(Alliance News) - Science in Sport PLC on Friday said weakening consumer demand, temporary supply chain issues and input cost increases have combined to impact trading as it considers selling the business.
Science in Sport shares plummeted 29% to 16.60 pence each in London on Friday.
In the first half ended June 30, the London-based sports nutrition company reported a pretax loss of GBP7.2 million, widened from GBP2.9 million a year before.
This was despite higher revenue, which was up by 10% to GBP32.3 million from GBP29.3 million.
Science in Sport will now begin a strategic review of the business as a whole. It argued that its current market capitalisation "fundamentally undervalues the company".
A review could result in the sale of the company or of certain assets, although Science in Sport is not currently in talks with any potential offeror.
It also plans to raise GBP5.0 million to bolster the balance sheet by placing 33.3 million new ordinary shares of 10.00p each in the capital of the company at 15.00p per share.
Chief Executive Officer Stephen Moon said while the brand remained wary of uncertainties, it has responded proactively to macroeconomic headwinds. He also believed a "leaner operating model" would lead to profitable growth.
The company declared no interim dividend, unchanged from last year.
By Holly Beveridge; hollybeveridge@alliancenews.com
Copyright 2022 Alliance News Limited. All Rights Reserved.
Science Sprt (SIS)