Full Year Trading Update and Notice of Results

26 April 2021

Mind Gym plc

 ("Mind Gym" or the "Company" or "Group") 

Full Year Trading Update and Notice of Results

Recovery from COVID-19 quicker than expected

Mind Gym (AIM: MIND), the global provider for talent performance improvement, is pleased to provide a trading update ahead of reporting its full year results for the financial year ended 31 March 2021.

Highlights*:

·   Revenue expected to be £39.4m, down 18% versus the comparative period last year (down 16% in constant currency), ahead of our previous expectation range of down 30% to 20%

·   Stronger than expected H2 revenues, up 3% versus the comparative period last year (up 6% in constant currency), compared to H1 decrease of 39%

·   Digitally-enabled revenues increased by 102% to £30.5m for the full year, representing 77% of total revenue compared to 32% last year

·      Adjusted PBT is expected to be within the range of breakeven and £0.5m

·    Cash at bank of £16.8m, ahead of our expectations (for £9m - £11m), in part due to increased pre-payments by clients and a continued improvement in working capital management

* Financial metrics subject to audit

Full Year Trading Performance

Trading in the second half was stronger than expected as we helped clients who were keen to find practical ways to engage employees, adapt to the new working environment, address diversity and inclusion challenges, and increase performance.

Digitally-enabled revenues were driven by live sessions all being delivered virtually due to COVID-19 and strong demand for our existing digital products with revenues increasing 48% on the year.

H2 is expected to return to sufficient profitability to at least recoup the H1 loss of £1.3m. Adjusted PBT for the year is expected to be within the range of breakeven and £0.5m. 

The Group also delivered a strong cash performance in the second half, with cash at bank at the year-end of £16.8m, ahead of our previous expectations of between £9m and £11m.  This is in part due to significant pre-payments by clients and a continued improvement in working capital management.

The Group invested c.£3m in its new digital proposition as outlined to investors in November 2020. We are on track with planned launches of two new digitally-enabled products in the current financial year.  

Subject to no significant change occurring with respect to management of the COVID-19 pandemic, the Group intends to re-instate guidance when reporting its full-year results to 31 March 2021 on 11 June 2021.

Octavius Black, Chief Executive Officer of Mind Gym, commented:

"We are delighted that our clients have responded so positively to Mind Gym's digitally-enabled proposition and that we are seeing a return to growth sooner than we had anticipated. We will continue with our strategy of investing in the five key areas of digital, marketing, innovation, operations and talent in order to accelerate growth and seize new opportunities in this vast and expanding market.  We entered the new financial year with a strong financial position and a clear strategy to deliver a fully integrated live, virtual and digital proposition driven by data."

This announcement is released by Mind Gym plc and contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the company's obligations under Article 17 of MAR.

Enquiries    

MHP (for media enquiries)                                                      +44 (0) 20 3128 8572

Reg Hoare                                                                                         mindgym@mhpc.com

Katie Hunt

About Mind Gym

Mind Gym is a company that delivers talent performance improvement using scalable, proprietary products which are based on behavioural science. The Group operates in three global markets: business transformation, human capital management and learning & development.

Mind Gym is listed on the London Stock Exchange Alternative Investment Market (ticker: MIND) and headquartered in London. The business has offices in London, New York and Singapore.

Further information is available at www.themindgym.com