16th Oct 2020 11:38
(Alliance News) - Mind Gym PLC on Friday said trading in the first half of its financial year was hit by Covid-19, but this has led to the acceleration of its digital strategy, which mitigated some of the impact.
The provider of human capital and business improvement solutions said it expects revenue for the half year ended September 30 to be down 40% to GBP14.5 million, compared to the year prior's GBP23.9 million.
The company expects to make an adjusted loss before tax of between GBP1.0 million and GBP1.5 million, swinging from GBP4.0 million a year prior.
Mind Gym said: "As our clients focused on dealing with their own operational changes, including moving to remote working, they were forced to cancel face-to-face leadership events and training programmes and most of the new work usually commissioned with us between February and July was suspended."
"The group has taken action to reduce costs to reflect current revenues, whilst continuing to invest to support growth," the company added.
Mind Gym's balance sheet at September 30 was GBP14.5 million, up from GBP10.7 milllion a year prior. The company has no bank debt.
Mind Gym said: "October is forecast to deliver a marked increase in revenue, continuing the group's month-on-month improvement in performance through August and September. In addition, the group's pipeline has expanded substantially, pointing to a continuation in this recovery."
It is anticipated by Mind Gym that the second half will see significant growth in profit and revenue compared to the first.
Chief Executive Octavius Black said: "The group has taken the opportunity to increase its focus on the medium to long term digital strategy and investment which will ensure Mind Gym grows its share of the corporate development and behaviourial change market.
"Growth is returning, showing up in both booked revenues and the opportunity pipeline and we are confident that revenue performance and profitability in the second half of the 2021 financial year will be significantly better than the first half."
Mind Gym also noted the appointment of Trevor Phillips as an independent non-executive director of the company, effective immediately.
Senior Independent Non-Executive Director Dido Harding is stepping down with immediate effect.
Mind Gym shares were down 22% at 73.00 pence each in London on Friday morning.
By Greg Roxburgh; [email protected]
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