LONDON (Alliance News) - Shares in Science in Sport PLC rose Wednesday morning after the group said revenue growth in its last financial year was ahead of market expectations, and announced that it raised GBP2.3 million before expenses in an oversubscribed share placing to fund further revenue growth and investments.
Science in Sport develops, manufactures and markets sports nutrition products for professional athletes and sports enthusiasts.
The sports nutrition company said that it maintained its strong sales momentum throughout the year, and revenue in the year to March 31 is expected to be 24% ahead of the previous year at roughly GBP6.84 million.
Science in Sport shares rose 9.9% early Wednesday morning, trading at 50.00 pence per share.
It said that while the full year will be hit by exceptional costs associated with its listing on AIM in August last year, it believes the outlook for the company is extremely positive.
The group said that revenue growth for the year was driven by all of its distribution channels, including major grocers, high street retail chains, independent retailers and e-commerce retailers.
Science in Sport also said its own direct e-commerce sales saw strong year-on-year growth, and it will be pumping money into this channel in the current financial year.
"To support e-commerce sales, the company recently relaunched the SiS website and the launch of a website for mobile devices is imminent," it said in a statement.
Science in Sport said that overseas, it has seen an encouraging start with its two international initiatives: a master distribution agreement in the Asia Pacific region and a distribution agreement in eight European countries with Japanese company Shimano. It said that the Shimano distribution agreement will commence selling at the beginning of May.
The sports nutrition firm said it raised GBP2.3 million before expenses in an oversubscribed share placing of 5.1 million shares at 45 pence per share, with new and existing institutional shareholders. The placing shares represent 20.76% of the enlarged total.
Science In Sport said it will use the funds for working capital to fund further revenue growth, and also to invest internally in new revenue generating opportunities.
Chief Executive Officer Stephen Moon subscribed to 222,223 of the placing shares, raising his stake to 421,330 shares, while Non-Executive Director Dawson Buck purchased 111,112 of the shares, raising his interest to 418,677. Each stake represents 1.7% of the enlarged share capital.
The placing was conducted by Cenkos Securities PLC.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
Copyright © 2014 Alliance News Limited. All Rights Reserved.