REG - Mind Gym PLC - Year End Trading Update

Mind GymAnnouncement

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RNS Number : 2517Z  Mind Gym PLC  02 April 2026

2 April 2026

Mind Gym plc

("MindGym" the "Company" or the "Group")

Year End Trading Update

MindGym (AIM: MIND), the global provider of human capital and business
improvement solutions, provides a trading update for the year ended 31 March
2026 ("FY26").

Overview

MindGym is two years through its three-year transformation strategy to evolve
the business from an episodic training provider to a strategic
behavioural-change partner by making MindGym products easier to buy, sell and
renew.

Financial Update

For FY26 the Group expects to report:

·      Revenues of c. £29.7m, 8% lower than last year or a 6% reduction
at constant currency (excluding the multi-year framework agreement which
contributed £6.3m to revenues in FY25)

·      Performance weighted to H2 as anticipated, with H2 revenue c.20%
higher than H1

·      Increase in renewable membership revenue to 17% of total revenue
in H2 and 10% for the whole year vs 3% in the prior year

·      Gross margin of 88% (FY25: 86%)

·      A return to profitability: adjusted EBITDA profit of not less
than £0.6m (FY25: £1.9m), compared to a first half adjusted EBITDA loss of
£1m, reflecting benefit of cost reductions

·      A net debt position of £0.4m (FY25: net cash of £0.6m), reduced
from net debt of £1m at 30 September 2025. The Group is in the process of
renewing its overdraft facility

Strategic and Operational highlights

MindGym continues to prioritise executing its transformation strategy and, in
FY26, has focused on rebuilding its sales organisation, increasing commercial
effectiveness, enhancing its digital lead generation and improving its digital
delivery of membership and licence products. It also starts the new financial
year with a cost base c. £5m lower than FY25 and an improving gross margin.

FY26 saw challenging market conditions, but despite this the Group has made
significant progress against its objectives In the second half of the year,
revenue grew in each quarter and was around 20% higher than in the first half.
As part of this, corporate memberships have grown from 13 at the half year
point to more than 60 at year end, contributing around 17% of total revenue in
the second half of the year. Overall membership revenue is anticipated to be
around £2.9m or 10% of the expected total for the year. Increasing membership
revenues, which are recurring in nature, will over time improve the quality of
earnings of the Company and reduce the impact of discreet buying decisions

 

Outlook

The Board is encouraged by the stronger trading performance in the second half
of FY26 and, along with a number of significant contract opportunities
slipping into Q1 FY27, this should provide positive momentum for the new
financial year, notwithstanding the challenging global macroeconomic
conditions. The cash position is also expected to improve and allow for
continued investments to deliver growth. A further update on current trading
will be provided at the time of the full-year results.

Full Year Results

MindGym expects to announce its FY26 full-year results in mid-June 2026.

Christoffer Ellehuus, CEO of MindGym commented:

"I'm pleased to see the progress we have made in the last six months and the
signs that the business is turning around from the first half of the year. The
continued investment in our membership and licencing structure and its
delivery platforms is starting to show through in the results, and we look
forward to continuing this progress in the new financial year."

Enquiries

 

 MindGym plc                                         +44 (0)20 7376 0626

 Christoffer Ellehuus, Chief Executive Officer

 Nicholas Stone, Interim Chief Financial Officer

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

 Nick How

 Will King

 MHP Communications (Public Relations Advisor)       +44 (0)7831 406117

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

 Jake Terry

 

About MindGym

MindGym is a Group that delivers business improvement solutions using
scalable, proprietary products 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
(https://protect.checkpoint.com/v2/r06/___http:/www.themindgym.com/___.ZXV3MjpuZXh0MTU6YzpvOjFmYWE4NDdkMGIwZjQ2N2IyM2JlYmNlNjU1MDFmMzQyOjc6MjQ4ZTpkMmJiNGQ1YWU3NGRkNzcwNDcyMzlmYjNjNDU3NzhhZDEwNTc3OGM2N2VjMDdlZWVmOTIyMTQ1OGExYWJlZGFiOnA6VDpU)

 

Rule 28 of the Takeover Code

 

The UK Panel on Takeovers and Mergers has confirmed that the profit estimate
constitutes an ordinary

course profit forecast for the purposes of Note 2(b) to Rule 28.1 of the
Takeover Code, to which the

requirements of Rule 28.1(c)(i) of the Takeover Code apply.

 

Directors' confirmation

 

The directors have considered the profit estimate contained herein and confirm
that it remains valid as

at the date of this statement, have been properly compiled and the basis of
the accounting used is

consistent with the Group's existing accounting policies.

 

Basis of preparation

 

The profit estimate is based on the Group's current internal unaudited
consolidated accounts for the

11 months to 28 February 2026 and estimates for March 2026. The basis of the
accounting policies used in the profit estimate is consistent with the
existing accounting policies of the Group, which use 'Alternative Performance
Measures' and International Financial Reporting Standards measures as approved
by the International Accounting Standards Board and adopted by the European

Union.

 

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