Today marks significant developments for three prominent North West companies: Science in Sport, Surface Transforms, and Manx Financial Group.
Sport nutrition firm, Science in Sport, reported its interim results, highlighting both a decrease in turnover and a reduction in pre-tax losses. The company, led by executive chairman Dan Wright, has been undergoing a restructuring since late 2023. The firm’s sales for the six months leading up to June 30, 2024, were £25.7m, reflecting a 25.4% decrease from the previous year. The pre-tax losses were £2.460m, down from £3.267m in 2023. Adjusted net debt also showed a slight decrease from £13.8m to £13.2m. According to the firm, the revenue drop was attributed to shifts in overseas revenue streams, stock availability issues, and efforts to cut unprofitable revenue and excessive discounting. The PhD product line saw a significant sales decline of 44.8%, while SiS product sales were more stable but still faced an 8.9% revenue drop due to stock constraints. The company expects revenue to stabilise and grow moving into FY25. Cost-saving measures have reduced operating costs by £3.6m, or 21%. An equity raise of £8.5m in July will fund short to medium-term growth through investments in inventory, working capital, and selective CAPEX. The restructuring aims for controlled, sustainable growth, with a focus on improved margins from a reduced cost base. The £8.5m raised is already driving improvements, easing working capital pressures, and improving inventory availability. The group has extended its banking arrangements to 2027, providing additional liquidity to support growth. Wright commented on the restructuring’s impact on improving operating margins and EBITDA. The team, bolstered by recent appointments, is now positioned for success, with expected revenue and profit growth in the medium term.
Surface Transforms, a Knowsley-based specialist brakes manufacturer, has appointed Andrew Kitchingman as non-executive chair, effective immediately. Kitchingman brings extensive experience as a public company director, including roles at Mpac Group, Andrew Sykes Group, and London Security Group. He has also had a successful career in corporate finance, working with firms such as KPMG, Hill Samuel, Albert E Sharp, Brewin Dolphin, and WH Ireland. David Bundred, who has served as chair for 12 years, is stepping down and retiring from the board. Kitchingman expressed gratitude to Bundred for his service and emphasised the company’s focus on operational excellence, efficiency, and working capital management. Bundred, reflecting on his tenure, highlighted the company’s achievements, including securing £390m in contracts from leading automotive OEMs and improving manufacturing capacity and yield. Bundred praised the team’s dedication and effort over the years.
Manx Financial Group has finalised its acquisition of the remaining 49.9% interest in Payment Assist for £5 million. This completes a process that began in May 2022, following the group’s 50.1% acquisition through its Manx Ventures business. The deal involved discussions with Payment Assist shareholders Neil Jeffrey, Colin Ellard, Spencer Wrench, and Simon Bevan, who have agreed to leave the board and forgo further dividends, saving Manx Financial up to £4 million. Jeffrey and Ellard will resign as directors, with James Smeed and Marcus Gregory remaining on the board. Jeffrey will continue as an employee until 31 December 2024 and will serve as a consultant for three years. Manx Financial owns Conister Bank, which offers niche funding facilities to SMEs, focusing on the renewable energy sector. CEO Douglas Grant stated that the acquisition aligns with the group’s growth strategy in niche markets, particularly during uncertain economic times. Payment Assist’s short-term lending products remain in high demand. The deal will be funded from existing cash resources. Payment Assist reported revenue of £10.822 million and a profit before tax of £2.363 million as of December 31, 2023.
These developments reflect the strategic moves by Science in Sport, Surface Transforms, and Manx Financial Group to strengthen their market positions and drive future growth.
