Last checked at 9 Oct 2023 07:00
09 October 2023
Mind Gym plc
("Mind Gym" or the "Company" or "Group")
Half Year Trading Update and Notice of Interim Results
Mind Gym (AIM: MIND), the global provider of human capital and business improvement solutions, provides a trading update for the six months ended 30 September 2023 and updated outlook for the year ending 31 March 2024 ("FY24").
Trading in the first half of FY24 has been below our expectations as the challenging macro-economic environment has resulted in some clients undertaking restructuring programmes and so deferring training and commitment to new spend, and a greater number of clients being cautious, which has pushed out timeframes and procurement of new projects.
In the US the effect has been particularly marked. In EMEA, performance has been more resilient with the exception of the delay in H1 of the start of a significant framework agreement of £2m, which has moved to H2 FY24.
As a result, the Group expects to report H1 FY24 revenues of c. £21m, (H1 FY23: £26.8m) and a loss at EBITDA level. The Group now expects FY24 revenues and profits to be significantly lower than current market expectations even though we have seen an improvement in market activity reflected in increased bookings for Q3 versus the comparative period in the prior year. Our H2 performance is expected to be stronger than H1 with revenues broadly similar to, and underlying EBITDA margins ahead of, the respective levels in H2 FY23.
Work to reduce the cost base of the Group began in H1 and continues. Planned CAPEX for H2 is being materially reduced compared to H1, to focus on what our clients are already buying, which includes Performa, our 1:1 coaching offer, and diagnostics.
Cash at bank at 30 September 2023 was £2.1m which, combined with immediate access to £2m of its undrawn £10m debt facility, provides the Group with adequate liquidity.
Outlook
Businesses continue to operate in a tight labour market with a shortage of skills. As companies seek to attract, retain and develop talent, they continue to see a compelling need to invest. There is no scale player in the highly fragmented £350bn L&D market and MindGym offers a standout proposition in culture, leadership and productivity with 23 years of proprietary IP, clients who include most of FTSE-100 and S&P-100 and an omnichannel solution that integrates live, virtual and digital, fuelled by data.
Our strategy to offer integrated solutions continues to meet with client enthusiasm. We have an encouraging pipeline of larger opportunities, and are currently bidding on a number of multi-year and multi-million pound frameworks for FY25 and beyond. We are now in a stronger position to bid for and win major framework agreements which we expect to be an increasing source of future, sustainable growth.
MindGym continues to make progress with its strategy to deliver digitally integrated solutions to our clients.
· We have seen some growth in the number of clients buying Performa, our digitally enabled coaching platform. More significantly, they are buying it as part of an integrated package with other MindGym products to address challenges around, for example, leadership development and high potential talent;
· We have secured two deals with our new proprietary diagnostics delivered, for the first time, on MindGym's digital platform; and
· We were recently awarded the prestigious Brandon Hall award for our work with Burberry who used Performa as an integrated part of their MindGym leadership programme.
We remain confident in the strategy and long-term prospects of the business and our ability to grow revenues and improve profitability.
Notice of Interim Results
Mind Gym will announce its half year results on 1 December 2023.
Enquiries
Mind Gym plc Octavius Black (CEO) Dominic Neary (CFO) | +44 (0) 20 7376 0626 investors@themindgym.com |
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Liberum (Nominated Adviser and Broker) Nick How Edward Mansfield | +44 (0) 20 3100 2000 |
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MHP (for media enquiries) Reg Hoare Katie Hunt Veronica Farah | +44 (0) 20 3128 8793 mindgym@mhpgroup.com |
About MindGym
MindGym is a company that delivers business improvement solutions 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.
MindGym 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 @themindgym