Mind Gym achieves break-even at half-year as revenue regains 2019

(Alliance News) - Mind Gym PLC on Friday said it has returned to break-even, as revenue in the first half of its financial year rebounded to its pre-pandemic level.

For the six months that ended September 30, the London-based personal and business coaching service said it achieved break-even at the pretax profit level, improved from a loss of GBP2.0 million a year before. Adjusted pretax profit was GBP17,000, improved from a loss of GBP1.3 million in the same period the prior year. In the six months to September 2019, Mind Gym reported pretax profit of GBP3.9 million and the same for adjusted pretax profit.

Revenue was up 67% to GBP24.1 million from GBP14.5 million in the same period the prior year. This mirrors pre-pandemic levels of revenue which stood at GBP23.9 million in the same period of 2019.

Adjusted earnings before interest, tax, depreciation and amortisation swung to positive GBP700,000 from a loss of GBP800,000 a year prior.

Mind Gym also announced the appointment Dominic Neary as its new chief financial officer, starting January 1. Neary will be replacing Richard Steele who has held the position since 2018. Neary was EU finance director for Just Eat, now part of Just Eat Takeaway.com NV.

Mind Gym declared no interim dividend, unchanged from last year. Two years before, Mind Gym paid an interim dividend of 0.9p.

Chief Executive Octavius Black said: "I am delighted to see the bounce back of revenue ahead of pre-Covid levels. Our digital strategy remains on track and our clients' responses to the first of our new digital products, Performa, are extremely positive. Covid still presents challenges which may impact buying including the "Great Resignation", a potential return to lockdown which has already begun in some European countries and inflationary pressure. However, we have demonstrated our ability to continue to grow revenues in a virtual world with a strong digitally enabled proposition, and Mind Gym remains well placed to adapt and prosper in the vast, growing and rapidly evolving corporate change, learning and wellness market."

Shares were down 4.4% at 165.00 pence on Friday morning in London.

By Heather Rydings; heatherrydings@alliancenews.com

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