Science in Sport PLC (AIM:SIS) shares rose 6% on Thursday morning after the company reassured of a “high level of confidence" in its business model and growth plan after a hit in April last year.
“A combination of the rapid global increase in input costs and a levelling off in market growth” had an adverse impact and left it undervalued in 2022, the AIM-listed sports nutrition firm said.
However, trading so far in 2023 suggests Science in Sport’s business plan, which aims to tap into Chinese markets and lower operating costs through a new Blackburn-based distribution facility, is working, the company added following a strategic review.
Sales growth, price increases and lower costs, aided by the new facility, have all contributed to improved profitability, its statement reassured.
Shares rose 6% to 9p, before slipping to 8.8p, 3.5p higher than Thursday’s opening.