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 2026 (“H1 FY27”).

Trading update

MindGym is continuing to make progress with its 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. The Group has launched its 10x diagnostics and analytics offering and grown recurring revenue through increases in license revenue, non-cancellable contracted revenue and renewals of the new MindGym Membership.

Despite the strategic progress made to date, H1 FY27 has seen particularly challenging market conditions as corporate clients have reduced spending significantly on HR services in response to uncertainty over AI, supply chain pressures, and energy prices. The Company expects to report revenues for H1 FY27 of £11.5m (H1 FY26: £13.5m), a decline of 15%. However, recurring license revenue is expected to be £2.1m, an increase of 45% on H1 FY26 and representing c.17% of the total in the period.

In FY27 to date a further estimated £0.9m in annualised costs have been removed from the business as we continue to rationalise and drive efficiencies across the Group. In total over the last eighteen months operating costs have been reduced by £9.4m as a result of management actions. However, driven by the impact of reduced revenues and an increased proportion of face to face delivery at lower gross margins, the Company expects to report an adjusted EBITDA loss of £2.6m in H1 FY27 (H1 FY26: loss of £1.0m).

Cash collections in the period were around £16m as the drive to advance cash receipts in the business model continues to prove successful. As at 30 September, the Group had a net debt position of £1.6m (30 September 2025: £1.0m) and retains adequate liquidity.

Trading in H2 has typically been stronger in the Group and we expect the same this year. We also expect that stronger performance will be driven by an anticipated increase in MindGym Membership (subscription) revenues and the benefits of the lower cost base. The Group expects H2 to be both profitable and cash generative. Pipeline generation has remained resilient with £47m of additions in H1 (H1 FY26: £55m), with MindGym Memberships and associated revenues making up over 50% of total pipeline in H2 and continuing to grow. However, pipeline conversion overall has been slower and often in smaller value commitments than seen historically and the Board is taking a more cautious view of the remainder of the year. Full year revenues are now expected to be circa £25m with an underlying EBITDA loss in the range of £1.2m to £1.5m.

Update on the Strategic Review

As announced on 27 January 2026, the Board confirmed that it is in discussions with selected third parties as part of a private strategic review (the ‘Strategic Review’) that may, among other outcomes, result in an offer for the Company. The Strategic Review remains ongoing, and we will update shareholders through further announcements as appropriate.

Half Year Results

Mind Gym expects to announce its half year results in the first half of December 2026.