Business
Full Year Trading Update and Notice of Results
Full Year Trading Update and Notice of Results.
About this update from Mind Gym Plc
[{"type":"text","content":"\n\n31 March 2025\nMind Gym plc\n (\"MindGym\" or the \"Company\" or \"Group\") \nFull Year Trading Update and Notice of Results\nMindGym returns to adjusted EBITDA profitability; Transformation strategy on track\nMindGym (AIM: MIND), the global provider of human capital and business improvement solutions, provides a trading update for the financial year ended 31 March 2025 (\"FY25\") and an updated outlook for the year ending 31 March 2026 (\"FY26\").\nMindGym has embarked on a 3-year transformation strategy to evolve the business from episodic training provider to behaviour change partner, through embedding IP with clients and packaging products, which will enable the Group to earn more sustainable, repeatable, sticky revenues. Market headwinds for professional services, including Human Capital, continue to impact revenue predictability, reflecting broader challenges in the industry and economy. Despite this, at the end of the first year, our strategy is on track and in FY25 the Group has performed in line with the Board's expectations delivering a return to EBITDA profitability.\nFY25 financial highlights\nFor FY25, the Group expects to report revenues of c.£38.6m, and to deliver profitable adjusted EBITDA in line with market expectations, a marked improvement on the £0.3m adjusted EBITDA loss in FY24. Performance in EMEA remained strong through FY25 supported by the multi-year energy framework agreement, which has now concluded, having delivered the expected levels of revenue over its three-year term. Client decision making has slowed: in the US, budgets continue to be held back driven by hesitancy over the impact of tariffs and regulatory changes by the US government, particularly in DEI, whilst in the UK, this is impacted by the National Insurance changes and new employment rights legislation.\nDuring the period, MindGym negotiated a new £4m overdraft facility which replaced the expiring RCF and reduced ongoing financing costs. This overdraft facility was successfully renewed for a further 12 months in March 2025. Year-end cash at bank is anticipated to be c.£0.6m, in line with market expectations, which, combined with access to the £4m undrawn overdraft facility, provides the Group with adequate liquidity.\nStrategic and operational update\n· The ...