Science in Sport says group on track for good recovery
Performance nutrition company Science in Sport saw revenues for the year to December 31, 2021, improve, but pre-tax losses widen.
The firm, which has a manufacturing base in Nelson, East Lancashire, and a new operation in Blackburn, reported sales of £62.539m, up from £50.351m. However, pre-tax losses widened from £2.273m the previous year to £5.337m in 2021.
It said it performed strongly during the year and ahead of expectation.
The important USA market grew by 50% to £5.1m, as the group made inroads into elite sports, including NBA and NFL teams. Key international markets of the USA, China, Germany, Italy and Australia grew by 50% to £16.0m (FY 2020: £10.7m) despite Brexit and pandemic disruption.
Capital investment was made in a new supply chain facility with capacity to accommodate £200m per annum of future sales. Investment in technology improved revenue per visit to the digital platform by eight per cent from installation in May to year-end. The current investment phase underpins the group’s medium term ambition to deliver £100m of highly cash generative revenue.
Reflecting the capital investment, which underpins the group’s growth and profit strategy, the cash at bank on December 31, 2021, was £4.9m (31 December 2020: £10.5m), in line with management expectations.
The reported loss before tax was £5.3m was higher, mainly due to the strategic investment in technology and data science, including the cloud accounting policy change requiring costs to be expensed.
Trading for January and February is up 18% on the same period in 2021, and March revenue is forecast to be a new record month. Gross margin is robust with input price increases offset by supply chain efficiencies, favourable channel mix, and price increases implemented across all channels.
The group’s new Blackburn supply chain facility will start handling logistics operations in April, with gel manufacturing being fully operational in July.
Chief executive Stephen Moon said: “The group has performed well and delivered strong revenue growth. This very encouraging performance reflects the strength of our science-led premium brands which continue to drive strong underlying EBITDA growth.
“We saw revenue growth in all channels and key markets, especially online. Online sales increased by 40% and now account for 56% of total sales, up from 50% a year ago, underpinned by our increased investment in growth technology. Our profitable retail sales grew well in the UK and internationally.”
He added: “Prospects for further progress in 2022 look strong, following a good start to the year.
“While there are input price and supply chain headwinds, we believe that our efficient operations will deliver efficiencies to significantly mitigate such costs. Our revenue, profitability and cash generation ambitions are unchanged and we will continue to invest in the key drivers strategically.”
