Mind Gym H1 trading 'materially affected' by Covid-19
By Iain Gilbert
Date: Friday 16 Oct 2020
(Sharecast News) - Training solutions provider Mind Gym said on Friday that its first-half trading performance had reflected the ongoing disruption caused by the Covid-19 pandemic to its global client base.
Mind Gym said as its clients focused on dealing with their own operational changes, they were forced to cancel face-to-face leadership events and training programmes, with most of the new work usually commissioned with the firm between February and July being suspended.
However, revenues from virtual live deliveries increased significantly to 78% of total revenues, compared to 32% for the same period in 2019, with revenue for the six months ended 30 September now expected to be 40% weaker year-on-year at £14.5m.
Both US and Europe, the Middle East and Asia trading were "materially affected" by Covid-19, with revenues expected to be 36% and 44% weaker, respectively.
Mind Gym highlighted that it continued to maintain "a resilient balance" sheet - with £14.5m cash at the end of the half.
Looking forward, the AIM-listed group stated that October was forecast to deliver a marked increase in revenue, and added that its pipeline had "expanded substantially".
"As a result, it is anticipated that the second half of the current financial year ending 31 March 2021, will see significant growth in both revenue and profits compared to the first half of this year," said Mind Gym.
As of 0910 BST, Mind Gym shares were down 4.28% at 89.50p.
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