Mind Gym sees return to profit by 2023 after swinging to loss

(Alliance News) - Mind Gym PLC on Friday said it will break even in the current financial year ...

Alliance News 11 June, 2021 | 9:08AM
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(Alliance News) - Mind Gym PLC on Friday said it will break even in the current financial year before returning to a profit next year, after swinging to a loss in the 2021 financial year.

The employee training provider made a pretax loss of GBP356,000 in the year ended March 31, after a profit of GBP7.4 million the previous year. Revenue fell 18% to GBP39.4 million from GBP48.2 million.

Shares were down 7.5% to 141.00 pence in London.

The company said it bounced back in the second half of financial 2021 after business was hit by the pandemic in the first half. Revenue had plunged 40% year-on-year in the first half, but that moderated to an 18% fall for the whole year, as Mind Gym moved training activities online and customers spent more on mental health and inclusion sessions.

The London-based company said it has made a strong start to financial 2022, and expects revenue to at least reach the financial 2020 level. In terms of profit, Mind Gym expects to break even this year before returning to profitability in financial 2023.

The firm said it is in a strong financial position, with net cash of GBP16.8 million up from GBP16.0 million a year ago as more clients paid upfront.

Dividends will be restored once Mind Gym returns to profit and generates surplus cash, the company said. It had paid out 2.4p per share in financial 2019 and 0.9p per share in financial 2020, before cancelling dividends on the outbreak of the pandemic.

Joanne Cash will step down as chair next month, to be replaced by Ruby McGregor-Smith, the former chief executive of Mitie Group PLC, Mind Gym announced.

"We are pleased with how the group responded to the extraordinary circumstances of the last year with a clear plan to deliver highly topical, fresh insight to clients and accelerate our pivot to virtual and pure digital delivery," Chief Executive Octavius Black said.

By Ivan Edwards; ivanedwards@alliancenews.com

Copyright 2021 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Mind Gym PLC Ordinary Shares 190.00 GBX 0.00 -
MITIE Group PLC 63.40 GBX -0.63 -

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