Science Sprt Regulatory News (SIS)

SCIENCE IN SPORT PLC

("Company" or "Group")

Half Year Trading Update and Notice of Results

Science in Sport plc (AIM: SIS), the premium performance nutrition company serving elite athletes, sports enthusiasts and the gym lifestyle community, is pleased to announce its pre-close trading statement for the six months to 30 June 2020.

Contingency plans were enacted in early March to deal with the COVID-19 pandemic, including significant cost reductions, together with an equity raise in April. Changing consumer behaviour has accelerated our shift to online channels, and we have done this while improving margins.

Our USA business has been streamlined and has continued to grow strongly while sharply reducing cash consumption. Export Retail delivered growth in a challenging environment, and the first signs of increased activity in UK Retail channels are now apparent. Supply chain efficiencies continue to drive improved gross margin.

Group revenue for the period was £23.6m, down 5% on last year (H1 2019: £24.9m) reflecting the severe Q2 disruption caused in all markets by the COVID-19 pandemic. Science in Sport delivered revenue of £11.9m, down 5% (H1 2019: £12.5m) while PhD delivered £11.7m, down 6% on 2019 (H1 2019: £12.4m).

Online channels performed very strongly. Our E-Commerce platform delivered revenues of £6.0m across all markets, 27% ahead of 2019. Amazon was 22% ahead, with revenues of £4.1m. Online accounted for 42% of total business at the end of H1, up from 32% in 2019.

Export Retail delivered revenue of £5.8m, 2% up (H1 2019: £5.7m) in challenging conditions. UK Retail has seen the hardest downturn from the COVID-19 lockdown and £7.7m revenue is 31% below last year (2019: £11.2m). We are seeing some increase in demand and are cautiously optimistic.

USA delivered revenue of £1.5m, 30% ahead of last year. Robust growth was delivered in Amazon and the SiS.com platform. We expect a significantly reduced EBITDA loss in the USA, given substantial progress from a leaner cost base.

Sales from new products were £1.4m for the period, 8% ahead of the corresponding number in 2019. PhD Smart Plant and PhD Smart Cakes delivered £1m of the total. A strong pipeline will drive revenue for both brands in the second half.

Supply chain synergies in operations and purchasing, together with margin improvement from E-Commerce resulted in gross margin of 47.7% which is 290bps ahead of last year (H1 2019: 44.8%).

Given improved margins and reduced costs, together with a £4.5m gross equity raise, net cash is strong, with approximately £9.0m at hand. We also secured a flexible £8m debt facility with HSBC, which remains unused. Inventory was £6.9m, compared with £8.6m in 2019, and we expect to lower it further in H2.

Management focus is on delivery of the long-term strategy, which is underpinned by science-led innovation, investment in brand equity, focus on online channels and growth in global markets. A new gel machine will commission in late 2021, and we are assessing the supply chain footprint intending to improve service while reducing internal logistics costs.

While the outlook remains uncertain, and the Board believes it is too early to reinstate financial guidance, the strategic drivers of the business remain strong. We expect to return the business to its proven growth trajectory as and when the pandemic abates.

The Company will announce its interim results for the period ended 30 June 2020 on Wednesday 16 September 2020.

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Notes to Editors

About Science in Sport plc

Science in Sport plc is a leading sports nutrition business that develops, manufactures and markets innovative nutrition products for professional athletes, sports and fitness enthusiasts and the gym lifestyle community. The Company has two highly regarded brands: PhD Nutrition, a premium protein brand targeting gym lifestyle and sports enthusiasts, and SiS, a leading brand among elite athletes and professional sports teams.

The two brands are sold internationally through multiple retail channels, both traditional and online, including major supermarkets and high street chains, specialist sports retailers and e-commerce sites including Amazon and the brands' websites. They enable the Company to address the full breadth of the performance nutrition market currently estimated at approximately £10 billion worldwide.

PhD is one of the UK's leading protein brands with a reputation for high quality and product innovation. The brand has grown rapidly, based on its core protein powders, since its launch in 2005. The range now comprises powders, bars, flapjacks, drinks and other products including the high protein, low sugar range, PhD Smart. PhD brand ambassadors include endurance athlete Ross Edgley, WBA international champion Jordan Gill, Team GB Olympic sprinter Asha Philip and leading fitness influencer Obi Vincent. The PhD brand is an official partner to the Tough Mudder Challenge and Race Series.

SiS, founded in 1992, has a core range comprising gels, powders and bars focused on energy, hydration and endurance. SiS is the official sports nutrition supplier to many professional teams and organisations including Team INEOS Cycling, Team Ineos UK (America's Cup Team), British Cycling, Cycling Australia, USA Cycling and USA Triathlon. SiS supplies more than 100 professional football clubs in the UK, Europe and USA, and is an official partner Manchester United Football. SiS brand ambassadors include Olympians Sir Chris Hoy MBE, Mark Cavendish MBE and Adam Peaty MBE.

Science in Sport is headquartered in London. Its shares joined the AIM market of the London Stock Exchange in August 2013 and trade under the ticker symbol SIS.

For further information, please visit www.scienceinsport.com