City round up: Science in Sport; Norcros; Regional REIT; PZ Cussons
Sports nutrition business Science in Sport has completed a strategic review and said its investment in a distribution facility in Blackburn is at the centre of its strategy.
The board felt the share price undervalued the business and had been considering all options, including a sale. The company is no longer in an “offer period” and is not in receipt of any approaches to acquire the business.
“The new Blackburn distribution facility is expected to significantly expand margins due to its market leading low operating costs. The Company has installed a new highly efficient bar line taking all bar production in-house. The line is fully operational and is expected to be a significant contributor to the anticipated improvement in profitability,” the company said in a statement to the market this morning.
The group said it has had a good start to 2023 with first quarter revenue of £15.6m delivering growth of 2.3% compared to the prior year. While January and February were affected by Amazon global destocking and COVID in China, momentum is gathering, as evidenced by a record March revenue of £7.2m (FY22 £6.4m) and current trading performance in April.
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Wilmslow headquartered bathroom products business Norcros has closed Norcros Adhesives, a small but loss making division with the loss of 70 jobs in Tunstall, Stoke on Trent. Norcros Adhesives represented approximately 3% of total revenue in the year. The revenues and approximately £3 million of underlying operating losses are included in the underlying financial results for the year. The cost of the closure will be around £5 million and will be separately reported as an exceptional item in the results to 31 March 2023.
The results to be announced on 15 June are expected to show revenue for the year ended 31 March 2023 of £440 million (2022: £396.3 million).
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Regional REIT the regional office specialist, has confirmed that ARA Asset Management Limited, has acquired a majority shareholding stake in London & Scottish Property Investment Management with investor Stephen Inglis retaining a significant minority interest. The change won’t affect the service provided to Regional REIT. “Furthermore, the board believes the transaction will enhance the overall strength and capabilities of the Asset Manager to the benefit of the company’s long-term strategy,” the company said.
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PZ Cussons has issued a trading update for its third quarter, ended 4 March 2023 with revenue growth of 6% on the same quarter last year of £166m. Profits for the year are expected to be in the region of £68.1m.
Jonathan Myers, chief executive, said: “We have delivered another quarter of mid-single digit revenue growth, in line with our longer-term ambition. This represents a sixth consecutive quarter of growth, with the business underpinned by the strength and depth of our portfolio and our ongoing strategy to invest behind our brands, build internal capabilities and serve consumers better.
“As anticipated, performance has strengthened in Europe & the Americas, with a return to revenue growth and a marked improvement in profitability in the quarter. As a result, we remain confident in delivering against FY23 expectations and that further strategic progress will be made in the balance of FY23 and into FY24.”
