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 unaudited results for the six months to 30 June 2020 and an update on current trading.
· Group revenue for the period was £23.6m, 5% lower than last year both on an actual and constant currency basis (H1 2019: £24.9m) reflecting the severe Q2 disruption caused in all markets by the COVID-19 pandemic.
· Group gross profit £11.2m (H1 2019: £11.1m) as Supply Chain improvements, together with margin improvement from Digital and Marketplace, resulted in strongly improved gross margin of 47.7% both on an actual and constant currency basis (H1 2019: 44.8%).
· Underlying operating loss* of £0.2m (H1 2019: loss of £0.6m) as our continued focus on removing non-strategic cost and prioritising profitable growth have driven improvements in underlying profitability
· Strong balance sheet position with cash of £9.0m (H1 2019: £5.0m) following the successful £4.5m gross equity raise in April
· Continued improvement in trading in July and August, with Group revenue of £8.6m for those months, up 1% on the same period last year
· Digital and Marketplace continued to perform strongly, delivering £3.8m of revenue in July and August, 34% ahead of the same period in 2019
· UK Retail year on year 16% lower for July and August, indicating recovery from H1 31% lockdown-related decline; Export Retail 13% lower, recovering from Q2 34% decline
· Cash position increased to £9.8m at the end of August
*excludes depreciation, amortisation, share-based payments, 2019 PhD acquisition costs and foreign exchange variances on intercompany balances
Stephen Moon, Science in Sport's Chief Executive Officer, commented:
"We acted quickly and decisively in March to restructure given the COVID-19 pandemic, and as a result, we stabilised business operations. We have used the last six months to take advantage of changing consumer preferences and accelerated our digital and marketplace strategy. Improved channel mix and pricing, together with significant supply chain efficiencies underpinned a strong gross margin. Subject to any further severe COVID-19 related impact, we feel we can build on this strong platform."
"We are also looking through COVID-19 and intend to get back onto our proven growth trajectory, underpinned by science-led innovation and strong brand equity. Major projects in supply chain and technology are underway, to help support the next phase of digital and international growth. We remain positive about our long-term profitable growth strategy."