Mind Gym reports 'robust' year of trading

Human capital and business service company Mind Gym reported a “robust” performance in line with its expectations in a full-year trading update on Monday, with its core business returning to pre-Covid-19 levels.

The AIM-traded firm said revenue was expected to be £47.9m, up 25% on 2021 in constant currency, and up 5% on pre-pandemic levels in the 2020 financial year.

It achieved that performance against the backdrop of second half-headwinds from Omicron, while adjusted profit before tax for the year ended 31 March was expected to be in line with board expectations.

Mind Gym said digitally-enabled revenues totalled £36.8m - up 25% over the 2021 financial year and 156% higher than 2020, and represented 77% of revenue.

The company noted that in March, it acquired the diagnostic intellectual property of 10X Psychology, in administration, for £0.1m in cash, to support its developing digital strategy.

It said it maintained its “strong” financial position, with net cash totalling £10m as at 31 March, down from £16.8m a year earlier but following “significant” investment during the financial year in the firm’s new digital products.

“We are encouraged with Mind Gym's performance despite the Covid headwinds, with good revenue growth ahead of last year and pre-pandemic levels,” said chief executive officer Octavius Black.

“We are excited by the recent launch of Performa, our digital one-to-one coaching software-as-a-service, and delighted with the positive reception it has already received from new and existing clients.

“We have a clear strategy for accelerating revenue growth based on market-leading intellectual property, delighting clients and a significant digital transformation.”

At 0930 BST, shares in Mind Gym were up 0.69% at 130.9p.