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Science in Sport Plc - Final Results 2019

This content has been sourced from: https://www.investegate.co.uk/science-in-sport-plc...

SCIENCE IN SPORT PLC

("Company" or "Group")

Final Results for the Year Ended 31 December 2019

Science in Sport plc  (AIM: SIS), the premium performance nutrition company serving elite athletes, sports enthusiasts and the gym lifestyle community, is pleased to announce its audited final results for the year ended 31 December 2019.

HIGHLIGHTS

  • A 23% increase in Group revenue to £50.6m (2018: pro forma1 £41.0m, reported £21.3m), reflecting the first full year contribution of PhD and strong organic growth by both brands. PhD delivered record revenue growth of 23% (pro forma1), and the SiS brand delivered 24% revenue growth contributing to a 6-year 25% revenue Compound Annual Growth Rate ("CAGR");
  • Integration of PhD completed on time and in full including launch of PhD.com, new E-Commerce fulfilment operation and installation of protein powder line at the Nelson factory
  • Online revenue, a key strategic focus for the Group, grew strongly up 36% to £16.4m (2018: pro forma1 £12.1m);
  • Strategic markets of USA and Football grew 92% and 94% respectively, in line with expectations, to £3.9m in total; 
  • International Retail revenue up 41% to £12.3m (2018: pro forma1 £8.7m), with strong growth in existing markets in Europe and Asia, plus new territories including PhD launching in Saudi Arabia and SiS expanding into Latin America;
  • Innovation-driven new products delivered 25% of total Group revenue growth and included PhD's vegan Smart Bar Plant, SiS's Protein20 bars and the SiS Football range;
  • Group gross margin of 44% (2018: 45% pro forma1) impacted by one-off items from inventory and global whey commodity pricing;
  • Underlying operating loss2 of £0.3m (2018: loss of £2.7m) in line with growth strategy and market expectations, reflecting continued investment in brand awareness, e-commerce and international expansion;
  • Cash and cash equivalents of £5.4m (2018: £8.0m) in line with market expectations; and
  • Post period end the Group continues to perform in-line with expectations, with Covid-19 preparations having been in place for some weeks. 

1 pro forma revenue is compared with full year 2018 results for PhD and SiS brands as set out in the Financial Review

2 excludes depreciation, amortisation, non-cash share-based payments, costs relating to the acquisition and integration of PhD Nutrition, IFRS 16 Lease payments and foreign exchange variances on intercompany balances (see Note 1)

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

"2019 was a transformational year for Science in Sport as we integrated the PhD business as planned and continued our strategic growth focus on e?commerce and international, positioning the Group for the next stage of its growth.

Our preparations for Covid-19 disruption have been underway for several weeks and measures include buying sensitive raw materials, securing the supply chain operation, and remote working for commercial and operations staff. Costs are being managed very tightly and contingency plans are in place. We are well prepared to protect the Company and its workforce should the impact from Covid-19 become extended."