Minds + Machines Group Ltd (LON:MMX) reported steady profits for its 2020 financial year as the company highlighted changes in its fourth quarter that it believes have sustainably improved the business.
For the year ending December 31, the internet domain name registry reported a pre-tax profit of US$2.99mln compared with US$2.98mln in the prior year, while revenues stood at US$16.8mln compared with US$17.2mln in 2019.
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The firm also reported that cash generated from operating activities increased to US$6.4mln from US$481,000 in the previous year, while cash balances at the end of the year were US$8.9mln, up from US$6.6mln a year ago.
Looking ahead, the company said revenues for the first quarter of 2021 were 4% below those of the year-ago period, although it said it is “encouraged” by interest and early sales of its AdultBlock Sunrise product.
The firm added that it is seeing an increase in cash generation despite the decrease in revenues as the staffing changes and other cost reduction initiatives put in place at the end of 2020 resulted in underlying earnings (EBITDA) of US$1.6mln for the quarter, a 98% increase over the US$801,000 generated in the first quarter of 2020.
"Our results for 2020 continue to demonstrate the quality of our portfolio and the cash generative nature of the company. [The fourth quarter of 2020] was a transitional period for the company as in addition to immediate actions such as reducing staffing and terminating non-accretive supplier contracts, we considered structural and operational changes that we believe sustainably improve the business going forward,” chief executive Tony Farrow said in a statement.