Shares in AIM-listed supplements producer Science in Sport (LON:SIS) jumped 7.89% to 30.75p (as of 14:55 GMT) after it announced that it would post an EBITDA profit for 2020. While retail sales have struggled, the company has seen a strong performance in its online channels which are expected to constitute 51% of full year revenues. Overall revenues will be down slightly on the prior year but gross margins have improved by roughly four percentage points.
CEO Stephen Moon commented: “I am pleased to announce the business is performing well. We bounced back strongly following our decisive actions in March and April to restructure the business and strengthen the balance sheet. Our focus has been accelerating our long-term growth strategy and investing in our online business, and this has successfully delivered for us.
“We have invested in technology and talent to drive our online business across global territories for 2021 onwards, and we have continued to drive innovation and brand equity to underpin our premium margin business.
“A new supply chain unit is planned for late 2021. This will build further on the substantial progress made in gross margin during this year, and we expect to make progress throughout the strategic planning period.
“Whilst it is too early to reinstate guidance for the longer term, once the COVID-19 pandemic abates, we are well positioned to take advantage of profitable growth opportunities in all major global regions.“