TIDMMMX
RNS Number : 2223B
Minds + Machines Group Limited
29 January 2020
Strictly embargoed until 07.00, 29 January 2020
Minds + Machines Group Limited
("MMX" or the "Company")
Trading Update
Minds + Machines Group Limited (AIM: MMX), one of the world's
leading owners and operators of Internet Top-Level Domains
("TLDs"), is pleased to provide the following trading update for
the year ended 31 December 2019 ("FY 2019"). At the time of this
update, all numbers are unaudited.
With strong trading continuing through to the end of 2019, the
Company has experienced a fundamental improvement in topline
revenue, revenue mix and cash generation in the year. Against this
background we will announce a maiden dividend at the time of the FY
2019 Results, expected to be released in late March 2020.
Commenting on FY 2019 trading, Toby Hall, CEO of MMX, said:
"We have established a robust, scaleable platform that now
delivers highly predictable and balanced revenue streams, based on
continued organic growth augmented by ongoing innovation and
selective acquisition. With a largely fixed operating cost and
capacity across the platform, we therefore expect future growth to
be incrementally positive. We likewise have good early visibility
on 2020 revenues as a result of our significant renewal base,
ongoing regular channel sales, and revenue generated from the
strong new brand protection sales achieved late Q4 2019. In light
of this progress and healthy outlook, we will introduce a maiden
progressive dividend when the final results are announced in late
March 2020."
Headline performance and operating update
Revenue for FY 2019 is expected to be significantly ahead of FY
2018 with the quality of revenue continuing to improve over FY 2019
in line with management's stated objective of decreasing reliance
on one-off brokered sales. Renewal revenue is expected to equate to
over 60% of expected total FY 2019 revenue (2018: 60%), new
registration revenue through the registrar channel has increased to
approximately 30% of FY 2019 revenue (2018: 20%) and, pleasingly,
one-off brokered sales have been reduced to under 10% of FY 2019
revenue (2018: 18%).
The balancing of geographic contributions evidenced in H1 2019
has also continued through the second half of the year with more
revenue being generated in the US and Europe, helped by the launch
of our brand protection product, with Asia revenues remaining
broadly flat in spite of the significant reduction in brokered
sales from the region.
Cashflow from operations, including receipts of $1.6m from
private auctions, amounted to $6.2m (2018: $2.3m of which $0.5m
from private auctions), representing a strong improvement in cash
conversion, a trend which we anticipate repeating in 2020. After
loan and onerous contract payments totalling $10m, and share
buy-backs of $0.6m, cash at year end stood at $6.6m (2018: $10.4m).
The Company is debt free.
December developments
As announced on 23 December 2019, we successfully settled the
onerous contract agreement for $5.1m, which will save the Company
in excess of $3.0m over the remainder of the contract with an
anticipated $1.2m gain in 2019, subject to audit completion.
However, in spite of collecting $0.6m in cash in 2019 relating to
contracts associated with bad debt provisions, it is likely that
all remaining aged Chinese debtors will be provided for at the year
end broadly negating the gain from the onerous contract settlement.
Notwithstanding the provision, the Company will continue to pursue
collection.
In late December 2019, the Company also sold its interest in its
remaining retail division, join.law, which was established to
support .law sales. The sale generated approximately $0.5m of cash,
net of partner payments.
Notice of Final Results
A separate announcement confirming the publication date of the
FY 2019 results in late March 2020 will made in due course.
The information communicated in this announcement contains
inside information for the purposes of Article 7 of the Market
Abuse Regulation (EU) No. 596/2014.
*- ends - *
For further information
Minds + Machines Group Limited
Toby Hall, CEO Tel: +44 (0) 7713
341072
Michael Salazar, CFO Tel: +1 (310) 740
7499
finnCap Ltd Tel:+ 44 (0) 20
7220 0500
Corporate finance - Stuart Andrews/Carl
Holmes/Simon Hicks
Corporate broking - Tim Redfern/Richard
Chambers
Belvedere Communications Limited Tel: +44 (0) 74
070 23147
John West
Llew Angus
About MMX
Minds + Machines Group Limited (LSE: MMX) is the owner of a
world class portfolio of 32 ICANN approved top-level domains
(gTLDs). The Company generates revenues through the registration
and annual renewal of names by organisations and individuals within
each of its top-level domains, sales being processed through the
Group's network of global registrar and distribution partners.
The MMX portfolio is currently focused around generic names
(e.g. .work, .vip), consumer interest (e.g. .fashion, .wedding),
lifestyle (e.g. .fit, .surf, .yoga), professional occupations (e.g.
.law), and geographic domains (e.g. .london, .boston, .miami,
.bayern). In 2018, the Company completed its first acquisition, the
ICM portfolio, and recently launched its first innovation based
project, .luxe, which combines the strengths of the World Wide
Web's naming system with that of blockchain. For more information
on MMX and its rapidly growing renewal base, please visit
www.mmx.co.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
TSTFLFEALEITFII
(END) Dow Jones Newswires
January 29, 2020 02:00 ET (07:00 GMT)
Minds + Machines (LSE:MMX)
Historical Stock Chart
From Mar 2024 to Apr 2024
Minds + Machines (LSE:MMX)
Historical Stock Chart
From Apr 2023 to Apr 2024