Mind Gym swings to loss and warns of revenue fall

Mind Gym swings to loss and warns of revenue fall

Mind Gym PLC on Monday said that it swung to a loss for the first half of fiscal 2021 as revenue fell due to the effect of the coronavirus pandemic, and that it anticipates a 20% to 30% fall in revenue for the full year.

The human capital and consulting business said, although it was too early to reinstate guidance, it expects a return to profitability in the second half resulting in a small loss for the year.

Due to the continued uncertainty stemming from the pandemic, and the allocation of excess cash to digital investment, no interim dividend will be paid, Mind Gym said.

For the six months ended Sept. 30, pretax loss was 2 million pounds ($2.6 million) compared with a profit of GBP3.9 million for the first half of fiscal 2020, the company said.

Revenue fell to GBP14.5 million from GBP23.9 million in the year-prior period.

“Notwithstanding further severe escalations in pandemic-related disruption, the group has a strong cash balance and a compelling digital strategy to increase market share over the medium to longer term,” the company said.

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