22nd Apr 2020 17:58
(Alliance News) - Science in Sport PLC on Wednesday said it expects to raise GBP4.5 million via share placing and subscription to strengthen its balance sheet and emerge in a stronger position from the current Covid-19 crisis.
The sports nutrition supplements make also said that Covid-19 outbreak has impacted sales across its UK retail and export channels since the end of March and into April, but online sales have been affected by a much lower degree.
Science in Sport intends to issue 12.3 million shares at 37 pence each pursuant to share placing and subscription. Shares in the company closed 2.2% lower at 35.00p each in London on Wednesday.
The company's Chair John Clarke, Chief Executive Officer Stephen Moon, Chief Financial Officer James Simpson, Non-Executive Director Roger Mather and Non-Executive Director Tim Wright are intending to purchase or subscribe 405,405 shares in total, equivalent to around GBP150,000.
"Whilst the company will continue to streamline the business model where possible, the net proceeds of the fundraising will be used to strengthen the company's balance sheet with a view to providing sufficient liquidity and flexibility to allow the company to manage through and beyond the period of expected and continuing disruption," Science in Sport explained.
The company also has implemented cost saving measures for the current financial year including a reduction in marketing spend by GBP4.7 million and a reduction in overheads by GBP3.1 million.
The GBP3.1 million overhead reduction includes a GBP1.9 million payroll saving through a headcount freeze, cancelled bonuses and a 10% salary reduction for all board members and for all employees, with the exception of lower paid operational and administrative staff. The salary reduction is currently planned for the remainder of 2020.
Science in Sport additionally is planning to implement further cash mitigating measures including a reduction in working capital and furloughing a certain number of employees pursuant to the UK government's Job Retention Scheme.
By Tapan Panchal; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
Science Sprt