The sports nutrition firm that masterminded the success of Team Sky cyclist Chris Froome today set its sights on conquering the football market with a multi-million pound fund raising.
Aim-quoted Science in Sport is to raise £15m of new money to transform operations and enter the US sports nutrition market. Some £14m has already been locked in from institutional investors, with a further £1m set to be raised through an open offer.
Shares in the firm, which currently has a market capitalisation of £27m, rose by 3.6 per cent in morning trading.
Historically associated with endurance sports such as cycling and running, Science in Sport has invested heavily in overseas expansion. This year it launched in Australia, in the hope of tapping into the active lifestyle popular down under.
Some £2.8m of the proceeds will be used to expand Science in Sport's football offering. US expansion will soak up £3.9m of the new money, with £600,000 set aside to expand into Italy. The balance will be used to boost marketing and fund working capital.
Calling the financial backing a "great endorsement for our strategy", boss Stephen Moon said football and US markets present "highly compelling growth opportunities".
The latest funding round comes two years after Science in Sport raised £8.7m to pursue a growth strategy that culminated in revenues swelling by 30 per cent in 2016.
With some of the company's rivals bought by blue chip corporates in deals worth tens of millions of pounds, Science in Sport has fended off approaches from large institutions. The firm's backers are happy with the current strategy to grow sales at the expense of generating significant profits.
Science in Sport has quickly grown to become a leader in endurance sports nutrition for elite athletes, but our ambition is to capture a much bigger market share and to expand internationally beyond our now profitable core business.