Mind Gym (MIND)

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FTSE AIM All-Share

 30.00p
   
  • Change Today:
      0.000p
  • 52 Week High: 62.50
  • 52 Week Low: 29.00
  • Currency: UK Pounds
  • Shares Issued: 100.20m
  • Volume: 63
  • Market Cap: £30.06m
  • RiskGrade: 147

Mind Gym confident despite swinging to losses

By Josh White

Date: Monday 17 Jun 2024

LONDON (ShareCast) - (Sharecast News) - Mind Gym reported on a challenging year in which it swung to losses on Monday, while also outlining a new strategy aimed at medium-term growth and profitability.
The AIM-traded firm recorded revenue of £44.9m for the year ended 31 March, an 18% decline from the prior year.

Its gross profit margin decreased by 220 basis points to 86.2%.

The company faced an adjusted EBITDA loss of £0.3m, compared to a profit of £5.3m in the 2023 financial year, while statutory losses were £12.1m, swinging from a £3m profit a year earlier, and cash used in operations total;ed £3.2 million, compared to £4.4m generated year-on-year.

Cash at the bank stood at £1.4m, a decrease of £6.2m.

The decline in performance was put down to macroeconomic headwinds, particularly affecting the tech sector in the US and consumer and manufacturing companies reliant on global supply chains.

Increased caution on human resources budgets and heightened competition for client budgets also contributed to the revenue drop.

A significant decline in client spend on diversity, equity and inclusion (DEI) initiatives, especially in the US, led to a 32% revenue decline in this region, while EMEA performance remained stable.

Despite the challenges, Mind Gym said it implemented a significant cost reduction plan, achieving an annualised reduction of over £11m in operating and capital expenditures.

That included a 10% reduction in adjusted operating expenditure to £39.1m and a 17.5% decrease in capital expenditure to £4.2m.

The company returned to adjusted EBITDA profitability in the second half of the year, with a £3.8m profit partially offsetting its £4.1m loss in the first half.

Mind Gym's CEO Christoffer Ellehuus, who joined in January, had introduced a new strategy to drive growth and profitability.

The strategy was focussed on evolving Mind Gym from a provider of individual behavioural change programs to a strategic behavioural change partner for chief human resources officers (CHROs).

It said the strategy comprised short-term commercial execution to lay the foundation for growth and medium-term initiatives to package Mind Gym's intellectual property, products, and data for scaling the business.

Looking ahead, the firm said the 2025 financial year would be one of recalibration, as Mind Gym implemented its new strategy, which was expected to return the company to historic performance levels.

The board said it anticipated EBITDA profitability and cash generation.

In the medium term, Mind Gym was aiming to achieve revenue growth exceeding 10% compound annual growth rate, and EBITDA margins between 15% and 20%, capitalising on the opportunities within the highly fragmented $80bn human capital advisory market.

Mind Gym's board also saw changes during the year, with Christoffer Ellehuus's appointment as CEO and Octavius Black transitioning to executive chair to focus on market presence, thought leadership, and client relations.

The group said it retained access to a £2m undrawn loan facility, ensuring sufficient liquidity to support its strategic initiatives.

"I believe that we have all the right foundations for future growth - strong client relationships, innovative solutions, and a very talented team," said chief executive officer Christoffer Ellehuus.

"I am excited about leading Mind Gym forward on a path of profitable, sustainable growth, profitability making Mind Gym solutions easy to buy, easy to deliver, and easy to renew."

At 1135 BST, shares in Mind Gym were down 22.08% at 30p.

Reporting by Josh White for Sharecast.com.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Mind Gym Market Data

Currency UK Pounds
Share Price 30.00p
Change Today 0.000p
% Change 0.00 %
52 Week High 62.50
52 Week Low 29.00
Volume 63
Shares Issued 100.20m
Market Cap £30.06m
RiskGrade 147

Mind Gym Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
27.42% below the market average27.42% below the market average27.42% below the market average27.42% below the market average27.42% below the market average
26.09% below the sector average26.09% below the sector average26.09% below the sector average26.09% below the sector average26.09% below the sector average
Price Trend
79% below the market average79% below the market average79% below the market average79% below the market average79% below the market average
89.9% below the sector average89.9% below the sector average89.9% below the sector average89.9% below the sector average89.9% below the sector average
Income Not Available
Growth
17.5% below the market average17.5% below the market average17.5% below the market average17.5% below the market average17.5% below the market average
19.15% below the sector average19.15% below the sector average19.15% below the sector average19.15% below the sector average19.15% below the sector average

What The Brokers Say

Strong Buy 1
Buy 0
Neutral 0
Sell 0
Strong Sell 0
Total 1
strong_buy
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Mind Gym Dividends

  Latest Previous
  Interim Final
Ex-Div 19-Dec-19 01-Aug-19
Paid 15-Jan-20 30-Aug-19
Amount 0.90p 1.60p

Trades for 19-Jul-2024

Time Volume / Share Price
15:29 33 @ 30.50p
10:06 30 @ 33.00p

Mind Gym Key Personnel

CFO Dominic Neary

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