Full Year Trading Update

RNS Number : 1254J

Mind Gym PLC

25 April 2022

 

25^th April 2022

Mind Gym plc

 ("Mind Gym" or the "Company" or "Group")  

Full Year Trading Update

Core business returns to pre-COVID levels and digital transformation is well underway

Mind Gym (AIM: MIND), the global provider of human capital and business improvement solutions, is pleased to provide a trading update for its financial year ended 31 March 2022. 

Highlights*:

· Robust performance in line with the Board's expectations, with the core business returning to pre-Covid levels:

o  Revenue is expected to be £47.9m, up 25 per cent on FY21 (in constant currency) and up 5 per cent on pre-Covid levels (FY20).

o  Delivery achieved against the backdrop of second half headwinds from Omicron.

o  Adjusted PBT for the year is expected to be in line with Board expectations.

· Digitally-enabled revenues of £36.8m, were up 25 per cent versus FY21 and up 156 per cent versus FY20 (when the majority of deliveries were still face to face) and represented 77 per cent share of revenue (77 per cent in FY21 and 32 per cent in FY20).

· In March 2022, Mind Gym acquired, for cash consideration of £0.1m, the diagnostic IP of 10X Psychology Limited (in administration) ("10X") supporting Mind Gym's developing digital strategy.

· Strong financial position maintained:

o  Net cash of £10.0m at 31^st March 2022, vs. £16.8m at 31^st March 2021, following significant investment during the financial year in our new digital products.

o  New undrawn debt facility to support investment in growth.

* Financial metrics subject to audit and at constant currency unless otherwise stated

Full Year Trading Performance

FY22 has been a year of continued progress and significant investment for Mind Gym. The Group is exiting the Covid pandemic with a strengthened proposition to its clients in a number of key areas, having launched its new digital coaching platform in January 22, and with a strong pipeline of new POV's - 'Leadership' and 'Wellbeing' due in the coming months.

Despite the continued headwind of Covid, with Omicron causing some delays in client decision making and course take up in the second half and into the new financial year, both the UK and the US delivered strong growth vs. FY21.   In actual currency, Group revenues were up 24 per cent on prior year and up 1 per cent on FY20.

Performa, Mind Gym's digital 1:1 coaching SaaS platform, was launched in January 2022 and to date has sold in excess of £0.5m of Annualised Revenue. The product is based on Mind Gym's proprietary Precision coaching methodology, and offers the opportunity to provide clients with a leadership development solution bundled with Mind Gym's existing products.

The acquisition of 10X's diagnostic IP, which was the result of seven years' work and circa £10m of historic investment by 10X, is anticipated to contribute significantly to Mind Gym's digital strategy of delivering highly personalised interventions to participants, and insightful data and analysis to clients. A large-scale co-validation study performed by 10X showed its diagnostic methodology to be more accurate at predicting behaviour than the leading personality questionnaires on the market. It is proposed to integrate this into Mind Gym's planned second digital product, DXP, which is then expected to be launched in FY24.

During the year, the Group entered into a  £10m  debt facility ( £6m  RCF,  £4m  accordion), which was undrawn as at 31 March 2022. This provides the flexibility to support future growth opportunities.

Octavius Black, Chief Executive Officer of Mind Gym, commented:

"We are encouraged with Mind Gym's performance despite the Covid headwinds, with good revenue growth ahead of last year and pre-pandemic levels. We are excited by the recent launch of Performa our digital 1:1 coaching SaaS 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 IP, delighting clients and a significant digital transformation."

Enquiries  

Mind Gym plc	[phone]
Octavius Black (CEO)
Dominic Neary (CFO)
Liberum (Nominated Adviser and Broker)	[phone]
Bidhi Bhoma Nick How Kane Collings

MHP (for media enquiries)        [phone]

Reg Hoare    [e-mail]

Katie Hunt

Charlie Protheroe

About Mind Gym

Mind Gym is a company that delivers business improvement solutions using scalable, proprietary products which are based on behavioural science. The Group operates in three global markets: business transformation, human capital management and learning & development.

Mind Gym is listed on the London Stock Exchange Alternative Investment Market (ticker: MIND) and headquartered in London. The business has offices in London, New York and Singapore.

Further information is available at www.themindgym.com

 

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