Minds + Machines announced Final Results for the year ended 31 December 2020. According to the report, cash generated from operating activities increased to $6.4m from $481k in 2019. MMX also stated that the cash balances at the end of 2020 were $8.9m, an increase of $2.3m from $6.6m at the end of 2019, even after buying back 43 million of our shares in the year at a cost of $2.8m.
The company also stated that during the period, revenue was $16.8m, down 2% from $17.2m in 2019. Profit for the year is $2.9m compared to a profit of $2.8m in 2019. The profit for the year is after the $1.0m settlement with the former shareholders of ICM and $707k of employee and other termination costs. Cash generated from operating activities increased to $6.4m from $481k in 2019. Tony Farrow, CEO, Minds + Machines, said,
“Our results for 2020 continue to demonstrate the quality of our portfolio and the cash generative nature of the Company. Q4 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.
Revenues for the first quarter of 2021 are 4% below those for Q1 2020. While it is early in the AdultBlock Sunrise B renewal period, we are encouraged by Registrar interest and some early sales of this product. We are also 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 EBITDA of $1.6m for the quarter, a 98% increase over the $801k generated in Q1 2020.”