Minds & Machines expects profits beat as domains grow 67pc
Domain name business Minds and Machines expects underlying earnings from its recently ended trading year to come in ahead of expectations after getting a significant boost to revenues in the second half.
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Minds + Machines Group Limited (DI)
8.70p
16:54 21/02/22
M&M anticipates that earnings before interest, tax, depreciation and amortisation will be slightly ahead of market expectations, with profit being boosted a further $2.1m due to funds received from two contested auctions throughout the year.
Thanks to the strong foundations laid throughout its first half, the AIM-listed company returned an improved performance from the last six months of the trading year, with billings rising to around $10m from the $5.6m the group invoiced throughout the first, enabling the group to achieve its first year of profitability as an operating business.
Renewal revenue accounted for approximately $5.6m of the group's total revenue, and recurring income of $5.5m exceeded operating costs for the first time.
Domains under management grew 67% to more than 1.32m as of 31 December.
Net cash had improved by $600,000 to $15.9m by the end of the period.
Toby Hall, chief executive officer, said, "To have transformed the company from a loss-making business to a profitable one on an ongoing basis within 24 months is an achievement the whole team should be proud of."
"2018 has started positively and I look forward to updating shareholders in April with our strategy for building on this profitable platform and delivering value to shareholders," he added.
As of 1340 GMT, shares had forged ahead 19.88% to 9.65p.