24th Mar 2020 14:45
(Alliance News) - Minds + Machines Group Ltd said Tuesday that 2019 performance was "strong", with the internet domain firm's loss narrowing significantly.
However, due to the uncertainty caused by Covid-19, a previously announced a possible maiden dividend has been delayed. The company will make a decision on the payout in September, it said.
Minds & Machines posted a pretax loss for 2019 of GBP12.6 million, narrowed from GBP29.6 million in 2018. This was helped by 25% revenue growth to USD18.9 million, as well as lower impairment charges.
The company enjoyed "strong" organic growth and an improved sales mix, it said. US revenue rose 36% and Europe by 51%, helped in part by acquisitions.
Chief Executive Toby Hall said: "We are pleased to report a strong set of results. We have worked hard, repaired the balance sheet and delivered a robust, scalable platform with highly predictable and balanced revenue streams that mirror a SaaS-type business model.
"This achievement is based on continued organic growth through the online retail channel, augmented by ongoing innovation and selective acquisition. With a largely fixed operating cost, and capacity across the platform, we expect future growth to be incrementally positive."
Hall said the momentum enjoyed in the last quarter of 2019 has continued into the first quarter of 2020. There have been no initial signs Covid-19 has hurt online channel sales.
"Longer-term, the extent to which the wider environment may impact us is an unknown. However, the high levels of our recurring revenue and online nature of the majority of our sales should, in theory, shield us from the worst of the immediate storm," Hall continued.
"But to believe we are fully insulated from the global crisis would be unwise. We are therefore taking the prudent and precautionary measure of delaying any decision on the dividend indicated in our January trading update until September as at that point we will have much better visibility on the real impact, or not, of Covid-19 on current trading."
Shares were down 1.7% on Tuesday afternoon in London at 5.29 pence each.
By George Collard; [email protected]
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