REG - Science in Sport PLC - Final Results
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RNS Number : 3265G Science in Sport PLC 28 April 2025
Science in Sport plc
("Science in Sport", "the Company" or the "Group")
Audited Final Results for the Year Ended 31 December 2024
Science in Sport plc (AIM: SIS), the premium performance nutrition company
serving elite athletes, sports enthusiasts, and the active lifestyle
community, announces its audited final results for the year ended 31 December
2024 ("FY24" or the "Period") which demonstrate a resetting the operating
model of the business resulting in a performance of which the Board is proud
but has proved challenging given the level of turnaround required.
Key Financials: 2024 2023 Change
Revenue £51.9m £62.7m (17.2%)
Gross Profit £23.5m £26.8m (12.5%)
Gross Margin 45.3% 42.8% +2.5bps
Trading Contribution £13.8m £12.8m 7.3%
Trading Contribution Margin 26.6% 20.5% +6.1bps
Underlying EBITDA £4.2m £2.0m 112.7%
Underlying EBITDA Margin 8.2% 3.2% +5.0bps
Adjusted Net Debt £5.9m £12.8m +£6.9m
Loss per Share (2.3p) (6.6p) +4.3p
FY24 Highlights:
· The Company completed an oversubscribed equity fundraising of £8.5m
before expenses in July 2024, as well as extending and amending banking
facilities.
· Restructure of the executive and leadership team with several senior
roles exiting the business.
· Marginal revenue channels have been reset, and measures implemented
to secure and grow the Group's profitable revenue streams.
· Supplier and operational reviews have been completed to improve
purchasing terms and conditions in conjunction with product inventory
rationalisation.
· A significant number of uncommercial marketing contracts have been
exited in FY24. Marketing spend will be aligned to identifiable commercial
traction moving forward.
· Significant operational cost savings have been extracted with over 30
roles exiting the business due to the operational efficiencies implemented
throughout FY24. This is anticipated to generate improved contribution to
cashflow and earnings beyond FY24 as these actions annualise.
· Margin improvement noted at all levels year on year as reset of
operating model takes hold.
· Underlying EBITDA improvement of 112.7% to £4.2m is a notable
improvement in profitability.
FY25 Outlook
· Management is taking an ambitious yet balanced view on prospects for
2025 where trading performance has started well with the improvements made
throughout 2024 continuing to annualise. The strategic focus areas are driving
profitable revenue growth through distribution agreements both domestically
and internationally; controlled growth over the medium term supported by
effective marketing with a clear strong commercial execution; and, continued
margin improvements from ongoing cost challenge resulting in cash generation
and deleveraging.
· On 17(th) April 2025, the SiS plc Independent Directors announced
that they reached agreement on the terms of a recommended all cash acquisition
by bd Capital of the entire issued and to be issued ordinary share capital of
SiS plc. Further details of which can be obtained from the recent Rule 2.7
Announcement dated 17(th) April 2025.
For further information:
Science in Sport plc T: 020 7400 3700
Dan Wright, Executive Chairman
Chris Welsh, CFO
Panmure Liberum (Nominated Adviser and Broker) T: 020 3100 2000
Ed Thomas
John More
Josh Borlant
Notes to Editors
About Science in Sport plc
Headquartered in London, Science in Sport plc is a leading sports nutrition
business that develops, manufactures, and markets innovative nutrition
products for professional athletes, sports and fitness enthusiasts and the
active lifestyle community. The Company has two highly regarded brands, PhD
Nutrition, a premium active-nutrition brand targeting the active lifestyle
community, and SiS, a leading endurance nutrition brand among elite athletes
and professional sports teams.
The two brands sell through the Company's phd.com and scienceinsport.com
digital platforms, third-party online sites, including Amazon and ebay, and
extensive retail distribution in the UK and internationally, including major
supermarkets, high street chains and specialist sports retailers. This
omnichannel footprint enables the Company to address the full breadth of the
sports nutrition market.
PhD is one of the UK's leading active nutrition brands with a reputation for
high quality and product innovation. The brand has grown rapidly since its
launch in 2005. The range now comprises powders, bars, and supplements,
including the high protein, low sugar range, PhD Smart.
SiS, a leading endurance nutrition business founded in 1992, has a core range
comprising gels, powders and bars focused on energy, hydration, and recovery.
SiS is an official endurance nutrition supplier to over 330 professional
teams, organisations, and national teams worldwide. SiS supplies more than 150
professional football clubs in the UK, Europe, and the USA.
SiS is Performance Solutions partner to Ineos Grenadiers cycling team, and
Tottenham Hotspur, New York City and CGC Nice football clubs.
For further information, please visit phd.com and scienceinsport.com
Chairman's Statement
Overview
Overall, 2024 has been a successful year of turnaround for the Group following
the appointment of a new executive team in the final quarter of 2023. This new
team has been responsible for driving change and resetting the operating model
of the business resulting in a performance of which we are ultimately proud
but has proved challenging given the level of turnaround required. The new
executive team brings together significant experience across a range of highly
relevant sectors and a group who are focused on delivering value for
shareholders.
For the year ended 31 December 2024, the Group delivered significant growth in
Underlying EBITDA 1 (#_ftn1) reporting £4.2m (2023: £2.0m) an increase
of 110% year on year; which as announced on 30(th) January 2025 was marginally
ahead of market expectations at the time as the efficiencies identified begin
to realise slightly ahead of original expectations. Despite lower year on year
revenues (reduced by 17.2%) of £51.9m (2023: £62.7m) management are
confident of the resetting of the operating model and stepping away from
uncommercial revenue streams to provide a platform for accretive growth moving
forward.
In July 2024 the Company completed an oversubscribed equity fundraising of
£8.5m before expenses. At the same time, the Group amended and extended
banking arrangements to 2027, providing additional flexibility in accessing
liquidity to fund growth. The fundraising, along with positive actions
undertaken to the underlying working capital cash flows, has provided the
necessary capital to complete the ongoing restructuring of the business to
drive margin improvement and over time ensure that SiS is not only a growth
company but a profitable and cash generative one.
On 17(th) April 2025, the SiS plc Independent Directors announced that they
reached agreement on the terms of a recommended all cash acquisition by bd
Capital of the entire issued and to be issued ordinary share capital of SiS
plc. Further details of which can be obtained from the recent Rule 2.7
Announcement dated 17(th) April 2025.
Strategy
The Group has continued to make significant strategic progress following a
full business review completed in 2023 where the Board remains confident that
the business will return to growth from a stronger operating platform with
improving operating margins and cash generation. The strength of the two core
brands, SiS and PhD, is clearly well established, however the prior strategy
of prioritising top line growth, with an inflated operating structure, has
been reset as the business focuses on controlled profitable growth to allow
management to address the significant growth opportunities and demand for SiS,
in particular, from a solid platform with strong commercial execution.
Since joining the Board in October 2023 and establishing the new leadership
team, the immediate focus has been managing cash outflow and stabilising the
relationship with our various stakeholders. To date, a number of significant
cost rationalisation actions have been taken, many of which are beginning to
annualise throughout 2024.
Key actions, both complete and ongoing, include;
· Restructure of the executive and leadership team with several senior
roles exiting the business.
· Marginal revenue channels have been reset, and measures implemented
to secure and grow the Group's profitable revenue streams. Upon detailed
review, a number of overseas distribution agreements were found to be
uncommercial and based on prioritisation of revenue growth over profitability.
Whilst resetting these agreements lead to a reduction in revenues in 2024,
management are confident in the platform for growth and that our distribution
arrangements moving forward will be a two-way partnership whereby the strength
of the brand is supported by both parties with measurable deliverables.
· Supplier and operational reviews have been completed to improve
purchasing terms and conditions in conjunction with product inventory
rationalisation.
· A significant number of uncommercial marketing contracts have been
exited in 2024. Marketing spend will be aligned to identifiable commercial
traction moving forward.
· Significant operational cost savings have been extracted with over 30
roles exiting the business due to the operational efficiencies implemented
throughout 2024. This is anticipated to generate improved contribution to
cashflow and earnings beyond 2024 as these actions annualise.
Environmental, Social and Governance (ESG)
We are committed to promoting sustainability and responsible business
practices both as a Group and through our individual brands. As an industry
leader, we have invested in packaging technology and plant to transition all
protein powder products into recyclable pouch packaging, a first for the
sports nutrition industry globally. We continue to explore innovations in our
supply chain for further shifts towards recyclable or more environmentally
conscious packaging.
In both Q1 2024 and Q1 2025 the Group passed its Food Safety System
Certification (FSSC) audits which is testimony to our high standards of
manufacturing and hygiene. We proudly continue to be an accredited Living Wage
Employer and across 2024, supported 12 employees through the completion of
apprenticeship qualifications, three employees successfully completed their
Level 2 and 3 qualifications in subjects such as Lean Manufacturing Business
Administration and we current support eight employees who are studying,
including four who are completing an executive 'Masters in Leadership' with
Bayes Business School as we strive to support and create new opportunities our
colleagues across the Group.
Outlook
Management is taking an ambitious yet balanced view on prospects for 2025
where trading performance has started well with the improvements made
throughout 2024 continuing to annualise. The strategic focus areas are driving
profitable revenue growth through distribution agreements both domestically
and internationally; controlled growth over the medium term supported by
effective marketing with a clear strong commercial execution; and, continued
margin improvements from ongoing cost challenge resulting in cash generation
and deleveraging. Whilst these improvements have started to be realised
maximising the Group's full potential is likely to require further capital
investment in distribution and product range to scale quickly as significant
growth of marginally accretive revenue requires a longer-term outlook. We have
several new exciting Elite partnerships for 2025, and are the new nutrition
partner for British Cycling, British Aquatics GB, British Triathlon and
British Netball. These partnerships complement our already strong Elite
portfolio and further reaffirm our scientific and elite credentials,
facilitating product development and engagement at a grass roots level with
the significant databases each of the associations have in place. In addition
to our new Elite partners, we have established strategic partnerships with
RunThrough, Limitless Trails, Ultra-X and Ultra Challenge as the provider of
nutrition support and fuelling guides for over 250 events UK and International
events to over 750k participants.
The Group has recently secured broader distribution in the Middle East region
having signed new distribution agreements that will see increased presence in
speciality stores, grocery and sporting goods shops. We are expanding within
the Australian market and anticipate growth in both direct and B2B
distribution in this region. Both regions will be important focus areas for
international growth throughout 2025 and beyond.
Recommended Cash Acquisition of SiS plc
On 17(th) April 2025, the board of directors of bd Capital and the SiS plc
Independent Directors announced that they reached agreement on the terms of a
recommended all cash acquisition by bd Capital of the entire issued and to be
issued ordinary share capital of SiS plc.
Further details of the recommended cash offer can be obtained from the recent
Rule 2.7 Announcement dated 17(th) April 2025 or via the Group's nominated
advisor and broker.
Overview
Science in Sport Plc ('SiS') is a leading sports nutrition business that
develops, manufactures, and markets innovative nutrition products for
professional athletes, sports and fitness enthusiasts and the active lifestyle
community. The Group has two highly regarded brands, SiS, a leading endurance
nutrition brand among elite athletes and professional sports teams and, PhD
Nutrition ('PhD'), a premium active-nutrition brand targeting the active
lifestyle community.
The two brands sell through the Group's scienceinsport.com and PhD.com digital
platforms, third-party online sites, including Amazon and eBay, and extensive
retail distribution in the UK and internationally, including major
supermarkets, high street chains and specialist sports retailers. This
omnichannel footprint enables the Group to address the full breadth of the
global sports nutrition market, worth £24.1bn in 2024 and forecast to
continue to grow.
SiS, a leading endurance nutrition business founded in 1992, has a core range
comprising gels, powders and bars focused on energy, hydration, and recovery.
SiS is an official endurance nutrition supplier to over 330 professional
teams, organisations, and national teams worldwide. SiS supplies more than 150
professional football clubs in the UK, Europe, and the USA. Brand
ambassadors include the former track cyclist Sir Chris Hoy, an eleven-time
world champion and six-time Olympic champion, and Elish McColgan, who won gold
in the 2022 Commonwealth Games 10,000 metres.
SiS is a Performance Solutions partner to Tottenham Hotspur, New York City and
OGC Nice football clubs as well as Saracens Rugby. At the Paris Olympics 2024,
individual athletes and teams using SiS products achieved over 100 medals,
which is testament to the quality of products, level of trust and unique
position SiS commands in the elite community. We continue to pride
ourselves on developing products using elite insights backed by science which
translate in to mass consumption for driving athletic achievement.
Launched in 2005, PhD is one of the UK's leading active nutrition brands
with a reputation for high quality and product innovation. The range comprises
powders, bars, and supplements, including the high protein, low sugar range,
PhD Smart.
Our Brands
The Group's results and operations are underpinned by our two market leading
brands;
Science in Sport:
Science in Sport is a leading performance nutrition brand with over 330 elite
athletes and teams relying on its products for success. The combination of
world-class knowledge and scientific formulations ensure the brand provides
optimal performance solutions for athletes across the nutritional need states
of energy, hydration and recovery.
Our range of SiS products includes:
· Energy - Bars, shots, gels and powders to give athletes energy
· Hydration - Gels, tablets and powders to keep athletes energised and
hydrated
· Recovery - Powder range to aid athletes' recovery post-exercise
· Athlete health - Vitamins and supplements range designed to support
and maintain immune function, digestive health and bone health amongst
athletes
PhD:
Born from science, with innovation and quality at the core of the brand, PhD
is one of the UK's leading active nutrition brands. The PhD brand is
established internationally with a strong retail network across the globe
which has enabled the Group to grow and develop the brand's exceptional
reputation.
Our range of PhD products includes:
· Diet - The delicious Diet range combines protein, which is ideal for
building and maintaining lean muscle whilst keeping you satiated for longer.
· Smart - Consisting of great tasting high protein, low sugar foods,
bars and snacks. This includes the Smart Bar, an on-the-go protein hit and the
multi-use Smart Protein Powder suitable for cooking.
· Life - A range of premium, expertly formulated health optimisation
products. From the high in protein, low sugar, plant-based Complete meal
solution, and Reset, a night time formula, to Mind, made to support optimal
mental performance, this is a range to optimise performance for life.
· Performance - expertly formulated to help you perform at your best
and optimise your training. From key supplements to aid in strength gains pre
and intra workout to replenishment and recovery post workout, to maximise
training and hitting goals.
Our focus in delivering long term value
The leadership team have outlined six key areas of focus, which will enable
the Group to continue to grow throughout 2025 and deliver long-term value
going forward.
1. World-class science
As a world leader in nutritional science and product development, investment
in science remains at the core of the business. Quality, efficacy of
ingredients and proven product benefits are key principles of both brands. We
are pleased to announce that PhD is the first and only Informed Protein
accredited protein product further demonstrating our commitment to quality and
efficacy for our consumers.
2. Brand exposure
Both brands command significant share within their respective markets. Science
in Sport holds the number one position in UK retail and marketplace channels,
with a leading presence globally with an unrivalled elite presence. PhD is in
the top three within the UK retail and marketplace channels and is strongly
positioned in the Asia Pacific region. We will continue to grow brand
awareness, leveraging our Elite athlete portfolio and scientific credentials,
through targeted investment delivering measurable returns.
3. Sales growth
The opportunity for global sales growth is significant, given the strength of
the brands and continued positive trajectory of the sports nutrition market.
We will deliver this by working with existing and new partners, driving
profitable revenue growth through distribution agreements both domestically
and internationally.
4. Financial health
The Group had previously pursued an aggressive growth strategy, while this
delivered positive revenue growth it was not cash accretive. Under the
guidance of the new executive team, the revised strategy is on sustainable
profitable cash generation, through delivery of enhanced margins on a lower
cost base while deleveraging the business. In July 2024 the Company completed
a significantly oversubscribed equity fundraising of c £8.5m before expenses.
In conjunction, the Group amended and extended banking arrangements to 2027,
providing additional flexibility in accessing liquidity to fund growth.
5. Operational excellence
With the transition to the manufacturing facility at Blackburn fully
completed, optimising the supply chain and manufacturing processes to deliver
enhanced margins continues to be a key focus.
6. High performing team
We are resetting the culture and ways of working within a much leaner team; we
are creating the conditions where everyone can perform at their best by
integrating all aspects of our business and ensuring accountability and
product pride across every department.
Our Market and Customers
The global sports nutrition market was worth £24.1bn in 2024 and is forecast
to continue to grow. Our 2024 revenue of £51.9m (2023: £62.7m) represents a
solid foothold in this market but highlights the scale of the opportunity for
both brands for significant growth.
Our current revenues are weighted to the UK, representing 59% (2023: 56%) of
our total revenue. This is driven through strong distribution through multiple
channels of specialist retailers, grocery, Amazon and our own direct channel.
The UK is a key market, and we see further opportunities to expand and grow
our market share through existing and new customers underpinned by strong
brand recognition and consistent reliability.
Outside of the UK, representing 41% (2023: 44%) of our revenue, we have
several key distribution partners covering multiple geographies. Throughout
2024 a number of these agreements have been reset or exited to ensure
strategic alignment with the objective of delivering mutually beneficial
profitable growth. This approach has resulted in revenue declining year on
year but provides a more commercially sound platform from which the business
can grow.
Turnover by geographic destination of sales is analysed as follows:
Year ended Year ended
31 December 31 December
2024 2023
£'000 £'000
United Kingdom 30,455 35,302
Rest of Europe 7,412 12,047
USA 2,569 3,548
Rest of the World 11,442 11,774
Total Sales 51,878 62,671
Our People and Culture
Throughout 2024 the business undertook a significant organisational
restructure with several management roles removed. This has resulted in
streamlined reporting lines on a much lower cost base. The new executive and
senior management team having the capability and expertise to deliver the new
strategy.
Our Future
As outlined in the Chairman's Statement, the Group is taking a balanced view
on prospects for 2025 with the strategic focus on embedding the new operating
model following the recent restructuring; controlled growth over the medium
term, continued margin improvements resulting in cash generation and
deleveraging.
On 17(th) April 2025, the board of directors of bd Capital and the SiS plc
Independent Directors announced that they reached agreement on the terms of a
recommended all cash acquisition by bd Capital of the entire issued and to be
issued ordinary share capital of SiS plc; further details of which can be
obtained from the Chairman Statement, the recent Rule 2.7 Announcement dated
17(th) April 2025 or from the Group's nominated advisor and broker.
Results for the year
The Group delivered £51.9m revenue in the year ended 31 December 2024, down
17.2% on the prior year (2023: £62.7m) as the Group stepped back from
marginal and commercially ineffective supply agreements. Revenue was
restricted throughout 2024 H1 due to limited availability of certain inventory
lines at key times of demand. The Group's improved liquidity base has
allowed for notable investment into building inventory volumes and repairing
availability. The Board is confident of carrying this revised operating model
into 2025 to better service our customer base and continue to grow revenues.
Product rationalisation of product SKUs has been undertaken to improve the
Group's working capital. Product availability and service reliability measures
are all significantly improved throughout 2024 Q4, with strong exit rate
momentum.
Underlying EBITDA increased to £4.2m (2023: £2.0m) consistent with
expectations despite the lower revenue. Following the resetting of the
operating model, the focus in the year shifted to higher margin, controlled
growth as the detailed cost rationalisation programme significantly benefits
margin. As previously announced this programme is anticipated to deliver
aggregate annualised cost savings in excess of £6m, which will annualise
fully throughout 2025. Operating margins of the Group continue to improve
following these cost savings as well as the exiting of a number of
uncommercial marketing contracts.
2024 2023 Increase/
£'000 £'000 (decrease)
Revenue 51,878 62,671 (17.2%)
Cost of goods (28,403) (35,839)
Gross profit 23,475 26,832 (12.5%)
Selling & general administration costs (9,686) (13,985)
Trading contribution 13,789 12,847 7.3%
Underlying operating expenses (9,547) (10,854)
Underlying EBITDA 4,242 1,993 112.8%
Share-based payment charges (295) -
Depreciation and amortisation (5,771) (6,250)
Restructuring and one-off costs (1,356) (1,975)
Loss on disposal of intangible assets - (879)
Transition costs - (2,092)
Unrealised foreign exchange on intercompany balances 81 (247)
Other items (503) (283)
Loss from operations (3,602) (9,733) 63.0%
Our SiS brand delivered annual revenue growth of 4.1%, as the brand and
quality of products continues to resonate with consumers. Meanwhile PhD
delivered an annual revenue reduction of 42.8% compared to the prior year,
predominantly due to challenges faced around inventory availability and poor
servicing of customers. Management have developed a plan growing the PhD brand
which includes refreshing the product range and a focus on quality
differentiation, which includes PhD becoming the first and only UK protein
brand to hold Informed Protein certification. A mark of quality which
management believe will resonate with both our core brand values and the
priorities of our customer base.
Gross profit for the Group reduced to £23.5m (2023: £26.8m) but gross margin
notably improved to 45.3% (2023: 42.8%) following a shift in focus to growing
margin performance under the new operating model. The underlying improvement
is better reflected by the significant improvement in trading contribution of
26.6% (2023: 20.5%). The trading margin reflects the benefit of the
significant cost restructuring of the Group with the operational efficiencies
and cost savings at all levels with many still to fully annualise through
2025.
Underlying EBITDA of £4.2m (2023: £2.0m) improved year on year through
improved margins and ongoing cost efficiencies. Excluded from Underlying
EBITDA are one-off costs, principally relating to the organisational
restructure.
Revenue
2024 2023
SiS PhD Total SiS PhD Total
£'000 £'000 £'000 £'000 £'000 £'000
Digital 3,053 937 3,990 4,984 2,325 7,309
Marketplace 7,313 4,605 11,918 6,218 6,835 13,053
China 1,667 1,559 3,226 1,105 2,285 3,390
USA 2,569 - 2,569 3,548 - 3,548
Global online 14,602 7,101 21,703 15,855 11,445 27,300
International retail 10,901 1,788 12,689 8,322 4,257 12,579
UK retail 10,092 7,394 17,486 10,007 12,785 22,792
Retail 20,993 9,182 30,175 18,329 17,042 35,371
Total Sales 35,595 16,283 51,878 34,184 28,487 62,671
Global Online
Global online sales accounted for 42% of total sales (2023: 44%) and decreased
to £21.7m (2023: £27.3m). The reduction in our own channel digital sales was
driven by lower traffic and saw digital sales decrease 45% year on year to
£4.0m (2023: £7.3m) following the conscious decision by the Group to reduce
marketing spend in this area whilst focusing on significantly improving
contribution. Throughout 2024 the business invested in to developing an
improved SiS direct to consumer website and are optimistic that the refreshed
platform can drive an improved customer experience.
Our Amazon marketplace sales saw a 9% decrease (2023: 13% increase), driven by
a shortage of key inventory product lines in the first half of the year.
We continue to have key distribution agreements in place for our US and China
business, throughout 2024 this combined channel declined by 16% delivering
£5.8m (2023: £6.9m) in part due to a change to a royalty supply model into
China for part of the year.
Retail
Retail sales accounted for 58% of total sales (2023: 56%) and with revenue
declining to £30.2m (2023: £35.4m) primarily due to a shortage of key
product inventory availability in H1 2024. Subsequent to the equity raise in
July 2024 the business has invested into growing inventory on hand and has
seen notable improvements in reliability later in the year.
We continue to distribute across UK Retail with relationships with major
grocers, independents and specialist retailers largely retained.
Profitability
Gross profit for the Group reduced to £23.5m (2023: £26.8m) but gross margin
notably improved to 45.3% (2023: 42.8%) following a shift in focus to growing
margin performance under the new operating model. Key raw material input
pricing remained fairly stable across 2024 with inventory availability to
service our customers being a limiting factor to growing margins in 2024 H1.
The Blackburn manufacturing facility continues to perform satisfactorily with
further efficiency and improvement targets set for 2025.
Trading contribution improved to £13.8m (26.6% contribution margin) (2023:
£12.8m; 20.5% contribution margin) despite the lower revenue base. The Group
focused on continued cost mitigations from reduced but more commercially
focused advertising and promotion spend. As a result, selling and
administration costs of £9.7m (2023: £14.0m) decreased by £4.3m year on
year to drive profitable growth.
Operating costs decreased by £1.4m year on year. The Group continues to have
good levels of visibility on these costs due to them relating to people,
premises and related overhead costs with management continuing to have a
relentless approach to driving cost efficiency wherever commercially viable.
Underlying EBITDA was £4.2m, a significant improvement year on year of
£2.2m. The reported loss before tax is £4.7m, (2023: £11.3m loss). Loss per
share improved to -2.3p (2023: -6.6p). The Group has chosen to report
Underlying EBITDA as an alternative performance measure. This is adjusted for
depreciation, amortisation, loss on disposal of intangible assets, non‐cash
share-based payments, restructuring costs, transition costs and material
one-off costs. The Board believes this provides additional useful information
for Shareholders to assess an underlying profit performance more closely
aligned to a cash profit value, excluding one-offs. This measure is used by
the Board for internal performance analysis. A reconciliation of Underlying
EBITDA to profit from operations is presented in note 1.3.
Working capital
As at 31 December 2024, the Group held inventory of £9.8m (31 December 2023:
£6.8m) following a significant investment in building inventory levels on key
product lines following the poor reliability and service levels noted under
the previous operating model.
Trade and other receivables reduced by £1.9m in line with the reduction in
revenue and a more robust approach to cash collection cycles.
Trade and other payables reduced by of £5.1m due to the timing of supplier
payments, the reduced cost base of the business and a step down in the
reliance on the trade finance debt facility to save interest costs.
Cash position
The Group ended 2024 with cash of £2.0m (2023: £2.1m) and Adjusted net
debt(( 2 (#_ftn2) )) of £5.9m (2023: £12.8m) with headroom in facilities of
£9.8m (2023: headroom £4m). The reduction in Adjusted net debt at the year
end was driven by the improvement in margins and an equity raise in the year.
In July 2024 the Company completed a significantly oversubscribed equity
fundraise of £8.5m before expenses. In conjunction the Group amended and
extended banking facilities to 2027, providing additional flexibility in
accessing liquidity and funding for growth as well as reducing the interest
cost burden. The equity fundraising has provided the necessary capital to
complete the ongoing restructuring of the business, to drive ongoing margin
improvement and over time to ensure that SiS is not only a growth company but
a profitable and cash generative one with a significantly strengthened balance
sheet.
( )
Intangible Assets
Total intangible additions during 2024 were £0.8m (2023: £1.0m), with £0.5m
(2023: £0.4m) being on technology spend and £0.3m (2023: £0.6m) on product
development. Technology spend relates to continued investment on the warehouse
management system and ecommerce platform, and product development spend in
relation to a number of elite and commercial products across both brands
including the development of our new Hydro+ range.
Fixed Assets
Total fixed asset additions during 2024 were £0.2m with minor sustaining
capital expenditure incurred in the year.
Share-based payments
In July 2024 the Company launched a management incentive plan (the "Growth
Plan") to incentivise management and to closely align their interests with
Shareholders. The Growth Plan covers the value created over three years post
launch and will be measured by reference to the difference in market
capitalisation of the Company following the Placing calculated by reference to
the Enlarged Issued Share Capital at the Issue Price and measured against the
60 day volume weighted average share price after three years post grant. No
value will accrue to recipients beneath a 20% return and in order for full
value to be delivered, the management team must deliver a return of 300% over
the three year term, which would equate to a share price of 68p per Ordinary
Share. The maximum dilution to existing Shareholders under the Growth Plan and
all other employee share schemes will not exceed 10% of the Company's issued
ordinary share capital.
A £0.3m (2023: £nil) charge was recognised for the management incentive plan
through the profit and loss account.
Taxation
The tax expense in the year is £19k (2023: £12k credit). The Group has
cumulative tax losses of £39.6m (2023: £38.6m), a proportion of which the
Group will look to use to cover future profits.
Consolidated Statement of Comprehensive Income Year ended Year ended
31 December 31 December
2024 2023
Notes £'000 £'000
Revenue 3 51,878 62,671
Cost of goods (28,403) (35,839)
Gross profit 23,475 26,832
Operating expenses 4 (27,077) (36,565)
Loss from operations (3,602) (9,733)
Comprising:
Underlying EBITDA 1.3 4,242 1,993
Share-based payment expense (295) -
Depreciation and amortisation (5,771) (6,250)
Non-recurring costs and other items (1,778) (5,476)
Finance costs (1,121) (1,558)
Loss before taxation (4,723) (11,291)
Taxation (expense) / credit (19) 12
Loss for the year (4,742) (11,279)
Other comprehensive income
Exchange differences on translation of foreign operations 21 54
Total comprehensive loss for the year (4,721) (11,225)
Loss per share to owners of the parent
Basic and diluted - pence 5 (2.3p) (6.6p)
All amounts relate to continuing operations.
As at As at
Company number: 08535116 31 December 31 December
Consolidated Statement of Financial Position 2024 2023
Notes £'000 £'000
Non-current assets
Intangible assets 24,484 27,042
Right-of-use assets 9,595 10,520
Property, plant and equipment 8,854 10,000
Deferred tax - 19
Total non-current assets 42,933 47,581
Current assets
Inventories 6 9,848 6,764
Trade and other receivables 7 11,936 13,812
Cash and cash equivalents 1,970 2,144
Total current assets 23,754 22,720
Total assets 66,687 70,301
Current liabilities
Trade and other payables 8 (20,169) (25,257)
Provision for liabilities (587) (671)
Lease liabilities (669) (789)
Asset financing (1,071) (1,192)
Hire purchase agreement - (82)
Total current liabilities (22,496) (27,991)
Non-current liabilities
Provision for liabilities (1,163) (1,059)
Lease liabilities (9,022) (9,903)
Asset financing (1,210) (2,282)
Total non-current liabilities (11,395) (13,244)
Total liabilities (33,891) (41,235)
Net assets 32,796 29,066
Capital and reserves attributable to owners of the parent company
Share capital 23,227 18,227
Share premium reserve 56,290 53,134
Employee benefit trust reserve (204) (204)
Other reserve (907) (907)
Foreign exchange reserve (63) (84)
Retained deficit (45,547) (41,100)
Total equity 32,796 29,066
Year ended Year ended
Consolidated Statement of Cashflows 31 December 31 December
2024 2023
£'000 £'000
Cash flows from operating activities
Loss for the financial year (4,742) (11,279)
Adjustments for:
Amortisation of intangible assets 3,405 3,827
Depreciation of right-of-use assets 1,003 993
Depreciation of property, plant and equipment 1,363 1,430
Loss on disposal of intangible assets - 879
(Profit)/Loss on disposal of property, plant and equipment (42) 11
Unrealised foreign exchange on intercompany balances (81) 247
Interest expense 1,121 1,558
Taxation 19 (12)
Share based payment charge 295 -
Operating cash inflow / (outflow) before changes in working capital 2,341 (2,346)
Changes in inventories (3,084) (126)
Changes in trade and other receivables 1,876 2,712
Changes in trade and other payables (281) 3,009
Total cash inflow from operations 852 3,249
Cash flows from investing activities
Purchase of property, plant and equipment (217) (1,103)
Purchase of intangible assets (847) (1,009)
Proceeds on disposal of property, plant and equipment 42 -
Net cash outflow from investing activities (1,022) (2,112)
Cash flows from financing activities
Gross proceeds from issue of share capital 8,500 -
Share issue costs (344) -
Repayments on asset financing (1,193) (208)
Interest paid on asset financing (190) (253)
(Repayments)/Proceeds from invoice financing (2,629) 1,818
Interest paid on invoice financing (287) (419)
(Repayments)/Proceeds from trade facility (2,275) 527
Interest paid on trade facility (226) (399)
Principal repayments of lease liabilities (1,041) (306)
Interest paid on lease liabilities (400) (436)
Net cash (outflow) / inflow from financing activities (85) 324
Net (decrease)/increase in cash and cash equivalents (255) 1,461
Unrealised foreign exchange differences 81 (247)
Opening cash and cash equivalents 2,144 930
Closing cash and cash equivalents 1,970 2,144
Consolidated Statement of Changes in Equity
Share capital Share premium Employee benefit trust reserve Other reserve Foreign exchange reserve Retained deficit Total equity
reserve
£'000 £'000 £'000 £'000 £'000 £'000 £'000
At 31 December 2022 17,242 53,134 (429) (907) (138) (28,611) 40,291
Total comprehensive loss for the year - - - - 54 (11,279) (11,225)
Transactions with owners:
Issue of shares 985 - - - - (985) -
Share based payments - - 225 - - (225) -
At 31 December 2023 18,227 53,134 (204) (907) (84) (41,100) 29,066
Total comprehensive loss for the year - - - - 21 (4,742) (4,721)
Transactions with owners:
Issue of shares 5,000 3,156 - - - - 8,156
Share based payments - - - - - 295 295
At 31 December 2024 23,227 56,290 (204) (907) (63) (45,547) 32,796
1. Accounting policies
1.1 General information
Science in Sport plc (the "Company" and together with its subsidiaries "SIS"
or the "Group") is a public limited company incorporated and domiciled in
England and Wales (registration number 08535116). The address of the
registered office is 2(nd) Floor, 16 - 18 Hatton Garden, Farringdon, London
EC1N 8AT. The functional and presentation currency is Pounds Sterling, and the
financial statements are rounded to the nearest £1,000.
The main activities of the Group are those of developing, manufacturing and
marketing sports nutrition products for professional athletes and sports
enthusiasts.
1.2 Basis of preparation
Whilst the financial information included in this results announcement has
been prepared on the basis of UK-adopted International Accounting Standards,
it does not contain sufficient information to comply with UK-adopted
International Accounting Standards. The financial information contained within
this results announcement for the year ended 31 December 2024 and the year
ended 31 December 2023 is derived from but does not comprise statutory
financial statements within the meaning of section 434 of the Companies Act
2006. Statutory accounts for the year ended 31 December 2023 have been filed
with the Registrar of Companies. The auditors' report on the statutory
accounts for the year ended 31 December 2024 and the year ended 31 December
2023 is unqualified, does not draw attention to any matters by way of
emphasis, and does not contain any statement under section 498 of the
Companies Act 2006.
1.3 Use of non-GAAP measures - Underlying EBITDA and Adjusted Net Debt
The Directors believe that the Underlying EBITDA as a measure provides
additional useful information for Shareholders on underlying trends and
performance. This measure is used for internal performance analysis.
Underlying operating loss is not defined by IFRS and therefore may not be
directly comparable with other companies' adjusted profit measures. It is not
intended to be a substitute for, or superior to IFRS measurements of profit.
A reconciliation of the underlying EBITDA to statutory operating loss is
provided below:
Year Ended 31 December Year Ended 31 December
2024 2023
£'000 £'000
Underlying EBITDA 4,242 1,993
Share-based payment expense (295) -
Depreciation and amortisation (5,771) (6,250)
Restructuring and one-off costs (1,356) (1,975)
Loss on disposal of intangible assets - (879)
Transition costs - (2,092)
Unrealised foreign exchange on intercompany balances 81 (247)
Other items (503) (283)
Loss from operations (3,602) (9,733)
The Other items relate to various non-recurring costs that have arisen during
the period, including expenses associated with business reorganisation
activities, charges incurred in relation to financing arrangements, and fees
resulting from late payments. These items are not expected to recur in future
periods and have therefore been presented separately to provide greater
clarity on the underlying financial performance
The Directors believe that Adjusted net debt as a measure provides additional
useful information for Shareholders on underlying trends and performance. This
measure is used for internal performance analysis. This measure is not defined
by IFRS and therefore may not be directly comparable with other companies' net
debt analysis. It is not intended to be a substitute for, or superior to IFRS
measurements.
A reconciliation of the Adjusted net debt figure is provided below:
Year Ended 31 December Year Ended 31 December
2024 2023
(£'000) (£'000)
Cash and cash equivalents 1,970 2,144
Invoice financing (3,712) (6,341)
Trade facility (985) (3,260)
Asset financing obligation and associated lease debt (2,531) (3,474)
Virtual Credit Card (621) (1,903)
Adjusted net debt (5,879) (12,834)
The Virtual Credit Card is included within Trade and Other Payables in the
Consolidated Statement of Financial Position, with corresponding cash flows
reported within Changes in Trade and other Payables in the Consolidated
Statement of Cashflows due to the nature of the facility being to support
working capital funding.
2. Segmental reporting
Operating segments are identified on the basis of internal reporting and
decision making. The Group's Chief Operating Decision Maker ("CODM") is
considered to be the Board, with support from the senior management teams, as
it is primarily responsible for the allocation of resources to segments and
the assessments of performance by segment.
The Group's reportable segments have been split into the two brands, Science
in Sport (SiS) and PhD Nutrition. Operating segments are reported in a manner
consistent with the internal reporting provided to the CODM as described
above. The single largest customer makes up 19% of revenue and is not
separately identified in segmental reporting.
The Board uses revenue, EBITDA, profit before tax and cash, as key measures of
the segment's performance. These are reviewed regularly.
2024 2023
SiS PhD Total SiS PhD Total
£'000 £'000 £'000 £'000 £'000 £'000
Sales 35,596 16,282 51,878 34,184 28,487 62,671
Gross profit 17,586 5,889 23,475 16,565 10,267 26,832
Advertising and promotions (3,709) (2,034) (5,743) (5,368) (3,025) (8,393)
Carriage (2,753) (963) (3,716) (3,173) (1,909) (5,082)
Online selling costs (204) (22) (226) (434) (76) (510)
Trading contribution 10,920 2,870 13,790 7,590 5,257 12,847
Other operating expenses (17,392) (22,580)
Loss from operations (3,602) (9,733)
3. Revenue from contracts with customers
The Group operates the primary sales channels shown below, which form the
basis on which management monitor revenue. UK Retail includes domestic grocers
and high street retailers, Digital are sales through the PhD.com and
scienceinsport.com platforms, International Retail relates to retailers and
distributors outside of the UK and Marketplace relates to online marketplaces
such as Amazon.
2024 2023
SiS PhD Total SiS PhD Total
£'000 £'000 £'000 £'000 £'000 £'000
Digital 3,053 937 3,990 4,984 2,325 7,309
Marketplace 7,313 4,605 11,918 6,218 6,835 13,053
China 1,667 1,559 3,226 1,105 2,285 3,390
USA 2,569 - 2,569 3,548 - 3,548
Global online 14,602 7,101 21,703 15,855 11,445 27,300
International retail 10,901 1,788 12,689 8,322 4,257 12,579
UK retail 10,092 7,394 17,486 10,007 12,785 22,792
Retail 20,993 9,182 30,175 18,329 17,042 35,371
Total Sales 35,595 16,283 51,878 34,184 28,487 62,671
Turnover by geographic destination of sales may be analysed as follows:
Year ended Year ended
31 December 31 December
2024 2023
£'000 £'000
United Kingdom 30,455 35,302
Rest of Europe 7,412 12,047
USA 2,569 3,548
Rest of the World 11,442 11,774
Total Sales 51,878 62,671
4. Operating expenses
Year ended Year ended
31 December 2024 31 December 2023
£'000 £'000
Sales and marketing costs 9,685 13,985
Operating costs 11,621 16,330
Depreciation and amortisation 5,771 6,250
Administrative expenses 17,392 22,580
Total operating expenses 27,077 36,565
5. Loss per share
Basic and diluted loss per share is calculated by dividing the loss
attributable to owners of the parent by the weighted average number of
Ordinary shares in issue during the period. The exercise of share options
would have the effect of reducing the loss per share and is therefore
anti-dilutive under the terms of IAS 33 'Earnings per share'.
Year ended Year ended
31 December 31 December
2024 2023
Loss for the year attributable to owners of the parent - £'000 (4,742) (11,279)
Weighted average number of shares 202,008,198 170,123,783
Basic loss per share - pence (2.3p) (6.6p)
Diluted loss per share - pence (2.3p) (6.6p)
The number of vested but unexercised share options is 179,798 (2023:
2,896,614).
6. Inventories
31 December 31 December
2024 2023
£'000 £'000
Raw materials 1,797 1,825
Finished goods 8,051 4,939
Total inventories 9,848 6,764
There is a provision of £1,163,000 included within inventories in relation to
the impairment of inventories (2023: £1,505,000). The provision relates to
the historic product issues to manufacturing errors in 2023. During the year,
inventories of £26,831,000 (2023: £34,334,000) were recognised as an expense
within cost of sales.
7. Trade and other receivables
31 December 31 December
2024 2023
£'000 £'000
Trade receivables 10,289 12,046
Less: specific provision for impairment of trade receivables (276) (665)
Less: expected credit loss (39) (35)
Trade receivables - net 9,974 11,346
Other receivables 1,361 1,408
Total financial assets other than cash and cash equivalents classified as 11,335 12,754
amortised cost
Prepayments and accrued income 601 1,058
Total trade and other receivables 11,936 13,812
Trade receivables represent debts due for the sale of goods to customers.
Trade receivables are denominated in local currency of the operating entity
and converted to Sterling at the prevailing exchange rate as at 31 December
2024. The Directors consider that the carrying amount of these receivables
approximates to their fair value. All amounts shown under receivables fall due
for payment within one year. The Group does not hold any collateral as
security.
The movement in the loss allowance of trade receivables was as follows:
£'000
As at January 2023 700
Charge for the year 228
Utilised (613)
As at December 2024 315
The Group applies the IFRS 9 simplified approach to measuring expected credit
losses using a lifetime expected credit loss provision for trade receivables
and contract assets. To measure expected credit losses on a collective basis,
trade receivables and contract assets are grouped based on similar credit risk
and aging.
The expected loss rates are based on the Group's historical credit losses. The
historical loss rates are then adjusted for current and forward-looking
information affecting the Group's customers. No provision is required in
respect of accrued income. Debtors with a specific provision have not been
included in the calculation.
At 31 December 2024 the lifetime expected loss provision for trade receivables
is as follows:
0-30 days 31-60 days 61-90 days 91-120 days 120+ days Total
Expected credit loss rate 0.00% 1.99% 3.95% 8.96% 7.36% 0.41%
Estimated total gross carrying amount at default 8,596 533 121 41 273 9,564
Expected credit loss - 10 5 4 20 39
For comparison, the lifetime expected credit loss provision for trade
receivables at 31 December 2023 was as follows:
0-30 days 31-60 days 61-90 days 91-120 days 120+ days Total
Expected credit loss rate 0.00% 0.25% 0.61% 3.27% 5.98% 0.32%
Estimated total gross carrying amount at default 8,928 589 1,087 292 292 11,190
Expected credit loss - 1 7 10 17 35
8. Trade and other payables
31 December 31 December
2024 2023
£'000 £'000
6,122 5,114
Trade payables
Accruals 8,846 8,728
Invoice financing 3,712 6,341
Trade facility 985 3,260
Total financial liabilities measured at amortised cost 19,665 23,443
Other taxes and social security 504 1,814
Total trade and other payables 20,169 25,257
The Directors consider that the carrying amount of these liabilities
approximates to their fair value.
All amounts shown fall due within one year.
Invoice financing is the amount due to HSBC after drawing down from the £8.0m
(2023: £7.5m) flexible invoice credit facility during the year. This facility
contains both fixed and floating charges over all the property and
undertakings of the parent company. Repayments and draw downs on the facility
are a continuous process as and when invoice payments are collected from
customers.
The £3.5m (2023: £3.5m) uncommitted trade facility, secured on stock, was
increased to £4m in June before being phased out and replaced with a £4m
revolving credit facility (RCF) in September 2024. The drawdowns on the trade
facility during the year were reduced by £2.3m (2023: £527,000 increase).
Drawdowns on the trade facility were repaid over 90 days from the supplier
invoice date.
9. Post balance sheet events
There are no events subsequent to the reporting date which would have a
material impact on the financial statements.
On 17 April 2025, the SiS plc Independent Directors announced that they
reached agreement on the terms of a recommended all cash acquisition by bd
Capital of the entire issued and to be issued ordinary share capital of SiS
plc; further details of which can be obtained from the recent Rule 2.7
Announcement dated 17 April 2025.
1 (#_ftnref1) Earnings before interest, tax, depreciation, amortisation,
loss on disposal of intangible assets, share-based payments, restructuring
costs, transition costs, unrealised foreign exchange on intercompany balances
and other non-EBITDA one-off costs as detailed in note 1.9 of the financial
statements.
2 (#_ftnref2) Adjusted net debt is defined as cash, less banking working
capital facilities, asset financing and other payables and excludes property
leases.
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