Sports nutrition business in healthy position to exit pandemic
Science in Sport, the premium performance nutrition company serving elite athletes, sports enthusiasts and the gym lifestyle community, said it is trading in line with its pandemic contingency scenario.
The AIM-listed company, which has a manufacturing site in Nelson, East Lancashire, released a statement from chairman John Clarke, ahead of its annual general meeting this morning (June 25).
He said: “As previously announced, the company had conducted a number of scenario analyses which modelled the impact of COVID-19 on revenues for the current financial year and into 2021.
“Trading is currently in line with the base scenario developed as part of our contingency planning.
“As expected, retail sales in all markets remain adversely affected compared with normal levels.
“However, we are making very strong progress with our e-commerce business, with our own PhD and SiS platforms performing well, and our Amazon business outperforming.”
He said: “Pricing improvements and supply chain synergies are delivering an improved gross margin. This, together with planned COVID-19 cost cutting measures now implemented, is protecting our strong cash position.”
Mr Clarke said the company’s financial position remains robust.
The proceeds from the £4.5m placing in April 2020 means it has substantial headroom and can exit the current trading environment well placed to deliver on its long-term growth strategy.
As a further contingency the business put in place an £8m invoice financing debt facility, which remains unused.
Mr Clarke added: “Despite the continued high degree of uncertainty from the COVID-19 pandemic and associated economic impact, our strategy remains unchanged, focusing on science-led innovation, building brand equity, taking our share of e-commerce business and developing global markets.
“We are confident that we are well prepared to deliver on this strategy and will provide further details on progress in our half year results announcement on 16 September 2020.”
