Minds & Machines revenues boosted by ICM acquisition

Domain registrar Minds & Machines expects revenues to have improved year-on-year after domains under management shot up in the twelve months ended 31 December.

Minds + Machines Group Limited (DI)

8.70p

16:54 21/02/22

-3.33%

-0.30p

Minds & Machines saw domains under management improve 37% to 1.81m - pushing revenues ahead of the $14.3m recorded in 2017 to around $15.5m.

The AIM-listed group also noted that the quality of its revenues had improved on the back of its May acquisition of ICM - which helped the group secure a $3.4m second-half contribution. US-based ICM, which brought a saucy suite of web-domains such as .xxx, .porn, .adult and .sex, was expected at the time to enhance earnings in the current year as well as expanding the renewal base and the geographic make-up of sales.

Minds & Machines expect adjusted operating profits to be "marginally ahead of market expectations".

Cash and equivalents sunk 42.5% as a result of the ICM acquisition.

Chief executive Toby Hall said: "A strong Q4 of sales through the registrar channel is allowing management to deliver on its strategy of transforming MMX into a stable, growing, cash generative business built around organic growth, innovation and accretive acquisitions."

"Pleasingly, the significant momentum we created last year has continued into the early part of 2019 supported by the strategic acquisition of ICM which is delivering to plan."

As of 0905 GMT, Minds and Machines shares had jumped 7.02% to 6.10p.