16th Sep 2024 14:13
(Alliance News) - Science in Sport PLC on Monday said its interim loss narrowed following a reduction in operating costs.
The London-based sports nutrition company said revenue fell 25% on-year in the first half of 2024 to GBP25.7 million from GBP34.4 million. The company's pretax loss narrowed to GBP2.5 million from GBP3.3 million.
Cost of goods fell 29% on-year to GBP14.2 million from GBP20.0 million, as the company anticipates "significant operational cost savings" to deliver annualised savings of GBP6 million in 2024.
In July, Science in Sport completed an oversubscribed equity fundraising of approximately GBP8.5 million before expenses, the funds from which have already been invested into inventory improving product availability and reliability of service for the company's second half, as well as easing working capital pressures.
The company said trading in the second half of the year has started in line with management expectations, and it remains confident that the business will return to growth from a stronger operating platform with improving operating margins and cash generation.
Executive Chair Dan Wright said: "Following the recent appointments of Chris Welsh as chief financial officer and Megan Blaylock as chief commercial officer, as well as Dan Lampard moving to chief operating officer, we now have a broader team in place structured for success through extensive experience in strategic development and commercial execution across all areas of the business.
"The group has made a positive start to the second half of the year and whilst there are still key trading periods ahead, the board considers that the revenue and profitability of the first half of financial 2024 should be a baseline from which we anticipate controlled and sustained revenue and profit growth in the medium term. This will be underpinned by our strong brands continuing to perform well in their respective marketplaces, and the launch of new product lines, the annualised impact of the rebasing of the operating cost model, as well as efficiencies in the operating model and availability of key inventory items following targeted investment from our recent significantly oversubscribed equity raise."
Shares in Science in Sport were down 4.7% at 24.30 pence each in London on Monday afternoon.
By Emily Parsons, Alliance News reporter
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