was sold to Yoomedia plc in 2004.

Thomas Rickert

Non Executive Director

Thomas Rickert is an attorney-at-law in Germany. He is the owner of Rickert Rechtsanwaltsgesellschaft mbH, a law firm based in Bonn, Germany. Thomas has extensive experience in the domain industry working on domain disputes as well as advising Registrars, Registry Service Providers and Registry Operators both on contractual as well as policy matters. Thomas is an expert speaker on domain related subjects both at the national and international level. Thomas served on the Council of the Generic Names Supporting Organisation (GNSO), which is the body responsible for developing policy for generic domain names, for 4 years (2011-2015). He is one of the co-chairs of the CCWG-ACCT, a group that works on improving ICANN’s accountability.

Thomas Pridmore

Non Executive Director

Tom Pridmore began his career as a solicitor at Norton Rose, specialising in corporate finance, where he acted on behalf of institutional clients in relation to a variety of corporate finance and M&A activities. Tom then joined Flextech/Telewest Plc as Head of Corporate Strategy, where he was responsible for directing investment into strategic Internet and interactive television companies. In 2000, Tom co-founded the international fund manager and investment adviser Development Capital Management Limited. In this capacity he has set-up and managed real estate investment and development operations in Turkey, India, North Africa, Eastern Europe and the UK on behalf of both institutional and private clients.

Post and Phone:

CentralNic Global Headquarters
Contact for: general enquiries, support, sales
CentralNic Ltd.
4th Floor, Saddlers House, 44 Gutter Lane,
London, EC2V 6BR
Tel: +44 (0)20 33 88 0600

CentralNic USA Office
Contact for: sales only
CentralNic USA Ltd.
885 Harrison Street SE,
Leesburg, VA 20175
Tel: +1 703 574 3831

CentralNic China
Contact for: sales only
Tel: +85263723963 (1400hrs - 2100hrs local time)

Press Contact
For PR enquiries please contact our London Headquarters on +44 (0)20 33 88 0600 or via email at [email protected]

Nominated adviser

Zeus Capital Limited
82 King Street,
Manchester,
M2 4WQ
T: +44 (0)161 831 1512

4th Floor,
10 Old Burlington Street,
London,
W1S 3AG
T: +44 (0)203 829 5000
E: [email protected]

Click here for information on Major Shareholders.

Company Secretary: DWF LLP

Company Website: https://www.centralnicgroup.com

Nominated Adviser and Broker:

Zeus Capital Limited
82 King Street,
Manchester,
M2 4WQ

4th Floor
10 Old Burlington Street,
London,
W1S 3AG

Auditors and Reporting Accountants:

Crowe LLP

St Bride's House,
10 Salisbury Square,
London EC4Y 8EH

Solicitors to the Company:

DWF LLP

Capital House,
85 King William Street,
London EC4N 7BL

Financial PR:

Newgate Communications


Sky Light City Tower,
50 Basinghall Street,
London,
EC2V 5DE

Company Registrars:

Link Asset Services Ltd


The Registry,
34 Beckenham Road,
Beckenham, Kent,
BR3 4TU

Bankers:

Silicon Valley Bank


Alphabeta, 14-18 Finsbury Square,
London EC2A 1BR
 

HSBC Bank plc


89 Buckingham Palace Road,
London SW1W 0QL