Mindgym swings to loss as macroeconomic headwinds dent confidence
Mindgym swung to a loss in 2024 as macroeconomic headwinds impacted confidence in key sectors.
Adjusted earnings before interest, taxation, depreciation and amortization (EBITDA) fell over 106 per cent from £5.3m to a loss of £300,000 in the 12 months to March.
Revenue dipped 18 per cent to £44.9m, down from £55m year-on-year.
The AIM-listed firm, which uses behavioural science to improve the performance of company employees, said macroeconomic issues had hit confidence in its key sectors, particularly tech in the US.
Layoffs and restructurings among its key technology clients have resulted in delays and cancellations in staff training throughout the last year.
Meanwhile, increased caution on human resource (HR) budgets reduced client spending, with more company stakeholders needed to sign off budgets.
Mind Gym also flagged a “material decline” in client spend on diversity, equity and inclusion (DEI) policies, which contributed to a near third dip in revvenue in its US segment.
Shares are down around 14 per cent this year to date.
The company said full-year 2025 would be a year of “recalibration” as it implements a new strategy to improve performance.
In the medium term, the board expects to deliver revenue growth in excess of 10 per cent on an annual basis, with EBITDA margins of between 15 per cent and 20 per cent.
Christoffer Ellehuus, Chief Executive Officer of MindGym, said: “I believe that we have all the right foundations for future growth: strong client relationships, innovative solutions, and a very talented team.
“I am excited about leading MindGym forward on a path of profitable, sustainable growth, profitability making MindGym solutions easy to buy, easy to deliver, and easy to renew.”
Ellehuus joined Mind Gym earlier in the year after founder Octavius Black, the author and entrepreneur, moved from CEO to executive chair amid mounting losses.
Mindgym has around 300 coaches delivering training sessions on workplace culture to companies across 43 countries. It claims to have worked with around 60 per cent of the FTSE 100 index.