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.
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 --