Science in Sport Update

RNS Number : 0978Z

Provexis PLC

12 March 2012

 



12 March 2012

Provexis plc

SCIENCE IN SPORT UPDATE

Provexis plc ("Provexis" or the "Company"), the life-science business that develops, licenses and markets scientifically-proven functional food and sports nutrition technologies, announces an update of progress with its Science in Sport ("SiS') sports nutrition business, which it acquired in June 2011.

At the interim results the Company announced like for like revenue growth of 5% from the date of acquisition to the September half-year. The growth in sales has continued, and at the end of February 2012, like for like sales growth was 13% for the period since the acquisition.

To underpin long-term growth a broad range of marketing and sales initiatives has been put in place.  A redesign of the brand and packaging has been implemented and this will begin to appear in the market from April 2012. All aspects of the marketing mix have been addressed including advertising, social media, and sponsorship of leading endurance sports teams and athletes. The marketing team has been strengthened, with a new Marketing Director having been recruited from a leading company in the sports nutrition sector. The sales team has been strengthened, with an experienced Sales Director with major brand FMCG experience leading this restructuring of the team. Initiatives are in place to develop sales in all channels in the UK market. The Company is also assessing plans to grow sales in existing and potential new international markets.

The business has recently moved into a new manufacturing and distribution facility and this was achieved on time and with no supply issues. Two new manufacturing lines are currently being installed, to meet forecast demand. A wide-ranging margin improvement programme has been put in place, with these cost savings to be used to drive investment in marketing and sales.

Key to the acquisition case was the existing Provexis scientific and regulatory team adding value to SiS through innovation. The results of this will start to have an impact from April, as new products begin to come to market. April will see the launch of a new gel format, which has demonstrated a measurable increase in performance in elite athletes. A product containing our proprietary Fruitflow® technology has been developed and will launch in the UK in late summer. A longer-term innovation pipeline is under development, drawing on the expertise of the scientific and product development skills of the enlarged business.

Stephen Moon, Chief Executive Officer of Provexis plc, commented:

"We have developed all areas of the SiS business in recent months, from opening a new factory to enhance margins and provide new capacity, through to a complete transformation of the marketing strategy to realise the potential of this highly regarded elite sports nutrition brand. The existing SiS management team has been strengthened, particularly in the area of sales and marketing. We are developing a long-term innovation pipeline to underpin our reputation as leaders in the field, with the first products to be in market in April. With this new platform in place, the management team are positive about growth prospects for the coming financial year." 

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For further information please contact:

Provexis plc

Stephen Moon, Chief Executive                     Tel: [phone]

Cenkos Securities plc

Max Hartley / Bobbie Hilliam                        Tel: [phone]

Haggie Financial LLP

Matthew Longbottom / Peter Rigby               Tel: [phone]

                                                                        [e-mail]

 

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