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Minds + Machines on track with cost cutting
11th Nov 2020 14:52
(Sharecast News) - Internet domain name company Minds + Machines updated the market on its operations on Wednesday, reporting that Tony Farrow had now assumed the role of interim chief executive officer.
The AIM-traded firm said in his first week, Farrow worked with interim chief financial officer Bryan Disher to review the company's billings, cash flows and overall financial position, as well as its day-to-day operations.
"We are pleased to reconfirm our statements from 30 September that the company is profitable and cash generative, with the majority of revenue being of a recurring nature," the board said in its statement, adding that it was still seeing "strong" renewal billings.
Operating cash flow for 2020 was expected to be more than $4m, which would result in available cash on 31 December of over $8m.
"The company also reiterates its commitment to steps that are expected to reduce costs across operations expenditure and cost of goods in 2021 when compared to their expected amounts in 2020.
"In addition, as a result of recent management changes, 46 million options and restricted stock units were forfeited, thereby reducing the company's fully diluted shares by approximately 4.7%."
In light of the company's cash generative nature, available cash and confidence around future cash flows, the board also announced a share buyback programme up to a maximum of £2.3m.
The programme was starting immediately and would continue, subject to not being completed earlier, until 31 December, when its efficacy would be further reviewed.
At 1238 GMT, shares in Minds + Machines Group were up 32.89% at 5.05p.
The AIM-traded firm said in his first week, Farrow worked with interim chief financial officer Bryan Disher to review the company's billings, cash flows and overall financial position, as well as its day-to-day operations.
"We are pleased to reconfirm our statements from 30 September that the company is profitable and cash generative, with the majority of revenue being of a recurring nature," the board said in its statement, adding that it was still seeing "strong" renewal billings.
Operating cash flow for 2020 was expected to be more than $4m, which would result in available cash on 31 December of over $8m.
"The company also reiterates its commitment to steps that are expected to reduce costs across operations expenditure and cost of goods in 2021 when compared to their expected amounts in 2020.
"In addition, as a result of recent management changes, 46 million options and restricted stock units were forfeited, thereby reducing the company's fully diluted shares by approximately 4.7%."
In light of the company's cash generative nature, available cash and confidence around future cash flows, the board also announced a share buyback programme up to a maximum of £2.3m.
The programme was starting immediately and would continue, subject to not being completed earlier, until 31 December, when its efficacy would be further reviewed.
At 1238 GMT, shares in Minds + Machines Group were up 32.89% at 5.05p.