MindGym shares were down 2.1% to 115p in early morning trading on Friday, following a reported pre-tax loss of £500,000 in FY 2022 against an adjusted pre-tax profit of £300,000 in FY 2021.
The group announced a statutory pre-tax loss of £500,000 compared to a loss of £400,000 the last year.
MindGym highlighted a gross profit margin fall of 0.3% to 87.1% from 87.4%, and a cash at bank drop of 40% to £10 million against £16.8 million.
The company reported a capital expenditure growth of 91% to £6.1 million from £3.2 million, with a year-on-year adjusted cash conversion drop of 323% to 95% compared to 418%.
However, MindGym noted a revenue climb of 24% to £48.7 million against £39.4 million in the previous year, with a digitally-enabled revenue increase of 23% to £37.4 million compared to £30.5 million.
The firm’s adjusted EPS grew 1.2% to 1.5p compared to 0.3p, alongside a diluted EPS increase of 1.8p to 1.5p from a loss of 0.2p.
MindGym said it expected robust top line growth for FY 2023 despite macroeconomic headwinds, helped along by the launch of its Performa offering and its new Points of View on Leadership and Wellbeing.
The group projected a return to profitability next year as it sees leverage of its investments made in FY 2022 support growth expectations in the coming years.
“MindGym made progress during a turbulent year delivering a robust performance in line with the Board’s expectations, surpassing pre-Covid revenue. Our digital strategy has seen the successful launch of our latest product, Performa, our 1:1 digitally enabled coaching service,” said MindGym CEO Octavius Black.
“Performa has distinct competitive advantages in this new, fast-growing market including our proprietary Precision Coaching methodology and our ability to integrate with MindGym’s library of existing content to deliver integrated solutions to challenges like leadership and inclusion. The more than £0.5m in annualised revenue generated in the first 12 weeks is a promising indication of what’s to come.”
“MindGym’s future digital transformation will increasingly be powered by data and this has been enhanced by the acquisition of 10X Psychology’s IP, which will enable us to deliver highly personalised, mass customisation and equip clients to target their investment on what works best.”