Internet domain name registry business Minds + Machines (MMX:AIM) is up 11.4% to 12.25p as it reports a doubling of revenue in the first half and announces a £13 million one-off return to shareholders.

The company is returning the cash through a tender offer at 13p. It also unveils a subscription investment of £5.5 million by Goldstream Capital Master Fund I, again at 13p. We flagged the potential for a cash return here in June 2015.


Goldstream is owned by Chinese asset manager Hony Capital and the investment coincides with the group's entry into China. This move helped deliver a 300% increase in billings to a little over $8 million in the first six months of the year.

The company is a play on the expansion of so-called top level domain (TLD) names. These are the letters at the end of a web address such as .com,, .org and so on. Minds + Machines has a portfolio of nearly 30 TLDs including .vip and .law. New house broker FinnCap initiates on the stock today with a 20p price target. Analyst Harold Evans spells out the investment case.

'MMX owns 25 new gTLDs outright and three in partnership. MMX charge registrars (resellers) an up-front fee when end users request a new or renew an existing domain from a reseller. The business is therefore cash generative and has strong potential for operational gearing.'

Issue Date: 20 Sep 2016