Provexis plc, the owner of leading endurance sports nutrition brand Science in Sport (SiS), has released its unaudited interim results for the six months ended 30 September 2012. Coupled with SiS and Provexis’ proprietary Fruitflow heart health technology – Provexis develops, licenses and markets scientifically-proven functional food and sports nutrition technologies.
Key highlights:
- Science in Sport (SiS) generated revenues of £3.25m in the six months ended 30 September 2012. This represents like for like revenue growth of 7.1% compared to the same period last year – despite historically poor weather and adverse trading conditions
- An investment programme in SiS resulted in improved gross margin, a healthy innovation pipeline, increased retailer distribution and a newly-launched e-commerce platform
- The increased working capital requirements of the growing SiS business were met by a September drawdown from Provexis’ equity financing facility of £541,000 ‘with minimal dilution’
- Provexis’ alliance partner DSM Nutritional Products continues to progress with the proprietary Fruitflow heart health technology; nine regional consumer products containing Fruitflow syrup are now on sale in various global markets, and further launches are expected in the financial year
- A ‘significant dietary supplement marketer in Europe’ recently completed a successful Fruitflow syrup test market and expects to launch the product in Q4
- Industrial quantities of tablet grade powder format of Fruitflow are now available, with good levels of interest from potential customers reported
- A significant restructuring by Provexis saw a reduction in the company’s underlying operating loss to £505,000, 51% lower than in the same period last year
- The operating loss was before the impairment and amortisation of intangible assets, share based payments and exceptional costs of £0.28m (compared to £0.52m in 2011)
Stephen Moon, Chief Executive Officer of Provexis plc said “We are very pleased with the progress made with our Science in Sport business, which has continued to grow despite some very tough trading conditions across the sector, including the effect of the extremely poor weather in June and July.
“With broadened distribution, margin improvements feeding into increased marketing and sales investment, and a healthy innovation pipeline, we are confident of continued progress in the second half.”
Moon added, “The results of our restructuring programme are now being seen in the significantly reduced operating loss, some 51% less than this time last year. Across the group we are continuing to seek further cost savings and efficiency improvements.
“The economic climate remains very challenging, but with our continued commitment to focusing on the twin revenue streams of SiS and Fruitflow, while managing costs carefully, we believe the business is well placed to make further progress.”
Overall, key financial results for the six months ended 30 September 2012:
- Total company revenues – SiS and Fruitflow – for the period £3.26m (2011: £1.53m)
- Underlying operating loss (before impairment, amortisation and exceptional items) reduced to £0.51m (2011: £1.03m)
- Statutory loss for the period £0.70m (2011: £1.47m)
- Cash balance at 30 September 2012 £1.4m (2011: £2.8m)
- Loss per share £0.05 (2011: £0.10)
www.provexis.org
www.scienceinsport.com
