Minds + Machines Group Limited (AIM: MMX ) has confirmed Tony Farrow has assumed the role of interim CEO.  

In his first week he has worked with Bryan Disher, interim CFO to review the Company's billings, cash flows and overall financial position as well as the day to day operations of the Group. 

One of his first equity capital announcements is to reconfirm the Company’s Half Year statements from 30 September 2020 that the Company is profitable and cash generative, with the majority of revenue being of a recurring nature.  

Outlook 

Strong +ve Cashflow 

Looking forward Tony confirmed strong renewal billings, with operating cash flow for FY20 expected to exceed $4.0 million, which would result in available cash as at 31December 2020 of more than $8.0 million. 

Improving Operating Margins 

The Company also reiterates its commitment to steps that are expected to reduce both COGs to improve Gross Margins and OPEX to improve EBITDA margins in FY21 when compared to their expected amounts in 2020.  

Reduced Dilution 

In addition, as a result of recent management changes, 46 million options and RSUs were forfeited, thereby reducing the Company's fully diluted shares by approximately 4.7 per cent. 

Share Buyback Programme 

As stated in the Company's most recent update on 30 October 2020, the Board remains committed to returning excess capital to shareholders. 

In light of the predictable cash generation, strong balance sheet and confidence in future financial performance’ Tony confirmed ‘the Board has approved a share “BuyBack” programme of ordinary shares of no par value in the capital of the Company up to a maximum of £2.3m’. 

Key points of the BuyBack: 

  • The Buyback Programme will commence today 
  • The maximum price paid will be no more than 105% of the average mid closing price for the five business days preceding the date of purchase 
  • Any shares acquired will be announced without delay 
  • Any shares acquired will be cancelled (not put into treasury) 
  • The Buyback on any trading day may exceed 25% of the average daily trading volume, 
  • The BuyBack will continue till 31 December 2020, when its efficacy will be further reviewed 

Shares in Minds + Machines jumped 29% following reconfirmation of 1H20 trading and news on the Share BuyBack.