11th Jun 2020 11:37
(Alliance News) - Mind Gym PLC on Thursday said it intends to accelerate its digital offering due to coronavirus, after reporting double-digit profit growth in its most recently ended financial year.
The London-based training consultant reported a 15% revenue increase in the 12 months to the end of March to GBP48.2 million from GBP42.1 million, taking pretax profit up 44% to GBP7.4 million from GBP5.1 million. On a constant currency basis, revenue improved by 12%.
The company said it managed to achieve improvement despite the Covid-19 impact in past two months of its financial 2020. Pre-Covid-19 revenue for the 10 months to the end of January grew 22% on the prior year, the company noted.
In response to the deteriorated situation, Mind Gym cut its payout to 0.9 pence a share from 2.4p paid a year earlier.
Looking forward, Mind Gym said, over the course of 2020, it plans to recruit and develop a 40 strong digital team based in the UK. The average number of staff during its financial 2020 increased 19% to 247 from 208.
Mind Gym explained that, in the short term, coronavirus has hurt its clients' businesses and its own performance, but in the medium term, the company believes it creates a strong opportunity to accelerate its existing digital offering and grow its share of the market.
'We are pleased with the group's overall performance despite the difficulties of the last quarter. At the end of January 2020 we were on track to exceed revenue and deliver on profit expectations," said Chief Executive Octavius Black.
"We are confident that we have the right strategy and are making the right investments to deliver a return to growth once the worst effects of Covid-19 pass," added Black.
AIM-listed Mind Gym shares were trading 8.7% lower in London on Thursday at 105.00 pence each.
By Evelina Grecenko; [email protected]
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