REG - Mind Gym PLC - Full Year Trading Update

Mind GymAnnouncement

25/04/2022 07:00

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RNS Number : 1254J  Mind Gym PLC  25 April 2022

25(th) April 2022

Mind Gym plc

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

Full Year Trading Update

Core business returns to pre-COVID levels and digital transformation is well
underway

Mind Gym (AIM: MIND), the global provider of human capital and business
improvement solutions, is pleased to provide a trading update for its
financial year ended 31 March 2022.

Highlights*:

·      Robust performance in line with the Board's expectations, with
the core business returning to pre-Covid levels:

o  Revenue is expected to be £47.9m, up 25 per cent on FY21 (in constant
currency) and up 5 per cent on pre-Covid levels (FY20).

o  Delivery achieved against the backdrop of second half headwinds from
Omicron.

o  Adjusted PBT for the year is expected to be in line with Board
expectations.

·      Digitally-enabled revenues of £36.8m, were up 25 per cent versus
FY21 and up 156 per cent versus FY20 (when the majority of deliveries were
still face to face) and represented 77 per cent share of revenue (77 per cent
in FY21 and 32 per cent in FY20).

·    In March 2022, Mind Gym acquired, for cash consideration of £0.1m,
the diagnostic IP of 10X Psychology Limited (in administration) ("10X")
supporting Mind Gym's developing digital strategy.

·      Strong financial position maintained:

o  Net cash of £10.0m at 31(st) March 2022, vs. £16.8m at 31(st) March
2021, following significant investment during the financial year in our new
digital products.

o  New undrawn debt facility to support investment in growth.

* Financial metrics subject to audit and at constant currency unless
otherwise stated

Full Year Trading Performance

FY22 has been a year of continued progress and significant investment for Mind
Gym. The Group is exiting the Covid pandemic with a strengthened proposition
to its clients in a number of key areas, having launched its new digital
coaching platform in January 22, and with a strong pipeline of new POV's -
'Leadership' and 'Wellbeing' due in the coming months.

Despite the continued headwind of Covid, with Omicron causing some delays in
client decision making and course take up in the second half and into the new
financial year, both the UK and the US delivered strong growth vs. FY21. In
actual currency, Group revenues were up 24 per cent on prior year and up 1 per
cent on FY20.

Performa, Mind Gym's digital 1:1 coaching SaaS platform, was launched in
January 2022 and to date has sold in excess of £0.5m of Annualised Revenue.
The product is based on Mind Gym's proprietary Precision coaching methodology,
and offers the opportunity to provide clients with a leadership development
solution bundled with Mind Gym's existing products.

The acquisition of 10X's diagnostic IP, which was the result of seven years'
work and circa £10m of historic investment by 10X, is anticipated to
contribute significantly to Mind Gym's digital strategy of delivering highly
personalised interventions to participants, and insightful data and analysis
to clients. A large-scale co-validation study performed by 10X showed its
diagnostic methodology to be more accurate at predicting behaviour than the
leading personality questionnaires on the market. It is proposed to integrate
this into Mind Gym's planned second digital product, DXP, which is then
expected to be launched in FY24.

During the year, the Group entered into a £10m debt facility
(£6m RCF, £4m accordion), which was undrawn as at 31 March 2022. This
provides the flexibility to support future growth opportunities.

 

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

"We are encouraged with Mind Gym's performance despite the Covid headwinds,
with good revenue growth ahead of last year and pre-pandemic levels. We are
excited by the recent launch of Performa our digital 1:1 coaching SaaS service
and delighted with the positive reception it has already received from new and
existing clients. We have a clear strategy for accelerating revenue growth
based on market-leading IP, delighting clients and a significant digital
transformation."

 

Enquiries

 Mind Gym plc                            +44 (0) 20 7376 0626
 Octavius Black (CEO)
 Dominic Neary (CFO)

 Liberum (Nominated Adviser and Broker)  +44 (0) 20 3100 2000
 Bidhi Bhoma

 Nick How

 Kane Collings

MHP (for media
enquiries)
               +44 (0) 20 3128 8100

Reg
Hoare
              mindgym@mhpc.com

Katie Hunt

Charlie Protheroe

About Mind Gym

Mind Gym 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.

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

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