Science in Sport plc

("Science in Sport", "the Company" or the "Group")

Audited Final Results for the Year Ended 31 December 2024

Science in Sport plc (AIM: SIS), the premium performance nutrition company serving elite athletes, sports enthusiasts, and the active lifestyle community, announces its audited final results for the year ended 31 December 2024 ("FY24" or the "Period") which demonstrate a resetting the operating model of the business resulting in a performance of which the Board is proud but has proved challenging given the level of turnaround required.

FY24 Highlights:

·    The Company completed an oversubscribed equity fundraising of £8.5m before expenses in July 2024, as well as extending and amending banking facilities.

·    Restructure of the executive and leadership team with several senior roles exiting the business.

·    Marginal revenue channels have been reset, and measures implemented to secure and grow the Group's profitable revenue streams.

·    Supplier and operational reviews have been completed to improve purchasing terms and conditions in conjunction with product inventory rationalisation.

·    A significant number of uncommercial marketing contracts have been exited in FY24. Marketing spend will be aligned to identifiable commercial traction moving forward.

·    Significant operational cost savings have been extracted with over 30 roles exiting the business due to the operational efficiencies implemented throughout FY24. This is anticipated to generate improved contribution to cashflow and earnings beyond FY24 as these actions annualise.

·    Margin improvement noted at all levels year on year as reset of operating model takes hold.

·    Underlying EBITDA improvement of 112.7% to £4.2m is a notable improvement in profitability.

FY25 Outlook

·    Management is taking an ambitious yet balanced view on prospects for 2025 where trading performance has started well with the improvements made throughout 2024 continuing to annualise. The strategic focus areas are driving 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.

·    On 17^th April 2025, the SiS plc Independent Directors announced that they reached agreement on the terms of a recommended all cash acquisition by bd Capital of the entire issued and to be issued ordinary share capital of SiS plc. Further details of which can be obtained from the recent Rule 2.7 Announcement dated 17^th April 2025.

For further information:

Notes to Editors

About Science in Sport plc

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 ebay, 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.

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.

SiS, a leading endurance nutrition business founded in 1992, has a core range comprising gels, powders and bars focused on energy, hydration, and recovery. SiS is an official endurance nutrition supplier to over 330 professional teams, organisations, and national teams worldwide. SiS supplies more than 150 professional football clubs in the UK, Europe, and the USA. 

SiS is Performance Solutions partner to Ineos Grenadiers cycling team, and Tottenham Hotspur, New York City and CGC Nice football clubs. 

For further information, please visit phd.com and scienceinsport.com

Chairman's Statement

Overview

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. The new executive team brings together significant experience across a range of highly relevant sectors and a group who are focused on delivering value for shareholders.

For the year ended 31 December 2024, the Group delivered significant growth in Underlying EBITDA[1]  reporting £4.2m (2023: £2.0m) an increase of 110% year on year; which as announced on 30^th January 2025 was marginally ahead of market expectations at the time as the efficiencies identified begin to realise slightly ahead of original expectations. Despite lower year on year revenues (reduced by 17.2%) of £51.9m (2023: £62.7m) management are confident of the resetting of the operating model and stepping away from uncommercial revenue streams to provide a platform for accretive growth moving forward.

In July 2024 the Company completed an oversubscribed equity fundraising of £8.5m before expenses. At the same time, the Group amended and extended banking arrangements to 2027, providing additional flexibility in accessing liquidity to fund growth. The fundraising, along with positive actions undertaken to the underlying working capital cash flows, has provided the necessary capital to complete the ongoing restructuring of the business to drive margin improvement and over time ensure that SiS is not only a growth company but a profitable and cash generative one. 

On 17^th April 2025, the SiS plc Independent Directors announced that they reached agreement on the terms of a recommended all cash acquisition by bd Capital of the entire issued and to be issued ordinary share capital of SiS plc. Further details of which can be obtained from the recent Rule 2.7 Announcement dated 17^th April 2025.

Strategy

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. The strength of the two core brands, SiS and PhD, is  clearly well established, however the prior strategy of prioritising top line growth, with an inflated operating structure, has been reset as the business focuses on controlled profitable growth to allow management to address the significant growth opportunities and demand for SiS, in particular, from a solid platform with strong commercial execution.

Since joining the Board in October 2023 and establishing the new leadership team, the immediate focus has been managing cash outflow and stabilising the relationship with our various stakeholders. To date, a number of significant cost rationalisation actions have been taken, many of which are beginning to annualise throughout 2024.

Key actions, both complete and ongoing, include;

·    Restructure of the executive and leadership team with several senior roles exiting the business.

·    Marginal revenue channels have been reset, and measures implemented to secure and grow the Group's profitable revenue streams. Upon detailed review, a number of overseas distribution agreements were found to be uncommercial and based on prioritisation of revenue growth over profitability. Whilst resetting these agreements lead to a reduction in revenues in 2024, management are confident in the platform for growth and that our distribution arrangements moving forward will be a two-way partnership whereby the strength of the brand is supported by both parties with measurable deliverables.

·    Supplier and operational reviews have been completed to improve purchasing terms and conditions in conjunction with product inventory rationalisation.

·    A significant number of uncommercial marketing contracts have been exited in 2024. Marketing spend will be aligned to identifiable commercial traction moving forward.

·    Significant operational cost savings have been extracted with over 30 roles exiting the business due to the operational efficiencies implemented throughout 2024. This is anticipated to generate improved contribution to cashflow and earnings beyond 2024 as these actions annualise.

Environmental, Social and Governance (ESG)

We are committed to promoting sustainability and responsible business practices both as a Group and through our individual brands. As an industry leader, we have invested in packaging technology and plant to transition all protein powder products into recyclable pouch packaging, a first for the sports nutrition industry globally. We continue to explore innovations in our supply chain for further shifts towards recyclable or more environmentally conscious packaging.

In both Q1 2024 and Q1 2025 the Group passed its Food Safety System Certification (FSSC) audits which is testimony to our high standards of manufacturing and hygiene. We proudly continue to be an accredited Living Wage Employer and across 2024, supported 12 employees through the completion of apprenticeship qualifications, three employees successfully completed their Level 2 and 3 qualifications in subjects such as Lean Manufacturing Business Administration and we current support eight employees who are studying, including four who are completing an executive 'Masters in Leadership' with Bayes Business School as we strive to support and create new opportunities our colleagues across the Group.

Outlook

Management is taking an ambitious yet balanced view on prospects for 2025 where trading performance has started well with the improvements made throughout 2024 continuing to annualise. The strategic focus areas are driving 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. Whilst these improvements have started to be realised maximising the Group's full potential is likely to require further capital investment in distribution and product range to scale quickly as significant growth of marginally accretive revenue requires a longer-term outlook. We have several new exciting Elite partnerships for 2025, and are the new nutrition partner for British Cycling, British Aquatics GB, British Triathlon and British Netball. These partnerships complement our already strong Elite portfolio and further reaffirm our scientific and elite credentials, facilitating product development and engagement at a grass roots level with the significant databases each of the associations have in place. In addition to our new Elite partners, we have established strategic partnerships with RunThrough, Limitless Trails, Ultra-X and Ultra Challenge as the provider of nutrition support and fuelling guides for over 250 events UK and International events to over 750k participants.

The Group has recently secured broader distribution in the Middle East region having signed new distribution agreements that will see increased presence in speciality stores, grocery and sporting goods shops. We are expanding within the Australian market and anticipate growth in both direct and B2B distribution in this region. Both regions will be important focus areas for international growth throughout 2025 and beyond.

Recommended Cash Acquisition of SiS plc

On 17^th April 2025, the board of directors of bd Capital and the SiS plc Independent Directors announced that they reached agreement on the terms of a recommended all cash acquisition by bd Capital of the entire issued and to be issued ordinary share capital of SiS plc.

Further details of the recommended cash offer can be obtained from the recent Rule 2.7 Announcement dated 17^th April 2025 or via the Group's nominated advisor and broker.

Overview

Science in Sport Plc ('SiS') 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 Group has two highly regarded brands, SiS, a leading endurance nutrition brand among elite athletes and professional sports teams and, PhD Nutrition ('PhD'), a premium active-nutrition brand targeting the active lifestyle community.

The two brands sell through the Group's scienceinsport.com and PhD.com digital platforms, third-party online sites, including Amazon and eBay, and extensive retail distribution in the UK and internationally, including major supermarkets, high street chains and specialist sports retailers. This omnichannel footprint enables the Group to address the full breadth of the global sports nutrition market, worth £24.1bn in 2024 and forecast to continue to grow.

SiS, a leading endurance nutrition business founded in 1992, has a core range comprising gels, powders and bars focused on energy, hydration, and recovery. SiS is an official endurance nutrition supplier to over 330 professional teams, organisations, and national teams worldwide. SiS supplies more than 150 professional football clubs in the UK, Europe, and the USA. Brand ambassadors include the former track cyclist Sir Chris Hoy, an eleven-time world champion and six-time Olympic champion, and Elish McColgan, who won gold in the 2022 Commonwealth Games 10,000 metres.

SiS is a Performance Solutions partner to Tottenham Hotspur, New York City and OGC Nice football clubs as well as Saracens Rugby. At the Paris Olympics 2024, individual athletes and teams using SiS products achieved over 100 medals, which is testament to the quality of products, level of trust and unique position SiS commands in the elite community.   We continue to pride ourselves on developing products using elite insights backed by science which translate in to mass consumption for driving athletic achievement.

Launched in 2005, PhD is one of the UK's leading active nutrition brands with a reputation for high quality and product innovation. The range comprises powders, bars, and supplements, including the high protein, low sugar range, PhD Smart.

Our Brands

The Group's results and operations are underpinned by our two market leading brands;

Science in Sport:

Science in Sport is a leading performance nutrition brand with over 330 elite athletes and teams relying on its products for success. The combination of world-class knowledge and scientific formulations ensure the brand provides optimal performance solutions for athletes across the nutritional need states of energy, hydration and recovery.

Our range of SiS products includes:

·    Energy - Bars, shots, gels and powders to give athletes energy

·    Hydration - Gels, tablets and powders to keep athletes energised and hydrated

·    Recovery - Powder range to aid athletes' recovery post-exercise

·    Athlete health - Vitamins and supplements range designed to support and maintain immune function, digestive health and bone health amongst athletes

PhD:

Born from science, with innovation and quality at the core of the brand, PhD is one of the UK's leading active nutrition brands. The PhD brand is established internationally with a strong retail network across the globe which has enabled the Group to grow and develop the brand's exceptional reputation.

Our range of PhD products includes:

·    Diet - The delicious Diet range combines protein, which is ideal for building and maintaining lean muscle whilst keeping you satiated for longer.

·    Smart - Consisting of great tasting high protein, low sugar foods, bars and snacks. This includes the Smart Bar, an on-the-go protein hit and the multi-use Smart Protein Powder suitable for cooking.

·    Life - A range of premium, expertly formulated health optimisation products. From the high in protein, low sugar, plant-based Complete meal solution, and Reset, a night time formula, to Mind, made to support optimal mental performance, this is a range to optimise performance for life.

·    Performance - expertly formulated to help you perform at your best and optimise your training. From key supplements to aid in strength gains pre and intra workout to replenishment and recovery post workout, to maximise training and hitting goals.

Our focus in delivering long term value

The leadership team have outlined six key areas of focus, which will enable the Group to continue to grow throughout 2025 and deliver long-term value going forward.

1.   World-class science

As a world leader in nutritional science and product development, investment in science remains at the core of the business. Quality, efficacy of ingredients and proven product benefits are key principles of both brands. We are pleased to announce that PhD is the first and only Informed Protein accredited protein product further demonstrating our commitment to quality and efficacy for our consumers.

2.   Brand exposure

Both brands command significant share within their respective markets. Science in Sport holds the number one position in UK retail and marketplace channels, with a leading presence globally with an unrivalled elite presence. PhD is in the top three within the UK retail and marketplace channels and is strongly positioned in the Asia Pacific region. We will continue to grow brand awareness, leveraging our Elite athlete portfolio and scientific credentials, through targeted investment delivering measurable returns.

3.   Sales growth

The opportunity for global sales growth is significant, given the strength of the brands and continued positive trajectory of the sports nutrition market. We will deliver this by working with existing and new partners, driving profitable revenue growth through distribution agreements both domestically and internationally.

4.   Financial health

The Group had previously pursued an aggressive growth strategy, while this delivered positive revenue growth it was not cash accretive. Under the guidance of the new executive team, the revised strategy is on sustainable profitable cash generation, through delivery of enhanced margins on a lower cost base while deleveraging the business. In July 2024 the Company completed a significantly oversubscribed equity fundraising of c £8.5m before expenses. In conjunction, the Group amended and extended banking arrangements to 2027, providing additional flexibility in accessing liquidity to fund growth.

5.   Operational excellence

With the transition to the manufacturing facility at Blackburn fully completed, optimising the supply chain and manufacturing processes to deliver enhanced margins continues to be a key focus.

6.   High performing team

We are resetting the culture and ways of working within a much leaner team; we are creating the conditions where everyone can perform at their best by integrating all aspects of our business and ensuring accountability and product pride across every department.

Our Market and Customers

The global sports nutrition market was worth £24.1bn in 2024 and is forecast to continue to grow. Our 2024 revenue of £51.9m (2023: £62.7m) represents a solid foothold in this market but highlights the scale of the opportunity for both brands for significant growth.

Our current revenues are weighted to the UK, representing 59% (2023: 56%) of our total revenue. This is driven through strong distribution through multiple channels of specialist retailers, grocery, Amazon and our own direct channel. The UK is a key market, and we see further opportunities to expand and grow our market share through existing and new customers underpinned by strong brand recognition and consistent reliability.

Outside of the UK, representing 41% (2023: 44%) of our revenue, we have several key distribution partners covering multiple geographies. Throughout 2024 a number of these agreements have been reset or exited to ensure strategic alignment with the objective of delivering mutually beneficial profitable growth. This approach has resulted in revenue declining year on year but provides a more commercially sound platform from which the business can grow.

Turnover by geographic destination of sales is analysed as follows:

Our People and Culture

Throughout 2024 the business undertook a significant organisational restructure with several management roles removed. This has resulted in streamlined reporting lines on a much lower cost base. The new executive and senior management team having the capability and expertise to deliver the new strategy.

Our Future

As outlined in the Chairman's Statement, the Group is taking a balanced view on prospects for 2025 with the strategic focus on embedding the new operating model following the recent restructuring; controlled growth over the medium term, continued margin improvements resulting in cash generation and deleveraging.

On 17^th April 2025, the board of directors of bd Capital and the SiS plc Independent Directors announced that they reached agreement on the terms of a recommended all cash acquisition by bd Capital of the entire issued and to be issued ordinary share capital of SiS plc; further details of which can be obtained from the Chairman Statement, the recent Rule 2.7 Announcement dated 17^th April 2025 or from the Group's nominated advisor and broker.