Team Internet (TIG) 2018年年度報告「AIM」.pdf

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15、 comcDesigned and produced by fourthquarter Central Ni c Group Pl c Annual Report 20181Contents Overview Highlight s 2 Our sales 4 Reseller segment 5 Small business segment 6 Corporat e segment 7 Cent ralNic Gr oup at a glance 8 Strategic report Chairmans st at ement 10 Chief Execut ive Officers r e

16、port 11 Chief Financial Officers r eport 14 Governance Boar d of Dir ect ors 18 Dir ect ors r eport 20 Corporat e governance 24 Audit commit t ee r eport 28 Remunerat ion r eport 29Financial statements Independent audit ors r eport 32 Consolidat ed st at ement of compr ehensive income 37 Consolidat

17、ed st at ement of financial posit ion 38 Consolidat ed st at ement of changes in equit y 39 Consolidat ed st at ement of cash flows 40 Not es t o t he consolidat ed financial st at ement s 41 Company st at ement of financial posit ion 75 Company st at ement of changes in equit y 76 Not es t o t he C

18、ompany financial st at ement s 77 Par t icular s of subsidiar ies and associat es 83 Shar eholder informat ion 86 Glossary 88OVERVIEWCentral Ni c Group Pl cI am pl eased to report on a year of outstandi ng growth for Central Ni c,fol l owi ng the KeyDri ve acqui si ti on.The Group made i ts most si

19、gni ficant step forward to date i n i ts strategy to bui l d a gl obal domai n name and web servi ces provi der,whi ch effecti vel y doubl ed the Group s si ze and compl eted i ts transi ti on to a vi rtual l y pure pl ay recurri ng revenue busi ness.Mike Turner Chai rman“”2 Central Ni c Group Pl c

20、Annual Report 2018Fi nanci al hi ghl i ghtsRevenue up 100%to 42.7m (2017 21.4m*)Gross Profit up 69%to 19.7m (2017:11.6m*)Adj usted EBI TDA*up 66%to 7.0m (2017:4.2m)Cash bal ance up 66%to 18.0m (2017:10.9m)Net i nterest beari ng debt r educed by 66%to 2.5m (2017:7.2m)20132018Revenue i ncreased by a f

21、actor of 14 t imes si nce flotati on i n 20133.1m6.1m10.4m22.1m24.3m42.7mA transformati onal yearOVERVIEW*Excl udi ng premi um domai n sal es no l onger a core acti vi ty of the Group.*Excl udes i mpact of share based payments expense for opti ons,premi um domai n sal es,forei gn currency exchange a

22、nd non core operati ng costs.Central Ni c Group Pl c Annual Report 20183Operati onal hi ghl i ghts Transformati onal acqui si ti on of KeyDrive i ntegrati ng to pl an:Doubled si ze of Group wi th addi ti onal staff i n Germany,USA and Luxembourg Augment s Central Ni c s market strength,doubl i ng cu

23、stomer numbers Diversifies busi ness provi di ng cross-sel l i ng opportuni ti es Provi des market leading t echnology whi ch faci l i tates future acqui si ti ons Cost synergies bei ng real i sed Acqui si ti on of Gl obeHosti ng incr eased pr esence i n Romani a and Brazi l SK-NI C i ntegrati on su

24、ccessful l y compl eted wi th pl easi ng contri buti on to the Group Global customer footpri nt expanded Recurring r evenues stabl e at 90%(2017:91%)Post year-end events Mi chael Ri edl (former CFO of KeyDri ve)appoi nted CFO of Central Ni c Don Bal adasan appoi nted MD of Central Ni c to focus on i

25、 ntegrati ons Central Ni c awarded management of c.680,000 domai n names by I CANN4 Central Ni c Group Pl c Annual Report 2018 Reseller Cor por at e Small .org.xyz.de.info.io.ae.euot hers1%1%1%2%2%2%3%4%In total,Central Ni c serves more than 250,000 customers wi thi n three customer segments c.5,000

26、 resel l ers i ncl udi ng al l the l argest domai n retai l ers i n the worl d whi ch sel l domai n names to thei r customers c.300 corporati ons wi th up to 50,000 domai n names each to protect thei r brands c.250,000 smal l busi nesses i n al most every country i n the worl d who need domai n name

27、s for thei r websi tes and emai l%of revenue by domai n suf fixCurrent servi ces Our pl atforms supported approxi matel y 15.6 mi l l i on domai n names i n 2018 New servi ces We are scal i ng up addi ti onal servi ces to our customers such as hosti ng,websi te bui l di ng,securi ty certi ficati on

28、and onl i ne brand protecti on20.9m18.3m3.4m19%7%What we sel l Who we sel l to 58%Customer concentrati on i s l ow wi th the l argest customer representi ng onl y c.4%of revenuesOur sal esOVERVIEW Central Ni c Group Pl c Annual Report 20185Resel l er segment Over 5,000 cust omers 264%revenue growth

29、to 20.9m i n 2018(2017:5.7m)100%gross profit growth to 9.7m i n 2018(2017:4.9m)47%gross margi n i n 2018(2017:85%)Ranked No.2 as whol esal e regi strar and i n top 5 as regi strybackend Renewal rate 85-90%DEC 2017 7,478,862DEC 2018 13,473,089GROWTH 5,994,227 80%80%Domains supplied to resellers up 80

30、%Central Ni c i s one of the worl d s l eadi ng domai n name resel l er pl atforms,suppl yi ng domai n names to more than 5,000 resel l er cl i ents.These i ncl ude al l of the worl d s l argest domai n name retai l ers,and some of the bi ggest compani es i n the worl d.Our Resel l er segment was tr

31、ansformed i n 2018 by the acqui si ti on of KeyDri ve and a ful l year s contri buti on from our November 2017 acqui si ti on of SK-NI C.Revenue i n the Resel l er segment i ncreased 264%from 5.7m to 20.9m.Grossprofit for the segment nearl y doubl ed from 4.9m to 9.7m.Servi ces Central Ni c provi de

32、s:Suppl i es domai ns wi th over 1,000 di fferent top-l evel domai n extensi ons,i ncl udi ng the l ong tai l,hi gh-margi n country-code domai n names,sourced from 200+countri es and terri tori es around the worl d Standardi ses the processes for acqui ri ng those domai n names Automates al l the ma

33、nual processes requi red i n regi steri ng domai n names Central i ses bi l l i ng wi th si ngl e i nvoi ces coveri ng domai ns wi th hundreds of sources Saves resel l ers from havi ng to work wi th dozens of addi ti onal suppl i ers around the worl d,each wi th i ts own uni que protocol s,technol o

34、gi es and manual processes and bi l l i ngCASE STUDY:LEADING US HOSTING COMPANY6 Central Ni c Group Pl c Annual Report 2018Smal l busi ness segmentServi ces Central Ni c provi des:Sel l s customer a smal l portfol i o of domai n names Provi des websi te hosti ng Provi des emai l hosti ng Provi des s

35、ecuri ty certi ficates as a resel l er of thi rd-party provi ders Manages the customer rel ati onshi p i ncl udi ng bi l l i ng and customer servi ce Provi des expert advi ce,as an outsourced I T partner,to assi st the customer s growthDEC 2017 626,566DEC 2018 1,991,158GROWTH 1,364,592 218%2m Around

36、 2m domains supplied to small businessesCentral Ni c provi des more than 250,000 smal l busi nesses i n al most every country i n the worl d wi th domai n names and val ue-added servi ces.These are al l provi ded vi a a subscri pti on model l eadi ng to substanti al recurri ng revenues.Our Smal l Bu

37、si ness Segment revenues for 2018 were 18.3m up 24%from 14.7m i n 2017.Gross profi t i ncreased from 6.0m i n 2017 to 7.5m i n 2018.The portfol i o of Smal l Busi nesses portal s was extended duri ng the year to i ncl ude domai ndi scount24,Moni ,and Gl obeHosti ng.Over 250,000 cust omers 24%revenue

38、 growth to 18.3m i n 2018(2017:14.7m)25%gross profit growth to 7.5m i n 2018(2017:6.0m)Gross margi n 41%(2017:41%)Renewal rate 65-85%CASE STUDY:SINGLE OFFICE,SINGAPORE-BASED COMPANYOVERVIEW Central Ni c Group Pl c Annual Report 20187Corporate segmentServi ces Central Ni c provi des:Buys al l domai n

39、 names that are rel evant to the customer on i ts behal f Admi ni sters and reports on the customer s domai n portfol i o Mi ti gates onl i ne busi ness conti nui ty ri sk by ensuri ng domai n names are renewed at appropri ate ti me Provi des expert advi ce and gui dance on new regi strati ons and a

40、dmi ni strati on of the portfol i o Protect customers brand and web presence from bei ng compromi sed,and from faci ng substanti al costs to recl ai m l ost domai n names Provi des onl i ne domai n name moni tori ng servi ces to effecti vel y and proacti vel y mi ti gate and defend agai nst onl i ne

41、 abuse of brandsDEC 2017 0DEC 2018 137,309Central Ni c manages the domai n portfol i os of over 300 cl i ents.Some of whi ch are the worl d s bi ggest brands.Many of these compani es buy several thousand domai n names i n order to protectthese brands from bei ng compromi sed and to ensure they are r

42、enewed at appropri ate ti me,preventi ng ri sk of substanti al recl ai m costs.Thi s i s a rel ati vel y new busi ness for Central Ni c and i s wi tnessi ng rapi d growth rates.The busi ness al so enj oys the hi ghest gross margi ns across the Group and a renewal rate of over 90%.Our new Corporate s

43、ervi ces have the hi ghest renewal rates of our 3segments,repl aci ng our phased out premi um domai n sal es busi ness.Adj usti ng for phased out premi um domai n sal es,revenues for the segment i ncreased by 290%from 0.9m to 3.4m,and gross profi t i ncreased by 207%from 0.8m to 2.5m.CASE STUDY:A LE

44、ADING FMCG BRANDCorporate busi ness transformed to recurri ng revenue modelGROWTH 137,309 Over 300 cust omers 290%revenue growth to 3.4m i n 2018(2017:0.9m adj usted for phased out one off premi um domai n sal es)207%gross profit growth to 2.5m i n 2018(2017:0.8m adj usted for phased out one off pre

45、mi um domai n sal es)72%gross margi n i n 2018(2017:89%adj usted for phased out one off premi um domai n sal es)Renewal rate 91.4%8 Central Ni c Group Pl c Annual Report 2018Central Ni c Group at a gl anceOVERVIEWBui l di ng the gl obal Revenue model Our subscript ion business model pr ovides high l

46、evels of r ecurring r evenues at 90%.Visibilit y has been gr eat ly impr oved by phasing out our one-off pr emium domain sales business.Cust omer r enewal rat es ar e highly pr edict able depending on domain,segment and cust omer mat urit y and range fr om bet ween c.65%and c.90%.We enjoy high cash

47、conversion(pr e-t ax)wit h annual subscript ions all paid in advance.A trul y gl obal busi ness wi th customers i n al most every country i n the worl d.Our global pr esence cont inues t o rapidly expand as a r esult of our acquisit ive and organic expansion and clear focus on gr owt h market s.DEC

48、2017 1,105,697DEC 2018 2,723,014Domains in the USA146.3%Percentage growth Central Ni c Group Pl c Annual Report 20189 di gi tal economyMarket The market opport unit y is huge.The Tot al Addr essable Mar ket is est imat ed at US$30bn.Cent ralNic curr ent ly has less t han 1%penet rat ion and t he ind

49、ust ry is highly fragment ed and ripe for consolidat ion.DEC 2017 1,207,505 DEC 2018 5,617,807DEC 2018 7,260,735Domains in Western EuropeDomains in the Rest of the World365.2%Percentage growth25.4%Percentage growthDEC 2017 5,792,226Both Central Ni c s tradi ti onal busi ness and the newl y acqui red

50、 KeyDri ve conti nued to grow organi c revenues wi th heal thy profi t margi ns,generati ng hi gh l evel s of operati ng cash fl ow.Thi s transformati onal evol uti on of the Group i s the resul t of enormous hard work from our executi ves and staff,and I thank them on behal f of the Board and the S

51、harehol ders for thei r efforts.I al so wel come the new staff and seni or executi ves who j oi ned the enl arged Group through the KeyDri ve acqui si ti on,as wel l as the new Sharehol ders who j oi ned the regi ster as part of that transacti on.Notabl y Al ex Si ffri n,the founder of KeyDri ve,has

52、 j oi ned Central Ni c as Chi ef Operati ng Offi cer,as wel l as taki ng most of hi s consi derati on for the sal e of KeyDri ve i n Central Ni c shares,maki ng hi s fami l y offi ce one of our l argest Sharehol ders.Coi nci di ng wi th the transacti on,we extended our borrowi ng faci l i ty wi th S

53、i l i con Val l ey Bank,whose conti nued support of the Group i s al so worthy of recogni ti on.The new fi nanci al year has started wi th conti nui ng progress on i ntegrati on,i ncl udi ng the appoi ntment of the former KeyDri ve CFO,Mi chael Ri edl,to the Board i n the posi ti on of Group Chi ef

54、Fi nanci al Offi cer.I n addi ti on,Central Ni c s former CFO,Don Bal adasan,was appoi nted to the new posi ti on of Group Managi ng Di rector,wi th speci al responsi bi l i ty for the i ntegrati on of new acqui si ti ons.Resul ts to date i n the new fi nanci al year,together wi th the Group s hi gh

55、 percentage of recurri ng revenues,provi de the Board wi th every confi dence of meeti ng market expectati ons for 2019.Furthermore,the conti nued avai l abi l i ty of attracti ve acqui si ti on targets coupl ed wi th the Group s proven abi l i ty to source,compl ete and i ntegrate compl ex acqui si

56、 ti ons around the worl d,provi des an excel l ent opportuni ty to bui l d a si zeabl e gl obal busi ness to ri val the l argest i ndustry pl ayers.Gi ven i ts equi ty posi ti on has substanti al l y i mproved and i ts current tradi ng i s favourabl e to market expectati ons,the Company i s currentl

57、 y revi ewi ng i ts capi tal structure for effi ci ency i n vi ew of i ts conti nued acqui si ti on strategy.Mike Turner Chai rman 12 May 2019Chai rman s statement10 Central Ni c Group Pl c Annual Report 2018I am pl eased to report on a year of outstandi ng growth for Central Ni c,fol l owi ng the K

58、eyDri ve acqui si ti on.The Group made i ts most si gni ficant step forward to date i n i ts strategy to bui l d a gl obal domai n name and web servi ces provi der,whi ch effecti vel y doubl ed the Group s si ze and compl eted i ts transi ti on to a vi rtual l y pure pl ay recurri ng revenue busi ne

59、ss.Mi ke Turner ChairmanSTRATEGIC REPORT Chi ef Executi ve Officer s reportMarket and strategy Central Ni c s reported revenues are now 14 ti mes hi gher than they were on l i sti ng on AI M fi ve years ago.Faci ng an addressabl e market esti mated at over US$30 bi l l i on,we are commi tted to cont

60、i nui ng the strategy proven to del i ver thi s excel l ent growth,combi ned wi th strong margi ns and cash generati on.As a foundati on technol ogy of the i nternet,domai n names are governed by gl obal standards,meani ng that i n every regi on of the worl d,the domai n i ndustry uses si mi l ar te

61、chnol ogi es and exhi bi ts the same fundamental busi ness dynami cs of recurri ng revenues wi th hi ghl y predi ctabl e renewal rates and hi gh cash conversi on.Central Ni c was formed by combi ni ng a number of the most advanced techni cal pl atforms devel oped over the past 20 years as the i nter

62、net i n the US and Western Europe became a ubi qui tous tool for busi ness.Our core strategy i s gl obal i si ng these pl atforms,focusi ng on growth markets both through wi nni ng new customers and maki ng earni ngs acqui si ti ons and upsel l i ng addi ti onal techni cal servi ces to our domai n n

63、ame customers.Central Ni c i s the onl y Company among i ts peers to offer comprehensi ve and qual i ty servi ces to al l i ts defi ned customer groups Resel l ers,Smal l busi ness and Corporates.For each of those customer types,Central Ni c has devel oped and operates a hi ghl y automated software

64、pl atform.Our organi c growth strategy i ncl udes conti nui ng to wi n and retai n new cl i ents,but i t al so extends to i ntroduci ng addi ti onal subscri pti on servi ces to those customers.Central Ni c has sal es and operati ons teams dedi cated to achi evi ng organi c growth.I n addi ti on,di s

65、ti nct corporate devel opment and i ntegrati on teams focus on sourci ng and compl eti ng acqui si ti ons and i ntegrati ng them i nto our operati ons.Thi s achi eves savi ngs whi l e obtai ni ng addi ti onal customers and servi ces.Central Ni c has executed fi ve acqui si ti ons i n the past fi ve

66、years.Si mi l arl y,KeyDri ve,whi ch Central Ni c acqui red i n 2018,acqui red the same number of busi nesses over the same ti me peri od.There remai n dozens of attracti ve acqui si ti on opportuni ti es around the worl d,and Central Ni c s proven team mai ntai ns a heal thy deal pi pel i ne.The ec

67、onomi c dri vers of the busi ness remai n strong.The i nternet now has four bi l l i on acti ve users,meani ng at l east two bi l l i on adul ts are yet to start usi ng i t.Whi l st mi cro-busi nesses are catered to,i n some countri es by pl atforms l i ke Facebook,Amazon,WhatsApp and WeChat,smal l

68、busi nesses and corporati ons conti nue to rel y on domai n names as the foundati ons for thei r websi tes,emai l s and onl i ne brand protecti on strategi es.Further to thi s,the fi ve-year peri od of di srupti on from 2013 to 2018,when the market was fl ooded wi th l ow-cost domai n names,i s now

69、behi nd us,wi th adopti on of these domai n names onl y accounti ng for l ess than 10%of the market.Central Ni c s most popul ar domai ns such ,.net and.uk conti nue to show robust growth both i n vol umes and pri ci ng.Central Ni c Group Pl c Annual Report 201811Central Ni c enj oyed a successful y

70、ear i n 2018,wi th i ts organi c growth suppl emented by the transformati ve acqui si ti on of KeyDri ve,whi ch contri buted to the resul ts for the l ast five months of the year.Revenues for the year were 42.7m,a 100%i ncrease over 2017,and EBI TDA was 7m i n 2018,a 66%i mprovement on 2017 excl udi

71、 ng the 3.0m revenue and EBI TDA contri buti on made i n 2017 by premi um domai n name tradi ng,whi ch i s no l onger a core acti vi ty of the Group.Ben Crawford Chief Execut ive OfficerChi ef Executi ve Officer s report conti nuedAcqui si ti ons Three successful acqui si ti ons contri buted to Cent

72、ral Ni c s extraordi nary growth i n 2018.On 2 August 2018,Central Ni c acqui red KeyDri ve,a company wi th compl ementary technol ogy pl atforms and customer bases.Thi s has created an enl arged Group that now owns and operates propri etary software pl atforms for each maj or customer type for doma

73、i ns and web presence servi ces.Addi ti onal l y,there was di rect dupl i cati on of acti vi ti es wi thi n Central Ni c and KeyDri ve i n some areas,creati ng opportuni ti es for cost synergi es,whi ch we are wel l advanced i n real i si ng.Due to the rapi d i ntegrati on of the acqui red KeyDri ve

74、 busi nesses,whi ch has i ncl uded mergi ng busi nesses and mi grati ng customers between busi nesses,the separate contri buti ons of what were formerl y i ndependent busi ness cannot be rel i abl y reported post-acqui si ti on.The combi ned enti ti es have the number and breadth of seni or managers

75、 to conti nue organi c growth from a much hi gher base than the Company had previ ousl y,as wel l as to accel erate the rol l-up strategy desi gned to make us a gl obal pl ayer at scal e.Central Ni c previ ousl y acqui red SK-NI C,the manager of the excl usi ve country code top-l evel domai n for Sl

76、 ovaki a,.SK,on 12 December 2017.SK-NI C suppl i es more than 390,000 domai n names vi a 2,300 retai l ers,99%of whi ch are domi ci l ed i n Sl ovaki a,a country wi th one of the strongest growth rates i n the European Uni on.SK i s among the 50 most popul ar ccTLDs i n the worl d,wi th an 84%renewa

77、l rate.Li ke most European ccTLD operators,SK-NI C i s pri vatel y hel d,yet i t i s vi rtual l y uni que i n that i t has a perpetual contract wi th the nati onal Government.Central Ni c retai ned the staff and management i n Sl ovaki a,upgraded the software to i ts own propri etary pl atform,and m

78、ade strategi c hi res to better posi ti on.SK as a foundati on of the Sl ovak di gi tal economy.Fi nal l y,Central Ni c acqui red the busi ness assets of Gl obeHosti ng on 6 September 2018,i ncreasi ng i ts market share i n the growi ng Romani an and Brazi l i an markets,and addi ng the propri etary

79、 SSL certi fi cate product Gl obeSSL to Central Ni c s assets.Through these acqui si ti ons,Central Ni c doubl ed i ts headcount,wi th addi ti onal staff i n Germany(housed i n a purpose-bui l t engi neeri ng headquarters near Saarbrcken),the USA,Luxembourg,Sl ovaki a and Romani a.I n addi ti on to

80、the contri buti on these acqui si ti ons have made to the conti nued growth of Central Ni c,they al so represent a practi cal demonstrati on of our team s abi l i ty to source and compl ete deal s around the worl d and successful l y i ntegrate them.We conti nue to bui l d a pi pel i ne of acqui si

81、ti on targets that fi t our cri teri a wi th a vi ew to maki ng further acqui si ti ons i n the comi ng years.Operati onal revi ew Due to the rapi d i ntegrati on of the acqui red KeyDri ve busi nesses,whi ch has i ncl uded mergi ng busi nesses and mi grati ng customers between busi nesses,the separ

82、ate contri buti ons of what were formerl y i ndependent busi ness cannot be rel i abl y reported post-acqui si ti on.Central Ni c experi enced both acqui si ti on-dri ven and organi c growth across i ts three segments,whi ch refl ect i ts mai n customer types of Resel l ers,Smal l busi ness and Corp

83、orates.Al l three segments share the same vi rtuous characteri sti cs of sel l i ng subscri pti on-based products and servi ces wi th hi ghl y predi ctabl e renewal rates and cash generati on.Al l three benefi ted both operati onal l y and fi nanci al l y from i ntegrati on acti vi ty.Suppl yi ng do

84、mai ns to resel l ers became Central Ni c s l argest busi ness i n 2018,growi ng by more than 260%,pri nci pal l y as a resul t of the KeyDri ve and SK-NI C acqui si ti ons.I t provi des the l ong tai l of country code and new TLD domai n i nventory to 5,000 resel l ers i ncl udi ng vi rtual l y al

85、l the worl d s l eadi ng domai n name retai l ers,whi ch i n turn resel l the domai ns to thei r customers.Therefore,the growth from those retai l ers dri ves our resel l er busi ness forwards.Central Ni c has retai ned i ts l eadi ng posi ti on for the past fi ve years,as a di stri butor of new TLD

86、s.Addi ti onal growth i n 2018 was provi ded by new resel l er wi ns and excl usi ve regi stry backend contracts,notabl y wi th.i cu and.ooo,whi ch both ranked i n the top 20 new TLDs by vol ume.Cost savi ngs were achi eved by the cl osure of KeyDri ve s Open Regi stry operati on,wi th the cl i ents

87、 mi grated onto the Central Ni c Regi stry pl atform.Revenue from the smal l busi ness customer group grew by 24%i n 2018 l argel y through the KeyDri ve acqui si ti on.At year-end,c.250,000 smal l busi ness customers use Central Ni c retai l ers to purchase domai n names for thei r websi tes and em

88、ai l servi ces.Central Ni c acqui res customers usi ng search engi ne marketi ng and upsel l i ng them vi a emai l marketi ng and tel esal es.I ntegrati on savi ngs were achi eved i n 2018 by consol i dati ng the suppl i er accounts and connecti ons between l egacy Central Ni c and KeyDri ve busi ne

89、sses,combi ni ng purchasi ng power and reduci ng dupl i cati on to i mprove margi ns.12 Central Ni c Group Pl c Annual Report 2018STRATEGIC REPORT Central Ni c Group Pl c Annual Report 201813Central Ni c s Corporate customer segment servi ces l arge corporati ons that vi ew domai n names as a form o

90、f i ntel l ectual property si mi l ar to trademarks,whi ch must be secured and protected by brand owners.The over 300 corporate cl i ents who have entrusted thei r domai n portfol i o management to Central Ni c i ncl ude many S&P 500 compani es and househol d brand names.I n the years to 2017,Centra

91、l Ni c operated a busi ness wi thi n the Corporate segment tradi ng i n hi gh pri ced premi um domai n names.I n 2018,the strategi c focus shi fted from premi um domai n sal es,and vi a the KeyDri ve acqui si ti on i t was repl aced by BrandShel ter a company whi ch manages l arge domai n portfol i

92、os for corporate customers.I n so doi ng,Central Ni c repl aced a busi ness based on one-off transacti ons wi th a recurri ng revenue busi ness wi th comparabl e revenues,whi l e provi di ng the hi ghest renewal rates,margi ns and growth rates i n the Group.The obj ecti ve for us now i s to mai ntai

93、 n our revenue growth and heal thy margi ns across al l three segments,whi l e we rapi dl y scal e the busi ness up vi a conti nued acqui si ti ons.Post year-end and outl ook Tradi ng i n Q1 2019 was i n l i ne wi th management expectati ons.Thi s i ncl uded revenue growth across al l segments and h

94、i tti ng mi l estones i n the i ntegrati on of the new acqui si ti ons.For exampl e,to el i mi nate dupl i cati on,KeyDri ve s KS Regi stry cl i ents were mi grated to the Central Ni c Regi stry pl atform,whi l e Central Ni c s EPP Gateway cl i ents were mi grated to the KeyDri ve resel l er pl atfo

95、rm.Addi ti onal l y,we won new customers across the three segments,i ncl udi ng bei ng sel ected by the i nternet regul ator,I CANN(I nternet Corporati on for Assi gned Names and Numbers)for the bul k transfer of c.680,000 domai n names from a former regi strar that was no l onger accredi ted.We al

96、so upgraded our Uni ted Ki ngdom corporate headquarters and New Zeal and offi ce i n the begi nni ng of 2019.I n the fi ve years si nce i t fi rst l i sted,Central Ni c s revenues i ncreased 14-fol d from 3.1m to cl ose to 42.7m.The expectati ons for the busi ness are to conti nue on i ts aggressi v

97、e growth traj ectory,supported by conti nued demand,the pl anned i ntroducti on of new products and servi ces such as cl oud hosti ng,managed DNS and onl i ne brand protecti on,pl us a heal thy pi pel i ne of earni ngs enhanci ng acqui si ti on prospects.Ben Crawford Chi ef Executi ve Offi cer 12 Ma

98、y 2019 Chi ef Fi nanci al Officer s report14 Central Ni c Group Pl c Annual Report 2018STRATEGIC REPORT The KeyDri ve SA acqui si ti on was then compl emented wi th the acqui si ti on of Gl obeHosti ng,a Romani an/Brazi l i an hosti ng busi ness.Management expects that the earnout condi ti ons wi l

99、l be met i n ful l,testi mony to the great performance of these assets.The transacti on was fi nanced by an oversubscri bed cash offeri ng,rai si ng 24.0m and an expansi on of Central Ni c s faci l i ty wi th Si l i con Val l ey Bank to 24.0m from 18.0m.The founder and l argest Sharehol der of KeyDr

100、i ve took most of thei r consi derati on i n Central Ni c shares.Thi s demonstrates the conti nued support of management,and both the equi ty and debt capi tal markets,i n the ongoi ng prospects of the Company.I n consequence,equi ty at year-end was 61.0m,up 131%from the pri or year s 26.5m bal ance

101、.Further,the Group enj oyed the ful l year effect of the 2017 acqui si ti on of SK-NI C,the operator of the Sl ovaki an top-l evel domai n.SK,augmenti ng revenue by 3.1m and EBI TDA by 1.7m.At the same ti me,the vol ati l e and unpredi ctabl e one-off i ncome from premi um domai n name sal es faded

102、from 3.0m to bel ow 0.1m,i n l i ne wi th the Group strategy.I n total,thi s l ed to overal l year-on-year growth i n revenue of 100%from 21.4m,excl udi ng premi um domai n sal es,to 42.7m.The growth i n the revenue l i ne l argel y fl owed down to Adj usted EBI TDA*,whi ch i ncreased by 66%to 7.0m(

103、2017:4.2m,excl udi ng premi um domai n sal es).The overal l Adj usted EBI TDA Margi n was di l uted sl i ghtl y to 16.3%,refl ecti ng the i ntegrati on of the l ower margi n KeyDri ve busi ness(2017:19.7%excl udi ng premi um domai n sal es).Forei gn exchange movements were 0.6m favourabl e,compared

104、to 0.6m adverse i n 2017.The attracti ve cash generati ve profi l e of the Group conti nued i n 2018 wi th the net operati ng cash fl ow,before tax and one-off deal costs and repl eni shment of the premi um domai n i nventory,bei ng 16.1m(2017:6.8m).Cash at the end of 2018 was 18.0m(2017:10.9m),an i

105、 ncrease of 66%wi th Net Debt(i ncl udi ng prepai d costs)of 1.7m(2017:net debt 6.5m).Key Performance Indi cators 2018:Revenue:42,7m(2017:21.4m excl udi ng premi um domai n sal es)Adj usted EBI TDA*:7.0m(2017:4.2m excl udi ng premi um domai n sal es)Loss after taxati on:4.9m(2017:profi t after taxat

106、i on of 1.0m)Cash Bal ance 31 Dec 2018:18.0m(2017:10.9m)Net i nterest beari ng debt excl udi ng prepai d costs as at 31 Dec 2018:2.5m(2017:7.2m)*Earni ngs before i nterest,tax,depreci ati on and amorti sati on,forei gn exchange,and non-core operati ng costs and revenues(acqui si ti on costs,i ntegra

107、ti on costs,share opti on expense,settl ement i tems,and premi um domai n sal es).2018 was a year of transformati onal events,most i mportantl y,the acqui si ti on of KeyDri ve SA i n August 2018.Through thi s acqui si ti on,Central Ni c augmented i ts market share across al l i ts key busi ness are

108、as and now has access to a technol ogy pl atform that wi l l faci l i tate the i ntegrati on of future acqui si ti ons.Mi chael Ri edl Chief Financial Officer Due to the rapi d i ntegrati on of the acqui red KeyDri ve busi nesses,whi ch has i ncl uded mergi ng busi nesses and mi grati ng customers b

109、etween busi nesses,the segment reporti ng has been amended to absorb the busi nesses of the KeyDri ve group.The new segments are constructed around customer types,namel y Resel l ers,Smal l Busi nesses and Corporates,wi th each havi ng di sti nct needs that are served by Central Ni c s propri etary

110、SaaS pl atform.For each segment,revenue and gross profi t contri buti ons to the total operati ng expendi ture pl atform are determi ned.The Resel l er segment i ncl udes the former Whol esal e di vi si on,Smal l busi ness segment compri ses the former Retai l di vi si on and Corporate segment absor

111、bs the former Enterpri se di vi si on.Resel l er segment Three Resel l er portal s,namel y RRP proxy,PartnerGate and Toweb,have been added through the acqui si ti ons i n the year.Thi s has contri buted to revenue i n the Resel l er segment i ncreasi ng by 264%from 5.7m to 20.9m.Gross profi t for th

112、e segment doubl ed from 4.9m to 9.7m.Smal l busi ness segment The portfol i o of Smal l busi ness portal s was extended by domai ndi scount24,Moni ,and Gl obeHosti ng.I n total,the Smal l Busi ness segment yi el ded revenue of 18.3m,an i ncrease of 24%over the 14.7m recorded i n 2017.Gross profi t i

113、 n 2018 was 7.5m,an i ncrease of 25%over the 2017 fi gure of 6.0m.Corporate segment Revenue i n the Corporate segment was 3.4m,a decrease of 11%from the 3.9m reported i n 2017,and Gross Profi t decl i ned by 35%to 2.5m from 3.8m.Adj usti ng for the si gni fi cantl y reduced premi um domai n sal es,h

114、owever,resul ted i n revenues for the segment i ncreasi ng by 290%from 0.9m to 3.4m and Gross Profi t i ncreasi ng by 207%from 0.8m to 2.5m.Overhead expenses Group overhead expenses excl udi ng forei gn exchange,depreci ati on,amorti sati on,i mpai rment and non core operati ng expenses i ncreased 7

115、1%from 7.4m to 12.7m,of whi ch 4.1m i s attri butabl e to KeyDri ve for the fi ve months post-acqui si ti on and 1.1m to the ful l year effect of the SK-NI C acqui si ti on.Earni ngs profi l e The qual i ty of the Group s earni ngs remai ns an i mportant strategi c pri ori ty for the Group and i ts

116、i nvestors,as we i ncrease the proporti on of revenues deri ved from predi ctabl e sources.Thi s was one i mportant factor i n assessi ng the SK-NI C acqui si ti on,wi th al l of SK-NI C s revenues,earni ngs and cash flow deri ved from new regi strati ons and renewal s of domai n names.Recurri ng re

117、venues i s stabl e at 90%(2017:91%on a pro-forma basi s).Adj usted EBI TDA of 7.0m(2017:4.2m)has been deri ved from the operati ng profi t of(2.7m)(2017:1.9m)after adj usti ng for the fol l owi ng i tems:a)depreci ati on of 0.3m(2017:0.1m),b)amorti sati on of i ntangi bl e assets of 4.2m(2017:2.2m),

118、c)fai r val ue movement of i nvestment of 1m(2017:ni l),d)non core operati ng expenses of 4.5m(2017:2.0m),e)forei gn exchange gai n of 0.6m(2017:l oss of 0.6m),f)i mmateri al non core premi um domai n name sal es i n 2018(2017:3.0m),g)i mmateri al amounts of share of associ ate i ncome i n 2018(2017

119、:ni l),and h)share based payment expense of 0.3m(2017:0.4m).Non core costs(i ncl udi ng acqui si ti on and other costs)total l ed 4.5m(2017:2.0m).The acqui si ti on-rel ated costs,supporti ng the Group s acqui si ti on programme,i ncl uded a vari ety of deal costs for SK-NI C,KeyDri ve Group,Gl obeH

120、osti ng and the accompanyi ng equi ty and debt capi tal market transacti ons.Other non-cash expenses i ncl uded the acqui red amorti sati on of i ntangi bl e assets,total i ng 4.2m(2017:2.2m).Thi s reflected the schedul ed amorti sati on for i denti fi ed i ntangi bl e assets of KeyDri ve and SK-NI

121、C.Further,i n eval uati ng the fai r val ue of the i nvestment i n Accent Medi a,the Group recorded a reducti on of 1.0m.The val ue may be recovered,shoul d the Company s fi nanci al prospects si gni fi cantl y i mprove.The Jabel l a l oan of 0.8m has been repai d to the Group i n ful l.Basi c earni

122、 ngs per share of(3.82)pence(2017:1.07 pence)has been i mpacted by non-recurri ng acqui si ti on costs,amorti sati on charges,and other si gni fi cant non core operati ng costs.Di l uted earni ngs per share,at(3.82)pence(2017:1.04 pence)reflected the di l uti ve effect of the share opti ons“i n the

123、money”at the average share pri ce for the year.Further detai l s of the earni ngs per share cal cul ati ons are provi ded i n note 12 to the financi al statements.Pensi ons The Group created a defined contri buti on pensi on scheme i n June 2016 i n l i ne wi th the new auto-enrol ment provi si ons

124、i n the UK.I n Austral i a,the Group operates a superannuati on scheme i n l i ne wi th statutory requi rements,and the Ki wi Saver scheme i n New Zeal and,whi ch i s i n l i ne wi th the Ki wi Saver Act 2006.I n Germany and Luxembourg,al l staff are subj ect to the federal pensi on schemes and the

125、Group contri butes to vol untary compl ementary pensi on schemes.The Group does not operate and has never operated any defined benefit schemes requi ri ng actuari al val uati ons.Di vi dends I t remai ns the i ntenti on of the Group to generate i ncome returns for i nvestors i n the future as part o

126、f a progressi ve and commerci al l y prudent di vi dend pol i cy.However,due to the conti nued expansi on opportuni ti es presented by the sector,the Di rectors do not propose a final di vi dend i n 2018.Central Ni c Group Pl c Annual Report 201815Chi ef Fi nanci al Officer s report conti nuedGroup

127、statement of fi nanci al posi ti on The Group had net assets of 61.0m at 31 December 2018(2017:26.5m).Thi s i ncrease was dri ven by share i ssues for cash and for contri buti on i n ki nd i n the context of the KeyDri ve acqui si ti on.Thi s was offset by the net l oss for year,parti al l y mi ti g

128、ated by favourabl e movements of the forei gn exchange reserve.Capi tal expendi ture and i nvesti ng acti vi ti es The most si gni ficant i nvestment made duri ng the year was the acqui si ti on of KeyDri ve SA,wi th further detai l s on the fai r val ue provi ded i n note 25 to the financi al state

129、ments.I n total,46.2m of non-current assets have been added.31.6m of thi s was attri butabl e to Goodwi l l,of whi ch 29.0m was attri butabl e to the KeyDri ve acqui si ti on.Software,net of amorti sati on,i ncreased by 6.4m and other i ntangi bl e assets by 8.2m,both l argel y attri butabl e to the

130、 KeyDri ve acqui si ti on.I n l i ne wi th the appropri ate treatment for transl ati on of a forei gn operati on i nto the Group s presentati onal currency,both the tangi bl e and i ntangi bl e assets are transl ated at the cl osi ng rate,generati ng forei gn exchange di fferences as presented i n n

131、otes 13 and 14 to the financi al statements.Wi th the excepti on of goodwi l l,i ntangi bl e assets are amorti sed i n l i ne wi th the Group s accounti ng pol i cy.The carryi ng val ue of goodwi l l i s tested annual l y for i mpai rment,whi l e the Di rectors al so consi der other i ntangi bl e as

132、sets and i nvestments for i ndi cati ons of i mpai rment.Further detai l s are provi ded i n notes 13,14 and 16 to the financi al statements.Cash fl ow and net cash The cash flow statement for the Group i ncl udes two maj or themes:the entri es rel ated to the financi ng and compl eti on of the KeyD

133、ri ve acqui si ti on and the resul ts of the ongoi ng operati ons of the busi ness,taki ng i nto account fluctuati ons i n worki ng capi tal.Net cash flow from operati ng acti vi ti es after tax was hi gher than the previ ous year at 6.7m(2017:3.8m).I n both years,the net cash flow from operati ng a

134、cti vi ti es was i n l i ne wi th expectati ons rel ati ve to Adj usted EBI TDA.I nvesti ng acti vi ti es were mai nl y rel ated to the KeyDri ve acqui si ti on,whi ch was compl eted i n August 2018.The net cash outfl ow rel ated to the KeyDri ve acqui si ti on total l ed 9.0m(net of cash acqui red)

135、i n 2018 wi th a further 4.9m of earnout consi derati on due up to 2020,whereas up to 85%of the earnout consi derati on may be settl ed i n shares.Banki ng faci l i ti es On 16 Jul y 2018,the Company and Si l i con Val l ey Bank entered i nto an amendment agreement to amend the terms of the Si l i c

136、on Val l ey Bank Faci l i ti es.The amount avai l abl e under the revol vi ng credi t faci l i ty was i ncreased by 6.0m to 12.0m and the maxi mum amount of the uncommi tted accordi on faci l i ty was reduced by 6.0m to 9.0m.The term of the l oans remai ns as stated above.The debt faci l i ty i s se

137、cured over the materi al compani es wi thi n the Group.Further detai l i s provi ded i n note 24 to the financi al statements.The Group i s i n compl i ance wi th the mai ntenance covenant rati os and i ts payment obl i gati ons under the faci l i ti es agreement.Si gni fi cant accounti ng pol i ci

138、es and cri ti cal accounti ng j udgments The Summary of the Group s si gni ficant accounti ng pol i ci es i s set out i n note 3 and the Group s cri ti cal accounti ng j udgments i s set out i n note 4 to the fi nanci al statements.Group ri sk management The Di rectors revi ews the financi al ri sk

139、management pol i cy,noti ng that the Group i s exposed to deposi t ri sk,credi t ri sk,market ri sk,I T securi ty,i mpact on soci ety,forei gn currency ri sk and other ri sks ari si ng from financi al i nstruments.Further detai l s of the Fi nanci al Ri sk Management Framework are provi ded i n note

140、 29 to the financi al statements.The Group s finance functi on i s responsi bl e for managi ng i nvestment and fundi ng requi rements i ncl udi ng cashflow moni tori ng and proj ecti ons.The cashflow proj ecti ons are revi ewed regul arl y by the Di rectors to ensure the Group has suffi ci ent l i q

141、ui di ty at al l ti mes to meet i ts cash requi rements and execute i ts busi ness strategy.The Group s strategy i s to finance i ts operati ons through the cash generated from operati ons and where necessary,equi ty and debt finance,notabl y to support i nvesti ng acti vi ti es.The Group s financi

142、al i nstruments compri se cash and vari ous i tems such as trade and deferred recei vabl es.The Group had 18.0m of cash at the year-end,wi th i nterest beari ng financi al assets beari ng i nterest at fixed i nterest rates.Deposit risk Deposi t ri sk i s mi ti gated by the Di rectors setti ng pol i

143、cy that the Group onl y pl aces deposi ts wi th banks and financi al i nsti tuti ons wi th hi gh credi t rati ngs.Credit risk The Group s exposure to credi t ri sk from trade recei vabl es i s rel ati vel y l ow,due to the fact that the busi ness has tradi ti onal l y deal t wi th customers who ofte

144、n pay at the poi nt or sal e or i n advance.Where there are credi t accounts,whi ch i s an i ncreasi ng trend i n the i ndustry parti cul arl y for the l arger domai n name regi strars,recei vabl es are control l ed through credi t l i mi ts and regul ar moni tori ng.16 Central Ni c Group Pl c Annua

145、l Report 2018STRATEGIC REPORT Market risk There i s a ri sk that the market for domai ns for whi ch the Group provi des regi stry and regi strar servi ces may not i ncrease as qui ckl y as expected or that the new TLDs may not generate the revenue l evel s anti ci pated by the Di rectors.I n ei ther

146、 case,the Group s revenues coul d reduce bel ow expectati ons wi th an i mpact on profitabi l i ty.The ri sk i s mi ti gated to a degree by operati ng mul ti pl e l i nes of busi ness themsel ves exposed to many verti cal markets and segments,the maj ori ty of whi ch have very l i ttl e rel i ance o

147、n new TLDs.IT security I f the Group does not prevent securi ty breaches or becomes suscepti bl e to cyber-attacks,i t may be exposed to l awsui ts,l ose customers,suffer harm to i ts reputati on,and i ncur addi ti onal costs.Unauthori sed access,computer vi ruses,acci dents,empl oyee error or mal f

148、easance,i ntenti onal mi sconduct by computer“hackers”and other di srupti ons can occur that coul d compromi se the securi ty of the Group s i nfrastructure or confidenti al i nformati on.The Group has created a resi l i ent network i nfrastructure and Domai n Name System server constel l ati on,wi

149、th fai l over secondary systems to ensure cri ti cal regi stry functi ons are mai ntai ned.The Resel l er segment has been certi fied under I SO 27001/2013 for data securi ty,thereby mi ti gati ng ri sk by adherence to i nternati onal best practi ce.Impact on society The Group has a posi ti ve i mpa

150、ct on soci ety by offeri ng i nternet servi ces i n devel opi ng countri es,contri buti ng to the Uni ted Nati ons Broadband Commi ssi on s obj ecti ve of connecti ng the 50%of the worl d that i s sti l l offl i ne wi th affordabl e i nternet.The Company can see l i ttl e negati ve i mpact on soci e

151、ty from i ts acti vi ti es.Whi l st the i nternet i tsel f adds a potenti al avenue through whi ch fraudsters and other undesi rabl es can operate,the Company has stri ngent pol i ci es rel ati ng to i ts posi ti on as an enabl er of such traffi c and at al l ti mes adheres to l aws and regul ati on

152、s i n each and every j uri sdi cti on,i ncl udi ng worki ng wi th regul atory authori ti es at al l ti mes.Foreign currency risk The Di rectors notes that the Group has predomi nantl y traded i n US Dol l ars,Euros,GB Pounds Sterl i ng and Austral i an Dol l ars,and consi ders the exposure to forei

153、gn currency ri sk to be acceptabl e.The Group has hel d reserves i n each of these currenci es to meet tradi ng obl i gati ons as requi red.The currency ri sk i s acti vel y moni tored through a peri odi c revi ew of i nflows and outfl ows by currency,i ncl udi ng an assessment of the extent to whi

154、ch currenci es are natural l y hedged across the Group s busi ness l i nes.Where thi s i s not the case,consi derati on i s gi ven to the use of hedgi ng i nstruments.Gi ven the Group does more than hal f i ts trade i n US Dol l ars and the i ndustry i n whi ch i t operates i s predomi nantl y tradi

155、 ng i n US Dol l ars,the Di rectors are consi deri ng to amend i ts presentati onal currency i n compl i ance wi th I AS 21 to US Dol l ars for al l fi nanci al years commenci ng after 31 December 2018.Al i gni ng the reporti ng currency to the domi nant tradi ng currency wi l l reduce the exposure

156、to forei gn currency ri sk and faci l i tate benchmarki ng to l i sted peers.Other risk The Di rectors gi ve due consi derati on to other ri sk factors as they ari se.Parti cul ar attenti on i s attri buted to the Uni ted Ki ngdom i nvocati on of Arti cl e 50 of the Treaty on European Uni on,commonl

157、 y referred to as“Brexi t”,as wel l as addi ti onal regul atory requi rements bei ng attri buted to busi ness i n the domai n i ndustry,by nati onal or supranati onal l awmakers,or regul atory bodi es such as I CANN or the London Stock Exchange.I n the opi ni on of the Di rectors,Brexi t carri es l

158、i mi ted ri sk for the day-to-day operati ons of the Group,as onl y a smal l fracti on of the Group s trade i s to UK customers or from UK subsi di ari es to EU customers.Onl y 4%of gl obal sal es are wi th UK customers.Yet,the Di rectors are cogni sant of more general ri sk such as market turmoi l

159、or i ncreased vol ati l i ty of the Pound Sterl i ng to other currenci es.Pertai ni ng to regul atory requi rements,the Group has assured that i ts subsi di ari es are compl i ant wi th the EU General Data Protecti on Regul ati on(GDPR)respecti vel y i n thei r i mpl ementati ons to each perti nent

160、j uri sdi cti on l aw.The Group i s moni tori ng devel opments i n rel ati on to EU State Ai d i nvesti gati ons fol l owi ng the EU Commi ssi on openi ng a State Ai d i nvesti gati on i nto the Group Fi nanci ng Exempti on i n the UK s Control l ed Forei gn Company regi me i n October 2017.I n l i

161、ne wi th current UK tax l aw,the Group appl i es thi s regi me.Based on i ts current assessment,the Group does not consi der any provi si on i s requi red i n rel ati on to thi s i ssue.Michael Riedl Chi ef Fi nanci al Offi cer 12 May 2019 Central Ni c Group Pl c Annual Report 201817Board of Di rect

162、ors18 Central Ni c Group Pl c Annual Report 2018Mi ke Turner Chairman(aged 58)Mi ke i s a recogni sed l eader i n UK and cross-border Technol ogy M&A.He has over 30 years of experi ence worki ng i n London,New York and Los Angel es,advi si ng pri vate and publ i cl y hel d cl i ents on corporate tra

163、nsacti ons i n technol ogy,tel ecoms,adverti si ng/marketi ng servi ces,tradi ti onal/di gi tal medi a,i nternet and e-commerce sectors.Mi ke i s a Partner and Gl obal Head of Technol ogy Medi a and Communi cati ons at the i nternati onal l aw fi rm Tayl or Wessi ng,as wel l as hol di ng a number of

164、 non-executi ve Board posi ti ons wi th medi a and technol ogy compani es.Previ ousl y,Mi ke was a General Partner responsi bl e for technol ogy i nvestments at Oakfi el d Partners.Mi ke obtai ned an LLB at the Uni versi ty of Readi ng.Benj ami n Crawford Chief Execut ive Officer(aged 53)Under Ben C

165、rawford s l eadershi p,Central Ni c has i ncreased i ts revenues by a factor of 20 over 10 years.Ben i s a speci al i st i n gl obal busi ness and corporate devel opment i n compl ex i nternet-rel ated busi ness wi th cruci al stakehol der rel ati ons requi rements,i ncl udi ng government rel ati on

166、s at up to Mi ni steri al l evel.Hi s former posi ti ons i ncl uded Foundi ng Presi dent of Loui se Bl oui n Medi a,i ntegrati ng 11 acqui si ti ons i n three countri es and personal l y managed rel ati onshi ps wi th the Chi nese Government;Managi ng Di rector of SportBusi ness Group;and Executi ve

167、 Producer of the offi ci al websi te of the Sydney Ol ympi c Games,where he fi rst devel oped extensi ve experi ence i n worki ng wi th Governments on hi ghl y sensi ti ve i nternet proj ects.Ben has an MBA from the Austral i an Graduate School of Management and a Fi rst-Cl ass Honours Degree from t

168、he Uni versi ty of Sydney.Don Bal adasan Gr oup Managing Dir ect or(aged 45)Don,a Chartered Management Accountant,has years of experi ence as a Fi nance Di rector of AI M l i sted compani es.Over the l ast fi ve years he has assi sted AI M l i sted busi nesses i n rai si ng 25m of equi ty,i n addi t

169、i on to overseei ng a seri es of acqui si ti ons i ncl udi ng reverse takeovers.Don has experi ence of i ntegrati ng i nternati onal l y acqui red compani es from a fi nance,governance and commerci al perspecti ve.Don was Head of Accounti ng Devel opment at Stemcor,an i nternati onal steel trader wh

170、i ch at the ti me had operati ons i n 46 countri es and a turnover i n excess of 6bn.Don i ni ti al l y studi ed Medi ci ne at Guy s Hospi tal before compl eti ng a BSc i n Economi cs at CASS Busi ness School.He was then awarded a pl ace on the Fi nanci al Ti mes graduate scheme where he trai ned as

171、 a Chartered Management Accountant.Mi chael Ri edl Chief Financial Officer (aged 43)(appoint ed on 19 Mar ch 2019)Mi chael Ri edl was Executi ve Vi ce Presi dent and CFO of KeyDri ve S.A.from August 2011,overseei ng the growth of the company over the next seven years.Pri or to j oi ni ng KeyDri ve S

172、.A.,Mi chael hel d managi ng posi ti ons i n the pri vate equi ty and I CT i ndustri es.He started hi s career wi th Rol and Berger Strategy Consul tants where he speci al i sed i n performance i mprovement programmes.Mi chael was Chi ef Restructuri ng Offi cer at Group Sai nt-Paul i n Luxembourg fr

173、om 2004 to 2007 before j oi ni ng DZ Equi ty Partners,the pri vate equi ty fi rm,i n Frankfurt i n 2007.I n 2008,Mi chael j oi ned BI P I nvestment Partners where he worked on pri vate equi ty opportuni ti es wi th a focus on buyouts unti l 2011.Mi chael hol ds a Bachel or s degree i n Computer Sci

174、ence from James Madi son Uni versi ty,USA,a Master of Sci ence degree i n Busi ness Admi ni strati on from European Busi ness School,Germany,and an LLM from Frankfurt School of Fi nance and Management.He i s al so a Chartered Management Accountant.GOVERNANCEThomas Ri ckert Non-Execut ive Dir ect or(

175、aged 49)Thomas Ri ckert i s an attorney-at-l aw i n Germany.He i s the owner of Ri ckert Rechtsanwal tsgesel l schaft mbH,a l aw fi rm based i n Bonn,Germany.Thomas has extensi ve experi ence i n the domai n i ndustry worki ng on domai n di sputes as wel l as advi si ng Regi strars,Regi stry Servi c

176、e Provi ders and Regi stry Operators both on contractual as wel l as pol i cy matters.Thomas i s an expert speaker on domai n rel ated subj ects both at the nati onal and i nternati onal l evel.Thomas served on the Counci l of the Generi c Names Supporti ng Organi sati on(GNSO),whi ch i s the body r

177、esponsi bl e for devel opi ng pol i cy for generi c domai n names,for four years(2011-2015).He i s one of the co-chai rs of the CCWG-ACCT,a group that works on i mprovi ng I CANN s accountabi l i ty.Samuel Dayani Non-Execut ive Dir ect or(aged 41)Samuel Dayani i s a partner at the Joseph Samuel Grou

178、p,where he i s responsi bl e for managi ng the Group s i nvestments and busi ness devel opment i n the Real Estate,Medtech,Energy&Renewabl es,Fashi on and Technol ogy&Tel ecoms sectors.Samuel was responsi bl e for purchasi ng Central Ni c i n 2003 and managi ng the restructuri ng of the busi ness,bu

179、i l di ng the management team and del i veri ng an i nsti tuti onal grade busi ness for i ts l i sti ng i n 2013.Previ ousl y Samuel was the Chi ef Operati ng Offi cer and l ater Managi ng Di rector of Vi aVi si on Ltd,an i nteracti ve TV company on Sky,when i t was sol d to Yoomedi a pl c i n 2004.

180、Thomas Pri dmore Non-Execut ive Dir ect or(aged 47)Tom Pri dmore began hi s career as a sol i ci tor at Norton Rose,speci al i si ng i n corporate fi nance,where he acted on behal f of i nsti tuti onal cl i ents i n rel ati on to a vari ety of corporate fi nance and M&A acti vi ti es.Tom then j oi n

181、ed Fl extech/Tel ewest Pl c as Head of Corporate Strategy,where he was responsi bl e for di recti ng i nvestment i nto strategi c I nternet and i nteracti ve tel evi si on compani es.I n 2000,Tom co-founded the i nternati onal fund manager and i nvestment advi ser Devel opment Capi tal Management Li

182、 mi ted.I n thi s capaci ty he has set up and managed real estate i nvestment and devel opment operati ons i n Turkey,I ndi a,North Afri ca,Eastern Europe and the UK on behal f of both i nsti tuti onal and pri vate cl i ents.Iai n McDonal d Non-Execut ive Dir ect or(aged 48)I ai n i s a gl obal expe

183、rt i n technol ogy and e-commerce,havi ng had a strong track record i n i nvesti ng i n earl y stage compani es such as ASOS,The Hut Group,Eagl e Eye Sol uti ons,Anatwi ne and Metapack.He i s the founder of Bel eri on Capi tal,an i nvestor and i nvestment advi sor i n technol ogy and e-commerce comp

184、ani es.I ai n i s al so a non-executi ve di rector of vari ous of hi s i nvestee compani es,as wel l as other technol ogy compani es such as The Hut Group and B.Previ ousl y,I ai n was a top-ranked retai l and e-commerce anal yst and hel d posi ti ons i n a number of UK i nvestment banks.I ai n grad

185、uated from the London School of Economi cs and Pol i ti cal Sci ence(LSE),wi th a BSc i n Economi cs&Economi cs Hi story.Central Ni c Group Pl c Annual Report 201819Di rectors reportPrincipal activities CentralNi c Group Plc i s the ulti mate holdi ng company of a Group of compani es.The pri nci pal

186、 acti vi ti es of the Group are the provi si on of domai n name Reseller,Small busi ness and Corporate servi ces.A more comprehensi ve descri pti on of the Group s acti vi ti es,perf ormance,and li kely developments are provi ded i n the Chai rman s statement,the Chi ef Executi ve Of f i cer s repor

187、t,the Chi ef Fi nanci al Of f i cer s report,the Corporate Governance report,the Audi t commi ttee report and the Remunerati on report,whi ch are i ncorporated by ref erence i nto thi s annual report.A li st of the subsi di ary undertaki ngs i s di sclosed i n the Parti culars of Subsi di ari es and

188、 Associ ates on pages 83 to 85 of the f i nanci al statements.Financial instruments Detai ls of the use of f i nanci al i nstruments and f i nanci al ri sk management are i ncluded i n note 29 to the f i nanci al statements.Results and dividends Inf ormati on on the results i s provi ded i n the Cha

189、i rman s statement and the Chi ef Fi nanci al Of f i cer s report.It remai ns the i ntenti on of the Group to generate i ncome returns f or i nvestors i n the f uture as part of a progressi ve and commerci ally prudent di vi dend poli cy.However,due to the conti nued expansi on opportuni ti es prese

190、nted by the sector,the Di rectors do not propose a final di vi dend i n 2018.Directors The Company was i ncorporated on 19 June 2013,wi th a vi ew to becomi ng the Parent Company of the Group af ter admi ssi on to AIM.The admi ssi on was completed on 2 September 2013,and at thi s ti me the Board was

191、 expanded.There were no changes i n Board members i n 2018.On 19 March 2019,Mi chael Ri edl was appoi nted as Chi ef Fi nanci al Of f i cer to ref lect the development of the busi ness.The Di rectors who served duri ng the year were as f ollows:Executi ve Di rectors Benj ami n Crawf ord(Chi ef Execu

192、ti ve Of f i cer)Donal d Bal adasan(Chi ef Fi nanci al Of f i cer i n 2018,and Group Managi ng Di rector i n 2019)Non-Executi ve Di rectors Mi ke Turner(Non-Executi ve Chai rman)Samuel Dayani Thomas Ri ckert Thomas Pri dmore Iai n McDonal dThe bi ographi cal detai ls of the Di rectors are provi ded

193、on pages 18 and 19 of thi s annual report.Four Di rectors wi ll reti re at the Company s Annual General Meeti ng and bei ng eli gi ble wi ll of f er themselves f or re-electi on.The Directors and their interests in the shares in the Group The Di rectors of the Company,and thei r i nterests i n the s

194、hares and share opti ons of the Company,are shown i n the Remunerati on Report on pages 29 to 31 of thi s annual report.Transacti ons wi th any parti es related to the Di rectors are di sclosed i n note 26 to the f i nanci al statements.Post year-end Further detai ls on post year-end events are di s

195、closed i n the Chi ef Executi ve Of f i cer s report.Directors conflicts of interest Each Di rector i s requi red,i n accordance wi th the provi si ons of the Compani es Act 2006,to declare any i nterests that may gi ve ri se to a conf li ct of i nterest wi th the Company on appoi ntment and subsequ

196、ently as they ari se.Where such a conf li ct or potenti al conf li ct ari ses,the Board i s empowered under the Company s Arti cles of Associ ati on to consi der and authori se such conf li cts as appropri ate.Articles of Association The Company s Arti cles of Associ ati on set out the Company s i n

197、ternal regulati on and cover such matters as the ri ghts of Shareholders,the appoi ntment and removal of Di rectors and the conduct of Board and general meeti ngs.A copy of the Company s Arti cles of Associ ati on i s avai lable on the Group s websi te.Subject to the provi si ons of legi slati on,th

198、e Company s Arti cles of Associ ati on and any di recti ons gi ven by resoluti ons of the Shareholders,the Board may exerci se all powers of the Company and may delegate authori ti es to commi ttees and management as i t sees f i t.Detai ls of the commi ttees of the Board and thei r acti vi ti es ar

199、e contai ned i n the Corporate Governance report on pages 24 to 27 of thi s annual report.The Di rectors are responsi ble f or the mai ntenance and i ntegri ty of the corporate and f i nanci al i nf ormati on i ncluded on the Company s websi te.Principal risks and uncertainties The Board s assessmen

200、t of the pri nci pal ri sks and uncertai nti es,together wi th the mi ti gati ng f actors,are presented i n the Strategi c report on pages 16 and 17.20 CentralNic Group Plc Annual Report 2018GOVERNANCESubstantial Shareholders In addi ti on to the Di rectors i nterests di sclosed i n the Remunerati o

201、n report,the Company has been noti f i ed that the f ollowi ng Shareholders i nterests exceeded 3%of the Company s ordi nary share capi tal i n i ssue at 30 Apri l 2019:Ordi nary shares Percentage Inter.Servi ces GMBH 28,006,607 16.41%Kestrel Investment Partners 23,869,555 13.99%Eri n Invest&Fi nanc

202、e Ltd 21,630,382 12.68%Gresham House plc 13,427,571 7.87%Schroders 11,200,867 6.56%Chelverton Asset Management 10,000,000 5.86%Herald Investment Management 8,909,615 5.22%Jabella Group Li mi ted 7,902,276 4.63%Cavendi sh Asset Management 6,595,124 3.86%Mi ton Group plc 6,435,903 3.77%No substanti al

203、 Shareholders have di f f erent voti ng ri ghts to other holders of the share capi tal of the Company.Corporate governance The Corporate Governance report,on pages 24 to 27 i s i ncorporated i nto thi s annual report by ref erence.Corporate responsibility The Board recogni ses i ts employment,envi r

204、onmental and health and saf ety responsi bi li ti es,and devotes appropri ate resources towards moni tori ng and i mprovi ng compli ance wi th exi sti ng standards.Management and staff CentralNi c s management team has been assembled to ensure the Group has the number of people and range of ski lls

205、requi red to deli ver the busi ness strategy and to support the expansi on of the Group as i t becomes an i ncreasi ngly i nternati onal busi ness.The team i s di verse and bri ngs f uncti onal experti se across a number of di sci pli nes i ncludi ng techni cal and operati onal deli very,f i nance,l

206、aw,marketi ng and sales.Whi le the busi ness i s managed under budgetary controls,the Di rectors f ocus on ensuri ng there i s successi on planni ng i n place as i s appropri ate f or a busi ness of our si ze.Our staf f and consultants represent a number of di f f erent nati onali ti es,and we are p

207、leased by the gender di versi ty i n our busi ness.The executi ve leaders wi thi n the busi ness recogni se the i mportance of engagi ng wi th employees and do so i nf ormally on a day-to-day basi s.We of ten use a cascade approach to employee communi cati ons,wi th the heads of departments di ssemi

208、 nati ng appropri ate i nf ormati on to thei r teams,i ncludi ng those si tuated i n vari ous locati ons around the world.Whi le we do not beli eve that human ri ghts i ssues are a si gni f i cant ri sk to our busi ness currently,we are consci ous that as we expand i nto new i nternati onal markets

209、i ssues of human ri ghts may become more si gni f i cant.The Di rectors keep all aspects of busi ness development under revi ew,and act wi th cauti on and i ntegri ty to ensure all our acti vi ti es and speci f i cally busi ness development acti vi ti es are respectf ul of human ri ghts.Communi cati

210、 on wi th employees i s pri mari ly through f ormal and i nf ormal meeti ngs and through the use of the Group s i nf ormati on systems.Thi s compri ses regular communi cati on of i nf ormati on af f ecti ng our managers and thei r teams,to ensure all employees are kept up to date wi th i ssues af f

211、ecti ng them.The Board recogni ses the i mportance of engaged employees worki ng wi thi n the Group and how they are vi tal to the f uture success of the busi ness.However,gi ven the si ze of the Group and the speci ali st nature of i ts techni cal operati ons,there i s dependency on a f ew key i nd

212、i vi duals and thi s i s di scussed f urther i n the Strategi c report on pages 10 to 17.The Group i s commi tted to achi evi ng equal opportuni ti es and to complyi ng wi th anti-di scri mi nati on legi slati on.The Group i s commi tted to of f eri ng employees and job appli cants equal and f ai r

213、opportuni ty to benef i t f rom employment wi thout regard to thei r sex,sexual ori entati on,mari tal status,race,reli gi on or beli ef,age or di sabi li ty.At the year-end the Board of Di rectors compri sed seven members,all of whom are male,the Seni or Management team of 10 was made up of seven m

214、en and three women,and the overall staf f number of 217 contai ned 146 males and 71 f emales.The Group has a poli cy of share parti ci pati on f or employees across the Group at all levels.Standards accreditations CentralNi c s Reseller segment i s certi f i ed agai nst ISO 27001(Inf ormati on secur

215、i ty management),ISO 9001(Quali ty management system)and ISO 22301(Busi ness conti nui ty management)havi ng achi eved ISO 22301 accredi tati on duri ng 2016.These certi f i cati ons are i nternati onally recogni sed and provi de CentralNi c s stakeholders wi th addi ti onal levels of assurance as t

216、o the techni cal i ntegri ty of the Group s IT system.CentralNic Group Plc Annual Report 201821Di rectors report conti nuedAnti-bribery and corruption,anti-money laundering and sanctions compliance CentralNi c conducts busi ness ethi cally,mai ntai ns f i nanci al i ntegri ty and stri ves to behave

217、responsi bly i n i ts busi ness deali ngs.The Group s Di rectors and i ts seni or management are commi tted to ensuri ng stri ct adherence to i ts anti-bri bery and corrupti on poli cy and compli ance wi th anti-bri bery and corrupti on laws.The Group also mai ntai ns and ensures adherence to i ts p

218、oli ci es i n relati on to Anti-Money Launderi ng and Trade Sancti ons and Embargoes,agai n to comply wi th relevant laws across the relevant juri sdi cti ons.All Di rectors,employees and consultants have recei ved trai ni ng i n mai ntai ni ng the hi ghest standards of prof essi onal conduct and ar

219、e aware of the need to carry out busi ness f ai rly,honestly and openly.Clear li nes of communi cati on and responsi bi li ty are i n place to report any i nci dences or suspected i nci dences of abuse to provi de an ef f ecti ve,trusted reporti ng mechani sm.Environment The Group i s commi tted to

220、operati ng i n an envi ronmentally responsi ble manner.The Di rectors consi der envi ronmental i mpact when maki ng deci si ons.The community,charitable and political donations The Di rectors consi der the i mpact on the communi ty when maki ng deci si ons.Duri ng the year chari table donati ons tot

221、ali ng 10,000 were made(2017:ni l).The Group made no poli ti cal donati ons duri ng the year,ei ther i n the UK or overseas.Policy on the payment of creditors The Group s poli cy i s to agree terms and condi ti ons f or i ts busi ness transacti ons wi th suppli ers and to endeavour to abi de by thes

222、e terms and condi ti ons,subject to the suppli ers meeti ng thei r obli gati ons.No one suppli er i s consi dered to be essenti al to the busi ness of the Group.R&D activity The Group undertakes research and development acti vi ti es to enhance i ts competi ti ve posi ti on i n i ts chosen markets,d

223、rawi ng on ski lled development resource f rom across the Group.Health and safety The Di rectors and seni or management are commi tted to provi di ng f or the welf are,health and saf ety of the Group s employees and have procedures i n place,i ncludi ng regular moni tori ng by thi rd party speci ali

224、 sts,to ensure compli ance wi th i ts legal and contractual obli gati ons.Business continuity The Group has bui lt a resi li ent technology i nf rastructure,desi gned to provi de data securi ty and conti nui ty of servi ce.The Board recogni ses the ongoi ng i mportance of resi li ence to cyber threa

225、ts and i nvests i n pri mary and secondary data centres along wi th a di stri buted domai n name server constellati on operated by the Group and thi rd party provi ders.The Board keeps the i nf rastructure requi rements under revi ew and adopts a conti nuous i mprovement approach to f urther i nvest

226、ment,wi thi n appropri ate parameters,as busi ness acti vi ti es expand.The techni cal provi si on,alongsi de customer support,i s consi dered one of the most si gni f i cant aspects of busi ness conti nui ty.Statement of Directors responsibilities in respect of the annual report and the financial s

227、tatements The Di rectors are responsi ble f or prepari ng the Strategi c report,the Di rectors report and the f i nanci al statements i n accordance wi th appli cable law and regulati ons.Company law requi res the Di rectors to prepare f i nanci al statements f or each f i nanci al year.Under that l

228、aw the Di rectors have elected to prepare the f i nanci al statements i n accordance wi th Internati onal Fi nanci al Reporti ng Standards(IFRS)as adopted by the EU and appli cable law.Under company law the Di rectors must not approve the f i nanci al statements unless they are sati sf i ed that the

229、y gi ve a true and f ai r vi ew of the state of af f ai rs of the Company and the Group and of the prof i t or loss of the Group f or that peri od.In prepari ng these f i nanci al statements,the Di rectors are requi red to:select sui table accounti ng poli ci es and then apply them consi stently;mak

230、e judgments and accounti ng esti mates that are reasonable and prudent;state whether appli cable accounti ng standards have been f ollowed,subject to any materi al departures di sclosed and explai ned i n the f i nanci al statements;and prepare the f i nanci al statements on the goi ng concern basi

231、s unless i t i s i nappropri ate to presume that the Company wi ll conti nue i n busi ness.The Di rectors are responsi ble f or keepi ng adequate accounti ng records that are suf f i ci ent to show and explai n the Company s transacti ons and di sclose wi th reasonable accuracy at any ti me the f i

232、nanci al posi ti on of the Company and enable them to ensure that the f i nanci al statements comply wi th the Compani es Act 2006.They are also responsi ble f or saf eguardi ng the assets of the Company and hence f or taki ng reasonable steps f or the preventi on and detecti on of f raud and other

233、i rregulari ti es.22 CentralNic Group Plc Annual Report 2018GOVERNANCEThey are f urther responsi ble f or ensuri ng that the Strategi c report and the Di rectors report and other i nf ormati on i ncluded i n thi s annual report and f i nanci al statements i s prepared i n accordance wi th appli cabl

234、e law i n the Uni ted Ki ngdom.The mai ntenance and i ntegri ty of the CentralNi c websi te i s the responsi bi li ty of the Di rectors;the work carri ed out by the audi tors does not i nvolve the consi derati on of these matters and,accordi ngly,the audi tors accept no responsi bi li ty f or any ch

235、anges that may have occurred i n the accounts si nce they were i ni ti ally presented on the websi te.Legi slati on i n the Uni ted Ki ngdom governi ng the preparati on and di ssemi nati on of the accounts and the other i nf ormati on i ncluded i n annual reports may di f f er f rom legi slati on i

236、n other juri sdi cti ons.Disclosure of audit information The Di rectors conf i rm that,as at the date of approval of thi s annual report,so f ar as each Di rector i s aware there i s no relevant audi t i nf ormati on of whi ch the Company s audi tor i s unaware and that he or she has taken all the s

237、teps that he or she ought to have taken as a Di rector i n order to make hi mself or herself aware of any relevant audi t i nf ormati on and to establi sh that the Company s audi tor i s aware of that i nf ormati on.Going concern The Di rectors have i n place procedures to revi ew the f orecasts and

238、 budgets f or the comi ng year,whi ch have been drawn up wi th appropri ate regard f or both the macroeconomi c envi ronment i n whi ch the Group operates and the parti cular ci rcumstances i nf luenci ng the Domai n Name i ndustry and the Group i tself.These were prepared wi th ref erence to hi sto

239、ri c and current i ndustry knowledge,contracted tradi ng acti vi ti es and prospects that relate to the f uture strategy of the Group.As a result,at the ti me of approvi ng the f i nanci al statements,the Di rectors consi der that the Company and the Group have suf f i ci ent resources to conti nue

240、i n operati onal exi stence f or the f oreseeable f uture and that i t i s appropri ate to adopt the goi ng concern basi s i n the preparati on of the f i nanci al statements.As wi th all f orecasts,the Di rectors cannot guarantee that the goi ng concern basi s wi ll remai n appropri ate gi ven the

241、i nherent uncertai nty relati ng to f uture events.Pri nci pal areas of Uncertai nty and Ri sks are hi ghli ghted on pages 16 and 17.Auditors The Company s i ndependent external audi tors,Crowe U.K.LLP,were i ni ti ally appoi nted on 17 July 2013 and were most recently reappoi nted at the Company s

242、Annual General Meeti ng of 25 June 2018.It i s proposed by the Board they be put f orward f or reappoi ntment as audi tors and a resoluti on concerni ng thei r reappoi ntment wi ll be proposed at the f orthcomi ng AGM.Registered office 35-39 Moorgate,London EC2R 6AR Regi stered number:08576358 Appro

243、ved by the Board and si gned on i ts behalf by:Mi ke Turner Chai rman 12 May 2019 CentralNic Group Plc Annual Report 201823Corporate governanceIntroduction The Di rectors appreci ate the value of good corporate governance and have wi th ef f ect f rom September 2018 adopted the QCA Corporate Governa

244、nce Code.The Company takes steps to ensure compli ance by the Board and employees wi th the terms of the code.The Board of CentralNi c Group Plc places governance and controls at the centre of i ts strategy.The Company has a dedi cated Compli ance commi ttee whi ch meets monthly.The remi t of the Co

245、mpli ance commi ttee i s to ensure that all governance poli ci es are admi ni stered,revi ewed and compli ed wi th across the Group.Don Baladasan,the Managi ng Di rector of the Group,chai rs thi s commi ttee and provi des a condui t between the Board and the commi ttee.Thi s ensures ti mely deci si

246、ons and challenges are communi cated to the Board.In addi ti on,a f ormal summary report relati ng on the Compli ance commi ttee i s reported at Board meeti ngs.Board governance and policy At year-end,the Board compri sed of a Non-Executi ve Chai rman,two Executi ve Di rectors and f our Non-Executi

247、ve Di rectors.The Board meets regularly to consi der the busi ness strategy,perf ormance and the f ramework of i nternal controls.To enable the Board to di scharge i ts duti es,all Di rectors recei ve appropri ate and ti mely i nf ormati on.Bri ef i ng papers are di stri buted to all Di rectors i n

248、advance of Board meeti ngs.All Di rectors have access to the advi ce and servi ces of the Company Secretary,who i s responsi ble f or ensuri ng that the Board procedures are f ollowed,and that appli cable rules and regulati ons are compli ed wi th.In addi ti on,procedures are i n place to enable the

249、 Di rectors to obtai n i ndependent prof essi onal advi ce i n the f urtherance of thei r duti es,i f necessary,at the Company s expense.In li ne wi th the requi rements of the Company s Arti cles of Associ ati on,the Group has voluntari ly chosen that f our Di rectors wi ll reti re at the Annual Ge

250、neral Meeti ng and,bei ng eli gi ble,wi ll of f er themselves f or re-electi on.The majori ty of the Board i s made up of i ndependent Non-Executi ve Di rectors.We judged the Chai rman to be i ndependent at the ti me of hi s appoi ntment,and consi der all other Non-Executi ve Di rectors to be i ndep

251、endent under the terms of the Code.In addi ti on,procedures are i n place to enable the Di rectors to obtai n i ndependent prof essi onal advi ce i n the f urtherance of thei r duti es,i f necessary,at the Company s expense.Throughout thei r peri od i n of f i ce the Di rectors are conti nually upda

252、ted on the Group s busi ness,the i ndustry,corporate soci al responsi bi li ty matters and other changes af f ecti ng the Group by wri tten bri ef i ngs and meeti ngs wi th seni or management.They are also updated on changes to the legal and governance requi rements of the Group,and upon themselves

253、as Di rectors,on an ongoi ng and ti mely basi s.Directors time commitment We set out the li kely ti me commi tment f or each Non-Executi ve Di rector i n thei r appoi ntment letter.Thi s i s of course an esti mate and may change dependi ng on the demands of the busi ness.We expect Non-Executi ve Di

254、rectors to devote to di scharge thei r duti es ef f ecti vely and attend all meeti ngs of the Board.The attendance of each Di rector at Board and commi ttee meeti ngs duri ng the duri ng the f i nanci al year endi ng 31 December 2018 i s set out i n the table below:Attendance tabl e Audi t Remunerat

255、i on Nomi nati ons Board Commi ttee Commi ttee Commi ttee Don Baladasan 8/8 Ben Crawf ord 8/8 Thomas Ri ckert 8/8 3/3 4/4 2/2 Sam Dayani 8/8 4/4 Mi ke Turner 8/8 2/3 4/4 2/2 Iai n McDonald 8/8 3/3 2/2 Tom Pri dmore 8/8 3/3 4/4 2/2 Attendance i s expressed as the number of meeti ngs attended/number e

256、li gi ble to attend.Di rectors attendance by i nvi tati on at meeti ngs of commi ttees of whi ch they are not a member i s not ref lected i n the above table.Board performance evaluation A f ormal process of perf ormance evaluati on of the Board,i ts commi ttees and i ts i ndi vi dual Di rectors tak

257、es place every year.The revi ew may be conducted i nternally or by external consultants.The perf ormance of the Board,i ts commi ttees and i ts i ndi vi dual Di rectors i s also conti nually moni tored by the Chai rman.The Remunerati on and Nomi nati ons commi ttees coordi nate on successi on planni

258、 ng of the executi ve leadershi p team and make recommendati ons to the Board f or the re-appoi ntment of Non-Executi ve Di rectors i f and when necessary.As the busi ness has developed,the composi ti on of the Board has been under constant revi ew to ensure that i t remai ns appropri ate to the man

259、ageri al requi rements of the Group.In li ne wi th the requi rements of the Company s Arti cles of Associ ati on,the Group has voluntari ly chosen that f our Di rectors wi ll reti re at the Annual General Meeti ng and,bei ng eli gi ble,wi ll of f er themselves f or re-electi on.24 CentralNic Group P

260、lc Annual Report 2018GOVERNANCE CentralNic Group Plc Annual Report 201825Board committees The Company has establi shed Audi t,Nomi nati on and Remunerati on commi ttees.The terms of ref erence f or the three commi ttees were revi ewed duri ng the year and are avai lable f or i nspecti on on request

261、f rom the Company Secretary.Audi t commi ttee The Audi t commi ttee has Iai n McDonald as Chai rman and other members of the commi ttee i nclude Mi ke Turner,Thomas Ri ckert and Thomas Pri dmore.The Chi ef Fi nanci al Of f i cer i s i nvi ted to and regularly does attend the commi ttee meeti ngs,as

262、does the Chi ef Executi ve Of f i cer.The pri mary responsi bi li ti es of the commi ttee,havi ng due regard f or the i nterests of Shareholders,i nclude:Moni tori ng the i ntegri ty of the half yearly and annual f i nanci al statements and f ormal announcements regardi ng the Group s f i nanci al p

263、erf ormance.Revi ewi ng si gni f i cant accounti ng poli ci es,areas of si gni f i cant esti mates and judgments and di sclosures i n f i nanci al reports.Moni tori ng the quali ty and ef f ecti veness of i nternal control procedures and ri sk management systems.Consi deri ng the requi rement f or I

264、nternal Audi t,taki ng i nto account the si ze,di stri buti on and nature of the Company and the Group and i ts operati ons.Revi ewi ng the external audi tor reports relati ng to the Company s accounti ng and i nternal control procedures.Overseei ng the Board s relati onshi p wi th the external audi

265、 tors,i ncludi ng thei r conti nued i ndependence and maki ng recommendati ons to the Board on the selecti on of external audi tors.The Audi t commi ttee i s requi red to meet at least twi ce a year.Duri ng the year the commi ttee met on three occasi ons.The appoi ntment of the i ndependent external

266、 audi tor i s approved by the Shareholders annually.The i ndependent audi tor s audi t of the f i nanci al statements i s conducted i n accordance wi th Internati onal Standards on Audi ti ng,ISA(UK and Ireland)i ssued by the Audi ti ng Practi ces Board.It i s noted that the external audi tor also o

267、perates procedures desi gned to saf eguard thei r objecti vi ty and i ndependence.Af ter taki ng i nto account the si ze,di stri buti on,current robust procedures and controls,together wi th the nature of the Company and the Group and i ts operati ons,the Audi t commi ttee has concluded that an i nt

268、ernal audi t f uncti on i s not presently requi red.The Audi t commi ttee wi ll re-evaluate thi s posi ti on on a regular basi s.The Audi t commi ttee revi ews all f ees related to non-audi t work,and the commi ttee revi ews any materi al non-audi t work pri or to commencement.Detai ls of audi tor f

269、 ees can be f ound i n note 7 to the f i nanci al statements.Remunerati on commi ttee The Group s Remunerati on commi ttee i s responsi ble,on behalf of the Board,f or developi ng remunerati on poli cy.Detai ls of objecti ves and poli cy are provi ded i n the Remunerati on report on pages 29 to 31.T

270、he Remunerati on commi ttee has Tom Pri dmore as i ts Chai rman and other members of the commi ttee i nclude Mi ke Turner,Samuel Dayani and Thomas Ri ckert.The pri mary responsi bi li ti es of the commi ttee,havi ng due regard f or the i nterests of Shareholders i nclude:Determi ni ng and agreei ng

271、wi th the Board the remunerati on poli cy f or the Chai rman of the Board,the Non-Executi ve Di rectors and the Executi ve Di rectors and other seni or managers.Revi ewi ng the desi gn of share i ncenti ve plans f or approval by the Board and determi ni ng the award poli cy to Executi ve Di rectors

272、and personnel under exi sti ng plans.Determi ni ng the remai nder of the remunerati on packages(pri nci pally salari es,bonus and pensi on)f or the Executi ve Di rectors and seni or management i ncludi ng any perf ormance-related targets.Revi ewi ng and noti ng remunerati on trends across the Group.

273、Coordi nati ng wi th the Nomi nati ons commi ttee i n relati on to the remunerati on to be of f ered to any new Executi ve Di rector.Taki ng responsi bi li ty f or the selecti on cri teri a and i f appropri ate selecti ng,appoi nti ng and setti ng terms of ref erence f or any remunerati on consultan

274、ts engaged to advi se the commi ttee.The Remunerati on commi ttee was created i n September 2013 and i s requi red to meet at least twi ce a year.Duri ng 2018 the commi ttee met on f our occasi ons.It i s the Group s poli cy that Executi ve Di rectors servi ce contracts contai n at least a three mon

275、th noti ce peri od.Nomi nati ons commi ttee The Group s Nomi nati ons commi ttee has the power and authori ty to carry out a selecti on process of candi dates bef ore proposi ng new appoi ntments to the Board.The Nomi nati ons commi ttee has Mi ke Turner as i ts Chai rman and other members of the co

276、mmi ttee i nclude Iai n McDonald,Thomas Ri ckert and Tom Pri dmore.Corporate governance conti nuedThe Nomi nati ons commi ttee was created i n September 2013 and i s requi red to meet at least once a year.Duri ng 2018 the commi ttee met on two occasi ons.The Group has adopted a poli cy f or Di recto

277、rs and key employee share deali ngs whi ch i s appropri ate f or an AIM-quoted Group.The Di rectors comply wi th Rule 21 of the AIM rules relati ng to Di rector s deali ngs and take reasonable steps to ensure compli ance by the Group s appli cable employees.The Executi ve and Non-Executi ve Di recto

278、rs servi ce contracts are avai lable f or i nspecti on by Shareholders on request to the Company Secretary.The Chai rman and Non-Executi ve Di rectors do not parti ci pate i n agenda i tems at any meeti ng when di scussi ons i n respect of matters relati ng to thei r own posi ti on take place.Risk m

279、anagement and internal controls The Board has pri mary responsi bi li ty f or establi shi ng and mai ntai ni ng the Group s f i nanci al and non-f i nanci al controls,as well as i denti f yi ng the major ri sks f aci ng the Group.Internal control systems are desi gned to meet the parti cular needs o

280、f the Group and the ri sks to whi ch i t i s exposed.By thei r nature,i nternal controls can provi de reasonable but not absolute assurance agai nst materi al mi sstatement or loss.The Executi ve Di rectors and Seni or Management have speci f i c responsi bi li ti es f or aspects of the Group s af f

281、 ai rs and have regular di scussi ons to address operati onal matters,as well as consi deri ng the ski ll sets requi red i n thei r teams to mai ntai n the i nternal controls requi red.Accounting procedures The f i nanci al processes and control systems are kept under regular revi ew by the Executi

282、ves wi th oversi ght f rom the Board,wi th a vi ew to f urther evoluti on and i mprovement as the Group s acti vi ti es expand.Thi s i ncludes the mai ntenance of and adherence to a Fi nanci al Procedures Board Memorandum whi ch i s revi ewed and updated peri odi cally.Accounti ng procedures are man

283、aged on a day-to-day basi s by the Fi nance team.Responsi bi li ty levels are set and agreed wi th the Board,wi th authori ty delegated to appropri ate responsi ble managers as well as the Executi ve.Segregati on of duti es i s deployed to the degree thi s i s practi cal and ef f i ci ent,noti ng th

284、e si ze and geographi c di stri buti on of the Group.Monthly management accounts are reported to the Board,under IFRS(EU)wi th the content ali gned to the Group s management i nf ormati on requi rements.The Board revi ews the accounts i n detai l duri ng each Board meeti ng and requests f urther i n

285、f ormati on as the need ari ses.Compari sons to approved budgets and f orecasts are prepared wi th associ ated commentary provi ded.The Company prepares annual budgets whi ch are revi ewed by the Board.The budgets are then updated duri ng the year to provi de latest f orecasts.Capi tal expendi ture

286、i s regulated by the budget process,and i s kept under regular revi ew duri ng the year.Investment apprai sal techni ques,usi ng di scounted cash f low projecti ons,are deployed i n relati on to materi al i nvestments and are revi ewed by the Board as part of good governance such that materi al tran

287、sacti ons that are si gni f i cant i n terms of thei r si ze or type are only undertaken af ter Board revi ew.The Board acknowledges that there are processes i n place f or i denti f yi ng,evaluati ng and managi ng ri sks f aced by the Group,and places emphasi s on conti nuous process i mprovement.C

288、orporate responsibility,the environment and health and safety The Group i s commi tted to mai ntai ni ng and promoti ng hi gh standards of busi ness i ntegri ty.Company values,whi ch i ncorporate the pri nci ples of corporate soci al responsi bi li ty and sustai nabi li ty,gui de the Group s relati

289、onshi ps wi th i ts stakeholders i ncludi ng cli ents,employees and the communi ti es and envi ronment i n whi ch the Group operates.The Group s approach to sustai nabi li ty addresses both i ts envi ronmental and soci al i mpacts,supporti ng the Group s vi si on to remai n an employer of choi ce,wh

290、i le meeti ng cli ent demands f or soci ally responsi ble partners.By way of example the Group Compani es have arranged and promoted a number of ACE(Athleti cs,Communi ty and Envi ronmental)acti vi ti es i n the past.In the last f i nanci al year,the Company has taken steps to ensure slavery and hum

291、an traf f i cki ng i s not taki ng place i n our supply chai ns or i n any part of our busi ness.Our f ull statement i n response to Secti on 54,Part 6 of the Modern Slavery Act 2015 whi ch sets out the steps that the Group has taken and i ts ongoi ng commi tment to thi s vi tally i mportant topi c

292、can be f ound on the CentralNi c Investor si te at https:/i nvestor.centralni nvestors/anti-slavery-statement/The Group respects local laws and customs whi le supporti ng i nternati onal laws and regulati ons.These poli ci es have been i ntegral i n the way Group Compani es have done busi ness i n t

293、he past and wi ll conti nue to play a central role i n i nf luenci ng the Group s practi ce i n the f uture.26 CentralNic Group Plc Annual Report 2018GOVERNANCECommunications with Shareholders The Board regards the i mportance of ef f ecti ve communi cati on wi th Shareholders as essenti al.Relati o

294、ns wi th Shareholders are managed pri nci pally by the Chi ef Executi ve Of f i cer,Chi ef Fi nanci al Of f i cer and the Chai rman,and meeti ngs are regularly held wi th i nsti tuti onal i nvestors and analysts duri ng the year.The Chai rman,Chi ef Executi ve Of f i cer,the Chi ef Fi nanci al Of f

295、i cer and i f requi red other Executi ve and Non-Executi ve Di rectors make themselves avai lable f or meeti ngs wi th major Shareholders ei ther i ndi vi dually or collecti vely.The Group s Shareholders are i nvi ted to attend the AGM at whi ch the majori ty of Di rectors are present.The Group s No

296、mi nated Advi sors and Joi nt Brokers also convey Shareholder opi ni ons to the Chai rman and Chi ef Executi ve Of f i cer and these are di scussed wi th the Board.The Group s websi te contai ns i nf ormati on on current busi ness acti vi ti es,i ncludi ng the annual and i nteri m results.Annual Gen

297、eral Meeting date The Annual General meeti ng wi ll be convened i n accordance wi th the provi si ons of the Compani es Act 2006.The Annual General Meeti ng wi ll take place on Thursday,20 June 2019 at 10.00am at the of f i ces of the Company s soli ci tors:DWF LLP 20 Fenchurch Street,London EC3M 3A

298、G The proposed resoluti ons together wi th proxy f orms and thi s annual report wi ll be di stri buted to Shareholders by the 24 May 2019,i f not bef ore.CentralNic Group Plc Annual Report 201827Audi t commi ttee reportThe role of the Audi t commi ttee and members i s outli ned on page 25.Duri ng th

299、e year the Audi t commi ttee recei ved and revi ewed reports f rom the Chi ef Fi nanci al Of f i cer,other members of management and external audi tors relati ng to the i nteri m and annual accounts and the accounti ng and i nternal control systems i n use throughout the Group.The Chi ef Executi ve

300、Of f i cer and Chi ef Fi nanci al Of f i cer are i nvi ted to attend parts of meeti ngs,wi th other seni or f i nanci al managers requi red to attend when necessary.The external audi tors attended meeti ngs to di scuss the planni ng and conclusi ons of thei r work and meet wi th the members of the c

301、ommi ttee.The commi ttee was able to call f or i nf ormati on f rom management and consults wi th the external audi tors di rectly as requi red.The objecti vi ty and i ndependence of the external audi tors was saf eguarded by revi ewi ng the audi tors f ormal declarati ons,moni tori ng relati onshi

302、ps between key audi t staf f and the Company and tracki ng the level of non-audi t f ees payable to the audi tors.Si gni f i cant attenti on was gi ven to the level of non-audi t f ees provi ded.As noted above,the commi ttee met three ti mes duri ng the year,to revi ew the 2017 annual accounts and t

303、he i nteri m accounts to 30 June 2018 and audi t planni ng f or the year ended 31 December 2018.The commi ttee revi ewed wi th the i ndependent audi tor i ts judgements as to the acceptabi li ty of the Company s accounti ng pri nci ples.Si nce the year end the commi ttee has met f urther wi th the a

304、udi tors to consi der the 2018 f i nanci al statements.In parti cular,the commi ttee di scussed the si gni f i cant audi t ri sks,accounti ng f or acqui si ti ons duri ng the year,appli cati on of the new accounti ng standards,IFRS 9 and IFRS 15,and the f uture appli cati on of IFRS 16.The commi tte

305、e revi ewed and di scussed the audi tor s comments on i mprovements whi ch could be made to the i nternal controls.In addi ti on,the commi ttee moni tors the audi tor f i rm s i ndependence f rom Company management and the Company.28 CentralNic Group Plc Annual Report 2018GOVERNANCERemunerati on rep

306、ortAs the Company i s an AIM li sted company,i t i s not requi red to present a Di rectors Remunerati on Report.However,the Board has chosen to do so i n li ne wi th evolvi ng best practi ce.Remuneration committee The membershi p of the commi ttee and the pri nci pal acti vi ti es are detai led i n

307、the Corporate Governance secti on of thi s annual report on page 25.Remuneration policy The Company s remunerati on poli cy i s f ocused on bei ng able to attract,retai n and i ncenti vi se management wi th the appropri ate ski lls and experti se to reali se the Group s strategi c objecti ves and al

308、i gn management s i nterests wi th those of Shareholders.In parti cular the Remunerati on commi ttee seeks to li nk payment to perf ormance and as a result create a perf ormance culture wi thi n the busi ness.The Di rectors beli eve that i t i s i mportant to properly moti vate and reward key seni o

309、r employees and executi ves and to do so i n a manner that ali gns thei r i nterests wi th the i nterests of the Shareholders.The Di rectors also recogni se the i mportance of ensuri ng that all employees are engaged,i ncenti vi sed and i denti f y closely wi th the prof i tabi li ty of the Company.

310、Directors remuneration The average number of staf f employed by the Group i s i ncluded i n note 8 to the f i nanci al statements.Di sclosure of the remunerati on f or key management personnel,as requi red under IAS 24,i s also detai led i n note 8 to the f i nanci al statements.In terms of the remu

311、nerati on of the Company s Di rectors,entri es to prof i t and loss i ncluded i n the Statement of Comprehensi ve Income i nclude:Included i n the Di rectors emoluments above are the f ollowi ng:A charge of 20,000 i ncluded i n the year to the Company and Group by Samuel Dayani (2017:ni l).A charge

312、of 40,000 to the Company and Group by Taylor Wessi ng LLP,a partnershi p where Mi ke Turner i s a partner(2017:40,000).There were no charges i ncluded i n the year i n relati on to Robert Pooke(2017:7,000).Ben Crawf ord s salari es and f ees i nclude salary amounts of 178,000(2017:182,000)and soci a

313、l securi ty costs of 52,000(2017:32,000).The speci al bonus of 297,000 i s i ncluded i n the bonus secti on.There were no charges i n the year i n relati on to Glenn Hayward(2017:81,000).There were no charges i n the year i n relati on to Deslei gh Jameson(2017:234,000).A charge of 383,000 i n the y

314、ear to the Company and Group by Mataxi s Ltd of whi ch Donald Baladasan has a controlli ng i nterest(2017:96,000).Not i ncluded i n the table above,a charge of 72,000 was i ncluded i n the year to the Company and Group by Neozoon Srl of whi ch Mi chael Ri edl has a controlli ng i nterest(2017:ni l)i

315、 n the admi ni strati ve expenses.Mi chael Ri edl was appoi nted Chi ef Fi nanci al Of f i cer of the Group on 19 March 2019.Share options Pri or to admi ssi on to AIM,CentralNi c establi shed both an unapproved share opti on scheme and an Enterpri se Management Incenti ve opti on scheme(EMI)under w

316、hi ch certai n key executi ves and employees were i nvi ted to parti ci pate.These opti ons were rolled over i nto the Company duri ng 2013.Share based Salari es&f ees Bonus Pensi on payments 2018 2017 000 000 000 000 000 000 Non-Executive Directors Samuel Dayani 20 20 Thomas Ri ckert 51 50 101 106

317、Tom Pri dmore 50 1 50 101 101 Mi ke Turner 40 87 127 163 Iai n McDonald 50 1 45 96 106 Executive Directors Robert Pooke 7 Ben Crawf ord 230 297 11 538 341 Glenn Hayward 202 Deslei gh Jameson 354 Donald Baladasan 251 138 389 96 692 435 13 232 1,372 1,476 CentralNic Group Plc Annual Report 201829Remun

318、erati on report conti nuedTo ref lect exi sti ng commi tments,the opti ons granted i n June 2013 f or the unapproved opti on scheme and the EMI scheme vest i n 12 equal i nstalments at three month i ntervals f ollowi ng the Admi ssi on.The unapproved opti ons granted on 14 October 2013 vest three ye

319、ars af ter the date of grant.Ben Crawf ord parti ci pates i n both the June 2013 and October 2013 unapproved scheme,and Donald Baladasan parti ci pates i n the June 2013 unapproved scheme.Glenn Hayward(a f ormer Di rector)parti ci pated i n the EMI scheme,wi th opti ons granted on 28 Apri l 2015.The

320、 EMI opti ons granted to Glenn Hayward vested on 10 February 2017.These opti ons were exerci sed i n October 2018.Deslei gh Jameson(a f ormer Di rector)parti ci pated i n the unapproved scheme wi th the opti ons granted i n February 2016 wi th a vesti ng date of 14 January 2019.Unapproved opti ons w

321、ere also i ssued to Non-Executi ve Di rectors duri ng 2016.In the case of Mi ke Turner and Iai n McDonald these opti ons were i ssued wi th a vesti ng date to coi nci de wi th the thi rd anni versary of thei r appoi ntments,namely 15 September 2018 and 26 October 2018.There were also f urther unappr

322、oved opti ons i ssued to Tom Pri dmore and Thomas Ri ckert,both wi th a vesti ng date of 3 February 2019.No opti ons were i ssued to the Di rectors duri ng the year.These share i ncenti ve arrangements are desi gned to support the strategy of generati ng si gni f i cant sustai nable value f or Share

323、holders by li nki ng the rewards f or executi ves and the Board wi th the value created f or Shareholders and thereby ali gni ng the i nterests of key executi ves wi th those of Shareholders.Shares acqui red or opti ons granted under any share i ncenti ve arrangements operated by the Company wi ll b

324、e li mi ted i n total to 10%of the Company s i ssued share capi tal f rom ti me to ti me.The table below shows the outstandi ng share opti ons i ssued to Di rectors and f ormer Di rectors at 31 December 2018:Glenn Hayward(f ormer Di rector)had 500,000 share opti ons outstandi ng as at 1 January 2018

325、 whi ch were granted on 28 Apri l 2015 at exerci se pri ce of 35 pence each.These share opti ons were exerci sed i n October 2018.No opti ons were exerci sed duri ng the year by the Di rectors or f ormer Di rectors and no opti ons have expi red wi th the excepti on of Glenn Hayward.All opti ons expi

326、 re wi thi n 10 years of grant.Further detai ls are provi ded i n relati on to share based payments i n note 28 to the f i nanci al statements.In addi ti on,a f urther 1,893,083 opti ons over ordi nary shares were i n i ssue at 31 December 2018(2017:2,053,083),bei ng held by the Group s employees.Th

327、e IFRS 2 charge i n the year f or all share opti on plans relati ng to the Di rectors was 232,000(2017:317,000).On 31 December 2018,the closi ng market pri ce of CentralNi c Group plc ordi nary shares was 51.0 pence.The hi ghest and lowest pri ce of these shares i n the year were 63.0 pence duri ng

328、January 2018 and 49.0 pence duri ng August 2018 respecti vely.30 CentralNic Group Plc Annual Report 2018 Number of opti ons Exerci se pri ce Opti ons granted Outstanding at 1 January 2018 and 31 December 2018 Ben Crawf ord 1,316,000 10p 1 June 2013 Donald Baladasan 52,083 10p 1 June 2013 Ben Crawf o

329、rd 850,000 55p 14 October 2013 Thomas Ri ckert 88,000 55p 14 October 2013 Tom Pri dmore 88,000 55p 14 October 2013 Mi ke Turner 750,000 40p 4 February 2016 Iai n McDonald 350,000 40p 4 February 2016 Thomas Ri ckert 350,000 40p 4 February 2016 Tom Pri dmore 350,000 40p 4 February 2016 Deslei gh James

330、on(f ormer Di rector)200,000 40p 4 February 2016 Total 4,394,083GOVERNANCEDirectors interests(a)As at 31 December 2018,the i nterests of the Di rectors,i ncludi ng persons connected wi th the Di rectors wi thi n the meani ng of secti on 252 of the Compani es Act 2006,i n the i ssued share capi tal o

331、f the Company are as f ollows:Ordi nary shares Percentage Eri n Invest&Fi nance Ltd*21,630,382 12.68%Jabella Group Ltd*4,203,276 2.46%Natwest FIS Nomi nees*3,699,000 2.17%Donald Baladasan 159,455 0.09%Iai n McDonald*107,653 0.06%*The benef i ci al holder of Eri n and Natwest FIS Nomi nee Li mi ted i

332、 s the f ather of Samuel Dayani,a Di rector of the Company.*Jabellla Group Li mi ted i s a BVI company owned i nter ali a,by Eri n.*4,203,276 ordi nary shares are held by Jabella Group Li mi ted i n whi ch Natwest FIS Nomi nee and Eri n Invest&Fi nance Ltd have a 65%i nterest.*Iai n McDonald has an

333、i nterest,held through a contract f or di f f erence,i n 11,500 ordi nary shares i n the Company.(b)Save as di sclosed i n thi s annual report,none of the Di rectors nor any members of thei r f ami li es,nor any person connected wi th them wi thi n the meani ng of secti on 252 of the Act,has any i nterest i n the i ssued share capi tal of the Company or i ts subsi di ari es.(c)Save as di sclosed i