Science in Sport PLC (LON:SIS) shares ticked higher on Wednesday after the sports nutrition firm reported a solid increase in full-year revenues and, separately, unveiled the appointment of Olympic swimmer Adam Peaty as a brand ambassador.
The AIM-listed company said its 2017 revenue increased by 28% to £15.6mln, "significantly" ahead of market growth forecasts, with growth particularly strong in online channels and international markets.
The group said 55% of its revenue came from online last year, compared to 49% in 2016, beating its 50% target for the year, while its e-commerce platform delivered 58% year-on-year growth, and international customer revenue climbed 60% year-on-year.
However, Science in Sport's pre-tax loss widened to £3.9mln in 2017, from £2.6mln the year before, which the company attributed to increased sales and marketing costs.
Commenting on the 2017 numbers, Science in Sports' chief executive, Stephen Moon said: "Our core business in the UK and EU was profitable at EBITDA level and we commenced our investment in the strategic markets of the USA and Italy."
He added: We are looking forward to another year of strong revenue growth in 2018. We expect gross margin to be consistent, given further factory efficiencies and favourable raw material prices. Our innovation pipeline for 2018 and beyond is very healthy and will continue to be a key driver of progress. We are investing substantially to develop our businesses in the USA and Italy and in addition we have launched our new Football business, underpinned by our recently announced exclusive nutrition partnership with Manchester United."
Peaty joins Hoy and Cavendish as brand ambassador
Science in Sport also announced that Adam Peaty would represent the company as a brand ambassador for an initial period up to and including the Tokyo 2020 Olympics, joining fellow Olympians Chris Hoy and Mark Cavendish.
In afternoon trading, Science in Sport shares were 0.3% higher at 73.20p.