Sports nutrition products supplier Science in Sport continues to benefit from its increased sales and marketing spending and management reckons the company is growing at double the rate of the market.
In the six months to September 2013, revenues were 23% ahead at £4m. Gross margin was slightly higher but sales and marketing costs were 38% higher as the company tries to continue to grow its revenues at a rapid rate. A pre-exceptional profit of £150,000 was turned into a £96,000 loss although that was mainly due to £151,000 of additional costs now that Science in Sport is quoted.
Science in Sport supplies a number of sportspeople, including Sir Chris Hoy and Helen Jenkins, and sporting teams but the main customer base is amateur athletes seeking to boost their endurance. The product range includes isotonic gels, energy powders, hydration tablets, cereal-based energy bars and a range of recovery and protein products. Science in Sport manufactures its own products because it is important to be able to assure customers exactly what is in the products.
The business tends to be first half weighted because the vast majority of the sales are in the UK. There are plans to grow sales internationally.
At 66.5p a share, down 7p, Science in Sport is valued at £13m. The company raised £1.7m net in a placing at 56p a share back in August. Net cash was £1.1m at the end of September 2013.
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