CentralNic profits boosted by recurring revenue growth

CentralNic's group revenues rose 10% to £24.35m for the year ended 31 December.

As a proportion of total sales, recurring revenues reached 84%, up from the 81% they accounted for a year earlier as a result of higher sales of its .xyz and radix top-level domains, while CentralNic's wholesale division sent revenues ahead 48% and its retail wing jumped its income 9% year-on-year.

Adjusted underlying earnings 20% year-on-year to £6.61m and the firm's EBITDA margin rose two whole percentage points to 27%.

All in all, CentralNic saw pre-tax profits rise 19% to £1.37m.

CentralNic ended the year with cash balances of £10.9m, up £1m on the same period twelve months earlier, and net debt shrank by £100,000 to £7.2m.

The firm noted that it intends to recommend the payment of dividends at some point in the future but noted that at present, it felt the money would be better used by being funnelled back into the business.

"The group continued its strategy to build a diversified internet services business of size and scale through an acquisitive roll-up programme which delivers high-levels of recurring revenues, quality of earnings and strong cash generation," said CentralNic's chairman Mike Turner.

As of 1500 BST, CentralNic shares were untraded on the day at 57p.