29th Jan 2020 12:58
(Alliance News) - Minds + Machines Group Ltd on Wednesday said it will pay a maiden dividend for 2019 following a "fundamental improvement" in revenue, revenue mix and cash generation for the year.
The company, which owns and operates internet domains, said revenue for 2019 is expected to be significantly ahead of the USD15.1 million recorded in 2018. Minds + Machines added that the "quality" of revenue also improved, in line with management's objective of decreasing reliance on one-off brokered sales.
Annual renewal revenue is predicted to contribute over 60% to total 2019 revenue, the same as 2018. New registration revenue is expected to rise to 30% of total revenue, versus 20%.
Minds + Machines also estimates one-off brokered sales contribution to reduce to below 10% of 2019 revenue. A year ago one-off sales contributed 18% to total revenue.
Annual cash from operations is expected to amount to USD6.2 million versus USD2.3 million.
"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 in the fourth quarter of 2019," said Chief Executive Toby Hall.
Minds + Machines shares in London were down 5.5% at 7.66 pence each on Wednesday afternoon.
By Tapan Panchal; [email protected]
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