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Sports nutrition player Science in Sport has reported improved performance in the first half of 2024 amid a strategic rethink and a senior team reshuffle.

The owner of the SIS and PhD brands said it has made “significant strategic progress” following the appointment of a new leadership team and a detailed operational review completed in the previous year.

It said its prior strategy of focusing on top line growth across all channels and markets has been reset so that the business can address the huge growth opportunities and demand for SIS in particular from a solid platform.

The resetting of marginal revenue channels and a pivot towards controlled profitable growth has reduced revenue in the short term but, importantly, margins have and should continue to improve due to significant operational cost efficiencies and more disciplined pricing.

Therefore, first half EBITDA is anticipated to be in line with expectations despite lower revenues, with the focus shifting to profitable growth.

The group estimates it will post an underlying EBITDA of £2m, up 77% as the cost rationalisation programme and review of the business operating model begins to benefit.

Group revenues are expected to decline to £25.5m from £34.4m due to a shift in sales towards a royalty-based model in certain export regions, as well as a conscious step back from marginal revenue channels to prioritise profitable, cash-generative growth.

However, over the medium term management continues to expect sustained revenue growth, via effective marketing and strong commercial execution with profit margin growth prioritised.

Underlying EBITDA performance is also anticipated to continue to strengthen in the second half as operational and marketing cost savings annualise.

Dan Wright, executive chairman, commented: “The Board is pleased to report that the Group performed strongly in H1 FY24 delivering substantial growth in underlying EBITDA year on year, with profitability margins improving at both a gross and a trading contribution level.

“This is underpinned by the resetting of the cost base following a detailed review of operating costs. Whilst the business has consciously stepped away from low-margin revenue streams in the short term, we do anticipate controlled and sustained revenue and profit growth in the medium term.”

Meanwhile, the company has announced the appointment of Christopher Welsh as CFO, with Dan Lampard taking on the role of chief operating officer, having joined the group as CFO in 2022. Megan Blaylock will also be joining as chief commercial officer (a non-plc board position) at the end of July 2024.

Finally, the group has posted full year accounts for 2023.

It saw £62.7m revenue in the year ended 31 December 2023, down 1.7% on prior year, while underlying EBITDA increased to £2.0m from a £2.7m loss consistent with expectations despite the lower revenue.

Performance in 2023 was driven from growth in the retail (UK and international) and US online channels, offset by lower trading in China and in the digital channel.

Statutory loss before tax was £11.3m (from £10.6m), albeit this represented an improved loss per share of 6.6p.

Science in Sport shares are up 60% so far this year back to 18.9p, but were trading above 60p in mid-2022.

Morning update

Tasty, the owner and operator of restaurants in the casual dining sector, has posted improved sales and profitability for its full financial year despite running into financial difficulties this year.

For the 53-week period ended 31 December 2023, total revenues grew to £46.9m from £44m, an increase of 6.5% year on year.

Adjusted EBITDA rose to £4.4 from £2.6m.

However, it said cost of living crisis and interest rate rises continued to significantly impact revenue last year and inflationary pressure on labour, food and utilities continue to adversely affect profitability.

Post-year-end decisive action taken to stabilise and transform the business through a restructuring plan was sanctioned by the High Court on 4 June 2024.

Post this restructuring plan it trades from 37 sites (including seven renegotiated rent agreements) after exiting 19 loss-making sites/onerous leases.

The group said it is now on a secure footing for potential future growth.

Yesterday in the City

The FTSE 100 fell back 0.6% to close at 8,179.7pts yesterday

DS Smith was the FTSE 100’s strongest risers, climbing 15.7% to 426.2p after the withdrawal of Brazil’s Suzano from bidding for DS Smith future merger partner US-based International Paper.

Other risers included PayPoint, up 2.4% to 650p, Domino’s Pizza Group, up 2.3% to 315.2p, Ocado, up 2.1% to 286.9p, McBride, up 1.8% to 142.5p, Bakkavor, up 1.4% to 147p and Greencore, up 1.3% to 168p.

Fallers included Glanbia, down 4% to €18.43, Kerry Group, down 3.9% to €74.10, British American Tobacco, down 3.1% to 2,433p, Premier Foods, down 2.8% to 160.4p, FeverTree, down 2.2% to 1,086p and Associated British Foods, down 2.1% to 2,471p.