Full Year Trading Update and Placing

RNS Number : 3824E

Science in Sport PLC

09 April 2014

 



For immediate release

9 April 2014

SCIENCE IN SPORT PLC

("SiS" or the "Company")

Full Year Trading Update and Placing

Science in Sport plc (AIM: SIS), a leading sports nutrition company, is pleased to announce the following pre-close trading update ahead of its financial results for the year ended 31 March 2014 and a conditional placing to raise gross proceeds of £2.3 million.

Full Year Trading Update

At the half year, SiS reported strong sales growth of 23 per cent. compared with the same period the previous year. The Board is pleased to report that this sales momentum has continued in the second   half, such that sales in the year to 31 March 2014 are expected to be 24 per cent. ahead of the previous year at approximately £6.84 million. This rate of revenue growth is ahead of market expectations.  

Revenue growth during the year has been achieved across all of the Company's distribution channels including major grocers, high street retail chains, independent retailers and e-commerce retailers. The Company's own direct e-commerce sales have enjoyed very strong year-on-year growth and the current year will see increased resource invested in this channel. To support e-commerce sales, the Company recently relaunched the SiS website and the launch of a website for mobile devices is imminent.

International growth is an important part of the Company's strategy and the Board is pleased to report an encouraging start with two overseas initiatives announced during the second half of the financial year: the master distribution agreement in the Asia Pacific region; and the distribution agreement in eight European countries with Shimano, the major Japanese company - the latter will commence selling at the beginning of next month.

The outcome for the full year will include the exceptional costs associated with the Company joining AIM in August 2013. However the Directors believe the outlook for the Company is extremely positive.

The Placing

The Company today announces it has raised £2.3 million by the issue and allotment by the Company of 5,111,116 Ordinary Shares at the Placing Price of 45 pence per share. The Placing has been undertaken with new and existing institutional shareholders and was oversubscribed.

As set out in the Full Year Trading Update above, the Company is achieving significant revenue growth. The Placing will enable the Company to fund the working capital required to fund further revenue growth and also to invest internally in further new revenue generating opportunities. The Directors believe the net proceeds of the Placing enable the Board to increase its revenue outlook ahead of historical year performances.

The Placing also introduces a number of new and significant institutional investors onto the shareholder register of the Company. The Directors believe establishing a broader institutional shareholder base is in the long term interests of the Group.

As part of the Placing, Stephen Moon (Chief Executive Officer) is subscribing for 222,223 Ordinary Shares and Dawson Buck (Non-Executive Director) is subscribing for 111,112 Ordinary Shares. Following their subscription, Mr Moon will have a total beneficial interest in 421,330 Ordinary Shares and Mr Buck will have a total beneficial interest in 418,677 Ordinary Shares, representing 1.71 per cent. and 1.70 per cent. respectively of the Company's issued share capital as enlarged by the Placing. The Company has committed as part of the Placing to strengthen the Board by appointing an additional non-executive director. The process for identifying an appropriate candidate for this role has already begun and the Board intend to update shareholders on the appointment in due course.

Subject to Admission, the Company will issue 5,111,116 new Ordinary Shares which will raise approximately £2.3 million, before expenses, and £2.1 million, after the expenses of the Placing. The Placing Shares have been conditionally placed by Cenkos Securities plc, as agent for the Company, with institutional and other investors. The Placing is not underwritten. Application has been made for the Placing Shares to be admitted to trading on AIM and dealings are expected to commence on 15 April 2014.

The Placing Shares issued pursuant to the Placing will represent approximately 20.76 per cent. of the Enlarged Share Capital. The Placing Shares will, following Admission, rank in full for all dividends and distributions declared, made or paid in respect of the issued Ordinary Share capital of the Company and otherwise rank pari passu in all other respects with the existing Ordinary Shares. The Placing Price represents a discount to the closing mid-market price of 1.1 per cent. per Ordinary Share as at 8 April 2014 (being the latest practicable date prior to the date of this announcement). The Placing Shares are being issued pursuant to the Company's existing share authorities granted at the time of its demerger in August 2013.

For further information:

Science in Sport PLC	[phone]
Stephen Moon, CEO
Cenkos Securities	[phone]
Bobbie Hilliam - NOMAD and Broker
Buchanan	[phone]
Mark Court / Sophie McNulty / Fiona Henson
[e-mail]

Notes for editors

About Science in Sport plc

Science in Sport plc is a leading sports nutrition company that develops, manufactures and markets sports nutrition products for professional athletes and sports enthusiasts. SiS is a strong brand in the elite athlete community - in the 2012 London Olympics, 24 medal-winning athletes or teams used SiS products.

The SiS core product ranges include: SiS GO, comprising energy powders, isotonic gels, energy bars and hydration tablets; and SiS REGO, including protein-based recovery powders and bars. SiS products are sold in a range of retail channels, including specialist sport retailers, major grocers, high street retailers and e-commerce websites.

SiS is currently the official sports nutrition supplier to professional cycling teams Rapha Condor JLT, Belkin Pro Cycling, Madison Genesis, Pro Team Astana, Team Katusha and Trek. SiS is also currently the official supplier of sports drinks and sports nutrition to the GB Rowing Team. In addition, Olympians Sir Chris Hoy MBE, Mark Cavendish MBE and Helen Jenkins are Elite Sports Consultants and brand ambassadors.

SiS was founded in 1992 and is headquartered in London. Its manufacturing and product development facility is in Nelson, Lancashire.

SiS shares are traded on the AIM market of the London Stock Exchange under the ticker symbol SIS.

For further information, please visit www.scienceinsport.com

 

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