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Vape manufacturer Supreme has significantly upgraded its profit expectations for the 2023/24 financial year thanks to a new distribution deal with ElfBar.

The London-listed group expected to generate £25m to £30m of revenues and about £2m of incremental adjusted EBITDA for the year to 31 March 2023 as a result of the agreement to be a master distributor for vaping brands ElfBar and Lost Mary.

Supreme will supply ElfBar and Lost Mary products to the likes of Tesco, Morrisons, One Stop and WH Smith Travel.

It comes as the business revealed a 19% jump in group revenues to £155.6m in the year ended 31 March 2023 as its vaping division almost doubled sales to £76.1m.

However, pre-tax profits slipped 11% year on year to £14.4m as a result of problems in its lighting division.

CEO Sandy Chadha said: “Supreme has delivered a strong performance across the year punctuated by an outstanding contribution from our vaping division, which has almost doubled revenues in the year.

“Our commitment to providing highly affordable but competitively priced products sits at the heart of our business and our diverse client base continues to provide a stable platform for growth.

“As we look to the future, we remain committed to expanding our product set, both organically and via acquisition, which in turn creates greater opportunities to cross sell and forge ever closer bonds with our customers.”

Alongside its vaping operations, Supreme also supplies batteries, lighting, sports nutrition & wellness products and branded household consumer goods.

Shares in the group jumped 11.7% to 116.7p this morning on the back of the profits upgrade.

Morning update

Science in Sport chairman John Clarke is stepping down from the performance nutrition group after nine years.

He will continue in the role until the completion of the process to appoint a new chairman, with “an orderly handover”.

CEO Stephen Moon thanked Clarke for his “tireless dedication” to Science in Sport.

“His unmatched knowledge of brand strategy and extensive global experience has guided the company to its current position as a global leader in science-led endurance and performance nutrition,” he added.

“His leadership and strategic rigour have been an immense help to all of us. John leaves us set for the next growth phase with a world-class supply chain and two measurably premium brands.”

Clarke said: “It has been a privilege to serve as chairman for what is now a world-renowned company of scale. It has been a pleasure to work with an excellent professional board and a dedicated and talented group of people who have closely adhered to the winning business strategy to grow the business at an annual rate of 23% over my tenure.

“The business has developed from very small humble beginnings to now operate from a world-class production and logistics centre of its own that will serve as the platform for the next phase of growth.

“I am confident Science in Sport will continue to drive forward vital innovation that will provide a competitive edge in the sports nutrition industry and continued high levels of growth and profitability over the long term.”

The FTSE 100 opened down 0.4% to 7,488.43pts.

Science in Sport shares are up 3.8% to 13.5p, while other risers include Greencore, up 2.6% to 79.4p, Coca-Cola Europacific Partners, up 2.1% to €60, THG, up 1.3% to 84.6p, and Hilton Food Group, up 1.3% to 632.9p.

Ocado is the main early faller this morning, down 2.7% to 598.8p.

Yesterday in the City

The FTSE lost early momentum to end the day down 0.1% to 7,520.16pts.

Sainsbury’s shares slipped 1.8% to 269.6p despite stronger-than-expected first-quarter numbers and volume growth. However, the retailer remains 2.3% higher over the past five trading days.

Shares in Naked Wines plummeted 9.8% to 89.2p amid a downgrade to ‘sell’ by Liberum following a changing of the guard in the boardroom as founder Rowan Gormley was announced a the new chairman. The stock is down 34% in 2023 to date.

Science in Sport also suffered a 3.9% fall to 12.5p after its shares started trading again following a suspension on Monday over delayed filings.

Wholesale Kitwave managed a 0.6% rise to 315p as it reported a 52% leap in operating profits in the first again.