REG - Mind Gym PLC - Half year results
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RNS Number : 1529K Mind Gym PLC 04 December 2025
4 December 2025
Mind Gym PLC
("Mind Gym", the "Group" or the "Company")
Half year results for the six months ended 30 September 2025
MindGym reaching a transition point
MindGym (AIM: MIND), the global provider of human capital and business
improvement solutions, announces its half year results for the six months
ended 30 September 2025.
6 months to 6 months to 12 months to 31 Mar 2025 Change
30 Sept 2025 30 Sept 2024 (FY25) vs H1 FY25
(H1 FY26) (H1 FY25)
Revenue £13.5m £20.2m £38.6m -33.2%
EMEA Revenue £8.0m £12.1m £23.9m -33.9%
US Revenue £5.5m £8.1m £14.7m -32.1%
Gross profit margin 86.8% 84.9% 86.6% +190bps
Adjusted administrative expenses(1) £13.5m £18.0m £34.2m -25.0%
Adjusted EBITDA(1) (£1.0m) £0.8m £1.9m -£1.8m
Statutory (loss) before tax (£2.5m) (£0.9m) (£6.2m) -£1.6m
Basic (Loss) per share (2.48p) (0.79p) (8.16p) -1.69p
Net (Debt)/Cash (£1.0m) £0.7m £0.6m -£1.7m
Capital expenditure £0.4m £0.9m £1.5m -55.6%
( )
(1) Adjusted EBITDA and administrative expenses excludes the one off costs of
the cost rationalisation exercise carried out in the period totalling £0.7m
(H1 FY25: £nil, FY25: £5.4m).
Overview
MindGym is mid-way through its three-year transformation strategy to evolve
the business from episodic training provider to a strategic behavioural-change
partner by making MindGym products easier to buy, easier to sell and easier to
renew. As expected, H1 FY26 has been challenging, following the conclusion
of the multi-year energy framework agreement, and due to rebuilding the sales
organisation whilst dealing with market headwinds, particularly in the US.
Despite this, we remain committed to our transformation strategy with H1
actions focused on increasing commercial effectiveness and product alignment
under our High-Performance Behaviour Model.
Financial Highlights
· Reported revenue was down 33% at £13.5m (H1 FY25: £20.2m):
o Like for like revenue, excluding the multi-year energy framework which
concluded in H2 FY25, was 16% down at £13.5m versus £16.2m in H1 FY25
o Revenue in EMEA was broadly flat with weaker performance in the
challenging US market
· Gross margin was improved at 87% vs 85% the previous year
· Reported EBITDA was a loss of £1.7m (H1 FY25: Profit of £0.8m)
· Adjusted EBITDA loss of £1.0m (HY25: Profit of £0.8m) excludes
the impact of the redundancy and restructuring costs incurred in the year
· Significant reduction in overheads reflects the savings from the
ongoing cost reduction exercise and operational efficiencies:
o Overheads decreased by 25% or £4.6m year on year, or 21% when including
the adjusting items in the period
o Since the period end, a further £3.5m in annualised cost savings have
been implemented
· During the period, MindGym started utilising the £4m overdraft
facility, renewed in March 2025. As at 30 September 2025, cash at bank was
£0.4m and net debt was £1m
Strategic and Operational Highlights - Focus on commercial effectiveness
· New commercial leadership and rebuilt sales team, driving
increase in sales effectiveness and capacity
· Strategic third-party marketing partnership initiated from
October 2025, in order to increase digital lead generation, with a flexible
cost model aligned with performance
· Launch of High-Performance Behaviour Model, which unifies
MindGym's IP and data, representing the core differentiated IP at the heart of
all our products and solutions, enabling new product launches currently in
progress
· Launch of our content membership packages in Q1 FY26, enabling
greater flexibility, repeatable revenue and stickier client relationships
o This new membership model delivered its first sales in the period,
securing 24 corporate memberships to date with a strong pipeline of new
opportunities
· New sales orders in Q2 FY26 exceeded revenue, showing progress in
our commercial effectiveness
· Launch of working capital improvement initiative to bring forward
cash payments in contract cycle
Current Trading & Outlook - Expectations Unchanged
· Full year revenues remain in line with expectations, with
performance weighted towards H2, as we expect to benefit from an increase in
licence revenues and the investments made in sales and marketing effectiveness
· The Board's expectations for adjusted EBITDA remain unchanged as
H2 revenue growth and the lower cost base will drive a return to profitability
and cash generation
Board Changes
· As announced on 26 September 2025, Nick Stone was appointed as
Interim Chief Financial Officer to cover Emily Fyffe's maternity leave
Analyst and Investor Webcast
There will be an analyst and investor presentation available to view from 9am
GMT today. The presentation will be made available on MindGym's investor
website: https://themindgym.com/investors/reports.
Christoffer Ellehuus, Chief Executive Officer of MindGym, said:
"I am pleased with the progress we are making on our 3-year transformation
strategy, despite the uncertainties related to AI implications to HR
investments causing customer caution. Importantly, we've made significant
progress on our commercial effectiveness, having successfully created and
launched our new unified High-Performance Behaviour Model, whilst delivering
the rapid adoption of our new membership model.
This new go-to-market strategy is embedding MindGym's content in clients' core
training curricula, delivering stickier client relationships and sustainable
recurring revenues. Overall, this is expected to deliver a return to adjusted
EBITDA profitability for the year as a whole, whilst laying the foundations
for longer-term sustainable growth."
Enquiries:
MindGym plc +44 (0)20 7376 0626
Christoffer Ellehuus, Chief Executive Officer investors@themindgym.com
Nick Stone, Interim Chief Financial Officer
Panmure Liberum (Nominated Adviser and Broker) +44 (0)20 3100 2000
Nicholas How
Will King
MHP (for media enquiries) +44 (0) 7710 117 517
Reg Hoare mindgym@mhpgroup.com
Veronica Farah
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
and New York.
Further information is available at www.themindgym.com
(https://protect.checkpoint.com/v2/r06/___http:/www.themindgym.com___.ZXV3MjpuZXh0MTU6YzpvOjJiOTM2M2ZjNGZhYzM1NmRlZDM4NGFkMWVjNDkzNWMzOjc6YmE5YTpmY2Y4NDk0YWZmNjEyYTFmNzIwNzE5OWI3ODI4OWRmODBkYTllOTliNTJhYTNlZjMzOTNiNzgzODVmN2I1NGU2OnA6VDpU)
Strategic and Operational Update
MindGym is on a three-year transformation journey to evolve the business from
episodic training provider to strategic behaviour-change partner, which is
setting the Group up to earn more sustainable and repeatable revenues. Trading
conditions continued to be challenging in H1 FY26 with cautious buying
behaviours leading to delayed contracts. This is particularly true in the US
where AI-enabled HR technology is currently the focus of corporate buyers.
· The Group has increasingly focused on commercial effectiveness in
the period through a globally aligned sales team under the new sales
leadership appointed at the end of FY25. The sales team has been rebuilt
under consistent performance standards with the number of sales team members
increasing from 30 to 39 by November 2025. This has driven a significant
improvement in pipeline generation, 15% up on the prior year and pleasingly
also saw higher sales orders than revenue in Q2 FY26 as a result.
· Following the launch of its new website, the Group has increased
focus on digital lead generation. To accelerate returns on digital marketing
and enhance market reach and leads, the Group has effectively outsourced this
activity and appointed a specialist marketing agency, Oliver, under a
strategic partnership. This collaboration offers a flexible cost model
aligned with performance, enabling us to leverage fractional expertise and
scale marketing-driven sales leads.
· Q4 FY25 saw the launch of the content subscription package,
enabling clients to leverage MindGym's proprietary IP over a licence period,
enabling greater flexibility, repeatable revenue and stickier client
relationships. In H1 FY26 the offering has further evolved with the
introduction of our membership model providing access to the full suite of
MindGym training programmes and e-workouts. This model reduces the length of
the sales cycle, accelerates revenue recognition and increases predictability.
Since launch we've secured 24 corporate memberships. Of these, 13 started in
H1 FY26, with the remainder commencing in Q3 FY26. Total membership sales to
date, inclusive of associated delivery fees, are worth £2.4m with revenue
recognised of £1.7m. During the period £2.0m worth of membership sales
were completed and revenue recognised of £1.0m.
· In Q1 FY26, the Group launched its High-Performance Behaviour
Model, which unifies MindGym's IP and data into a new-to-the-world universal
model for behaviour change. At the heart of this model is MindGym's 10X
psychometric data asset (acquired in 2022), which links key behaviours to core
business outcomes. The High-Performance Behaviour Model will be the core
differentiated IP at the heart of all products and solutions, most notably a
new set of data-based psychometric assessment products. These new assessment
products are currently being 'soft' launched in the market with a handful of
early-adopter clients and a full launch including new digital dashboarding
capabilities expected in Q4 FY26.
· A working capital improvement initiative is also underway in
order to enhance cash conversion within the business and is already starting
to show positive benefits. Along with the new and broader go to market
strategy, tighter cash terms have been introduced into the MindGym standard
contracts with a higher proportion of payment required up front, especially in
the subscription and licencing contracts where access to IP and data is
immediate. As a result, deferred income has increased from £1.3m at H1 FY25
to £2.5m at H1 FY26 and, whilst revenue has declined by 33% in the period,
cash receipts have only declined by 22%.
Financial Review:
Revenue
Revenue in H1 FY26 was £13.5m, down 33% on the equivalent period in the prior
year (H1 FY25: £20.2m):
· In EMEA, revenue decreased by 34% to £8.0m (H1 FY25: £12.1m).
This was predominantly driven by the multi-year energy framework agreement
which concluded in FY25. Excluding the impact of this contract, EMEA revenue
remained broadly flat at -2%.
· In the US, revenue decreased by 31% (30% in constant currency) to
£5.5m (H1 FY25: £8.1m). This was a result of the continuing challenging
market conditions and the reorganisation of the US sales team.
· Total Licence revenue was £1.0m in the period with membership
subscription revenue making up £0.7m of the total (H1 FY25: £nil). This new
revenue stream launched in Q4 FY25.
Gross margin
Gross margin has increased to 86.8% (H1 FY25: 84.9%), reflecting a reduction
in higher cost face to face delivery revenue in H1 FY26.
Administrative Expenses
Overheads decreased by 25% to £13.4m (H1 FY25: £18.0m) or 21% when including
the adjusting items in the current period. The reduction reflects savings from
the prior year cost reduction exercise and operational efficiencies gained.
Average headcount reduced from 247 to 189 in the six months to 30 September
2025, a 23% reduction. Further cost reduction initiatives have been
implemented since the end of the H1 period and are expected to deliver further
annualised savings of £3.5m.
The share-based payment charge in the period was £0.1m compared to a credit
of £0.1m in H2 FY26 due to awards made to management that were granted in
August 2025.
Depreciation and amortisation has reduced to £0.7m (H1 FY25: £1.5m),
predominantly driven by £4.4m impairment of intangibles in Q3 FY25.
Profit/(loss)
Reported EBITDA loss for the period was £1.7m (H1 FY25: £0.8m profit).
Excluding the impact of exceptional items in H1 FY26, the adjusted EBITDA loss
was £1.0m (H1 FY25: £0.8m profit). There were no adjusting items in the six
months to 30 September 2024. The loss before tax was £2.5m (H1 FY25: £0.9m
loss).
Basic loss per share in the period was 2.48p (H1 FY25: 0.79p loss). Adjusted
loss per share was 1.97p (H1 FY25: 0.79p loss).
Cash
As at 30 September 2025, cash at bank was £0.4m and net debt was £1.0m, a
reduction of £1.6m from the year-end net cash balance at 31 March 2025 of
£0.6m. The Group's £4m overdraft facility has been partially utilised
during the period, with £1.4m drawn down at the period end.
Whilst the Group continues to manage working capital carefully, overdue debt
increased to 8% of trade debtors compared to 5% at the 31 March 2025 year-end.
The increase in aged debt is due to a couple of large payments that were
outstanding at the end of H1 FY26 that have since been received. Trade and
other debtors have decreased by £0.7m since 31 March 2025 and trade and other
payables showed an increase of £0.2m over the same period showing an
improving working capital position in total of £0.9m.
Dividend
The Board continues to prioritise investment for growth over the coming years,
and therefore no interim dividend will be paid for the period ended 30
September 2025.
Outlook:
The new go-to-market strategy focused on introducing packaged subscriptions
together with the impact of the investments made in the sales team and in
marketing is laying the foundation for a resumption of sustainable growth into
H2 FY26 and into FY27. Revenues in the second half of the year are expected to
be stronger than the first half and this revenue growth and strong working
capital management will drive a return to profitability and cash generation.
The Board's expectations for adjusted EBITDA and positive year end cash
balances therefore remain unchanged.
Forward-looking statements
Certain statements in this announcement constitute forward-looking
statements. Any statement in this announcement that is not a statement of
historical fact including, without limitation, those regarding the Company's
future expectations, operations, financial performance, financial condition
and business is a forward-looking statement. Such forward-looking statements
are subject to risks and uncertainties that may cause actual results to differ
materially. These risks and uncertainties include, changing economic,
financial, business or other market conditions. These and other factors could
adversely affect the outcome and financial effects of the plans and events
described in this announcement and the Company undertakes no obligation to
update its view of such risks and uncertainties or to update the
forward-looking statements contained herein. Nothing in this announcement
should be constructed as a profit forecast.
MIND GYM PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
6 months to 6 months to Year to
30 Sept 30 Sept 31 March
2025 2024 2024
(Unaudited) (Unaudited) (Audited)
Note £'000 £'000 £'000
Revenue 3 13,514 20,207 38,606
Cost of sales (1,779) (3,042) (5,163)
Gross profit 11,735 17,165 33,443
Administrative expenses (14,155) (18,005) (39,598)
Other income - 98 107
(2,420) (742) (6,048)
Operating profit/(loss)
5 - - 1
Finance income
Finance costs 5 (97) (116) (142)
(Loss)/profit before taxation (2,517) (858) (6,189)
Adjusted (loss)/profit before tax (1,805) (858) (803)
Adjusting items 6 (712) - (5,386)
(Loss)/profit before tax (2,517) (858) (6,189)
7 19 71 (2,000)
Tax on (loss)/profit
(2,498) (787) (8,189)
(Loss)/profit for the financial period from continuing operations attributable
to owners of the parent
Items that may be reclassified subsequently to profit or loss
Exchange translation differences on consolidation (128) (204) (100)
Other comprehensive (loss)/income for the period attributable to the owners of (128) (204)
the parent
(100)
(2,626) (991)
Total comprehensive (loss)/income for the period attributable to the owners of
the parent
(8,289)
(Loss)/earnings per share (pence)
Basic 8 (2.48p) (0.79p) (8.16p)
Diluted 8 (2.48p) (0.79p) (8.16p)
Adjusted (loss)/earnings per share (pence)
Basic 8 (1.97p) (0.79p) (4.16p)
Diluted 8 (1.97p) (0.79p) (4.16p)
MIND GYM PLC
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
30 September 30 September 31
2025 2024 March
2025
Note (Unaudited) (Unaudited) (Audited)
£'000 £'000 £'000
Non-current assets
Intangible assets 10 3,685 8,131 3,749
Property, plant and equipment 11 944 1,623 1,199
Deferred tax assets 312 2,392 303
4,941 12,146 5,251
Current assets
Inventories 20 26 25
Trade and other receivables 12 5,784 6,605 6,469
Current tax receivable 100 75 95
Cash and cash equivalents 355 746 570
6,259 7,452 7,159
11,200 19,598
Total assets 12,410
Current liabilities
Trade and other payables 13 7,861 7,293 7,647
Borrowings 14 1,401
Lease liability 479 606 518
Redeemable preference shares 50 50 50
9,791 7,949 8,215
Non-current liabilities
Lease liability 425 867 646
Total liabilities 10,216 8,816 8,861
984 10,782
Net assets 3,549
Equity
Share capital 15 1 1 1
Share premium 275 274 274
Share option reserve 501 378 441
Retained earnings 207 10,129 2,833
984 10,782
Equity attributable to owners of the parent Company 3,549
The Board of Directors approved these condensed interim financial statements
on 2 December 2025.
MIND GYM PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share capital Share premium Share option reserve Retained earnings Total equity
Note £'000 £'000 £'000 £'000 £'000
1 258 481 11,097 11,837
At 1 April 2024
- - - (787) (787)
(Loss) for the period
Other comprehensive income:
Exchange translation differences on consolidation - - - (202) (202)
Total comprehensive loss for the period (989) (989)
Exercise of options - 16 (21) 21 16
Credit to equity for share based payments 16 - - (82) - (82)
1 274 378 10,129 10,782
At 30 September 2024
- - - (7,402) (7,402)
(Loss) for the period
Other comprehensive income:
Exchange translation differences on consolidation - - - 102 102
Total comprehensive income for the period - - - (7,300) (7,300)
Exercise of options - - (1) 1 -
Debit to equity for share based payments 16 - - 64 - 64
Tax related to share based payments - - - 3 3
1 274 441 2,833 3,549
At 31 March 2025
- - - (2,498) (2,498)
(Loss) for the period
Other comprehensive income:
Exchange translation differences on consolidation - - - (128) (128)
Total comprehensive loss for the period - - - (2,626) (2,626)
Exercise of options - 1 1 (1) 1
Debit to equity for share based payments 16 - - 60 - 60
1 275 502 206 984
At 30 September 2025
MIND GYM PLC
CONSOLIDATED STATEMENT OF CASH FLOWS
6 months to 6 months to Year to
30 Sept 30 Sept 31 March
2025 2024 2025
(Unaudited) (Unaudited) (Audited)
Note £'000 £'000 £'000
Cash flows from operating activities
(Loss)/profit for the financial period (2,498) (787) (8,189)
Adjustments for:
Amortisation of intangible assets 10 435 1,020 1,531
Impairment of intangible assets 10 - - 4,404
Depreciation of tangible assets 11 276 526 987
Loss/(profit) on disposal of intangible assets 10 - - 26
Loss/(profit) on disposal of property, plant and equipment 11 - - 83
Net finance costs 5 97 116 141
Taxation (credit)/charge 7 (9) (71) 2,000
R&D expenditure credit - (98) -
Decrease/(increase) in inventories 5 14 15
Decrease/(increase) in trade and other receivables 12 685 1,182 1,318
(Decrease)/increase in payables and provisions 13 214 (1,181) (827)
Share based payment charge 16 59 (82) (18)
Cash (utilised)/generated from operations (736) 639 1,471
Net tax received/(paid) (15) 534 165
R&D refund on account - - 295
Net cash generated from operating activities (751) 1,173 1,931
Cash flows from investing activities
Purchase of intangible assets 10 (371) (899) (1,458)
Purchase of property, plant and equipment 11 (26) (20) (42)
Interest received - - 1
Net cash used in investing activities (397) (919) (1,499)
Cash flows from financing activities
Cash repayment of lease liabilities (280) (613) (1,047)
Issuance of ordinary shares 15 1 16 16
Interest paid (75) (76) (74)
Net cash used in financing activities (354) (673) (1,105)
(1,502) (419) (673)
Net (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period 570 1,369 1,369
Effect of foreign exchange rate changes (114) (204) (126)
Cash and cash equivalents at the end of period (1,046) 746 570
Cash and cash equivalents at the end of period comprise:
Cash at bank and in hand (1,046) 746 570
MIND GYM PLC
NOTES TO THE GROUP FINANCIAL STATEMENTS
1. General information
Mind Gym plc ("the Company") is a public limited company incorporated in
England & Wales and its ordinary shares are traded on the Alternative
Investment Market of the London Stock Exchange ("AIM"). The address of the
registered office is 160 Kensington High Street, London W8 7RG. The group
consists of Mind Gym plc and its subsidiaries, Mind Gym (USA) Inc., Mind Gym
Performance (Asia) Pte. Ltd and Mind Gym (Canada) Inc. (together "the Group").
The principal activity of the Group is to apply behavioural science to
transform the performance of companies and the lives of the people who work in
them. The Group does this primarily through research, strategic advice,
management and employee development, employee communication, and related
services.
2. Basis of preparation
The condensed interim financial statements have been prepared in accordance
with the requirements of the AIM Rules for Companies. As permitted, the
Company has chosen not to adopt IAS 34 "Interim Financial Statements" in
preparing this interim financial information. The condensed interim financial
statements should be read in conjunction with the annual financial statements
for the year ended 31 March 2025, which have been prepared in accordance with
UK adopted international accounting standards, including interpretations
issued by the International Financial Reporting Interpretations Committee
("IFRIC"), and with the Companies Act 2006 applicable to companies reporting
under IFRS. The unaudited interim financial information does not constitute
statutory accounts within the meaning of the Companies Act 2006. This interim
report, which has neither been audited nor reviewed by independent auditors,
was approved by the Board of Directors on 2 December 2025.
Statutory accounts for the year ended 31 March 2025 were approved by the Board
of Directors on 11 June 2025 and delivered to the Registrar of Companies. The
report of the auditors on those accounts was unqualified, did not contain an
emphasis of matter paragraph and did not contain any statement under Section
498 of the Companies Act 2006.
The interim financial statements have been prepared on a going concern basis
under the historical cost convention.
The interim financial statements are presented in pounds sterling. All values
are rounded to £1,000 except where otherwise indicated.
The accounting policies used in preparing the interim results are the same as
those applied to the latest audited annual financial statements.
3. Segmental analysis
Operating segments are reported in a manner consistent with the internal
reporting provided to the chief operating decision maker, who is responsible
for allocating resources and assessing performance of the business. The chief
operating decision maker has been identified as the Board. The Group has two
operating segments: EMEA (comprising the United Kingdom and Singapore) and
America (comprising the United States and Canada).
Both segments derive their revenue from a single business activity, the
provision of human capital and business improvement solutions.
The Group's business is not highly seasonal and the Group's customer base is
diversified with no individually significant customer.
Segment results for the 6 months ended 30 September 2025 (Unaudited)
Segment result
EMEA America Total
£'000 £'000 £'000
Revenue 7,962 5,552 13,514
Cost of sales (1,101) (678) (1,779)
Administrative expenses (10,098) (4,057) (14,155)
Profit before inter-segment charges (3,237) 817 (2,420)
Inter-segment charges 614 (614) -
Operating profit - segment result (2,623) 203 (2,420)
Finance income -
Finance costs (97)
(Loss) before tax (2,517)
Adjusted (loss) before tax EMEA America Total
£'000 £'000 £'000
Operating (loss) - segment result (2,623) 203 (2,420)
Adjusting items 388 324 712
Adjusted EBIT (2,235) 527 (1,708)
Finance income -
Finance costs (97)
(Loss) before tax (1,805)
The mix of revenue for the six months ended 30 September 2025 is set out
below.
EMEA America Group
Delivery 63.1% 54.3% 59.3%
Design 20.1% 20.4% 20.2%
Digital 5.9% 6.6% 6.2%
Licensing and certification 4.7% 14.2% 8.8%
Other 5.6% 4.0% 4.9%
Advisory 0.6% 0.5% 0.6%
Segment result for the 6 months ended 30 September 2024 (Unaudited)
EMEA America Total
£'000 £'000 £'000
Revenue 12,136 8,071 20,207
Cost of sales (1,938) (1,104) (3,042)
Administrative expenses (11,381) (6,624) (18,005)
Other income 98 - 98
Profit before inter-segment charges (1,085) 343 (742)
Inter-segment charges 312 (312) -
Operating profit - segment result (773) 31 (742)
Finance income -
Finance costs (116)
(Loss) before tax (858)
Adjusted (loss) before tax EMEA America Total
£'000 £'000 £'000
Operating (loss) - segment result (773) 31 (742)
Adjusting items - - -
Adjusted EBIT (773) 31 (742)
Finance income -
Finance costs (116)
(Loss) before tax (858)
The mix of revenue for the six months ended 30 September 2024 is set out
below.
EMEA America Group
Delivery 76.5% 68.3% 73.2%
Design 12.4% 14.2% 13.2%
Digital 6.8% 8.6% 6.6%
Licensing and certification 1.0% 6.8% 2.2%
Other 2.1% 1.7% 4%
Advisory 1.2% 0.4% 0.8%
Segment results for the year ended 31 March 2025 (Audited)
Segment result
EMEA America Total
£'000 £'000 £'000
Revenue 23,892 14,714 38,606
Cost of sales (3,365) (1,798) (5,163)
Administrative expenses (27,275) (12,323) (39,598)
(Loss)/profit before inter-segment charges (6,748) 593 (6,155)
Inter-segment charges 532 (532) -
Other income 107 - 107
Operating (loss)/profit - segment result (6,109) 61 (6,048)
Finance income 1
Finance costs (142)
Loss before taxation (6,189)
Adjusted (loss)/profit before tax EMEA America Total
£'000 £'000 £'000
Operating (loss)/profit - segment result (6,109) 61 (6,048)
Adjusting items 4,681 705 5,386
Adjusted LBIT/EBIT (1,428) 766 (662)
Finance income 1
Finance costs (142)
Loss before taxation (803)
Management does not report segmental assets and liabilities internally and as
such an analysis is not reported.
The mix of revenue for the year ended 31 March 2025 is set out below.
EMEA America Group
Delivery 69.7% 61.0% 66.3%
Design 16.3% 16.5% 16.4%
Digital 6.5% 8.8% 7.3%
Licensing and certification 3.7% 12.0% 6.9%
Other 2.7% 1.2% 2.2%
Advisory 1.1% 0.5% 0.9%
4. Employees
Staff costs were as follows:
6 months to 30 Sept 2025 6 months to 30 Sept 2024 Year to 31 March 2025
(Unaudited) (Unaudited) (Audited)
£'000 £'000 £'000
Wages and salaries 8,796 12,229 22,779
Social security costs 1,004 1,121 2,307
Pension costs - defined contribution plans 358 453 851
Share-based payments 60 (82) (18)
10,218 13,721 25,919
Restructuring payroll costs included in adjusted items 712 - 654
10,930 13,721 26,573
The average number of Group's employees by function was:
6 months to 30 Sept 2025 6 months to 30 Sept 2024 Year to 31 March 2025
(Unaudited) (Unaudited) (Audited)
Delivery 114 169 151
Support 70 82 86
Digital 5 13 10
189 264 247
The period end number of Group's employees by function was:
6 months to 30 Sept 2025 6 months to 30 Sept 2024 Year to 31 March 2025
(Unaudited) (Unaudited) (Audited)
Delivery 111 162 135
Support 59 82 80
Digital 4 12 8
174 256 223
5. Net finance costs
6 months to 30 Sept 2025 6 months to 30 Sept 2024 Year to 31 March 2025
(Unaudited) (Unaudited) (Audited)
£'000 £'000 £'000
Finance income
Interest receivable - - 1
- - 1
Finance costs
Interest payable (35) (46) (44)
Other borrowing costs (40) (30) (30)
Lease interest (IFRS 16) (22) (40) (68)
(97) (116) (141)
6. Adjusting items
6 months to 30 Sept 2025 6 months to 30 Sept 2024 Year to 31 March 2025
(Unaudited) (Unaudited) (Audited)
£'000 £'000 £'000
Restructuring costs 712 - 982
Impairment of intangibles - - 4,404
712 - 5,386
Restructuring costs in the six months ended 30 September 2025 and the year
ended 31 March 2025 included redundancy costs related to the reduction of the
cost base.
Impairment of intangible assets were excluded from the adjusted results of the
Group for the year ended 31 March 2025 since the costs were one-off charges.
These related to digital assets not in use that are no longer being developed.
No such charges were recorded in the six months ended 30 September 2025.
7. Tax
The statutory tax credit of £19,000 (six months ended 30 September 2024:
credit of £71,000; year ended 31 March 2025: charge of £2,000,000)
represents an effective tax rate on loss before tax of 1% (six months ended 30
September 2024: 9%; year ended 31 March 2025: -32%).
8. Earnings per share
Basic earnings per share is calculated by dividing the earnings attributable
to shareholders of the Company by the weighted average number of ordinary
shares in issue during the year. The Company has potentially dilutive shares
in respect of the share-based payment plans (see Note 16).
30 Sept 2025 30 Sept 2024 31 March 2025
(Unaudited) (Unaudited) (Audited)
Weighted average number of shares in issue 100,340,109 100,208,494 100,273,688
Potentially dilutive shares (weighted average) 3,946,830 3,070,090 6,965,965
Fully diluted number of shares (weighted average) 104,286,939 103,278,584 107,239,653
6 months to 30 Sept 2025 6 months to 30 Sept 2024 Year to 31 March 2025
(Unaudited) (Unaudited) (Audited)
pence pence pence
Basic (loss)/earnings per share (2.48) (0.79) (8.16)
Diluted (loss)/earnings per share (2.48) (0.79) (8.16)
Adjusted basic (loss)/earnings per share (1.97) (0.79) (4.16)
Adjusted diluted (loss)/earnings per share (1.97) (0.79) (4.16)
9. Dividends
The Board did not propose a final dividend for the year ended 31 March 2025.
No interim dividend is proposed for the period to 30 September 2025.
10. Intangible assets
Patents Development costs Total
£'000 £'000 £'000
Cost
At 1 April 2025 172 18,886 19,058
Additions 5 366 371
At 30 September 2025 177 19,252 19,429
Amortisation
At 1 April 2025 83 15,226 15,309
Amortisation charge 6 429 435
At 30 September 2025 89 15,655 15,744
Net book value
At 31 March 2025 89 3,660 3,749
At 30 September 2025 88 3,597 3,685
Development cost additions in the six months ended 30 September 2025 includes
software development costs directly incurred in the creation of new digital
assets.
11. Property, plant and equipment
Right-of-use asset Leasehold improvements Fixtures, fittings and equipment Total
£'000 £'000 £'000 £'000
Cost
At 1 April 2025 3,214 229 654 4,097
Additions - - 26 26
Remeasurement (2) - - (2)
Exchange differences (3) - (2) (5)
At 30 September 2025 3,209 229 678 4,116
Depreciation
At 1 April 2025 2,119 229 550 2,898
Depreciation charge 235 - 41 276
Exchange differences - - (2) (2)
At 30 September 2025 2,354 229 589 3,172
Net book value
At 31 March 2025 1,095 - 104 1,199
At 30 September 2025 855 - 89 944
12. Trade and other receivables
30 Sept 2025 30 Sept 2024 31 March 2025
(Unaudited) (Unaudited) (Audited)
£'000 £'000 £'000
Trade receivables 4,735 5,027 5,331
Less provision for impairment (79) (88) (91)
Net trade receivables 4,656 4,939 5,240
Other receivables 50 28 43
Prepayments in respect of property deposits 11 213 11
Prepayments 493 605 583
Accrued income 574 820 592
5,784 6,605 6,469
Trade receivables have been aged with respect to the payment terms as follows:
30 Sept 2025 30 Sept 2024 31 March 2025
(Unaudited) (Unaudited) (Audited)
£'000 £'000 £'000
Not past due 4,379 4,735 5,045
Past due 0-30 days 307 135 227
Past due 31-60 days 25 133 46
Past due 61-90 days 3 3 5
Past due more than 90 days 21 21 8
4,735 5,027 5,331
13. Trade and other payables
30 Sept 2025 30 Sept 2024 31 March 2025
(Unaudited) (Unaudited) (Audited)
£'000 £'000 £'000
Trade payables 844 712 1,016
Other taxation and social security 1,011 1,704 668
Other payables 334 327 356
Accruals 3,172 3,259 3,448
Deferred income 2,500 1,291 2,159
7,861 7,293
7,647
14. Borrowings
The Group entered into a £4 million overdraft facility in March 2025, which
will be renewable in March 2026. At 30 September 2025, the Group has drawn
down on £1.4 million of the facility. Borrowings have been included within
cash and cash equivalents on the Consolidated Statement of Cash Flows as it is
repayable on demand and forms an integral part of cash management.
15. Share capital
30 Sept 30 Sept 30 Sept 30 Sept 31 March 2025 31 March 2025
2025 2025 2024 2024
Cost Cost Cost
Number £'000 Number £'000 Number £'000
Ordinary shares of £0.00001 At 1 April 100,338,882 1 100,198,464 1 100,198,464 1
Issue of shares to satisfy options 3,988 - 140,418 - 140,418 -
Ordinary shares of £0.00001 at period end 100,342,870 1 100,338,882 1 100,338,882 1
16. Share based payments
The Group awards options to selected employees under a Long-Term Incentive
Share Option Plan ("LTIP"). The options granted to date vest subject only to
remaining employed up to the vesting date. Unexercised options do not entitle
the holder to dividends or to voting rights.
The awards granted in the year ended 31 March 2023, 31 March 2024 and 31 March
2025 as well as six months to 30 September 2025 are either subject to
performance conditions based on revenues and EBITDA or are timebound.
On 30 September 2019 the Group launched an annual Save As You Earn Scheme and
an Employee Share Purchase Plan for all eligible employees in the UK and USA
respectively. Annual schemes have been launched since 2019.
The total share-based payments (credit)/expense was:
6 months to 30 Sept 2025 6 months to 30 Sept 2024 Year to 31 March 2025
(Unaudited) (Unaudited) (Audited)
£'000 £'000 £'000
Equity settled share-based payments 59 (82) (18)
17. Events after the reporting period
There have been no events after the reporting period.
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