Mind Gym trades as expected through first half

Human capital and business improvement specialist Mind Gym reported half-year results in line with management expectations on Friday, with year-on-year growth in both constant and actual currency, despite economic uncertainty and the exit from Omicron at the start of the year.

The AIM-traded firm said revenue was up 11% year-on-year in the six months ended 30 September, at £26.8m, with United States revenue growth coming in at 20%, while the Europe, Middle East and Africa (EMEA) geography saw revenue decline 2%, and digitally-enabled revenue was off 7%.

The company’s gross profit margin expanded by 1.6 percentage points to 87.5%.

Mind Gym reported a statutory profit before tax of £0.6m for the period, up from £0.02m year-on-year, and compared to a £0.5m loss for the full 2022 financial year ended 31 March.

EBITDA rocketed 271% to £1.9m, as the firm swung to diluted earnings per share of 0.84p, from losses of 0.01p per share in the first half of the prior fiscal period.

Cash at bank was 62% lower at £4.5m on 30 September, while capital expenditure was 21% smaller at £2.2m for the period.

Looking ahead, Mind Gym said its outlook for the full year was unchanged, despite the impact of economic headwinds, notably in the US.

It said its anticipated second-half growth included the benefit of large corporate frameworks.

“We are encouraged by our first-half performance and the significant momentum going into the second half, as a result of securing our largest ever framework agreement,” said chief executive officer Octavius Black.

“In a volatile economic environment with a tight labour market, Mind Gym is increasingly well placed as the 'go to' partner to address the talent challenges that all organisations struggle to resolve.”

Black said the company’s investment in innovation and digital was continuing to deliver.

“New publications on leadership, coaching and wellbeing will set the agenda and equip our clients to invest in ways that transform their business in half the time and for a fraction of the cost.

“Our development of the ‘Performa’ platform will build momentum for our new one-on-one coaching service in the 2024 financial year, and our new organisational diagnostics solution, currently in beta trials, which furthers our objective to be the primary strategic partner providing an end-to end service for our clients.”

At 1137 GMT, shares in Mind Gym were down 2.7% at 90p.

Reporting by Josh White for Sharecast.com.