Science in Sport interim losses widen, considering sale

Science in Sport announced a £5m share placing on Friday to strengthen its balance sheet, as it reported a swing to an underlying EBITDA loss for the first half and said it could put itself up for sale.

The AIM-listed group, which makes premium performance nutrition for athletes, swung to an underlying EBITDA loss of £2.3m in the first half from an underlying operating profit of £0.6m in the same period a year earlier. This was despite revenues rising 10% to £32.3m.

Chief executive Stephen Moon said: "After a strong start to the year, weakening consumer demand, temporary supply chain issues and input cost increases have combined to impact our trading."

The company announced that it was looking to raise £5m in a placing of just over 33.3m shares at 15p each.

Proceeds will be used to strengthen the balance sheet in the event there is any further downturn in the economy impacting sales or any unexpected increases in input material costs or other costs, it said.

Science in Sport also said it has decided to conduct a strategic review to maximise value for shareholders and that this might result in a sale of the company or certain assets.

"The board believes that the current market capitalisation of the company fundamentally undervalues the group and does not recognise the inherent value of its premium brands and market positioning," it said.

The group said it is not in talks with any potential offeror at this time and is not in receipt of any approach with regard to a possible offer.

At 0940 BST, the shares were down 30% at 16.50p.