Mind Gym shares (LON: MIND) plummeted 17% on Friday’s opening as the group was hit by Covid disruption.

In the six months to 30 September 2020, the gym group a 40% fall in revenue compared to a year earlier.

Mind Gym said in a trading update released today that it anticipates making an adjusted loss before tax in the six months to 30 September 2020 of between £1m-£1.5m.

“As our clients focused on dealing with their own operational changes, including moving to remote working, they were forced to cancel face-to-face leadership events and training programmes and most of the new work usually commissioned with us between February and July was suspended,” said the group.

Whilst overall revenue fell, Mind Gym saw 78% in revenue from virtual live deliveries – compared to the 32% for the same period a year earlier.

Octavius Black, Chief Executive Officer of Mind Gym, commented: “The first six months of the current financial year was a period of great uncertainty as companies focused their attention on the operational challenges of adapting to COVID-19. We were successful in pivoting clients to virtual delivery, feedback for which is very strong, and in leading the market again in product development.

“The Group has taken the opportunity to increase its focus on the medium to long term digital strategy and investment which will ensure Mind Gym grows its share of the corporate development and behaviourial change market. Growth is returning, showing up in both booked revenues and the opportunity pipeline and we are confident that revenue performance and profitability in H2 FY21 will be significantly better than H1.

“We continue to have a strong cash balance that protects the business and provides the resources for investing in growth.

“Despite the challenges brought by COVID, our strong proposition, team and financial position combined with an improving performance leaves us confident about the future,” he added.

Mind Gym shares (LON: MIND) have recovered slightly since opening and are currently trading -4.28% at 89,50 (0840GMT).

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Safiya focuses on business and political stories for UK Investor Magazine. Her interests include international development, travel and politics.