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Minds + Machines says continued to trade well in fourth quarter as it completes renegotiation of onerous legacy contract

The group said all existing and future liabilities, estimated at US$7.9mln, arising from that contract have been settled through a single one-off payment of US$5.1mln

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It said the settlement was made from the firm’s existing cash resources, saving the company US$2.8mln

Minds + Machines Group Limited (LON:MMX), the top-level domain registry company, has revealed that it has continued to trade well in the fourth quarter as it announced the completed renegotiation of an onerous legacy contract.

In a brief statement, the group said that further to its announcement of 18 July 2019, all existing and future liabilities, estimated at US$7.9mln, arising from that contract have been settled through a single one-off payment of US$5.1mln.

READ: Minds + Machines cash flows as TLD revenue mix improves

It said the settlement was made from the firm’s existing cash resources, saving the company US$2.8mln.

The company pointed out that its directors estimate additional net revenues of approximately US$0.5mln can be generated through the remainder of the contract under the revised terms.

Minds + Machines said a full trading update will be provided in late January, with its full-year results to be announced late March and the company's AGM to be approximately six weeks thereafter thereby bringing it in-line with normal reporting practices.

In a note to clients, analysts at ‘house’ broker finnCap said they were maintaining their current estimates and 17p target price on Minds + Machines.

In morning trading, the shares were 0.7% higher at 6.80p.

 -- Adds broker comment, share price --

Quick facts: Minds + Machines Group Limited

Price: 7.75 GBX

AIM:MMX
Market: AIM
Market Cap: £71.22 m
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