By Michael Susin
Mind Gym shares slipped after the company warned that profit for fiscal 2024 is anticipated to miss market expectations as clients are deferring training and commitment to new spend on the back of inflationary pressures.
Shares at 0753 GMT were down 21.0 pence, or 38%, at 34.5 pence.
The business-transformation and training company on Monday said it expects revenue and profit for the year ending March 31 to be significantly lower than current market expectations, despite seeing an improvement in market activity for third quarter.
For the six months ended Sept. 30, the group expects to report revenue of around 21 million pounds ($25.7 million) from GBP26.8 million reported the same period a year ago. It also expects to report a loss before interest, taxes, depreciation and amortization.
The company said that the challenging macro-economic environment has resulted in some clients deferring training and a greater number of clients being cautious, which has pushed out timeframes and procurement of new projects.
The effect was particularly strong in the U.S., while performance has been more resilient in Europe, the Middle East and Africa.
Mind Gym added that it continues to operate in a tight labour market with a shortage of skilled labour.
Write to Michael Susin at [email protected]
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