Science in Sport (SIS) has announced interim results that are materially behind expectations. Macroeconomic and operational challenges have resulted in a £2.3m adjusted EBITDA loss in H1. Recognising the acute headwinds, an equity raise of £5m has been announced at a 37.5% discount to close. A strong performance in PhD Nutrition (sales +24%) jars with a flat out-turn in SiS – the latter likely impacted by consumer demand. The announced strategic review may culminate in a sale of the enterprise in due course. We see material downside to forecasts; reflecting the deeply discounted raise, we lower our rating from ‘Outperform’ to ‘Neutral’.
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