Mind Gym PLC (AIM:MIND), the business improvement and staff training company, has reported 11% revenue growth for its first half to end-September 2022, with “significant momentum” going into the second half, driven by its largest-ever framework agreement.
Revenue in the six months to 30 September 2022 was £26.8mln, up from £24.8mln in the same period last year, with pre-tax profit rising to £600,000 from £17,000.
An expected switch back to in-person delivery after the lifting of Covid restrictions meant revenues from these operations grew by 15% during the period, while digitally-enabled revenues decreased 7%.
Repeat revenue remained strong at 87% of the total, the company said.
Mind Gym is not paying an interim dividend as it continues to prioritise investment for growth in digital over the coming years, but said it will revisit its dividend policy once the performance of its digital investments become clearer.
The company left its full-year outlook unchanged, but noted that the second half is expected to benefit from large corporate framework agreements.
During the first half, its secured its largest-ever framework agreement with a global energy company, which is expected to generate revenues in excess of £10mln over the next 24 months.
“We are encouraged by our first-half performance and the significant momentum going into the second half, as a result of securing our largest ever framework agreement,” said Mind Gym CEO Octavius Black in the results statement.
“In a volatile economic environment with a tight labour market, Mind Gym is increasingly well placed as the 'go to' partner to address the talent challenges that all organisations struggle to resolve," he added.
Mind Gym ended the first half with a cash balance of £4.5mln and an undrawn debt facility of £10mln.