Mind Gym returns to pre-Covid revenue levels in first half

Human resources and business services company Mind Gym said on Monday that it was expecting to report revenues of £24.1m in its first half, which would make for constant currency growth of 76% year-on-year, and of 7% above the same period two years ago, pre-pandemic.

The AIM-traded firm said in actual currency terms, revenues were 66% higher than the first half of 2020, and level on two years ago, due to a headwind from sterling strengthening against the dollar.

That performance was in line with the board's expectations.

In terms of the group's ongoing digital transformation, 82% of revenues in the period were described by the board as “digitally-enabled”.

The group said it was continuing to invest in its digital capabilities ahead of planned launches of its new digital product set.

Mind Gym said it remained confident in its strategy to invest for future growth, with its balance sheet described as “resilient”.

Cash at bank at period end on 30 September totalled £11.9m, with the company recently entering into a £10m debt facility consisting of a £6m revolving credit component and a £4m accordion, which remained undrawn as at 30 September.

“We are delighted to see strong growth in revenues in the first six months of the year, ahead of pre-Covid-19 levels for the comparable period, driven by our digitally enabled capabilities with virtual delivery of our services providing clients with attractive workplace flexibility,” said chief executive officer Octavius Black.

“We remain focused on our investments and new digital products and will update further at the time of our interim results in December.”

Mind Gym said it would further update the market with its interim results on 3 December.

At 0819 BST, shares in Mind Gym were up 0.11% at 190.2p.