SCIENCE IN SPORT PLC
(“Group” or “Company”)
Interim results for the six months ended 30 June 2021
Growth momentum regained
Company strongly positioned for further progress in H2
HIGHLIGHTS
· Revenue up 24% to £29.3m (H1 2020: £23.6m), returning to 20%+ growth rates while negotiating ongoing coronavirus challenges
o both brands contributed, with PhD sales up 15% to £13.4m and SiS sales up 34% to £15.9m
o new product innovation accounted for £1.5m (26%) of H1 growth (H1 2020: £1.4m)
o non-UK sales increased to 40% of total sales (H1 2020: 38%)
· Online sales up 44% to £15.7m (H1 2020: £10.9m), supported by increased investment – 54% of total revenue (H1 2020: 46%)
· Retail sales returned to growth despite pandemic restrictions in many key markets;
o UK retail sales up by 8% to £8.4m (H1 2020: £7.7m)
o International retail sales up by 6% to £5.2m (H1 2020: £4.9m)
· Gross margin increased by 400bps to 52% (H1 2020: 48%), reflecting continued supply chain efficiencies, increased online sales, and product mix
· Underlying* EBITDA of £0.6m – after one-off Brexit-related costs of c.£0.7m (H1 2020: underlying loss of £0.2m)
· Capital investment increased to £2.7m (H1 2020: £0.9m); investment was focused on the new customer data platform and new supply chain facility in Blackburn
· Robust balance sheet with cash of £8.2m at 30 June 2021 – ahead of management expectations (31 Dec 2020: £10.5m and 30 June 2020: £9.0m)
· Trading has been strong in the first two months of H2, and while there are still some challenges and uncertainties, the Group expects to exceed its revenue targets for the year
*excludes depreciation, amortisation, share-based payments, and foreign exchange variances on intercompany balances
Stephen Moon, Chief Executive Officer of Science in Sport plc, said:
“ Trading over the first half of the financial year recovered well, gaining momentum as coronavirus pandemic restrictions lifted. The Group returned to over 20% revenue growth, overcoming Brexit supply chain disruptions.
“Gross margin percentage and underlying profitability continued to improve. This reflected last year's strategic progress and continued investment in our premium brands and online capability.
“ The second half has started strongly for us, and we are continuing to manage successfully input cost pressure. While uncertainties remain, we expect to exceed revenue targets for the year, and continue to be very optimistic about growth prospects over the medium and long-term.”