Minds Machines (MMX)

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One of the world’s leading owners and operators of Internet Top-Level Domains (“TLDs”).

4-May-2018 – 10.1p – £70.7m – PER 6,856

Results For 12 Months To End December 2017 – Maiden year of profitability with retained profit for year of $3.8m compared to a $4.5m loss in 2016. Renewal revenue up 100% to $4.8m (2016: $2.4m) with renewal billings growing 50% to $5.6m (2016: $3.8m). Fixed overheads reduced 19% to $5.3m (2016: $6.5m), Cash balances at year-end improved 4% to $15.9m (2016: $15.3m) – EPS 0.55c compared to 2016 EPS loss of 0.60c.

First time coverage for me and with TTM figures on Stockopedia guiding a -$3,23m this looks like great news. I am Neutral as I am not sure of the term “”retained” profit” – Will observe the price action this morning.

26-Sep-2018 – 7.35p – £58.5m – PER 21.0

Interim Results For The 6 Months To End June 2018 – Revenue up 22% with Gross Profit up 14%. Bit of a profit warning about FY expectations.

I will remain Neutral thank you very much!

28-Jan-2019 – 5.7p – £52.7m – PER 15.4

Trading Update For The 12 Months To End December 2018 – Lots of talk with EBITDA expected to be marginally ahead of expectations.

I will wait to see results here as I have little idea what this update is trying to tell me.

3-Apr-2019 – 5.8p – £53.6m – PER 15.7

Results For The 12 Months To End December 2018 – Revenue up 5% but “Provisions of $13.4m made including a bad debt provision of $2.1m, onerous contract provision of $7.2m and impairment of the underlying asset of $4.1m, leading to an overall accounting loss of $12.6m”. This year Q1 sales are up 246%.

I just don’t understand these complicated results so I remain on the sidelines for now (it would go on my Avoid list but I like what they do here and see possible potential going forward).

18-Jul-2019 – 6p – £55m – PER n/a

Trading Update – In-line and £1m Buy-Back announced, management considering the company undervalued.

No more attracted today as I was yesterday. Based on the latest Broker note this morning, in my opinion, this looks way over valued on a 1 Year view (no 2 Year forecasts provided).

24-Sep-2019 – 6p – £53m – PER 19

Interim Results For The 6 Months To End June 2019 – Registrations up 19%, Revenue up 39%, Profit and EPS moved to positive. Trading remains in-line, buy back in place, considering progressive Dividend policy.

Looks positive but I remain on the side-lines for now, probably because I really don’t understand it enough.

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