Minds + Machines Share Discussion Threads

[treble in 1999] 09/5/2018 10:20

since the announcement, 4.4m sales and 3.7m buys, share price down 25%. Bonkers

Still thatsd the way market moves, wonder if well get a raid later this year.

[504 bad gateway] 09/5/2018 08:16

way, way, way oversold now.
Time to buy back in.

[jamesto2] 08/5/2018 23:21

Share price could be 10p/12p within say 12 months and maybe a 2% divi next year ? The only problem is that will VIP be wanted next year ? Nobody wants these names and This has been a terrible share over the years !! Jam never comes - even the porn has put investors off MMX . I've never made a penny in 5 years stuck in this boredom stock

[treble in 1999] 08/5/2018 21:09

Big investor wants out. What tosh. 1.5m sold is not big. Shorters our and about.

[jamesto2] 08/5/2018 20:17

looks like a big investor wants out of this mess

[waldron] 08/5/2018 19:09

per advfn financials

Cash PS 1.68 p
Net Cash PS 0.33 p
Net Tangible Asset Value PS * 1.76 p
Net Asset Value PS 6.95 p


nav might give it a floor but if intangibles be suspect then i guess it might fall further

of course i suppose the recent history is not included

[jackson83] 08/5/2018 19:07

Will top up at 5p as this review was another 🚩👀

[waterloo01] 08/5/2018 18:56

It could and equally it might recover a bit. It's still a cashed up business now on a consolidated basis making close to $10m profit, so any fall should be relative. It's a solid business (.vip is over 900k names and .work nearly 300k plus the other names), just not as yet valued at 13p + to make it worthwhile. for directors.

Still, they have a lot to go after and skill base. Enough skin in the game to make sure it works.

I sold a few on he day but will keep a decent holding as it's still a profitable business and should become more so.

[hotaimstocks] 08/5/2018 18:19

Bear raid on MMX could see it back to 6p/7p within a week or 2 ?

[treble in 1999] 07/5/2018 09:31

Interesting!!! Stable team, shareholder insentives, and a new significant shareholder. Bodes well.

[waterloo01] 06/5/2018 15:46

The view from the selling side.

Minds and Machines (MMX) Acquires ICM Registry LLC

Cash and Stock deal adds ICM’s 4 niche, adult TLDs to the MMX portfolio

4 May 2018 – Palm Beach Gardens, Florida.

It was announced today that Minds and Machines (MMX), the respected Top Level Domain (TLD) portfolio operator that is listed on the London Stock Exchange’s AIM market under symbol MMX.L, has acquired the entire ownership of ICM Registry LLC for a combination of cash and shares.

There has been increasing consolidation in the TLD operator market and ICM’s stable of highly profitable domain extensions attracted several offers from rival portfolio operators.

Stuart Lawley, the outgoing CEO of ICM, said, “Having successfully built and sold several technology businesses throughout my career in other consolidating markets, it became clear over the last few years that ICM’s business, shareholders and employees would be best served as part of a larger group with the corresponding resources, vision, opportunities and obvious cost savings that would bring.”

ICM’s 4 TLDs will be added to MMX’s portfolio of 28 extensions, which currently have over 1.4 M registrations.

With the exception of Lawley who is leaving to pursue blockhain based Age Verification business opportunities with his new business AVSecure.com, the rest of the existing management team will remain with ICM. Back end registry services will continue to be provided by Afilias, who has been a shareholder in ICM and will now become a sizeable and welcome shareholder in MMX going forwards.

Lawley went on to say, “I strongly believe ICM’s shareholders, customers and employees will be well served by this acquisition; MMX has a very dynamic management team. We received 4 offers in total for the business, some all cash and others a mixture of cash and stock. After lengthy, detailed negotiations and due diligence with the interested parties, the arrangement with MMX was clearly the best fit.”

As a sign of ICM’s confidence in MMX, post completion Stuart Lawley will become the largest shareholder in MMX with a holding just over 15% and as part of the transaction, the 5 remaining senior managers of ICM will all have meaningful stock holdings in MMX.

Lawley said, “We felt it was appropriate to reward all of our staff for their loyal, sterling and diligent efforts over the last 8 years and in particular the senior management team who will now become shareholders in MMX; their long term interests are perfectly aligned with the selling ICM shareholders and existing MMX holders. As they forge their new careers within the greater MMX group, they will hopefully be able to share more directly in the results of the fruits of their labor.”

He continued, “As part of our detailed due diligence on our potential suitors we were particularly impressed with both Toby Hall (CEO) and Michael Salazar (COO/CFO) who struck us as competent business managers in possession of the drive and vision needed to develop and execute a long term growth strategy in the top-level domain sector. We believe they are the ideal stewards for the ICM properties going forwards. With our specialty TLDs there goes great reward but also great responsibility, so we had to be very careful about who we chose to carry that torch going forward. I am delighted it will be MMX.”

[jackson83] 04/5/2018 17:30

STRONG BUY ...

Without looking at all the details - I think the current market cap is based on last years profits only, the market is ignoring any future potential. ICM Registry had sales in 2017 of $7,270,000, they made profit of $3,500,000. MMX had sales in the same period of $14,300,000 and profit of $3,800,000. There is a distinct difference in the profit margins of the two companies. The future will be based on profitability as well as growth as the business model has already been proven. Once the deal is complete, I expect profits to jump considerably not only through cost savings but from an increase in revenues through the geographic make-up of the whole entity. I believe total profits for the group in 2018 could easily top $10m and this will only be the beginning.

[jackson83] 04/5/2018 17:00

Today people were buying in at under 9p ... STRONG BUY

[mfhmfh] 04/5/2018 10:22

Finncap have raised target price to 17p (from 15.2p)

[treble in 1999] 04/5/2018 08:37

Just a thought. The market price for 100k names is £23m. Mmx has 1.4m names.

[paleje] 04/5/2018 08:20

Not the announcement many were hoping for.

[la forge] 04/5/2018 07:58

Minds + Machines unveils earnings-enhancing acquisition, reports first year of profitability
07:32 04 May 2018
The deal delivers four high value, niche web domains and coming after the group's maiden year of profitability it provides a further financial boost.
web domains - browser address bar
ICM reported US$7.27mln of net sales in 2017

Internet domains firm Minds + Machines Group Limited (LON:MMX) has agreed a deal to acquire ICM Registry LLC, a Florida based owner of four high value, niche top level domains.

ICM reported US$7.27mln of net sales in 2017, generating net income of US$3.5mln. Notably, 78% of the revenue was renewal based, while 14% were premium sales.

The AIM-quoted company is paying US$10mln of cash and 225mln shares, the deal is subject to approval by internet domains regulator ICANN.
READ: Minds + Machines rallies strongly after it confirms move into operating profit

"We are delighted to have entered this agreement,” said Toby Hall. Minds + Machines chief executive.

“We expect the acquisition to be earnings enhancing in the current year and believe it will deliver scale, strong recurring revenues and positive working capital to the company in 2018 and future years.

“Further, it will strengthen the quality of our revenues, both accelerating MMX's already fast-growing renewal base and improving the geographic make-up of our sales, given ICM's revenues are primarily derived from the US and Europe.

“We see this transaction as a major step forward in our ambition to introduce a progressive dividend policy over the next 18 months."

Additionally, the company has also entered into a new working capital financing facility with shareholder London and Capital Asset Management Ltd, which is beneficially interested in 16.03% of the company’s shares.
Maiden year of profitability

Separately, Minds + Machines Group released its results statement for the twelve months ended December 31, in which it confirmed its maiden year of profitability.

The company reported a US$3.8mln profit, improving from the US$4.5mln loss in the preceding year and operating earnings (EBITDA) amounted to US$5.3mln, from a US$1.3mln loss.

Revenue from renewals doubled to US$4.8mln, from US$2.4mln and total revenue came to US$14.3mln, which was actual lower than US$15mln in the year before - the company had gross billings of US$15.6mln, versus US$15.8mln in 2016.

The company ended the year with US$15.9mln of cash at the end of the financial year.

Hall added: “2017 has been about proving out the business model: firmly locking-in the operational gains of 2016 to ensure a profitable base, and developing a long-term growth strategy.

“The acquisition of ICM marks a major step forward in our ambitions both to scale and introduce a progressive dividend policy over the next 18 months.

“It cements MMX's position as a leading registry group in the new gTLD sector as we develop into a long-term annuity based business."