Shares of Mind Gym declined significantly as the company warns of potential profit loss for fiscal 2024. The company attributes this to clients delaying training and investment due to increasing inflationary pressures.
As of 0753 GMT, shares were down 21.0 pence, representing a 38% decrease to 34.5 pence.
Despite witnessing improved market activity in the third quarter, the business-transformation and training company anticipates that revenue and profit for the year ending March 31 will be well below current market expectations.
For the six months ending September 30, Mind Gym projects revenue of approximately £21 million ($25.7 million). This is a decline from the £26.8 million reported in the same period last year. Additionally, the company expects to report a loss before interest, taxes, depreciation, and amortization.
Mind Gym points to the challenging macro-economic climate as the primary driver behind clients deferring training initiatives and exercising caution. Consequently, timelines for new projects have been extended.
The impact has been particularly pronounced in the United States. However, performance has remained relatively resilient in Europe, the Middle East, and Africa.
Furthermore, Mind Gym continues to operate in a tight labor market, where a scarcity of skilled workers poses further challenges.