These are early days in the public life of Mind Gym (MIND), which was admitted to London’s junior Aim market in June. Reported profits bore the brunt of IPO costs and aborted transaction advisory fees, with the former weighing in at £2.3m alone. So you get a fairer impression of how the management/workplace consultancy is performing through a near one-third hike in full-year adjusted pre-tax profits at constant currencies.
Most interesting is the launch of its ‘Respect’ offering, which seizes upon the global #metoo movement against workplace harassment, delivering a “suite of new instructor-led and digital products aimed at preventing bullying and harassment at work”. Legislative changes in the US and the UK have compelled greater employer focus on this matter, something that Mind Gym is keen to tap into. The freefall of Ted Baker’s (TED) shares, which have dropped 24 per cent since news of a staff petition that was launched over a number of alleged indiscretions by founder Ray Kelvin, including a tendency to hug his employees, is indicative of the real risk to employers and investors associated with ignorance of this subject.
Broker Liberum forecasts adjusted full-year pre-tax profits of £8.5m and earnings per share 6.6p, up from £7.7m and 5.8p, respectively, in March 2018.
| MIND GYM (MIND) | ||||
| ORD PRICE: | 154p | MARKET VALUE: | £153m | |
| TOUCH: | 153-155p | 12-MONTH HIGH: | 189p | LOW: 152p |
| DIVIDEND YIELD: | 0.5% | PE RATIO: | 46 | |
| NET ASSET VALUE: | 11p | NET CASH | £2.5m | |
| Half-year to 30 Sep | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2017 | 17.1 | 2.8 | 2.27 | nil |
| 2018 | 19.4 | 1.1 | 0.65 | 0.8 |
| % change | +13 | -61 | -71 | - |
| Ex-div: | 20 Dec | |||
| Payment: | 16 Jan |
