MindGym plc (LSE:MIND) reported a 15% year-on-year decline in revenue to £11.5 million for the first half of its 2027 financial year, reflecting reduced corporate spending on human resources and challenging trading conditions.
The AIM-listed behavioural science and business improvement company recorded an adjusted EBITDA loss of £2.6 million for the period, as lower revenue and a greater proportion of face-to-face service delivery affected profitability.
The company said the shift towards in-person delivery contributed to lower margins, while the reduction in revenue outweighed the impact of £9.4 million in operating cost savings implemented over the previous 18 months.
MindGym has revised its full-year expectations, forecasting revenue of approximately £25 million and an underlying EBITDA loss of between £1.2 million and £1.5 million.
Revenue Decline and Cost Reductions Affect First-Half Performance
MindGym attributed the reduction in first-half revenue to lower spending by corporate clients on human resources and related services.
The company has been implementing operational changes aimed at reducing its cost base while adjusting its service offering to reflect changing customer requirements.
Operating cost savings totalled £9.4 million over the past 18 months. However, the company reported an adjusted EBITDA loss of £2.6 million for the first half, compared with the lower revenue base and a shift towards delivery methods carrying reduced margins.
MindGym said the conversion of prospective business opportunities into contracted revenue had been slower than anticipated, contributing to its revised full-year financial guidance.
Subscription Revenue and New Services Form Part of Strategic Changes
MindGym is continuing its transition from individual training engagements towards longer-term behavioural change services for corporate customers.
The company reported growth in recurring licence revenue during the first half, alongside expansion of its MindGym Membership subscription offering.
It also launched a diagnostics and analytics service designed to support corporate clients in assessing and managing behavioural change initiatives.
These developments form part of MindGym’s strategy to increase recurring revenue and expand its relationships with clients across human capital management, business transformation and learning and development.
The company operates internationally, with offices in London, New York and Singapore, providing behavioural science-based products and services to corporate customers.
Full-Year Revenue Forecast at Approximately £25 Million
Management expects trading to improve during the second half of the financial year and anticipates that the business will generate cash during the period.
However, slower conversion of its prospective sales pipeline has resulted in a revised outlook for the full year.
MindGym now expects:
- Full-year revenue of approximately £25 million.
- An underlying EBITDA loss of between £1.2 million and £1.5 million.
- Improved second-half trading and positive cash generation.
These expectations reflect management’s current assessment of trading conditions and anticipated customer activity during the remainder of the financial year.
Cash Collections Reach £16 Million as Strategic Review Continues
MindGym reported cash collections of approximately £16 million during the first half, reflecting its ongoing focus on working capital management.
The company ended September 2026 with net debt of £1.6 million and said it maintained adequate liquidity.
Separately, MindGym’s board is conducting a private strategic review that could result in an offer for the company.
The review remains ongoing, and the supplied update does not confirm that an offer has been made or that a transaction will take place.
MindGym is scheduled to publish its half-year financial results in December 2026, when further details of its trading performance, financial position and operational progress are expected.
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