Minds + Machines Group Limited (LON:MMX) has said it will announce a maiden dividend with its results for 2019 following strong trading for the year.
In a trading update, the provider of internet top-level domains (TLDs) said revenue for the year just gone was expected to be “significantly ahead” of 2018, adding that the quality of revenue had continued to improve in line with its strategy of decreasing reliance on one-off brokered sales.
READ: Minds + Machines says continued to trade well in fourth quarter as it completes renegotiation of onerous legacy contract
The shift was borne out in the figures, which showed that new registration revenues through the firm’s registrar channel had increased to 30% of total revenue, up from 20% last year, while the share from one-off brokered sales fell to under 10% from 18%.
Looking into the new year, chief executive Toby Hall said the company had “good early visibility on 2020 revenues” as a result of its “significant renewal base, ongoing regular channel sales, and revenue generated from the strong new brand protection sales achieved in [the fourth quarter of] 2019”.
“With a largely fixed operating cost and capacity across the platform, we therefore expect future growth to be incrementally positive”, he added.
The company will introduce its maiden dividend when it delivers its full-year results, expected in late March.
In a note to clients, analysts at finnCap, the company’s 'house' broker which pegs it with a 17p target price, said the update showed 2019 as “a seminal year” for the company, estimating that the coming dividend will be around 0.13p per share with a yield of 1.6%.