Half Year Trading Update

MindGym (AIM: MIND), the global provider of human capital and business improvement solutions, provides a trading update for the six months ended 30 September 2025 ("H1 FY26").

Overview

MindGym is mid-way through its three-year transformation strategy to evolve the business from an episodic training provider to a strategic behavioural-change partner by making MindGym products easier to buy, sell and renew. As expected, H1 FY26 has continued to see challenging market conditions for HR services and the period also reflects the absence of the multi-year energy framework agreement which concluded in FY25.

We remain focused on our transformation strategy with H1 actions including rebuilding and increasing the commercial effectiveness of the sales organisation and driving product alignment under the High-Performance Behaviour Model. We expect to see the benefits of this in a stronger H2 revenue performance, driven by an anticipated increase in membership (subscription) revenues and the positive impact of investments made in sales and marketing effectiveness.

Financial Update

For H1 FY26 the Group expects to report:

• Revenues of £13.5m (£13.8m in constant currency).
• 16% lower than the comparative period last year, excluding the multi-year framework agreement which contributed £4.0m to revenues in H1 FY25 and which concluded in FY25.

o Performance in EMEA has been broadly flat year-on-year with the US continuing to face market headwinds.

• An adjusted EBITDA loss of £1.0m, driven by the impact of the revenue phasing to H2, in line with the Board's expectations.
• As at 30 September, the Group had a net debt position of £1m. The Group retains adequate liquidity and, in line with our anticipated phasing of revenues, the Group expects H2 to be cash generative.

Strategic and operational highlights

The Group continues to prioritise executing its transformation strategy and, in H1 FY26, the Group has focused on rebuilding the sales organisation and increasing commercial effectiveness. The sales team is now globally aligned under the new sales leadership appointed at the end of FY25, operating under consistent performance standards and with the number of sales people increasing from 30 to 39 by November 2025. This, together with a ramped-up focus on digital lead generation, has driven a significant improvement in pipeline generation during the period.

In FY26 to date a further estimated £3.5m in annualised costs have been removed from the business as we continue to rationalise and drive efficiencies across the organisational structure in the pursuit of a more flexible cost model.

Outlook

The Group continues to trade in line with the Board's expectations, with performance weighted to H2 as we see an anticipated increase in membership (subscription) revenues and the positive impact of investments made in the sales and marketing effectiveness, as well as the benefits of the lower cost base.

Half Year Results

Mind Gym expects to announce its half year results in early December 2025.

Christoffer Ellehuus, CEO of MindGym commented:

"I am pleased with the progress we are making on our three-year transformation strategy despite the challenging economic environment. Significant progress has been made around commercial effectiveness and the creation and launch of our new unified High-Performance Behaviour Model.

"We anticipate a stronger second half performance, providing confidence the Group is trading in line with the Board's full year expectations."