Science in Sport (SIS) Trading Update summary

Trading and financial performance

• H1 FY24 underlying EBITDA expected at £2.0m, up 77% from FY22, driven by cost rationalisation and operational efficiencies.

• Revenue for H1 FY24 estimated at £25.5m, down 27% year-on-year, reflecting a strategic shift away from marginal channels and towards profitable growth.

• Gross profit margin improved to 45% (from 42%), and trading contribution margin rose to 25% (from 20%) due to a lower cost base.

• Annualised cost savings of over £6m expected from operational reviews and exiting uncommercial marketing contracts.

• Net debt at H1 FY24 is £13.8m, with further deleveraging anticipated as cost savings are realised.

Strategic and operational updates

• Focus has shifted from top-line growth to controlled, profitable growth, prioritising high-margin channels and operational efficiency.

• Management expects full-year FY24 revenue to decrease but anticipates medium-term sustained revenue growth through effective marketing and commercial execution.

• New operating model is being embedded post-restructuring, with continued margin improvements and cash generation as key goals.

• Exiting low-margin revenue streams is expected to support long-term profitability and margin expansion.

Leadership and board changes

• Christopher Welsh appointed as CFO, bringing significant financial and M&A experience from Accrol Group Holdings and INEOS Enterprises.

• Dan Lampard transitions to Chief Operating Officer after strengthening the finance team as CFO.

• Megan Blaylock joins as Chief Commercial Officer, bringing strategic and commercial expertise from Glanbia Performance Nutrition.