Science in Sport (SIS) H2 2023 earnings summary

Executive summary

• Revenue declined 1.7% to £62.7m for FY23, with underlying EBITDA improving to £2.0m from a £2.7m loss year-over-year.

• New leadership team implemented significant cost rationalisation, delivering annualised savings of over £6m, with a focus on sustainable profitability and cash generation.

• Statutory loss before tax increased to £11.3m, but loss per share improved to -6.6p from -7.9p.

• Strategic reset prioritised margin improvement and controlled growth over aggressive top-line expansion.

Financial highlights

• Gross profit was stable at £26.8m (2022: £26.9m), with gross margin rising to 43% from 42%.

• Trading contribution increased 37.6% to £12.8m, with margin up to 20.5% from 14.6%.

• Underlying EBITDA improved by £4.7m to £2.0m, reflecting cost efficiencies and margin gains.

• Adjusted net debt rose to £12.8m (2022: £10.9m), mainly due to restructuring payments and working capital outflows.

• Cash at year-end was £2.1m, with over £4m headroom in facilities.

Outlook and guidance

• FY24 expected to see lower revenue but further improvement in EBITDA and reduction in adjusted net debt.

• Focus remains on embedding the new operating model, margin improvement, and deleveraging.

• Return to sustained revenue growth anticipated from 2025 onwards.