Mind Gym H1 results don’t lift sentiment

The price of shares in AIM-listed training company Mind Gym (LON:MIND) slipped 4.89% to 107p (as of 12:55 GMT) after it revealed that revenues for the six months ended 30th September dropped by 40%. The company booked a statutory pre-tax loss of £2 million but margins improved due to the shift towards digital delivery in the current climate.

CEO Octavius Black commented: “The last quarter of FY20 and the first half of FY21 saw the nature of work and workplaces irreversibly altered by the global COVID crisis which meant that first half revenue was down 40% on the comparative period. However, in each month since the nadir in July, year-on-year revenue has continued to improve which implies a marked improvement in overall performance in H2 compared with H1. Our reputation for strong live delivery through virtual channels, built over ten years, has protected the business through lockdown and our rapid innovation has kept us highly relevant during this very human crisis.

“The Group continues to invest in areas that support medium term growth including marketing and new senior hires, as well as a major investment in accelerating our digital strategy. Our robust cash balance protects the business and supports our ongoing digital investment to ensure Mind Gym continues to grow its share of the corporate human performance and behavioural change market.

“The macro outlook remains highly unpredictable, however we are confident that when the greatest COVID risks have passed, the business will be in a stronger position than ever to realise the market opportunity and return to robust, sustainable growth.“