REG - Mind Gym PLC - Half Year Trading Update & Notice of Results

Mind GymAnnouncement

09/10/2023 07:15

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RNS Number : 0506P  Mind Gym PLC  09 October 2023

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                            +44 (0) 20 7376 0626

 Octavius Black (CEO)                    investors@themindgym.com (mailto:investors@themindgym.com)

 Dominic Neary (CFO)

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

 Nick How

 Edward Mansfield

 MHP (for media enquiries)               +44 (0) 20 3128 8793

 Reg Hoare                               mindgym@mhpgroup.com (mailto:mindgym@mhpgroup.com)

 Katie Hunt

 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, New York and Singapore.

Further information is available at www.themindgym.com
(http://www.themindgym.com/) @themindgym

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