Internet domain company, Minds + Machines Group (AIM:MMX) , unveiled plans to pay a maiden dividend after strong trading results showed ‘fundamental improvement’ across revenue streams in 2019.
In a trading update, the provider of top-level domains (TLDs) said that it anticipated revenues for the year ended 31 December 2019 to be ‘significantly’ ahead of those in the previous year.
The quality of revenue continued to improve across 2019 in line with management’s objective of decreasing reliance on one-off brokered sales, the statement added.
Specifically, the company outlined that registration revenues through the group’s registrar channel had increase to around 30% from 20% in the previous year, whilst brokered sales had been reduced to under 10% from 18% in 2018.
“With a largely fixed operating cost and capacity across the platform, we expect future growth to be incrementally positive,” said Toby Hall, Chief Executive of MMX.
Shares in Minds + Machines Group (MMX) were trading 1.85% lower at 7.95p on Wednesday.
Hall said the company possessed “good early visibility” on 2020 revenues as a result of “significant renewal base, ongoing regular channel sales, and revenue generated from the strong new brand protection sales” achieved in the last quarter of 2019.
Broker finnCap said that 2019, labelled a ‘seminal year’ for MMX, had granted the company confidence to adopt a progressive dividend policy which finnCap estimates at 0.13p per share with a yield of 1.6%.
MMX informed investors that it would introduce its maiden dividend when it delivers its final results which are anticipated for release in late March 2020.
In a research note immediately following the release of the trading statement, finnCap reiterated its previous forecast with a value of 17p a share on MMX.
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