finnCap Research Company Notes - 4 May 2018

May 04, 2018 / Research Notes

Daily corporate finance updates from finnCap Research

Sector: Support Services

Minds + Machines (MMX): Strong results and acquisition

Key data                              

  • Share price (p): 10.1
  • Target price (p): 17.0
  • Market cap (£m): 70.7
  • Enterprise value (£m): 59.0

FY 2017 was a year of consolidation after transformation in FY 2016, establishing the profitability and driving higher margins from the new scale. The results beat expectations of both revenue and earnings on the back of strong demand for .vip premium inventory; attaining $3.1m adj. PBT and a $2.1m exceptional gain on gTLD auctions. FY 2018 sees another impressive step forward with a $40m acquisition of ICM, a profitable and cash-generative niche ‘adult’ TLD registry. Results: expectation vs actual FY Dec 2017 forecast actual delta Revenue $m 11.4 12.0 5% Adj EBITDA $m 2.8 3.2 14% Adj PBT $m 2.7 *3.1 15% Adj EPS (FD) c 0.4 0.4 10% Net Cash (Debt) $m 15.0 15.9 0.9

Contact: Lorne Daniel | 020 7220 0545 | ldaniel@finncap.com