Sports nutrition specialist, Science in Sport, has announced its unaudited half year results for the six months ended 30 June 2015.
Highlights
- Revenues increased by 19% to £5.24 million (H1 2014: £4.42 million), with strong growth in online channels and international markets
- Underlying operating loss of £330K (excluding depreciation, amortisation, and share based payments). According to SiS, this is in line with expectations and reflects a ‘phasing of brand awareness investment and US market analysis’ (H1 2014 underlying operating profit: £239K.)
- Second half projected to be EBITDA positive given planned first half weighting of marketing investment, with full year financial performance expected to be in line with expectations
- Multimedia marketing investment reached over 23 million consumers, driving revenue growth and resulting in sharp increase in brand awareness
- New product development continued to be key growth driver, contributing 38% of growth
- Cash and cash equivalents of £0.9 million at 30 June 2015 (30 June 2014: £2.50 million)
Stephen Moon, Science in Sport’s CEO, said “We are pleased to report continued strong revenue growth as disclosed in our pre-close in June, which is in line with our expectations. We have invested heavily in digital marketing during the first half and the benefits are evident in both growth and sharply improved brand awareness.
“We expect revenue growth in the second half of the year to continue to be broadly in line with the first half, which, due to the planned first half weighting in our investment, will enable the company to report a positive EBITDA for this period.”
He continued, “International and online growth has been particularly strong and we believe these channels will continue to play a key role in the medium and long term growth of the business. In addition to existing international markets, we have also invested in developing launch strategies for new territories.
“Our model of consistent investment in the brand to underpin revenue growth, together with attention to gross margin and tight control of overheads continues to work. We remain confident in our strategy and believe we will continue to deliver strong growth.”
The core SiS 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 – with SiS Whey Protein added to the mix earlier this year.
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 Team Wiggins, Rapha Condor JLT, Madison Genesis, Boels Dolmans and Trek Factory Racing. SiS is also 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 Hatton Garden, London. Its manufacturing facility is in Nelson, Lancashire.
SiS shares are traded on the AIM market of the London Stock Exchange under the ticker symbol SIS.
