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Mind Gym swings to first-half loss as revenue slumps 40%
StockMarketWire.com
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Business consultancy Mind Gym swung to a first-half loss as the pandemic disrupted business activity and prompted a suspension of face-to-face meetings.
Pre-tax losses for the six months through September amounted to £2.0 million, compared to a profit of £3.9 million year-on-year, as revenue slumped 40% to £14.5 million.
Mind Gym scrapped its interim dividend, having offered a payout of 0.9p per share in the previous corresponding period.
The company said its cash balance remained strong at £14.5 million, due to 'continued working capital improvements to support continued investments'.
On its outlook, Mind Gym said it remained too early to reinstate guidance, due to the continuing global and economic uncertainties caused by Covid-19.
'However, there has been a month-on-month increase in revenue since July, with October delivering the largest monthly revenue in the year to date with the smallest year-on-year reduction at minus 15% versus October last year,' it said.
'We expect this trend in performance to continue and therefore anticipate full year revenue being down 20%-to-30% and a return to profitability in the second half resulting in a small loss for the full year.'
'Furthermore, despite the planned investment of £2.8 million in new digital products during the second half, cash at bank at year end is expected to be between £9 million and £11 million.'
'Meanwhile, the group remains focused on the medium to long term and is pushing ahead with investment in its strong digital proposition, the demand for which has been strongly reinforced by Covid.'
At 9:21am: (LON:MIND) Mind Gym Plc share price was 0p at 115p
Story provided by StockMarketWire.com
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