Trading Update

RNS Number : 2918U

Science in Sport PLC

22 November 2019

 

22 November 2019

SCIENCE IN SPORT PLC

("Company" or "Group")

Trading Update

Science in Sport plc (AIM: SIS), the premium performance nutrition company serving elite athletes, sports enthusiasts and the gym lifestyle community, announces an update on trading to date for the financial year ending 31 December 2019.

2019 has seen rapid progress at the Company. The integration of the PhD acquisition has been completed on time, with synergies already being achieved in line with plan, and the growth rate of the PhD brand has doubled over historic rates. The SiS brand has continued to grow strongly, in line with its six-year compound annual growth rate of more than 25%. Growth from the strategic priorities of both e-commerce and international markets has also been strong.

As a result, total sales growth for the year to 31 December 2019 is expected to be slightly ahead of market expectations, with sales momentum into 2020 underpinned by operational progress including a new PhD.com e-commerce platform and a new protein powder line, which is now in full production.  

During the current half, the Group has absorbed a global whey price increase and also a foreign exchange effect relating to very strong sales of Smart Bars. As a consequence, the previously expected small EBITDA profit of £0.3m for the year is now anticipated to be a small EBITDA loss.

Cash balances at the year-end are expected to be in line with management expectations at approximately £5.3m.

The outlook for the remaining few weeks of the current year and for 2020 continues to be strong, underpinned by a robust innovation pipeline, the current year's operational progress and a continued strategic focus on e-commerce and international markets.

The Company will issue its full year trading update for the year ending 31 December 2019 in the week commencing 13 January 2020.

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

"Our strategy is on-track and, in the year to 31 December 2019, we expect a record year of growth from PhD and another year of consistently high growth from SiS. The integration of PhD completed as planned and we are already seeing strong trading metrics from the PhD.com website in addition to significantly improved efficiencies in our new e-commerce fulfilment unit. Our in-house protein powder line was launched earlier this week, on time and under budget.

"The Board remains confident about the outlook for 2020 and beyond as we invest in our growth priorities of e-commerce and international markets. Gross margin remains robust, costs are tightly controlled and our cash position is healthy, allowing us to be confident in our long term growth trajectory."

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 80 professional football clubs in the UK and is an official partner to British Triathlon and 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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