GCIMindGym targets profitability in second half amid strong pipeline growth
In the first half of FY24, MindGym recorded revenue at £20.9m, down from £26.8m in H1 FY23 due to industry-wide challenges, notably in the US market, where revenue fell by 33% to £11.1m. Despite this, EMEA demonstrated resilience with revenues of £9.8m.
Digitally enabled revenue remained stable at 69%, though face-to-face delivery saw a slight increase during this period. MindGym executed an £8.0m cost reduction plan, with £3.0m impacting FY24, resulting in reduced Opex by £4.5m and Capex by £3.5m, focusing on revenue-generating digital assets.
Liquidity remains adequate with £2.1m in cash and access to £2.0m of an undrawn £10.0m debt facility, which MindGym does not anticipate using.
MindGym has continued innovating, receiving awards and launching new products, such as the 'Wellworking' Point of View, contributing to securing a new contract worth approximately £0.8m.
Regarding current trading and the outlook, the company is performing in line with revised expectations for FY24. The Energy framework launched in September 2023 will significantly benefit H2 FY24 and onwards. Forward bookings are higher than last year, with substantial growth in the pipeline in both regions.
Finally, MindGym anticipates a return to strong profitability in H2 FY24 and its target remains a medium-term EBITDA margin of 15% to 20%.
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Mind Gym delivers business improvement solutions using scalable, proprietary products which are based on behavioural science. The solutions provided by the company include performance management, leadership development and personal effectiveness.
Mind Gym’s solutions have been used by the likes of British Gas, providing an engagement programme for its employees. MindGym’s psychologists worked with British Gas to craft a compelling narrative and devised a program to help communicate this in a way that got people excited about the future at British Gas. As a result of the programme, British Gas’s Employee Promoter Score was bumped up by 26%. This demonstrates the effectiveness of MindGym’s solutions in making tangible changes to its clients and illustrates why it continues to deliver significant framework agreements with multiple clients.
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