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Mind Gym multiplies profits on back of digital growth

Pre-tax profit shot up almost four times to £3.9mln, from £1.1mln last year, most of which was reinvested in the business

Mind Gym PLC -

Mind Gym PLC (LON:MIND) revealed storming growth from digital "learning tools" such as virtual business-coaching or diversity training, almost quadrupling half-year profits.

Revenues of £23.9ml in the six months to 30 September were up 23.5%, as 28% growth in North America outstripped European markets.

READ: Mind Gym brighter as it delivers strong performance in first year on AIM

This helped the AIM-listed company's pre-tax profit shoot up to £3.9mln from £1.1mln last year, most of which was reinvested in new hires for the senior leadership team, as well as IT infrastructure and more client support and coach recruitment.

Octavius Black, chief executive officer of Mind Gym, was confident in the short and medium-term prospects: “Our strong revenue growth in the first half shows that leading businesses are choosing our proven behavioural science-based solutions over traditional alternatives.”

Mind Gym’s digital offering has grown 36% year-on-year to £5.1mln and now represents 30% of group sales.

“Digital is very scalable and carries a higher margin”, noted broker Liberum Capital, who were also buoyed by management’s belief that “current buying patterns suggest that digital is not cannibalising the existing business”.

Nevertheless, shares were little moved at 161p in early trading on Tuesday.

Quick facts: Mind Gym PLC

Price: 204 GBX

LSE:MIND
Market: LSE
Market Cap: £202.97 m
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