19/10/2022, 16:09 Science in Sport PLC | Interim Results | InvestEgate

Science in Sport PLC

Interim Results
RNS Number : 2608B
Science in Sport PLC
30 September 2022
 

AIM: SIS
 
 
This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 which is part
of UK law by virtue of the European Union (Withdrawal) Act 2018.
 
SCIENCE IN SPORT PLC
("Group" or "Company")
 
Interim results for the six months ended 30 June 2022
 
External headwinds adversely impacted H1
Action taken to re-position business for profitable growth
 
 
Science in Sport plc
 (AIM: SIS), the premium performance nutrition company serving elite athletes, sports enthusiasts,
and the active lifestyle community, announces interim results for the six months to 30 June 2022.
 
Revenue Growth In A Challenging Environment
 
Despite a challenging environment, revenue grew by 10% in H1. After a strong start in Q1, following our consistent ten-
year high growth pattern, the business was impacted by global events and specific one-off events affecting sales and
costs.  
 
A range of actions to lower costs and underpin sales growth has subsequently been taken, and we see this reflected in
September trading. We expect this momentum to carry into the final quarter of the year.
 
Underlying EBITDA* is lower than planned, with an adjusted loss of £2.3m for H1, with lower than expected growth
given sharply reduced shopper confidence, input price increases, supply chain issues in the USA, and the closure of the
Russia business. The decisive corrective actions are expected to restore monthly EBITDA profit during 2023.
 
Rapid Action To Offset External And One-Off Cost Issues
 
Unbudgeted raw material and carriage costs, as notified in the July trading update, and £0.3m in restructuring costs will
add £2.9m to costs in 2022. We have made cost reductions in several areas, totalling £1.9m savings and annualising to
£2.7m in 2023. We are in the closing stages of implementing price increases across all channels and customers, and this
will deliver up to £1m incremental revenue in 2022.
 
Several longer-term projects and tertiary markets have been closed to preserve capital further. We have also driven
aggressive reductions in inventory levels.
 
The closure of our business in Russia, supply chain issues in the USA, plus a July and August supply issue for PhD Smart
Bars have cost us £4.3m in sales in the year to date. With inventory in the USA and Smart Bar supply back to normal, we
expect a stronger close to the year.
 
Strategic Investment Is Complete
 
Our decade-long high growth trajectory required us to invest in additional manufacturing and supply chain capacity to
meet our strategic plan and maintain our competitive edge in gross margin. We completed a £7.5m investment in our
160,000 sq. ft. world-class supply chain site with supply capability for over three times current sales. It opened on
schedule as a logistics operation in April. In September, we finished the commissioning of the gel line, two protein lines
and installed our e-commerce packing operation. We are pleased to report that the operation is delivering savings in line
with the investment case, with further efficiencies anticipated in 2023.
 
Proposed Fundraise
 
Privacy
https://www.investegate.co.uk/ArticlePrint.aspx?id=202209300700162608B 1/10
19/10/2022, 16:09 Science in Sport PLC | Interim Results | InvestEgate
The Company is launching an equity fund-raise by way of a placing of ordinary shares of approximately £5.0m (the
"Placing"), before expenses, immediately following this announcement.  The purpose of the Placing is to strengthen the
Company's balance sheet in the event there is any further downturn in the economy or any unexpected input material
cost or other costs.
 
Full details of the Placing will be set out in an announcement to be published by the Company immediately following the
publication of this announcement.
 
 
HIGHLIGHTS
 
·
Revenue up 10% to £32.3m (H1 2021: £29.3m), double-digit growth despite a challenging economy and sharply
reduced consumer demand
o 
strong PhD performance with sales up +25% to £16.7m and SiS sales in line with last year at £15.5m
o 
non-UK sales increased to 45% of total sales (H1 2021: 40%)
 
·
Retail sales showed strong growth +9% to £14.7m
o 
International retail sales up by +7% to £5.5m (H1 2021: £5.2m)
o 
UK retail sales up by +10% to £9.2m (H1 2021: £8.4m)
 
·
Online sales growth of 11% to £17.5m with Marketplace up +24% on strong Amazon trading and China growth. Online
sales are 54% of overall sales (H1 2021 £15.7m; 54%).
 
·
Gross margin 43% (H1 2021: 52%), reflecting material cost inflation (5.9%), increased fuel costs (0.6%), brand mix
(2.0%), stock clearance (1.6%) and China margin impact (2.2%).
 
·
Underlying* EBITDA loss of £2.3m (H1 2021: underlying operating profit of £0.6m) excluding non-recurring non-cash
items totalling £0.5m for inventory consolidation and R&D.
 
·
Capital investment increased to £4.6m (H1 2021: £2.7m), representing the final investment in the new supply chain
facility in Blackburn, which is fully commissioned with the gel line operational.
 
·
Headroom of £5.1m and net debt of £7.2m at 30 June 2022 reflecting investment in the Blackburn facility and the
impact of external economic conditions on trading in the half (31 Dec 2021: £2.7m cash and 30 June 2021: £7.5m)
 
* Underlying EBITDA excludes interest, tax, depreciation, amortisation, share-based payments, foreign exchange variances on intercompany balances and
non-cash & non-recurring items set out in note 3 to the financial statements.
 
 
Stephen Moon, Chief Executive Officer of Science in Sport plc, said:
 
"After a strong start to the year, weakening consumer demand, temporary supply chain issues and input cost increases have
combined to impact our trading. Positively, our premium brands have enabled us to increase prices across all channels to help
offset external factors and we have responded proactively, reducing costs with a focus on cash generation.
 
Our investment in our new Blackburn site and in digital technology is complete and is delivering returns in line with the
investment cases. Whilst sales are broadly in line for the year, there remain uncertainties and headwinds due to the
macroeconomic environment. However, we are confident that our leaner operating model, the investment in our platform
and the strength of our brands, together with our proven growth record, will result in a profitable growth business."
 
 
Science in Sport plc T: 020 7400 3700
Stephen Moon, CEO

Liberum (Nominated adviser and broker) T: 020 3100 2000

Richard Lindley, Will Hall, Lucas Bamber

 
 
About Science in Sport plc
www.sisplc.com
 
Headquartered in London, Science in Sport plc is a leading sports nutrition business that develops, manufactures, and
markets innovative nutrition products for professional athletes, sports and fitness enthusiasts and the active lifestyle
community. The Company has two highly regarded brands, PhD Nutrition, a premium active‐nutrition brand targeting the
active lifestyle community, and SiS, a leading endurance nutrition brand among elite athletes and professional sports teams.
 
The two brands sell through the Company's phd.com and scienceinsport.com digital platforms, third‐party online sites,
including Amazon and Tmall, and extensive retail distribution in the UK and internationally, including major supermarkets,
high street chains and specialist sports retailers. This omnichannel footprint enables the Company to address the full breadth
of the sports nutrition market, forecast to be £13 billion
1
worldwide by 2023.
 
PhD is one of the UK's leading active nutrition brands with a reputation for high quality and product innovation. The brand
has grown rapidly since its launch in 2005. The range now comprises powders, bars, and supplements, including the high
protein, low sugar range, PhD Smart. PhD brand ambassadors include leading fitness influencers Ross Edgley and Obi
Vincent.
 
SiS, founded in 1992, has a core range comprising gels, powders and bars focused on energy, hydration, and recovery. SiS is
an official sports nutrition supplier to over 330 professional teams, organisations, and national teams worldwide, including Privacy
https://www.investegate.co.uk/ArticlePrint.aspx?id=202209300700162608B 2/10
19/10/2022, 16:09 Science in Sport PLC | Interim Results | InvestEgate
INEOS Grenadiers Cycling Team. SiS supplies more than 150 professional football clubs in the UK, Europe, and the USA. SiS is
Performance Research Partner to the English Football Association and Official Vitamins and Supplements Partner to the
Milwaukee Bucks, 2021 National Basketball Association Champions.
 
For further information, please visit phd.com and scienceinsport.com
 
1
Euromonitor Passport Database Global Assessment (December 2020)
 
 
 

INTERIM REPORT
 
Introduction
 
Trading over the first quarter of the financial year was robust, with 18% growth to the end of February and a record sales
month in March. The second quarter saw consumer demand drop sharply in all channels in the sports nutrition sector, with
online especially affected. We also saw an adverse sales impact as we exited our Russia business, and supply chain issues in
the USA affected inbound shipping to the market. Sharp raw material price increases, such as whey and soy protein and
maltodextrin, and fuel and logistics costs, adversely impacted gross margin.
 
Despite these headwinds, revenue rose by 10% to £32.3m, double-digit growth, although below expectations. Group gross
margin percentage decreased to 43% from 52% in the prior year due to cost headwinds, brand mix, and stock clearance as
part of inventory reduction.  Underlying EBITDA* loss was £2.3m compared to £0.6m underlying operating profit in the prior
year. This Underlying EBITDA loss excludes £0.5m of non-cash items, further described below and in note 3.
 
We have taken strong action to restructure the business, reducing costs and capital investment to ensure a leaner, more
efficient operating model, providing greater resilience against ongoing external economic factors. We have leveraged our
premium brands to secure price increases in all channels averaging 10%.
 
The new 160,000 sq. ft. Blackburn site is now fully operational and delivering expected efficiencies and cost savings in line
with the business case. The project payback is less than three years, with savings from reduced logistics costs, lower
manufacturing labour costs, and elimination of gel co-manufacturing. The accelerated investment cycle, which started in
2021 to deliver the strategic growth model, is now completed, with capital investment returning to historic levels of around
£2m annually from 2023.
 
Financial Results
 
Revenue for the six months to 30 June increased by 10% to £32.3m (2021: £29.3m).  PhD showed strong growth, with sales
increasing 25% to £16.74m (H1 2021: £13.4m). Sales of SiS products were broadly in line with the prior year at £15.5m (H1
2021: £15.9m) following a very strong 33% growth in H1 2021.  We continued to increase sales from international markets,
with the reset of our China business commercials driving sales up 66% in the half. Non-UK sales now account for
approximately 45% of the total (H1 2021: 40%).
 
Online sales increased by 11% to £17.5m (H1 2021: £15.7m) and made up 54% of total revenue (H1 2021: 54%), in line with
the prior year. Sales via the Group's digital platforms were broadly flat at £7.5m (H1 2021: £7.7m), and sales from third-party
marketplace sites rose by 24% to £10.0m (H1 2021: £8.0m).
 
Gross profit was £13.8m (H1 2021: £15.2m) with a gross margin of 43% (H1 2021: 52%) due to raw material and fuel price
increases, brand mix, stock clearance and margin effect of the China trading relationship. Underlying EBITDA* loss of £2.3m
was due to lower revenue growth, lower gross margin, higher logistics costs, and people retention costs (H1 2021: underlying
operating profit £0.6m).
 
Underlying EBITDA excludes £0.5m of non-recurring, non-cash items. £0.32m of the non-cash non-recurring items were a
provision for stock categorised as obsolete as part of our product range rationalisation, intended to be sold in the second half
of the year. £0.1m is a stock write-down as part of consolidating four manufacturing and warehousing sites into the new
Blackburn site. There is also a non-material item related to ceasing an R&D project.
 
Capital investment during the period was £4.6m (H1 2021: £2.7m), which was up on the prior year as we completed the
Blackburn single-site facility, which is now fully operational. This transformational project delivering capacity for over £200m
sales completes the multi-year accelerated capital investment cycle of supply chain and technology investment.  This
investment is integral to our growth strategy and provides a platform to drive future profitable growth.
 
Headroom was £5.1m and net debt was £7.2m at 30 June 2022 (31 December 2021 : £2.7m cash, 30 June 2021: £7.5m
cash).  This included £3.6m asset financing and hire purchase obligations. Cash at bank was £1.7m with £4.4m drawn down
on the £8m flexible credit facility.
 
* Underlying EBITDA excludes interest, tax, depreciation, amortisation, share-based payments, foreign exchange variances on intercompany balances and
non-cash & non-recurring items set out in note 3 to the financial statements.
 
Operational Review
 
Privacy
https://www.investegate.co.uk/ArticlePrint.aspx?id=202209300700162608B 3/10
19/10/2022, 16:09 Science in Sport PLC | Interim Results | InvestEgate
We continue to target profitable revenues of £100m in the medium term, and our proven decade-long growth strategy
remains unchanged.
 
Growing brand strength
 
Our product strategy focuses on elite and science-led innovation underpinning and strong premium brand.  The integrity of
our products is a critical differentiator, and we believe that our approach to banned-substance control is unmatched. The
relationships and partnerships we have established as an official sports nutrition supplier to over 330 professional teams,
organisations and national teams around the world demonstrate the world-class credentials of our products. 
 
We retain relationships with many leading professional sports teams and in August 2022 Tottenham Hotspur announced SiS
as the Club's first Official Performance Solutions Partner for a 4-year term. SiS has developed a bespoke Performance
Solutions Framework, custom designed to shape the Club's nutrition strategy.
 
Our Performance Solutions experts are similarly embedded in many leagues and sports associations across a wide range of
sports, including the English FA, England and India's national cricket teams, and National Basketball Association teams.
 
Product innovation
 
Product innovation in the first half of the year focussed on developing specific products for Elite teams SiS partners with such
as the Milwaukee Bucks, Ineos Grenadiers and Tottenham Hotspur and extending the specialist SiS Lab range. This elite-led,
science-backed product innovation approach led to the development of the Beta Fuel range, which reset the limits for
endurance fuelling. The science has been published in a leading peer review journal.
 
Online sales growth
 
Online sales are a major focus of our growth strategy, particularly internationally. We increased sales by 11% to £17.5m from
£15.7m last year, with 54% of total sales now being generated digitally, in line with H1 2021, as retail sales growth has
stepped up following the full easing of lockdown restrictions.
 
Our focus on our websites is primarily on the high-margin SiS sites, and we see positive trends in key metrics, with new
technology driving growth. We adopted a new pricing and promotion strategy in June to underpin our premium brand
strategy.
 
We have reduced investment in PhD on our websites, driving volume to third-party platforms to maximise growth and cash
contribution.  
 
We saw continued strong growth in key trading metrics from our websites, including average order value up 17%, conversion
up 27% to 6.9% and average selling price up 35%. Sales were broadly flat at £7.5m (H1 2021: £7.7m) due to flat website
traffic, a theme across the sports nutrition sector.
 
Sales via third-party marketplace sites, including Amazon, rose by 24%. Amazon traffic grew 3%, with Amazon Europe driving
growth, especially the PhD brand, with China showing 66% growth as we strengthened our third-party marketplace presence
as a category leader.
 
Increasing Retail sales growth
 
UK and international retail sales were resilient as we leveraged our strong UK business and implemented our focused
international strategy. Retail remains a highly profitable channel and a key driver of brand awareness and product trial. UK
retail sales were 10% higher at £9.2m (H1 2021: £8.4m) with growth in grocers, convenience, and discounters. International
retail sales increased by 7% to £5.5m (H1 2021: £5.2m) with strong growth with strategic partner Shimano across Europe and
distributor progress in Eastern Europe, Singapore, and Malaysia.
 
Blackburn facility
 
Our new facility in Blackburn was officially opened by Sir Chris Hoy in July and is delivering cost savings and efficiencies in line
with the business case. The Blackburn site is a manufacturing, logistics, and e-commerce packing facility for both brands. The
new eight-lane gel manufacturing plant is installed and successfully commissioned and producing gels with a significantly
reduced production cost. Two protein lines are in place and fully operational.
 
Payback on the £7.5m investment is under three years, with savings from logistics, manufacturing cost reductions and
elimination of gel co-manufacturing costs. We believe there are further efficiencies from 2023 as we bring the manufacturing
operation up to speed.
 
We locked in energy costs at highly beneficial prices in February, with the contracts expiring in 2025 and 2027.
 
Environmental, Social & Governance
 
The move to the new Blackburn single site will reduce carbon emissions linked to internal material movements with further
benefits from new energy-efficient equipment and lighting.
 
In the summer, we took on our second intake of interns in our new initiative with Career Ready, a national social mobility
charity. This was supported by mentors from across the business. We continue to support three community sports
programmes in Africa, the UK and USA.
 
Outlook
 
Our investment in our new Blackburn site and in digital technology is complete and is delivering returns in line with the
investment cases. Whilst sales are broadly in line for the year, there remain uncertainties and headwinds due to the Privacy
https://www.investegate.co.uk/ArticlePrint.aspx?id=202209300700162608B 4/10
19/10/2022, 16:09 Science in Sport PLC | Interim Results | InvestEgate
macroeconomic environment. However, we are confident that our leaner operating model, the investment in our platform
and the strength of our brands, together with our proven growth record, will result in a profitable growth business.
 
 
 
 
 
 
Stephen Moon
Chief Executive Officer

 
Consolidated statement of comprehensive income
Six months ended 30 June 2022
 


Unaudited Unaudited Audited twelve
six months six months
ended 30 ended 30 months ended 31
June 2022 June 2021
December 2021
   

Notes £'000 £'000 £'000

Revenue   32,279 29,264 62,539

Cost of goods
(18,473) (14,048) (31,189)

Gross Profit
13,806 15,216 31,350

Total Costs
(16,606) (14,933) (29,844)

 
 

Underlying operating profit / (loss)  

3 (2,800) 283 1,506

 
 

Depreciation and amortisation

(2,571) (1,660) (3,634)

Foreign exchange variances on intercompany balances

60 (44) (72)

Share-based payment charges

(660) (1,418) (2,898)

Blackburn transition costs

(618) - (125)

Restructuring costs (272)  -

Loss from operations

(6,861) (2,839) (5,223)

 
 

Finance income
- 4 5

Finance costs
(339) (57) (119)

Loss before taxation

(7,200) (2,892) (5,337)

 
 

Taxation benefit/(charge) 4 92 1,223 (1,480)

Loss for the period

(7,108) (1,669) (6,817)

 
 

Other comprehensive income

 

Cash flow hedges

(40) 10 9

Exchange difference on translation of foreign operations

82 3 (62)

Income tax relating to these items

- (3) (2)

Total comprehensive loss for the period   (7,066) (1,659) (6,872)

     

(Loss) per share to owners of the parent

 

Basic and diluted 5 (5.1p) (1.2p) (5.0p)

 
All amounts relate to continuing operations
Privacy
https://www.investegate.co.uk/ArticlePrint.aspx?id=202209300700162608B 5/10
19/10/2022, 16:09 Science in Sport PLC | Interim Results | InvestEgate

 
 

 
Consolidated statement of financial position
30 June 2022




Unaudited six Unaudited six   Audited twelve
months ended months ended months ended 31
30 June 2022 30 June 2021 December 2021

£'000   £'000
£'000

Intangible assets


30,939
31,851
31,717
Right of use assets


10,642
449
10,659
Plant and equipment


8,395
2,905
5,251
Deferred tax asset


153
2,934
323
Total non-current assets       50,129   38,139   47,950




 

Inventories


8,726
9,052
8,447
Trade and other receivables


14,706
11,768
12,679
Cash and cash equivalents


(2,672)
8,186
4,850
Total current assets       20,760   29,006   25,976




 

Total assets       70,889   67,145   73,926

 

Trade and other payables

(16,167)
(15,916)
(14,865)
Lease liabilities


(784)
(150)
(161)
Asset financing


(845)
-
(316)
Hire purchase agreement


(98)
(77)
(77)
Derivative financial instruments


(42)
-
-
Total current liabilities       (17,936)   (16,143)   (15,419)




 

Lease liabilities


(10,393)
(291)
(10,511)
Asset financing


(2,545)
-
(1,182)
Hire purchase agreement


(129)
(200)
(162)
Deferred tax liability


(2,317)
(2,705)
(2,579)
Total non-current liabilities


(15,384)
(3,196)
(14,434)




 

Total Liabilities       (33,320)   (19,339)   (29,853)

 

Total net assets       37,569   47,806   44,073

 

Share capital

6 13,510
13,510
13,510
Share premium reserve


51,839
51,839
51,839
Employee benefit trust


(256)
(191)
(158)
Other reserve


(907)
(907)
(907)
Foreign exchange reserve


(35)
(52)
(117)
Cash Flow hedge reserve


(42)
1
(2)
Retained deficit


(26,540)
(16,394)
(20,092)
Total Equity       37,569   47,806   44,073
 

Consolidated statement of cash flows

Six months ended 30 June 2022
 
Unaudited six   Unaudited six
Audited twelve
months ended months ended months ended
30 June 2022 30 June 2021 31 December
2021
£'000   £'000
£'000

Cash flows from operating activities

Loss after tax (7,108)

(1,669)
(6,817)
Privacy
https://www.investegate.co.uk/ArticlePrint.aspx?id=202209300700162608B 6/10
19/10/2022, 16:09 Science in Sport PLC | Interim Results | InvestEgate
Adjustments for:  

Amortisation 1,693
1,274
2,702
Amortisation of right-of-use assets 437
69
226
Depreciation 442
317
706
Interest Expense 339
-
112
Taxation benefit (92)
(1,223)
1,480
Share-based payment charges 660
1,418
2,898 
Operating cash inflow / (outflow) before changes in working capital (3,629)
186
1,307
 

Changes in inventories (280)

(2,078)
(1,473)
Changes in trade and other receivables (2,027)
(1,927)
(2,838)
Changes in trade and other payables 1,292
4,076
2,842
Total cash inflow / (outflow) from operations (4,644)
257
(162)
   

Cash flow from investing activities  

Purchase of property, plant and equipment (3,577)   (1,373)

(4,119)
Purchase of intangible assets (1,013)   (1,026)
(2,420)
Net cash outflow from investing activities (4,590)   (2,399)
(6,539)
 

Cash flow from financing activities  

Net proceeds from asset financing 1,890

-
1,498
Interest paid on asset financing (7)
-
(2)
Principal paid on lease liabilities (134)
(85)
(359)
Interest paid on lease liabilities (37)
(57)
(57)
Finance income -
4
5
Net cash (outflow)/inflow from financing activities 1,712
(138)
1,085
 

Net increase / (decrease) in cash and cash equivalents (7,522)

(2,280)
(5,616)

Opening cash and cash equivalents 4,850

10,466
10,466

Closing cash and cash equivalents (2,672)

8,186
4,850
 

Consolidated statement of changes in equity

Share Share Employee Other Foreign Cash Retained Total
Capital Premium Benefit Reserve Exchange Flow Deficit Equity
trust Reserve Hedge
Reserve Reserve

  £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000

Balance at 31 December 13,510 51,839 (191) (907) (55) (9) (16,140) 48,047
2020







 
Comprehensive Income






 
Total comprehensive loss - - - - 3 10 (1,672) (1,659)
for the period
 






 
Transactions with owners






 
Share-based payments - - - - - - 1,418 1,418
charge
Balance at 30 June 2021 13,510 51,839 (191) (907) (52) 1 (16,394) 47,806
 






 
Comprehensive Income






 
Total comprehensive loss - - - - (65) (3) (5,145) (5,213)
for the period
   
Transactions with owners  
Issue of shares held by - - 33 - - - (33) -
EBT to employees
Share-based payments - - - - - - 1,480 1,480
charge
Balance at 31 December 13,510 51,839 (158) (907) (117) (2) (20,092) 44,073
2021
 






 

Comprehensive Income






 
Total comprehensive loss - - - - 82 (40) (7,108) (7,066)
for the period







 
Transactions with owners






 
Issue of shares to EBT - - - - - - - -
Exercise of share options - - (98) - - - - (98)
Share Based payments - - - - - - 660 660
charge
Balance at 30 June 2022 13,510 51,839 (256) (907) (35) (42) (26,540) 37,569
Privacy
https://www.investegate.co.uk/ArticlePrint.aspx?id=202209300700162608B 7/10
19/10/2022, 16:09 Science in Sport PLC | Interim Results | InvestEgate

Notes to the interim financial information

 
For the six months ended 30 June 2022
 
1. Basis of preparation
 
This interim report has been prepared using the same accounting policies as those applied in the annual financial
statements for the year ended 31 December 2021.
 
The Directors believe that operating profit / (loss) before depreciation, amortisation, share based payments and foreign
exchange variances on intercompany balances and exceptional items of Blackburn transition costs and restructuring items
measure provides additional useful information for shareholders on underlying trends and performance. This measure is
used for internal performance analysis.
 
Blackburn transition costs relate to one-off costs from opening the new Blackburn single-site facility including dual-running
costs as existing facilities both internal and third party have been closed. Restructuring costs includes one-off people-related
expenses from reduced headcount when implementing the new leaner organisation structure.
 
Underlying operating profit / (loss) is not defined by IFRS and therefore many not be directly comparable with other
companies' adjusted profit measures. It is not intended to be suitable substitute for, or superior to IFRS measurements of
profit. A reconciliation of underlying operating profit to statutory operating profit is set out on the face of the statement of
comprehensive income.
 
The condensed financial information herein has been prepared using accounting policies consistent with International
Financial Reporting Standards in conformity with the requirements of the Companies Act 2006 ("adopted IFRS") and as
applied in accordance with the provisions of the Companies Act 2006. While the financial figures included in this interim
report have been prepared in accordance with IFRS applicable for interim periods, this interim report does not contain
sufficient information to constitute an interim financial report as defined in IAS 34. The Company has taken advantage of the
exemption not to apply IAS 34 'Interim Financial Reporting' since compliance is not required by AIM listed companies.
 
This interim report does not constitute statutory accounts as defined in section 434 of the Companies Act 2006 and has
been neither audited nor reviewed by the Company's auditors BDO LLP, pursuant to guidance issued by the Auditing
Practices Board.
 
The interim report should be read in conjunction with the annual financial statements period ended 31 December 2021.
 
The statutory Accounts for the last period ended 31 December 2021 were approved by the Board on 29 March 2022 and are
filed at Companies House. The report of the auditors on those accounts was unqualified, did not draw attention to any
matters by way of emphasis and did not contain a statement under section 498 of the Companies Act 2006.
 
The unaudited interim report was authorised by the Company's Board of Directors on 29 September 2022.
 

 
2. Segmental reporting
 
Operating segments are identified on the basis of internal reporting and decision making. The Group's Chief Operating
Decision Maker ("CODM") is considered to be the Board, with support from the senior management teams, as it is primarily
responsible for the allocation of resources to segments and the assessments of performance by segment.
 
The Group's reportable segments have been split into the two brands, SiS and PhD Nutrition. Operating segments are
reported in a manner consistent with the internal reporting provided to the CODM as described above. The reportable
segments are consistent with 2021 year end financial statements.
 

Unaudited six months ended

30 June 2022
SiS PhD Total
£'000 £'000 £'000
Sales 15,543 16,736 32,279
Gross profit 8,725 5,081 13,806
Marketing costs (3,966) (1,585) (5,551)
Carriage (1,932) (2,073) (4,005)
Online selling costs (322) (345) (667)
Trading contribution 2,505 1,078 3,583
Other operating expenses

(10,444)
Loss from Operations     (6,861)
 

Unaudited six months ended

30 June 2021
SiS PhD Total
£'000 £'000 £'000
Sales 15,895 13,369 29,264
Gross profit 10,114 5,102 15,216
Marketing costs (3,385) (2,130) (5,515)
Carriage (2,979) (802) (3,781)
Online selling costs (504) (50) (554) Privacy
https://www.investegate.co.uk/ArticlePrint.aspx?id=202209300700162608B 8/10
19/10/2022, 16:09 Science in Sport PLC | Interim Results | InvestEgate

Trading contribution 3,246 2,120 5,366

Other operating expenses

(8,205)
Loss from Operations     (2,839)
 

Year ended
31 December 2021
SiS PhD Total
£'000 £'000 £'000
Sales 32,939 29,600 62,539
Gross profit 20,064 11,286 31,350
Marketing costs (6,066) (4,143) (10,209)
Carriage (6,662) (1,534) (8,196)
Online selling costs (1,141) (84) (1,225)
Trading contribution 6,195 5,525 11,720
Other operating expenses

(16,943)
Loss from Operations     (5,223)
 

3. Operating expenses
 
Unaudited six months ended Unaudited six Audited twelve
30 June 2022 months ended 30 months ended 31
June 2021 December 2021

£'000 £'000 £'000

Sales and marketing costs 10,223 9,850 19,630

Operating Costs 7,273 5,083 10,339

Depreciation and amortisation 2,571 1,660 3,634

Foreign exchange variances on intercompany balances (60) 44 72

Share-based payments 660 1,418 2,898

Administrative Costs 10,444 8,205 16,943

Total operating expenses 20,667 18,055 36,573

 
The operating expenses above includes costs that were incurred in relation to transition to our consolidated supply chain
facility in Blackburn along with costs arising from a restructure that has taken place.
 
These costs are not deemed to be recurring costs, as such they are not deemed to be part of the usual operating
expenditure:

Unaudited six months ended

30 June 2022
£'000 £'000 £'000
Cash Non-Cash & Total
Non-Recurring
Blackburn Transition Costs  618
618
Restructuring Costs 272
272
Stock Range - Rationalisation
320 320
Stock Write off - Transition
  99 99
Research & Development - Claim reduction
  33 33
890 452 1,342
 
Management uses alternative performance measures as part of their internal financial performance monitoring, including
Underlying EBITDA.  The measure provides additional information for users on the underlying performance of the business,
enabling consistent year-on-year comparison.  The above non-cash non-recurring costs have been excluded in calculating
 Underlying EBITDA as follows:

  £'000
   
Underlying operating loss (EBITDA)
(2,800)
Non-cash non-recurring costs
(452)
Adjusted operating loss (Underlying EBITDA)   (2,348)
 
4. Taxation
 
The corporation tax and deferred tax for the six months ended 30 June 2022 has been calculated with reference to the
estimated effective tax rate on the operating results for the full year and taking into account movements in deferred tax
assets and liabilities.

5. Loss per share

 
Basic and diluted loss per share is calculated by dividing the loss attributable to owners of the parent by the weighted
average number of ordinary shares in issue during the period.
 
Privacy
https://www.investegate.co.uk/ArticlePrint.aspx?id=202209300700162608B 9/10
19/10/2022, 16:09 Science in Sport PLC | Interim Results | InvestEgate

Unaudited six months Unaudited six Audited twelve
ended 30 June 2022 months ended months ended 31
30 June 2021 December 2021

£'000 £'000 £'000

(Loss) for the financial period (7,108) (1,669) (6,817)

Number of shares Number Number Number

'000 '000 '000

Weighted average number of shares 139,086 135,101 135,101

EPS Summary

Basic and diluted loss per share (5.1p) (1.2p) (5.0p)

 
6. Share Capital
 
The number of ordinary shares in issue as at 30 June 2022 is 139,086,408 shares (31 December 2021 135,100,931).
 
The number of shares held by the EBT and referred to as Treasury shares was 4,618,960 (30 June 2021: 1,789,865,
December 2021: 1,584,068).
 
7. Cautionary statement
 
This document contains certain forward-looking statements with respect to the financial condition, results and operations of
business. These statements involve risk and uncertainty as they relate to events and depend on circumstances that will incur
in the future. Nothing in this interim report should be construed as a profit forecast.
 
8. Copies of the interim report
 
The interim report for the six months ended 30 June 2022 can be downloaded from the Company's website
www.sisplc.com
. Further copies can be obtained by writing to the Company Secretary, Science in Sport plc, 16-18 Hatton Garden,
Farringdon, London, EC1N 8AT.
 
 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority
to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information
may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For
further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
END
 
 
IR FKLLLLKLZBBK

Privacy
https://www.investegate.co.uk/ArticlePrint.aspx?id=202209300700162608B 10/10