Last close As at 05/08/2026
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Market capitalisation
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Research: Consumer
Following its acquisition of the complementary brand owner PhD Nutrition, Science in Sport (SIS) is in dynamic expansion in a market that is increasingly serious about sport. Positioned at a premium level, management has secured all the bases to drive scale and success.
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Science in Sport |
Elite competitor
Food producers |
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4 March 2019 |
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Following its acquisition of the complementary brand owner PhD Nutrition, Science in Sport (SIS) is in dynamic expansion in a market that is increasingly serious about sport. Positioned at a premium level, management has secured all the bases to drive scale and success.
Rapidly expanding performance nutrition market
The global sports nutrition market is worth £11.4bn, growing at 8% CAGR to 2023 (Euromonitor). SIS is positioned at elite market level at higher quality than GSK’s Maximuscle, while other brands target the lower price and margin mainstream market. The increasing seriousness of non-professional sports and fitness is driving dimensional expansion in its markets for functional products.
Technical, professional-level products
SIS’s gels, powders, tablets, shots and bars have functional ingredients such as collagen peptides, nitrates, creatine, proteins, low-dose caffeine and carbohydrates. Both technical content and structure differentiate them from popular alternatives.
Assured marketing
Across a range of sports SIS has elite ambassadorship. Partnerships include Team Sky, USA Triathlon and Manchester United. At the 2016 Olympics, 34 medal winners used its products, which were also used by Chris Froome in his 2018 Giro D’Italia victory. Andy Murray’s cloudy water is a SIS product. SIS is the only brand globally holding both Informed-Sport’s Site Certification and its Product Certification on banned substance status. Retail partners include Amazon, Tesco, Wiggle, Sports Direct and Goals Soccer. E-commerce was 55% of 2017 sales.
Financials: Set to break into profit
SIS has grown revenue at 24% CAGR over the last five years, accelerating to 34% in H218, and confirms the market forecast of EBITDA break-even in 2019. Its £32m acquisition of complementary brand owner PhD in December 2018 not only adds annual revenue of £20.8m (FY August 2018), but also incremental revenue of £4.0–7.5m over the next three years, as well as supply chain synergies of £2.6–2.9m.
Valuation: EV/Sales of 1.1x indicates value
As an early-stage enterprise, SIS has yet to generate meaningful earnings multiples. However, post the PhD acquisition, EV/Sales of 1.1x for FY19e indicates value.
Market estimates
Year |
Revenue |
EBITDA |
PBT |
EPS |
EV/Sales |
EV/EBITDA |
P/E |
12/17 |
15.6 |
(1.7) |
(3.9) |
(7.7) |
3.6 |
N/A |
N/A |
12/18 |
21.3 |
(2.6) |
(3.4) |
(4.5) |
2.6 |
N/A |
N/A |
12/19e |
49.8 |
0.3 |
(1.0) |
(0.8) |
1.1 |
220.0 |
N/A |
12/20e |
60.2 |
2.6 |
1.4 |
0.9 |
0.9 |
21.3 |
63.5 |
Source: Liberum via Refinitiv
EDISON QUICKVIEWS ARE NORMALLY ONE OFF PUBLICATIONS WITH NO COMMITMENT TO WRITING ANY FOLLOW UP. QUICKVIEW NOTES USE CONSENSUS EARNINGS ESTIMATES.
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Research: Investment Companies
The Law Debenture Corporation (LWDB)’s NAV total return outperformed its benchmark FTSE All-Share Index in FY18, protecting investors from c 40% of the market decline. While returns for the year were negative, LWDB has performed well in absolute terms over three, five and 10 years to 31 January 2019, producing strong NAV and share price total returns under managers James Henderson and Laura Foll. The independent professional services (IPS) business, which makes up c 14% of LWDB’s NAV on a fair value basis, performed strongly in its first full year under the new executive team of Denis Jackson (CEO) and Katie Thorpe (CFO), with 9% net revenue growth after seven years of broadly flat returns, contributing c 37% of LWDB’s revenue earnings per share. With c 75% of LWDB’s assets invested in the UK, a planned move from AIC Global to a UK sector should facilitate comparison with more similarly invested funds.