Shares in behavioural science firm Mind Gym PLC (LON:MIND) were brighter on Tuesday after the group delivered a strong performance in its first year since floating on AIM last June.
For the year ended 31 March 2019, the company reported an adjusted pre-tax profit of £8.5mln, 12% higher than the prior year, while revenues increased 14% to £42.1mln.
Mind said its revenue growth had been fuelled by both new client acquisitions and demand from its existing customers, with 84% of its revenues originating from past clients.
The company also delivered a final dividend of 1.6p per share, taking its total divi for the year to 2.4p, and had ended the year with £8.3mln in cash despite £2.3mln in IPO costs and £3.2mln from a pre-IPO dividend.
In its outlook, the company said it had made a “strong start” to the current year and expected “further progress” in 2020.
Octavius Black, the company’s chief executive, added that the global learning and development market was worth over US$240bn, half of which was in behavioural areas he believed the company could directly address, and that with growth of over 9% last year the market showed “no sign of slowing”.
In a note, analysts at Liberum retained their ‘buy’ rating and 170p target price on the stock, saying the results had come in “a little ahead” of their expectations and that the company could “gain share in a fragmented market” as behavioural issues became more important on workplace agendas.
In early afternoon trading, the shares were 2.5% higher at 123.5p.