(Alliance News) - Minds + Machines Group Ltd on Thursday said it intends to repurchase up to GBP1 million worth of its shares following an improved performance seen in the first half of 2019.
The domain registry company said it expects its performance in the six months to the end of June to be in line with expectations, with continued improvement in revenue mix and strong operating cashflow.
In the first half, the AIM-listed company said it has continued to experience a healthy year-on-year growth in registrations, up 19% to 1.8 million.
Meanwhile, the historic decline in the ICM portfolio, which had seen a 16% decline in billings in the first half of 2018 to USD2.8 million, has been "fully stabilised". Looking forward, Minds + Machines said it believes there is now a clear pathway to drive future growth from the ICM portfolio.
Minds + Machines shares were trading 5.1% higher on Thursday in London at 5.99 pence each, giving the company a market capitalisation of GBP55.4 million.
The company said its current share price reflects neither the stable recurring revenue nor the ongoing growth. Therefore, it intends shortly to commence a share buyback of up to GBP1 million, funded out of existing cash resources. Minds + Machines said it will publish full details of the buyback in a separate announcement.
"Whilst we are not upgrading guidance for the full year at this stage, we are extremely encouraged by the progress made in the first half," said Chief Executive Toby Hall.
"Our revenue is increasingly predictable, with healthy channel sales and strong renewal revenue now driving the business forward," added Hall.
The company said it will publish its interim results on September 24.