19th Sep 2018 11:20
LONDON (Alliance News) - Sports nutrition firm Science in Sport PLC said Wednesday its interim loss deepened despite revenue growing strongly and as costs jumped on investments in new markets .
For the six months ended June, pretax loss widened 23% to GBP2.7 million from GBP2.2 million the year prior. This was despite revenue rising 19% to GBP9.9 million from GBP8.3 million the year before.
Profit performance was hurt by a sharp rise in costs to GBP7.5 million from GBP6.0 million the year prior.
"I am pleased that we had a strong start to the year," Science in Sport Chief Executive Officer Stephen Moon said. "We have achieved yet another period of substantial growth, which saw revenue increase 20% year on year, in line with expectations. Post period end we have seen very strong growth in the three months to August as new initiatives generate increased revenue in the second half of the year as planned."
"Group operating losses reflect the increased investment in new international markets, football and our e-commerce platform," Moon added. "The core business has moved into profit at the half year for the first time as we leverage the advantage of a strong gross margin and tightly controlled costs. Having reached the milestone of profitability in our core business and with promising early signs in the USA, we are very confident for the future of the SIS brand."
Science in Sport defines its core business as its operations excluding strategic markets like the US, Italy and Australia.
At the end of the period, Science in Sport held GBP10.7 million in cash. This is up from GBP3.9 million the year prior after it raised GBP15.0 million from a 21.4 million discounted share placing.
Shares in Science in Sport were flat at 69.70 pence on Wednesday.
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