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Science in Sport losses widen despite significant revenue increase
Sports nutrition company Science in Sport saw losses widen despite a revenue increase of more than a quarter in its most recent trading year, as investment in the brand helped increase record levels of awareness and take-up.
The AIM-quoted outfit pumped up revenues 28% to £15.62m in 2017, boasting that the "significantly ahead of market growth forecast" results were the result of a strong level of growth in online channels and international markets.
SIS's new product development remained a key growth driver for the firm, delivering £900,000 of sales in the year, 27% of the group's overall revenue growth.
Gross profit increased to 26% to £9.32m, reflecting continuing factory efficiencies that aided SIS in maintaining a gross margin close to 60%.
All in all, SIS posted a 112% widening of its underlying operating losses to £1.70m, which was in line with the group's growth strategy and expectations, due to the continued investment in brand awareness, e-commerce and its international expansion programme.
Throughout the year, SIS solidified new brand partnerships with the likes of British Cycling, USA Triathlon, Rock'n'Roll Marathon, Cycling Australia and Celtic FC, with momentum carrying on into the new year as, in January, the firm signed a three-year exclusive strategic partnership with Manchester United FC.
Stephen Moon, Science in Sport's chief executive, said, "This was another period of very strong growth, the fifth consecutive year where SiS has significantly outstripped this sector. We saw outperformance in all online channels and international markets. Our strategy of consistent investment in brand equity, our e-commerce platform and product innovation underpinned this success."
"Our innovation pipeline for 2018 and beyond is very healthy and will continue to be a key driver of progress. We are investing substantially to develop our businesses in the USA and Italy and in addition we have launched our new Football business, underpinned by our recently announced exclusive nutrition partnership with Manchester United," Moon concluded.
As of 0840 GMT, shares had lost 0.71% to 72.48p.