17th Jun 2024 09:58
(Alliance News) - Shares in Mind Gym PLC plummeted on Monday after it reported falling into the red, amid lower annual sales.
Shares in Mind Gym fell 32% to 26.00 pence in London on Monday, giving it a market value of GBP26.1 million.
In the 12 months that ended March 31, the London-based personal and business coaching service reported a pretax loss of GBP12.1 million, swinging from a GBP3.0 million profit the year prior, as revenue fell 18% to GBP44.9 million from GBP55.0 million.
Adjusted loss per share was 4.25 pence, compared with earnings of 2.84p.
Mind Gym said market dynamics resulted in a challenging year, particularly in the second quarter.
The company said macroeconomic headwinds affected confidence in key sectors, including tech, especially in the US, and consumer and manufacturing companies dependent on global supply chains.
Mind Gym said increased caution on human resources budgets has affected demand, with more client stakeholders needed to sign off budgets.
The company highlighted a material decline in client spend on diversity, equity & inclusion, a significant revenue stream particularly in the US which contributed to the 32% US revenue decline from a year prior.
Mind Gym said the current financial year would be one of "recalibration" as it implements a new strategy aimed at returning the company to historic performance levels.
This would focus on making MindGym solutions "easy to buy, easy to deliver, and easy to renew."
For the current financial year, Mind Gym expects earnings before interest, tax, depreciation and amortisation profitability and cash generation.
In the medium-term, Mind Gym said it is confident the business will deliver compound annual revenue growth in excess of 10% with Ebitda margins between 15% and 20%.
By Jeremy Cutler, Alliance News reporter
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