Science In Sport predicts return to growth after restructuring

16th Sep 2024 09:19

(Sharecast News) - Underlying profits at Science in Sport nearly doubled in the first half of 2024, as work to improve margins made up for a big drop in revenues amid a complete restructuring of the performance nutrition manufacturer which saw the shake-up of its board.

Underlying EBITDA totalled £2.0m over the six months to 30 June, up from £1.1m a year before, with the gross margin improving 2.6 basis points to 44.6%.

However, gross profits slumped by 21% to £11.5m, as revenues dipped 25% to £25.7m due to the shift of certain overseas revenue to royalty streams.

The company also blamed the decline on poor stock availability to certain key accounts due to working capital constraints in the first half, as well as steps to reduce unprofitable revenue and excessive discounting.

Looking ahead, the company said it has made a positive start to the second half and that the first half should be seen as a "baseline from which we anticipate controlled and sustained revenue and profit growth in the medium term".

After the appointment of a new chief financial officer, chief commercial officer and chief operating officer during the period. chair Dan Wright said: "We now have a broader team in place structured for success through extensive experience in strategic development and commercial execution across all areas of the business."

The stock was down 0.8% at 25.3p by 1000 BST.