Sambram
21 Sep 2016
Re: Acquisition of specialist marketing cons... Singers covered it in an update this morning on Research Tree:"Centaur has agreed to acquire the business and assets of Oystercatchers LLP ("Oystercatchers"
for a maximum £3.35m on a multiple of c5x PBT, subject to performance. These assets will add to Centaurs’ existing Marketing sector assets and more specifically to its consulting activities led by Econsultancy. There is an opportunity to cross sell CAU services to Oystercatchers high quality client base, which features many multi-national FMCG companies (Oystercatchers cites a ln impressive list, see [link] ). Oystercatchers offers three main services; (i) mandate tender advice and management (essentially helping advertisers appoint agencies for projects), (ii) marketing training for clients in-house marketing staff and (iii) a series of networking events (The Oystercatchers Club) for client staff and agencies. While we don’t expect any benefit to FY16 there should be a full effect in FY17. We estimate accretion of 4.2% at the diluted EPS level (PBT rises 5.1%, i.e. before share dilution effects). After the disappointment of the July warning, driven by weak advertising around BREXIT, it is encouraging to see Centaur continuing to move ahead with strategic development in its largest unit. Provided Centaur delivers a satisfactory update in mid-October and continues to progress the shares should recover further (now c45p vs low of <35p). We put our forecasts under review ahead of formalising our adjustments."
lawdoc
21 Sep 2016
Acquisition of specialist marketing consultancy Oystercatchers CAU have been buying back their own shares to place in Treasury in the past few weeks. Presumably, they will do more of this to part pay for Oystercatchers. They suggest the new deal is earnings enhancing in the first year so that is also very encouraging.Perhaps of more importance is that CAU is not in the All Share index. This has affected the share price in the past year. However, with the new acquisition it may all change as more trades take place. Reentering the All Share index will give the SP a real boost.
mcescher
30 Jul 2015
Pretty cool CAU / CHW infographic report This infographic compares Centaur Media and Chime Communications plc, they have details on valuation etc. [link]
