(Alliance News) - Domain registry company Minds + Machines Group Ltd on Tuesday said it swung to an interim profit helped by the contribution from an acquisition it completed last year.
In the six months to June 30, revenue rose by 38% year-on-year to USD8.9 million from USD6.4 million. The company swung to a pretax profit of USD1.7 million from a USD14.7 million loss. Its domains under management rose by 21% to 1.8 million from 1.5 million.
The non-repeat of charges like USD7.0 million of contract provisions, USD4.1 million in impairment losses and USD2.1 million of bad debt provisions were main contributors to the profit swing.
The company said it benefitted from a full six month contribution from ICM Registry LLC, which it acquired in a deal worth USD30.6 million in June 2018. Minds + Machines said the integration was completed during the interim period.
Looking ahead, the company reported that the second half trading has been positive so far, in line with internal expectations.
Minds + Machines added that it will continue its GBP1 million share buyback it initiated in July and will explore how to generate a "more meaningful return" to shareholders, either through the introduction of a "progressive" dividend or a "larger tender offer".
Chief Executive Toby Hall said: "We remain extremely encouraged by the progress year-to-date across the group as we continue to deliver on our strategy of producing highly predictable, balanced revenue streams through organic growth, innovation and selective acquisition which is now resulting in healthy cash generation for the group. It is in turn enabling us to settle the legacy onerous contract that has been a substantial cash drain on the business over the last five years from existing cash resources in the business."
Shares in the firm were 1.7% higher at 5.85 pence each in London on Tuesday afternoon.
By Eric Cunha; ericcunha@alliancenews.com
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