, the AIM listed firm that owns top-level domains, posted a trading update and announced a £1 million share buyback on Thursday.
Toby Hall, CEO of MMX, told investors: “Our revenues are increasingly predictable, with healthy channel sales and strong renewal revenues now driving the business forward.”
The company experienced a strong first half year of trading, with registrations up 19% year-on-year to 1.82 million, and a 30% increase in new sales billings from its original 28 properties.
It also revealed that cash-inflows for the period were ahead of expectations at $8.6million, compared to the previous period’s $6.3million.
Shares in Minds + Machines were trading 5% higher at 6p each on Thursday
The company announced that it will commence a share buyback of up to £1 million, funded by its existing cash resources, with full details to be made imminently.
Solid trading progress, operational efficiencies and traditionally second half weighted trading, gave the company “solid cash-generative footing” and confidence to return capital to shareholders, directors said.
MMX said it had stabilised the decline in billings H1 from its ICM portfolio to $2.8 million, which had previously declined 16% from H1 2017 to H1 2018 prior to MMX’s acquisition in June 2018, and believes there is a “clear pathway” for future growth.
It added that “significant improvements” were achieved in three out of the four ICM properties and that new initiatives are coming online in the third quarter.
The company also told investors that it managed to negotiate a $5.1 million one off payment to be made in the second half of the year to exit the onerous $7.9 million liabilities of an ongoing legacy contract signed by previous management.
Under the terms of the agreement, management also expects to generate additional net revenues of approximately $0.5 million over the remainder of the contract.
By exiting the onerous contract it is thought that MMX can effectively save around $3.2m in cash over the remaining life of the contract, which runs until September 2021.
Toby Hall said: “With the legacy onerous contract issue now in the process of being resolved and innovation based activity supplementing our organic growth, the outlook is bright."
Follow News & Updates from Minds + Machines here:
The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.
SP Angel research note on commodities and miners, featuring: Rio Tinto (RIO LN) – Q4 and 2019 production results highlight “value over volume” Sibanye-Stillwater - cuts close to 1,142 jobs at the Marikana platinum mines despite record palladium prices
The news follows two initial orders made by the group’s Nigerian distribution partner for a combined total of 250,000 tests in December which Omega said at the time remained conditional upon MOH’s approval of the test into Nigeria’s national HIV policy.
“The process to finalise a tariff offer for submission to EDM is well underway and on track for submission in Q1 2020,” said Chief Executive, Hanno Pengilly, commenting on the power project which epitomises one of the fastest growing sectors in Africa today.
Paul Duffen, Executive Chairman of the Company, commented: "Having 100% ownership of Bet90 represents significant progress towards our stated objective to refocus the business on the core activity of online sportsbook and casino operations.”