Business
Trading Update
Trading Update.
About this update from Mind Gym Plc
[{"type":"text","content":"\n \n \n RNS Number : 3589F\n Mind Gym PLC\n 09 March 2020\n \n \n \n \n 9 March 2020\n \n \n Mind Gym plc\n \n \n \n (\"Mind Gym\" or the \"Company\" or \"Group\")\n \n \n \n \n Coronavirus update and Notice of Further Trading Update\n \n \n Mind Gym (AIM: MIND), the global provider of human capital and business improvement solutions, today updates the market on its trading performance for its financial year ending 31 March 2020 in light of the COVID-19 virus and gives notice of a further update next month.\n \n \n Underlying trading remained strong between the half year-end (30 September 2019) and the end of January 2020, however, the Group has since experienced a material impact on revenues from the outbreak of the COVID-19 virus. \n As the virus has spread from region to region, we have observed an increased number of cancellations of booked sessions from clients and a material reduction in new bookings. \n \n \n Given the uncertainty about the extent and duration of the virus outbreak, it is difficult to forecast accurately the full year impact, but we currently anticipate revenues to be in the range of a 10-15% increase on the prior year (£46.5m to £48.5m), which is below our previous expectations of revenue growth for the year. Whilst the Group is focussed on tight cost control, the sudden fall in revenues so close to the end of the financial year provides limited opportunity to reduce planned expenditure and investment. Accordingly, Adjusted PBT is now expected to be between £5.8m and £7.3m. The strong focus on cash continues, and the cash balance at 31 March 2020 is expected to remain in line or above market consensus of £14.0m. \n \n \n The Group is closely following and regularly monitoring the advice from the World Health Organization (\"WHO\"), as well as regional and local government advice, and continues to assess the situation carefully. We have taken rapid and decisive actions to mitigate the potential impact including:\n \n \n · \n Working with clients and coaches to switch live face-to-face coaching sessions to virtual web-ex sessions\n \n \n · \n Promoting our digital proposition as an alternative to live sessions\n \n \n · \n Tracking the movement of our staff and coaches and implementing a policy of a minimum two-week self-isolation period\n \n \n · \n Minimising travel requirements ...