Business
Final results for the year ended 31 March 2024
Final results for the year ended 31 March 2024.
About this update from Mind Gym Plc
[{"type":"text","content":"\n\nMind Gym PLC\n \n(\"MindGym\", the \"Group\" or the \"Company\")\n \nFinal results for the year ended 31 March 2024\n \nImprovement in performance in second half with a new strategy for medium term growth and profitability\n \n \nMindGym (AIM: MIND), the global provider of human capital and business improvement solutions, announces its audited results for the year ended 31 March 2024.\n \nResults summary\n\n\n\n\n \n\n\n12 months to 31 Mar 2024 (FY24)\n\n\n12 months to 31 Mar 2023 (FY23)\n\n\nChange\n\n\n\n\nRevenue\n\n\n£44.9m\n\n\n£55.0m\n\n\n-18%\n\n\n\n\nGross profit margin\n\n\n86.2%\n\n\n88.4%\n\n\n-220 bps\n\n\n\n\nAdjusted EBITDA profit/ (loss)\n\n\n£(0.3m)1\n\n\n£5.3m\n\n\n-106.5%\n\n\n\n\nStatutory profit/(loss) before tax\n\n\n£(12.1m)\n\n\n£3.0m\n\n\n-507.2%\n\n\n\n\nDiluted EPS (adjusted) \n\n\n(4.25p)1\n\n\n2.84p\n\n\n-7.09p\n\n\n\n\nDiluted EPS (unadjusted)\n\n\n(10.86p)\n\n\n2.84p\n\n\n-13.7p\n\n\n\n\nCash (used in)/ generated from operations\n\n\n£(3.1m)\n\n\n£4.4m\n\n\n-£7.5m\n\n\n\n\nCash at bank\n\n\n£1.4m\n\n\n£7.6m\n\n\n- £6.2m\n\n\n\n\nCapital expenditure\n\n\n£4.2m\n\n\n£5.1m\n\n\n-18%\n\n\n\n\n \n \n1 Adjusted results exclude the impact of £8.9m of exceptional costs incurred in the period\n \nFinancial and Operating highlights\n \n· Market dynamics resulted in a challenging FY24, particularly in Q2; revenues of £44.9m were down 18% on FY23 (£55.0m):\no Macroeconomic headwinds affected confidence in key sectors, including tech (especially in US) and consumer/manufacturing companies who are dependent on global supply chains\no Increased caution on HR budgets has affected the buying cycle, with more client stakeholders needed to sign off budgets:\n§ growing requirements for pilots to establish proof of concept first\n§ fewer big-ticket requests for proposal\no There has been increased competition for client budgets resulting from unprecedented investment in HR platforms and technology in recent years\no The market has seen a material decline in client spend on DEI, a significant revenue stream for MindGym, particularly in the US; this contributed to the 32% US revenue decline vs prior year\no EMEA performance was broadly flat on prior year...