Pre-Close Trading Update

RNS Number : 6684Z

Science in Sport PLC

14 January 2020

 

14 January 2020

SCIENCE IN SPORT PLC

("Company" or "Group")

Full Year Trading Update

and Notification of Final Results

Science in Sport plc (AIM: SIS), the premium performance nutrition company serving elite athletes, sports enthusiasts and the gym lifestyle community, is pleased to announce its pre-close trading update for the financial year ended 31 December 2019.

The financial results for the year are in line with market expectations and show a strong performance in key growth metrics. 2019 was a landmark year for the Group, representing the first full year of ownership of the PhD brand following its acquisition in December 2018. Integration of the acquisition was completed successfully during the year, PhD protein production was brought in house, a new PhD e-commerce platform was launched, and synergies were delivered to plan.

The Group expects to report total sales for 2019 of £50.5 million (2018: £21.3 million), reflecting the PhD acquisition and strong growth during the year at both the PhD and SiS brands. Underlying sales at PhD grew 23% to £26.0 million (2018: pro forma £21.2 million), representing record growth for PhD, whilst SiS sales grew 24% to £24.5 million (2018: £19.8 million), contributing to the brand's six-year CAGR of 25% revenue growth.

E-commerce sales, a key strategic focus for the Group, grew strongly, up 34% to £16.1 million (2018: pro forma £12.0 million).

International Retail grew strongly, up 44% to £12.6 million. In the Middle East, Saudi Arabia was a major new international launch for the PhD brand. Brazil was the biggest new international market for SiS during the year and a significant master distribution agreement was signed in Colombia, where, in common with other South American countries, cycling is hugely popular.

The key strategic markets and channels of USA, Italy, Australia and Football all performed in line with expectations.

UK Retail grew 8% to £21.8 million, underpinned by new distribution of SiS in Lidl, of PhD in Aldi and extended distribution for both brands in Tesco. 

New product development was a key growth driver during the year for both the SiS and PhD brands; new products delivered 25% of total Group sales growth with successful product launches including PhD's Smart Bar Plant and SiS's innovative Football range.

The outlook for 2020 continues to be strong and benefits from key appointments made last year including James Simpson as Chief Financial Officer and Andy Bott as Group Supply Chain Director. Neil Tinegate joined as E-Commerce Director in January 2020. All three of these executives bring significant international e-commerce experience gained at companies including ASOS plc, The Hut Group and Heineken.

Stephen Moon, Science in Sport's Chief Executive Officer, commented:

"2019 was a landmark year for Science in Sport during which we integrated the PhD acquisition as planned and continued our strategic growth focus on e-commerce and international markets. Our executive management team was significantly strengthened during the year which, along with important operational progress, has positioned the Group for the next stage of its growth. We remain confident of the outlook for 2020 and beyond, supported by a robust balance sheet and strong innovation pipeline."

Notification of Final Results

The final results for the year ended 31 December 2019 are expected to be announced on 18 March 2020. A meeting for analysts will be held at 10am on the day of the results at the offices of Buchanan, 107 Cheapside, London EC2V 6DN. Please contact Buchanan on 020 7466 5000 or email [e-mail] for further details.

For further information:

Science in Sport plc Stephen Moon, Chief Executive Officer James Simpson, Chief Financial Officer	[phone]
Liberum Nominated adviser and broker Bidhi Bhoma James Greenwood	[phone]
Buchanan Communications Financial PR Mark Court Vicky Hayns Tilly Abraham	[phone] [e-mail]

Notes to Editors

About Science in Sport plc

Science in Sport plc is a leading sports nutrition business that develops, manufactures and markets innovative nutrition products for professional athletes, sports and fitness enthusiasts and the gym lifestyle community. The Company has two highly regarded brands: PhD Nutrition, a premium protein brand targeting gym lifestyle and sports enthusiasts, and SiS, a leading brand among elite athletes and professional sports teams.

The two brands are sold internationally through multiple retail channels, both traditional and online, including major supermarkets and high street chains, specialist sports retailers and e-commerce sites including Amazon and the brands' own websites.  They enable the Company to address the full breadth of the performance nutrition market currently estimated at approximately £10 billion worldwide.

PhD is one of the UK's leading protein brands with a reputation for high quality and product innovation. The brand has grown rapidly, based on its core protein powders, since launch in 2005. The range now comprises powders, bars, flapjacks, drinks and other products including the high protein, low sugar range, PhD Smart. PhD is the exclusive sports nutrition supplier to David Lloyd Clubs and its brand ambassadors include rapper Bugzy Malone, WBA international champion Jordan Gill and Team GB Olympic sprinter Asha Philip.

SiS, founded in 1992, has a core range comprising gels, powders and bars focused on energy, hydration and endurance. SiS is the official sports nutrition supplier to many professional cycling teams and organisations including Team INEOS, British Cycling, Cycling Australia, USA Cycling and USA Triathlon. SiS supplies more than 100 professional football clubs in the UK and Europe and is an official partner to the Rock 'n' Roll Marathon Series. SiS brand ambassadors include Olympians Sir Chris Hoy MBE, Mark Cavendish MBE and Adam Peaty MBE.

Science in Sport is headquartered in London. Its shares joined the AIM market of the London Stock Exchange in August 2013 and trade under the ticker symbol SIS.

For further information, please visit www.scienceinsport.com

 

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