Mind Gym announced a trading update for its financial year ended 31 March 2022 on Monday where it said its core business has returned to pre-Covid levels, resulting in a strong performance in line with the board’s expectations.
The group also announced that the adjusted pretax profit for the year meets the board’s expectations.
For Mind Gym, FY22 has been a year of steady success and major investment. With the launch of its new digital coaching platform on January 22 and a solid pipeline of new POVs – ‘Leadership’ and ‘Wellbeing’ due in the coming months, the group is exiting the Covid crisis with a reinforced pitch to its clients in some important areas.
Despite Covid’s prolonged headwind, with Omicron creating significant delays in client decision-making and course enrollment in the second half and early in the new financial year, both the UK and the US delivered good growth compared to FY21.
The global provider of human capital and business improvement solutions, Mind Gym reported that revenue is estimated to be £47.9m, up 25% in constant currency from FY21 and 5% higher than pre-Covid levels.
The group’s digitally enabled revenues of £36.8m were up 25% from FY21 and 156% from FY20, when the majority of deliveries were still done in person and accounted for 77% of revenue in FY21 and 32% in FY20.
Mind Gym’s digital 1:1 coaching SaaS platform, Performa, was introduced in January 2022 and has sold over £500,000 in annualised revenue so far.
The product is based on Mind Gym’s exclusive Precision coaching methodology and gives clients a leadership development solution that can be coupled with other Mind Gym products.
Mind Gym bought the diagnostic IP of 10X Psychology in administration in March 2022 for £0.1 million in cash, boosting Mind Gym’s burgeoning digital strategy.
The acquisition of 10X’s diagnostic IP was the culmination of 7 years of development and around £10m in previous investment by 10X, which is expected to help Mind Gym’s digital strategy of providing highly personalised therapies to participants and insightful data and analysis to customers.
Following considerable investment in its new digital goods throughout the financial year, net cash was £10m at the end of March 2022, compared to £16.8m in 2021.
To facilitate further growth investment, a new undrawn debt facility has been established for Mind Gym. The group signed into a £10m debt facility with £6m RCF and £4m accordion throughout the year, which was undrawn as of March 31, 2022.
Octavius Black, CEO of Mind Gym, said, “We are encouraged with Mind Gym’s performance despite the Covid headwinds, with good revenue growth ahead of last year and pre-pandemic levels.”
“We are excited by the recent launch of Performa our digital 1:1 coaching SaaS service and delighted with the positive reception it has already received from new and existing clients.”
“We have a clear strategy for accelerating revenue growth based on market-leading IP, delighting clients and a significant digital transformation.”