9th Mar 2020 13:25
(Correcting that Mind Gym will be issuing a trading update on April 27, not full-year results.)
(Alliance News) - Mind Gym PLC on Monday said coronavirus has hurt its performance at the end of its current financial year.
The behavioural science business said its underlying trading remained "strong" between the end of September 2019 and January 31, however, since then, it has experienced a "material impact" on revenue from the outbreak of the covid-19 virus. Mind Gym said it has experienced an increased number of cancellations of booked sessions from clients and a material reduction in new bookings.
The company said it now expects revenue to be in the range of a 10% to 15% increase on the prior year, between GBP46.5 million to GBP48.5 million, which is below its previous expectations.
Mind Gym explained that, whilst it is focussed on tight cost control, the sudden fall in revenue close to the end of its financial year provides limited opportunity to reduce planned expenditure and investment. Thus, Mind Gym expects to report adjusted pretax profit in the range of GBP5.8 million to GBP7.3 million.
In the year to the end of March 2019, Mind Gym reported pretax profit of GBP5.1 million on revenue of GBP42.1 million.
The company said it will publish a further trading update on April 27, it said.
"In a fast-changing environment we continue to assess the impact of COVID-19 on our business, supporting clients with our digital products and managing costs as required," said Chief Executive Octavius Black.
He added: "We remain committed to our investment in product and people and are confident that this will deliver long term value to shareholders."
Mind Gym shares were trading 35% lower in London on Monday at 105.00 pence each.
By Evelina Grecenko; [email protected]
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