Mind Gym PLC (AIM:MIND), the staff training and business service, plummeted 36% on Monday after the group warned full-year profits and revenues would be “significantly lower” than market expectations, while also posting a loss for the first half.
The London-listed firm said revenues for the six months to 30 September 2023 are expected to fall to £21 million from £26.8 million last year. It also estimated a loss at EBITDA level.
Turning to the forecast for the full year to 31 March 2024, a company statement added: “The group now expects FY24 revenues and profits to be significantly lower than current market expectations even though we have seen an improvement in market activity reflected in increased bookings for Q3 versus the comparative period in the prior year.”
Weaker market conditions driven by a shortage of workers and higher input costs mean many of Mind Gym’s clients are currently going through restructuring phases and therefore are unable to invest as much money into staff training programmes.
With the business support group’s pipeline being pushed back, it is now focused on securing larger contracts for 2025 and beyond and believes this strategy can help drive long-term growth and profitability.
Shares in Mind Gym are trading at around 35p on Monday, having dropped close to 60% in value since the start of the year.