Growing corporate focus on diversity and inclusion within the workplace propelled Mind Gym’s (MIND) revenue ahead of expectations during the first half of the year. However, meeting that extra demand led to higher spending on staff and course materials, and meant the adjusted pre-tax profit margin declined to 16.7 per cent, from 21.4 per cent the same time the previous year.
Investors will be more encouraged by an increase in the learning and development specialist's recurring revenues to 92 per cent of the group total, or the fact that 62 of the FTSE 100’s constituents are now clients. Cash conversion also improved to 98 per cent of adjusted cash profits, while the trade receivable and accrued income days reduced by a quarter to 85 and overdue debt fell to 24 per cent of trade debtors, from 38 per cent 12 months ago.
Strengthened demand for digitally-enabled products - which included diversity and inclusion testing through so-called "e-workouts" and "virtual deliveries" - saw sales grow 36 per cent to £7.1m.
House broker Liberum forecasts adjusted pre-tax profits of £9.6m and EPS of 7.6p for the year to September 2020, rising to £10.8m and 8.5p the following year.
| MIND GYM (MIND) | ||||
| ORD PRICE: | 163p | MARKET VALUE: | £162m | |
| TOUCH: | 160-165p | 12-MONTH HIGH: | 163p | LOW: 117p |
| DIVIDEND YIELD: | 1.5% | PE RATIO: | 25 | |
| NET ASSET VALUE: | 15p | NET CASH: | £10.7m | |
| Half-year to 30 Sep | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2018 | 19.4 | 1.11 | 0.65 | 0.8 |
| 2019 | 23.9 | 3.86 | 3.07 | 0.9 |
| % change | +24 | +247 | +372 | +13 |
| Ex-div: | 19 Dec | |||
| Payment: | 15 Jan |
