20th Mar 2019 10:37
LONDON (Alliance News) - Sports nutrition firm Science in Sport PLC on Wednesday said its core business achieved 2018 growth "significantly" ahead of its sector.
Revenue from the Science in Sport core range increased 27% to GBP19.8 million, with second half growth 34% year-on-year after investment in the first half.
Online growth in the business was particular strong at 26%, and abroad at 55%, Science in Sport said, due to marketing action.
On a group level, revenue rose 37% to GBP21.3 million, with the extra GBP1.5 million coming from PhD Nutrition Ltd, which Science in Sport bought for GBP32.0 million in early December.
Science in Sport's pretax loss was GBP6.0 million for 2018, after a GBP3.9 million loss the year before, due to PhD acquisition costs, increased share-based payments, and higher amortisation and depreciation.
Science in Sport said the integration of PhD is on track, with the deal having doubled the size of the company.
"2018 was another period of very strong growth, the sixth consecutive year where SiS has significantly outperformed the sector. We saw strong performance in all online channels and international markets," said Chief Executive Stephen Moon.
"Our strategy of consistent investment in brand equity, our best in class e-commerce platform and product innovation contributed to this success. Continuing improvements in factory and supply chain efficiencies underpinned a very robust gross margin. Our core business generated operating profits of GBP2.0 million."
Looking forward, Moon said the firm is targeting further strong revenue growth in 2019, and it hopes to reach earnings before interest, tax, depreciation, and amortisation breakeven during the year.
"There are a number of growth opportunities presenting themselves to us and we will assess these and act accordingly. Key themes are online and international growth," he added.
Shares were 1.0% higher on Wednesday at a price of 52.00 pence each.
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