REG - Mind Gym PLC - Half Year Trading Update

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RNS Number : 1011E  Mind Gym PLC  21 October 2025

21 October 2025

Mind Gym plc

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

Half Year Trading Update

MindGym (AIM: MIND), the global provider of human capital and business
improvement solutions, provides a trading update for the six months ended 30
September 2025 ("H1 FY26").

Overview

MindGym is mid-way 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.  As expected, H1 FY26 has continued to see challenging market
conditions for HR services and the period also reflects the absence of the
multi-year energy framework agreement which concluded in FY25.

We remain focused on our transformation strategy with H1 actions including
rebuilding and increasing the commercial effectiveness of the sales
organisation and driving product alignment under the High-Performance
Behaviour Model. We expect to see the benefits of this in a stronger H2
revenue performance, driven by an anticipated increase in membership
(subscription) revenues and the positive impact of investments made in sales
and marketing effectiveness.

Financial Update

For H1 FY26 the Group expects to report:

·      Revenues of £13.5m (£13.8m in constant currency).

·      16% lower than the comparative period last year, excluding the
multi-year framework agreement which contributed £4.0m to revenues in H1 FY25
and which concluded in FY25.

o  Performance in EMEA has been broadly flat year-on-year with the US
continuing to face market headwinds.

·      An adjusted EBITDA loss of £1.0m, driven by the impact of the
revenue phasing to H2, in line with the Board's expectations.

·      As at 30 September, the Group had a net debt position of £1m.
The Group retains adequate liquidity and, in line with our anticipated phasing
of revenues, the Group expects H2 to be cash generative.

Strategic and operational highlights

The Group continues to prioritise executing its transformation strategy and,
in H1 FY26, the Group has focused on rebuilding the sales organisation and
increasing commercial effectiveness. The sales team is now globally aligned
under the new sales leadership appointed at the end of FY25, operating under
consistent performance standards and with the number of sales people
increasing from 30 to 39 by November 2025.  This, together with a ramped-up
focus on digital lead generation, has driven a significant improvement in
pipeline generation during the period.

In FY26 to date a further estimated £3.5m in annualised costs have been
removed from the business as we continue to rationalise and drive efficiencies
across the organisational structure in the pursuit of a more flexible cost
model.

Outlook

The Group continues to trade in line with the Board's expectations, with
performance weighted to H2 as we see an anticipated increase in membership
(subscription) revenues and the positive impact of investments made in the
sales and marketing effectiveness, as well as the benefits of the lower cost
base.

Half Year Results

Mind Gym expects to announce its half year results in early December 2025.

Christoffer Ellehuus, CEO of MindGym commented:

"I am pleased with the progress we are making on our three-year transformation
strategy despite the challenging economic environment.  Significant progress
has been made around commercial effectiveness and the creation and launch of
our new unified High-Performance Behaviour Model.

"We anticipate a stronger second half performance, providing confidence the
Group is trading in line with the Board's full year expectations."

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)7710 117517

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

 Veronica Farah

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)
@themindgym

 

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