Mind Gym struggles during first half

Shares in AIM-listed training company Mind Gym (LON:MIND) fell by 21.93% to 73p (as of 11:25 BST) after the firm reported that revenues for the six months ended 30th September would be roughly 40% behind the prior year’s comparative. While the company has taken steps to reduce costs, management anticipate that they will book an adjusted pre-tax loss of £1-1.5 million for the period before restructuring costs.

CEO Octavius Black commented: “The first six months of the current financial year was a period of great uncertainty as companies focused their attention on the operational challenges of adapting to COVID-19. We were successful in pivoting clients to virtual delivery, feedback for which is very strong, and in leading the market again in product development.

“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 H2 FY21 will be significantly better than H1.

“We continue to have a strong cash balance that protects the business and provides the resources for investing in growth.

“Despite the challenges brought by COVID, our strong proposition, team and financial position combined with an improving performance leaves us confident about the future“.