Science in Sport, the UK sports-nutrition business in the throes of a private-equity takeover, has posted a slide in full-year revenue but net losses narrowed.
Revenue to the 31 December dropped 17.2% to £51.9m ($69.3m), the London-listed business reported today (28 April). Its bottom-line loss shrank to 2.3 pence per share from 6.6p a year earlier.
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The company said in its results commentary that 30 staff had left the business in 2024, resulting in “significant operational costs savings”. Included in the staff exits were “several senior roles”, Science in Sport added.
Last July, the company said it raised £8.5m before expenses in an oversubscribed equity fundraising round.
Earlier this month, the directors of Science in Sport reached an agreement for a takeover bid from private-equity firm B-D Capital.
B-D Capital’s takeover offer amounts to £0.34 a share, valuing the owner of the SiS and PhD Nutrition brands at £82.3m. The deal still has to be approved by shareholders.
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By GlobalDataIn terms of the current year, the company said it aims for “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.”
The gross margin improved to 45.3% in 2024 from 42.8% in the corresponding period, Science in Sport reported today. The so-called trading contribution margin increased to 26.6% from 20.5%.
Underlying EBITDA more than doubled to £4.2m, while the associated margin surged to 8.2% from 3.2%.
Chairman Dan Wright said in the results statement: “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.”
He added: “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.”
Science in Sport said it had secured new distribution agreements in the Middle East and had expanded in the Australian market. “Both regions will be important focus areas for international growth throughout 2025 and beyond,” the company said.
It also supplies markets in Europe and the US.
London-headquartered Science in Sport, set up in 1992, markets gels, powders and bars through supermarket chains, specialist sports retailers and online. The company, which also has tie-ups with professional sports teams, has a production facility in northern England.
In 2023, BD-Capital made an investment in Netherlands-based food supplements company Bonusan. It also has gut-health food supplement provider Symprove in its portfolio.
