Mind Gym FY profits seen 'significantly lower' than market expectations

9th Oct 2023 10:40

(Sharecast News) - Staff training firm Mind Gym warned that both full-year profits and revenue would be "significantly lower" than current market expectations.

Mind Gym said revenues for the six months ended 31 September were expected to come in at roughly £21.0m, down from £26.8m at the same time a year earlier, while it also predicted that it would deliver an operating loss in terms of earnings before interest, taxes, depreciation and amortisation.

Management blamed "challenging" macro conditions for the downgrade, saying they had led some companies to defer training and commitments to new spending, especially in the U.S..

For the year as a whole, Mind Gym said its results now looked set to be significantly lower than current expectations despite having witnessed an "improvement in market activity" as a result of a year-on-year increase in bookings during the third quarter.

The AIM-listed group said it was now focused on securing larger contracts for the 2025 trading year, stating it believes this will help drive both long-term growth and profitability for the company.

Cash at bank as of 30 September was £2.1m which, combined with immediate access to £2.0m of its undrawn £10.0m debt facility, provides Mind Gym with "adequate liquidity".

As of 1040 BST, Mind Gym shares had slumped 37.84% to 34.50p.

Reporting by Iain Gilbert at Sharecast.com