PUNT OF THE WEEK: AIM-listed Centralnic sells the letters that follow the ‘dot’ on website addresses
Centralnic is an AIM-listed firm that sells web services and domain name suffixes
What is it?
Centralnic is an AIM-listed firm that sells web services and domain name suffixes – the letters that immediately follow the ‘dot’ on website addresses.
It relisted in 2018 after buying German rival Key Drive.
What’s the latest?
Revenue surged 95 per cent last year to £85million, which it put down in part to a series of takeovers. It has nearly doubled its revenue in five out of the past six years.
Who backs it?
Zeus Capital helped it come to market in 2013, but its top ten investors now include Gresham House, Schroder Investment Management, Cavendish and Miton.
Alexander Siffrin, who is the chief operating officer, is the largest shareholder, and has a 19.5 per cent stake.
Why should you invest?
Russell Pointon of Edison Group says that the company has ‘the potential for complementary services such as advertising to be incorporated into the business model’.
And why you shouldn’t
According to Pointon: ‘The company is highly acquisitive, which has required some external funding and the margins of the businesses they’ve bought have been highly variable.’