Originally published in The Financial Times
Science in Sport, the sports nutrition company that has been riding on the success of its brand ambassadors Sir Chris Hoy and Mark Cavendish, the Olympic cyclists, has reported a loss in its first financial results since demerging from the Provexis Group.
Shares in the Lancashire-based company fell 9.55 per cent in morning trading on Aim, after the group blamed a pre-tax loss of £377,808 in the six months to September 30 on the costs of the split. In the same period last year, the business had reported a pre-tax profit of £65,874.
Stephen Moon, chief executive, attributed the loss to one-off expenses of £278,493, which he defended, citing a 23 per cent increase in sales in the company’s first half year as a separate entity. “Revenues have increased from £3.25m to £4m, so the company has clearly invested in growth”, he said.
The results come at a time when cycling and endurance sports have been growing in popularity. Science in Sport estimates that the market for sports nutrition is worth £320m in the UK and £19.6bn worldwide. Last week, the company announced its first foray into the global market, through a distribution deal for the Asia-Pacific region.