Science in Sport makes more board changes as trading improves

28th Jun 2024 07:49

(Sharecast News) - Performance nutrition company Science in Sport has announced two further board changes as it released an update on first-half trading, which showed that profits have improved despite a big drop in the top line.

Revenues in the first half ending 30 June are expected to be around £25.5m, down 27% on last year, as the company made a shift in strategy towards a royalty-based model in certain export regions "as well as a conscious step back from marginal revenue channels to prioritise profitable, cash generative growth". Full-year revenues are also expected to be down on 2023 due to these actions.

However, SIS expects to report underlying EBITDA of £2.0m, up from £1.1m in the first half of last year, helped by the a cost rationalisation programme and a 3 percentage point improvement in the gross profit margin to 45%.

"The resetting of marginal revenue channels and a pivot towards controlled profitable growth has reduced revenue in the short term but importantly, margins have and should continue to improve due to significant operational cost efficiencies and more disciplined pricing," the company said.

Meanwhile, the company announced the appointment of Christopher Welsh as CFO, joining from Accrol Group, with current CFO Dan Lampard moving into the position of chief operating officer.

The company had already restructured its executive and leadership team in the fourth quarter of last year, including a new chair and chief executive, as it launched a significant operational cost review of the business.

SIS also released its 2023 results on Friday, showing a 1.7% decline in annual revenues to £62.7m and a pre-tax loss of £11.3m, slightly up from the year before.

Shares were up 0.8% at 18.9p by 0919 BST.