REG - Applied Nutrition - Final Results
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RNS Number : 8405G Applied Nutrition PLC 10 November 2025
For release 7:00am Monday 10 November 2025
Applied Nutrition plc
(the "Company" or the "Group")
Final results for the year ended 31 July 2025
Delivery ahead of IPO guidance with significant momentum into FY26
Applied Nutrition plc (LSE: APN), a leading sports nutrition, health and
wellness brand, today announces its final results for the year ended 31 July
2025 ("FY25").
Group financial highlights
· FY25 revenue up 24.2% to £107.1m (FY24: £86.2m), ahead of IPO guidance and
in line with recently upgraded market expectations
· Adjusted EBITDA(1) up 18.8% to £30.9m (FY24: £26.0m) ahead of IPO guidance,
unadjusted operating profit up 18.6% to £28.1m (FY24: £23.7m)
· Strong free cash flow conversion3 of 72.4% (FY24: 35.3%) and net cash(4) at
period end of £18.5m
Operational and strategic highlights
· Delivery in line with multi-pillar, global growth strategy
o Deepened relationships with existing customers, through increased shelf space
and distribution
o Extended our global footprint and entered numerous new geographies in key
regions including Latin America and Asia
o New products and formats launched in the year include Vimto-flavoured gels and
hydration products, and Sparkling Collagen Protein Water
· Completion of factory extension in August 2024, and further efficiency gains
in FY25, have increased revenue capacity to c.£200 million
Current trading and outlook
· The strong acceleration in sales growth in the final quarter of FY25 has
continued into the first quarter of the new financial year
· We move into FY26 with positive trends in market share across key channels,
with a clear opportunity to capture further share in both the UK and
internationally
· Capital investment to further increase capacity and capabilities to support
continued growth
· Despite a strong Q1 FY26, given that the financial year is still at an early
stage, the Board believes it is prudent to maintain current market
expectations for FY26
Thomas Ryder, CEO of Applied Nutrition, said: "This set of results shows us
over-delivering on targets we set at IPO while setting the stage for the next
phase of our growth. The performance reflects the strength of our strategy,
disciplined execution, and growing traction in the market. In the year we have
deepened our relationships with existing customers and secured new customers
across both existing and new geographies, all while continually broadening our
ranges, formats, and flavours.
With solid progress behind us and encouraging trading trends continuing, we
are focused on key opportunities with a view to continuing our ambition to
become the world's most trusted and innovative sports nutrition, health, and
wellness brand."
Key financial information
FY25 FY24 Change
Revenue (£m) 107.1 86.2 24.2%
Gross profit (£m) 49.3 41.3 19.4%
Adjusted EBITDA(1) (£m) 30.9 26.0 18.8%
Adjusted profit before tax(1) (£m) 30.2 25.7 17.5%
Adjusted basic and diluted EPS(2) (p) 9.1 8.0 13.8%
Free cash flow3 (£m) 16.5 7.1 132.4%
Free cash flow conversion3 72.4% 35.3% 105.1%
Statutory results
Operating profit (£m) 28.1 23.7 18.6%
Profit before taxation (£m) 28.5 24.3 17.3%
Basic and diluted EPS (p) 8.4 7.5 12.0%
(1) Adjusted EBITDA is a non-IFRS financial measure; calculated as operating
profit before interest, taxes, depreciation and amortisation and excluding the
impact of exceptional items, share-based payments and significant
non-underlying items (see note 6). Adjusted profit before tax is a non-IFRS
financial measure of the Group's profit before tax excluding the impact of
exceptional items, share-based payments and significant non-underlying items.
(2) Adjusted basic and diluted earnings per share is a non-IFRS financial
measure, which adjusts earnings per share for the impact of exceptional items,
share-based payments and significant non-underlying items, and also takes into
account the taxation effect thereon (see note 11).
(3) Free cash flow is a non-IFRS measure representing the Group's net cash
from operating activities, less capital expenditure, plus/minus net interest,
less lease payments, adjusted for exceptional items, share-based payments and
significant non-underlying items. Free cash flow conversion is a non-IFRS
measure of the Group's free cash flow (as defined above) measured as a
percentage of adjusted profit after tax. The calculation for free cash flow
and free cash flow conversion is shown in the Chief Financial Officer's
review.
(4) Net cash excludes IFRS 16 liabilities.
Cautionary Statement - Certain statements included or incorporated by
reference within this announcement may constitute "forward-looking statements"
in respect of the Group's operations, performance, prospects and/or financial
condition. Forward-looking statements are sometimes, but not always,
identified by their use of a date in the future or such words and words of
similar meaning as "anticipates", "aims", "due", "could", "may", "will",
"should", "expects", "believes", "intends", "plans", "potential", "targets",
"goal" or "estimates". By their nature, forward looking statements involve a
number of risks, uncertainties and assumptions and actual results or events
may differ materially from those expressed or implied by those statements.
Accordingly, no assurance can be given that any particular expectation will be
met, and reliance should not be placed on any forward-looking statement.
Additionally, forward-looking statements regarding past trends or activities
should not be taken as a representation that such trends or activities will
continue in the future. No responsibility or obligation is accepted to update
or revise any forward-looking statement resulting from new information, future
events or otherwise. Nothing in this announcement should be construed as a
profit forecast. This announcement does not constitute or form part of any
offer or invitation to sell, or any solicitation of any offer to purchase any
shares or other securities in the Company, nor shall it or any part of it or
the fact of its distribution form the basis of, or be relied on in connection
with, any contract or commitment or investment decisions relating thereto, nor
does it constitute a recommendation regarding the shares or other securities
of the Company. Past performance cannot be relied upon as a guide to future
performance and persons needing advice should consult an independent financial
adviser. Statements in this announcement reflect the knowledge and information
available at the time of its preparation. Liability arising from anything in
this announcement shall be governed by English law. Nothing in this
announcement shall exclude any liability under applicable laws that cannot be
excluded in accordance with such laws.
Presentations
The Company is hosting a virtual presentation and Q&A session for analysts
at 09.00 GMT today. To register, please email
appliednutrition@almastrategic.com (mailto:appliednutrition@almastrategic.com)
Additionally, the Company is hosting a virtual presentation and Q&A
session for retail investors at 15:00 GMT today. To register to attend, please
use the following link:
https://engageinvestor.com/event/68d2b74841d8c34b7a2b34da
(https://engageinvestor.com/event/68d2b74841d8c34b7a2b34da)
Information for investors can be found on the Group's website at
www.appliednutritionplc.com (http://www.appliednutritionplc.com)
Applied Nutrition plc via Alma
Thomas Ryder, Chief Executive Officer
Steven Granite, Chief Operating Officer
Joe Pollard, Chief Financial Officer
Alma Strategic Communications +44 (0) 203 405 0205
(Public Relations adviser to Applied Nutrition) appliednutrition@almastrategic.com
Rebecca Sanders-Hewett, Sam Modlin, Joe Pederzolli, Sarah Peters
Notes to editors
Applied Nutrition plc (LSE: APN) is a leading sports nutrition, health and
wellness brand, which formulates and creates nutrition products with a stated
aim of being the world's most trusted and innovative brand in the market.
Headquartered in the UK, the Group sells products in over 85 countries
worldwide and has a diverse product range, targeting elite athletes, gym goers
and health-conscious consumers. Applied Nutrition has developed and launched
four ranges under the umbrella of the Applied Nutrition brand - Applied
Nutrition, ABE, BodyFuel, and Endurance. Across the four ranges, the Group
sells over 120 different products.
The Group's success has been built on an exceptional product range developed
in-house in Knowsley, Liverpool, by a team of experts, allowing products to be
developed efficiently delivering new innovation to the market, keeping
existing products up to date, and introducing products aligned with latest
trends.
The Group largely operates a global business-to-business (B2B) model, which
has facilitated a low risk, highly cost-effective go-to-market strategy and
has enabled strong, profitable growth in the UK, Europe and other
international geographies. The business model and strategy has enabled the
Group to become a fast-growing, highly profitable and cash generative global
supplier in the sports nutrition, health and wellness market.
For further information, please visit www.appliednutritionplc.com
(http://www.appliednutritionplc.com)
Chief Executive Officer's review
Introduction and overview
Our first year as a listed company on the Main Market of the London Stock
Exchange has once again demonstrated our ability to deliver, with a year of
continued momentum and opportunity. We are pleased strong trading has enabled
us to deliver full-year results ahead of initial market expectations, with
performance having been driven by the successful execution of our growth
strategy. We are also confident our IPO in October 2024 has already delivered
the increase in profile, awareness and credibility we had anticipated.
Our B2B model remains our chosen route to market which enables a low-risk,
highly cost-effective go-to-market strategy which has allowed us to leverage
local knowledge in international markets. Additionally, our direct-to-consumer
channel, though a smaller component of the Group, continues to deliver
complementary growth.
Our vision to become the world's most trusted and innovative sports nutrition,
health and wellness brand continues to fuel our ambition, and this year has
further demonstrated both the scale of the opportunity that lies ahead and our
ability to deliver against it.
Market and opportunity
Since founding the business in 2014, the sports nutrition, health and wellness
market has changed dramatically. When I started in the industry, supplements
were thought of just for bodybuilders, but now consumers across all
demographics are becoming ever-increasingly health conscious. Health and
wellness is for everyone and, as a result, our products cater to all types of
consumers, from elite performers to everyday consumers looking to make more
health-conscious decisions.
Our opportunity is presently underpinned by the industry's strong growth
projections. The global sports nutrition, health and wellness market is
projected to grow to £279 billion by the end of 2028 at a CAGR of c.8.1%*.
Recent consumer research reinforces the structural tailwinds across the sports
nutrition, health and wellness market. In a survey we conducted of 2,000 UK
consumers aged 18-65, health and wellness emerged as the second-highest
personal priority, marginally behind family, emphasising the increasing
societal focus on everyday wellbeing. Building on this, 64% said that they had
reduced spending on social activities to invest in their health over the last
twelve months. Notably, over 80% of respondents now view supplements as a
necessity rather than a luxury, with protein, vitamins, creatine, pre-workout,
hydration and recovery products proving the most popular offerings for survey
respondents. These trends in consumer behaviour align directly with Applied
Nutrition's focus on delivering trusted, high-quality products that support
healthier lifestyles and sustained wellbeing as part of daily routines.
Sports nutrition and health and wellness products are increasingly becoming a
mainstay on retailer websites and shelves globally and these supportive market
dynamics provide us with strong confidence for the future success of the
Group. While we remain a relatively small player in the global market, our
constant innovation, growth and expanding distribution provides a clear
platform to continue taking share in our growing markets.
* Euromonitor International Consumer Health Passport 2024 Edition.
Performance review
FY25 performance was ahead of market expectations as we grew revenues by c.24%
and adjusted EBITDA by c.19% with profit before tax increasing by c.17%. We
want to thank our partners, customers, and staff in helping us achieve this.
Notwithstanding the additional costs of being a listed business, we have
delivered the same underlying profit margins as in FY24.
FY25 has seen us once again deliver against our multi-pillar, global growth
strategy: deepening relationships with existing customers through increased
shelf space and distribution end points as well as securing new customers and
channels across both existing and new geographies, all while continuing to
deliver a consistent pipeline of new product development (NPD), expanding our
ranges, formats and flavours.
Existing customers
Existing customer growth is achieved through our focus on increased shelf
space which is achieved by increased SKUs within existing product offerings,
the expansion of our existing product range as well as expanded rollout of
distribution end points and achieving deeper penetration across all available
channels.
Strengthening our relationships with existing customers has been one of the
most important drivers of performance in FY25. In the UK, revenue from
existing customers grew significantly, supported by deeper engagement with
major retail partners, where our previously announced joint business plan
(JBP) has unlocked additional shelf space in a national retailer with a
broader range of listings in new and existing categories, in addition to
deeper distribution within their estate. The JBP has provided the retailer
with early access to new product development, allowing them to take new
products to market quickly.
A key success of the JBP has been our ability to appeal to consumers across
the breadth of the retailers' category offering and deliver new products in
line with consumer demands. These products showcase our ability to innovate in
an agile way, such as with popular offerings in a new format, new products
based on consumer demand, new innovation, as well as growing classic sports
nutrition products.
We have continued to see excellent progress in UK retail, with both additional
listings and deeper penetration. Taking into account recent data, total
product placements across grocery and high street increased by over 95% in
2025 compared to 2024*.
In Europe, existing customer growth was supported by the strength of our
long-standing distributor relationships and the increasing recognition of the
Applied Nutrition brand. Performance has been driven by expanded listings in
discount retail and specialist channels, as well as ongoing growth at gyms and
sports clubs.
Existing customer growth in international markets was more measured,
reflecting the previously announced exit from an agreement with a distributor.
Excluding the sales made to that distributor, international sales grew by 13%
between FY24 and FY25 and we have a clear pathway to accelerated growth across
the region in FY26.
While the US business remains in its infancy, we have continued to develop
relationships with key retail and certain distribution partners, as well as
launch tailored products catered towards US consumers.
* Source: Circana - Major Multiples (moving annual), store count where scanned
(week ending 04/10/25).
New customers & channels
Leveraging our proven internationally successful B2B model, new customer
relationships are established within both existing and new channels, including
entry into new geographies.
We made good progress in winning listings with new retailers and expanding
into additional channels during the year. In the UK, significant new wins
included several major multiples, positioning our products alongside everyday
consumer staples and significantly broadening our reach. Being present in
mainstream grocery enhances brand visibility and ensures that our products are
accessible to a wide consumer base.
Internationally, we extended our global footprint and entered numerous new
geographies in eastern Europe, Latin America and Asia. As previously
announced, we also made encouraging progress in Latin America, where we have
entered new geographies in the region and we are benefitting from growing
consumer demand. We also continue to explore opportunities with local partners
in new markets, which will allow the brand to grow in markets that are
difficult to access because of trade barriers.
In the US, we have continued to build our presence across both specialist and
grocery channels. Key progress includes our launch of the AN Performance range
with The Vitamin Shoppe as well as the previously announced listings with
three major new partners: GNC Corporate, Hy-Vee and H-E-B.
Innovation & NPD
NPD allows us to expand our existing ranges, products and flavours, and
therefore help support further growth across existing customers, new customers
and direct-to-consumer (D2C). Innovation is at our core and is enabled by our
in-house manufacturing capability. Our commitment to NPD fuels customer
engagement, drives consumer demand, and helps us remain agile in the rapidly
evolving sports nutrition, health and wellness market.
In the year we released a series of new products that have been very
well-received across our customer and consumer base. These new products have
been developed in line with our three-pronged approach to NPD:
· Fill opportunity gaps: In late 2024 we launched a Sparkling Collagen Protein
Water, tapping into consumer demand for refreshing, low-calorie ways to
hydrate and hit protein goals.
· Keeping products fresh: Across the market, there had been a lack of innovation
in the range of products marketed to endurance athletes; therefore in early
2025 we launched a collaboration with Vimto in our Endurance range offering
products such as gels and effervescent tablets to introduce new flavours in
the category. The partnership with Vimto has driven our Endurance range to be
the fastest-growing Energy and Hydration brand in the UK grocery and high
street*.
· Access emerging trends: In 2025 we launched specific ranges of products in
different formats, which allows them to appeal to broader audiences. For
example, we introduced creatine in a gummy format to make it more accessible
and convenient for consumers who are starting to use creatine for benefits
beyond sports performance. We also began offering health and wellness products
such as collagen in stick-packs, which are preferred by some consumers for
their convenience.
In addition to the examples above, we continued to build out our product
portfolio, especially in more recently developed ranges, such as the launch of
protein offerings and wellbeing products in the BodyFuel range.
* Source: Circana - Major Multiples, Value % Growth L12wks, Brands with 52
week sales of >£1m (week ending 06/09/2025).
D2C growth
Our D2C strategy will continue to complement our B2B strategy in certain
geographies, whilst simultaneously building Applied Nutrition's brand
awareness with consumers. Our D2C channel remains a smaller part of the
business but continues to grow steadily and plays an important complementary
role alongside our B2B model.
Overall D2C sales were aided by improvement in the customer experience with
the launch of the Applied Nutrition app and enablement of subscription options
via our app and website, amongst other incremental improvements to our D2C
offering.
Capital allocation and investing for growth
Future investment
We continue to follow a disciplined approach to capital allocation, with a
focus on investing in growth while maintaining a strong financial position.
Our priority remains reinvesting in the business to support future expansion
while ensuring we have the capability to pursue opportunities that can enhance
shareholder returns.
As announced at the time of IPO, we had completed a manufacturing extension,
increasing production capacity to c.£160m of revenue in early FY25.
Throughout the year, we focused on driving efficiencies in our manufacturing
processes and, as a result, we are now comfortable that the capacity of our
current facility now allows the Group's revenues to be increased to c.£200m.
Taking into account current trading and the lead time required to plan and
execute further manufacturing capacity projects, we have begun to execute our
latest phase of investment to ensure we can continue to expand and deliver in
line with the growth opportunity we see. This includes further automation,
specialist production (which is currently outsourced), additional storage
capacity (where third-party warehousing is currently being utilised) and
additional office space. The following capital projects will support the
current trajectory of the Group:
Production expansion
Over the next 18-24 months we intend to invest approximately £2.0m to £2.5m
to ensure the business has the operations to support its continued expansion,
drive efficiencies and reduce reliance on outsourced providers. This
investment is expected to increase capacity to c.£300m of revenue and will
include:
· Additional automated packaging lines adding capacity and efficiency. This will
benefit margins as less labour hours are needed to produce the same volumes.
· A new gel machine, as a result of the continued growth of the Company's gel
products. There has been a significant increase in the demand for products
from the Company in gel format in recent years: in existing products; new
products brought to market (such as the Vimto gel collaboration); and
extension of other products into a gel format as a new option.
In addition, the Company is considering an investment into machinery that will
allow us to produce in-house one of our fastest-growing products. This is a
more expensive addition with a potential cost of approximately £2.5m to
install. However, the Company estimates that based on current volumes the
payback period would be in the region of four years. This would be reduced if
our volumes increase, or the Company is able to secure contracts to produce on
a white label basis, resulting in increased utilisation.
Further investment will be assessed on a case-by-case basis where volume
requirements and payback meet our criteria.
New global distribution facility and head office
We intend to enter a lease for a newly purpose-built warehouse adjacent to our
current location which will provide the following benefits:
· increase storage capacity by an estimated 180% and improve margins by
eliminating the need for use of several external third party warehouses and
reduce inefficiencies resulting from these multiple locations of stock;
· additional single-site office space which will allow all non-manufacturing
teams to work on the same site and increase collaboration; and
· provide a new headquarters to host our existing and potential global partners
While the purchase of the land and construction of the building will be borne
by the landlord, we will incur the normal costs of fit-out and associated
equipment which may be required. The current estimate for this is £3.5m to
£4.0m. We expect to sign the lease before the end of 2025, and any agreement
will be subject to planning permission and completed construction. The
landlord expects to be granted planning permission in late 2025 and
construction to be finished in early FY27, although these approximate timings
are subject to change.
After the move is complete, our current warehouses will be repurposed for
expanded production and for raw materials and packaging storage, respectively,
while the new warehouse will be dedicated to finished goods storage and
distribution.
Marketing activities
We continue to build out our brand strategy, designed to deliver a strong,
trusted brand that drives demand and makes us the product of choice for
consumers. In our model, the focus is not only on reaching end users but also
on equipping distributors with the tools, messaging, and brand equity needed
to accelerate sell-through. By investing in consistent branding, targeted
marketing campaigns, and clear product positioning, we enhance visibility and
credibility across the globe. We have multiple avenues of achieving this by
interacting with customers, whether that be through partnerships and
collaborations, attending exhibitions and other promotional activity.
Within the period, we have made significant progress with our marketing
activities. We signed several brand ambassadors and influencers and launched
our first TV advert to promote our products.
Post period, we appointed a Chief Marketing Officer with extensive industry
experience to lead the marketing team and support our global growth.
Leveraging our strong, trusted brand and consumer recognition, we are
progressing opportunities, both internally and through partnerships, to expand
into adjacent growth markets and capitalise on the consumer trends we benefit
from.
Current trading and outlook
The positive momentum experienced in the final quarter of FY25 has continued
into the opening months of the new financial year, supported by strong
consumer demand across our core categories and growing recognition of our
brands both in the UK and internationally. Early FY26 trading trends reflect a
continuation of the progress made in market share through deeper distribution,
increased shelf space and an expanding product range.
Our investment in additional capacity, automation and new product formats
positions the Group to deliver sustained growth over the medium term. We
remain confident that our core strengths: our B2B-focused model, breadth of
high-quality products and industry-leading innovation will continue to
underpin strong revenue growth and profitability over the long term.
While the trajectory of the business remains encouraging with a strong Q1
FY26, it is still early in the financial year; therefore our full year
expectations for FY26 remain unchanged at this stage.
Thomas Ryder
Chief Executive Officer
7 November 2025
Chief Financial Officer's review
The Group's financial performance for the year ended 31 July 2025 is reported
in accordance with UK-adopted international accounting standards and
applicable law.
Group results overview
The Board measures and judges the financial performance of the Group
predominantly on the following key performance indicators which cover both
profitability and cash generation:
FY25 FY24 Change
Revenue (£m) 107.1 86.2 24.2%
Gross profit (£m) 49.3 41.3 19.4%
Adjusted EBITDA (£m) 30.9 26.0 18.8%
Adjusted profit before tax (£m) 30.2 25.7 17.5%
Adjusted basic and diluted EPS (p) 9.1 8.0 13.8%
Free cash flow (£m) 16.5 7.1 132.4%
Free cash flow conversion 72.4% 35.3% 105.1%
Statutory results
Operating profit (£m) 28.1 23.7 18.6%
Profit before taxation (£m) 28.5 24.3 17.3%
Basic and diluted EPS (p) 8.4 7.5 12.0%
Revenue
FY25 revenue has been driven by growth across each of our key regions, and we
continue to benefit from our B2B business model as well as continued growth of
our D2C offering.
Geography FY25 FY24 Change
UK £48.4m £33.6m +44.0%
Europe £15.6m £10.7m +45.8%
International £43.1m £41.9m +2.9%
Group revenue increased 24.2% to £107.1m (FY24: £86.2m). The Company did not
make any acquisitions or disposals during the period and therefore all revenue
growth is organic. H2 FY25 delivered approximately £60m of revenue,
reflecting timing of customer orders (H2 FY24: £40.8m).
All geographies saw an increase in sales during the year. UK sales grew 44% as
we continued to see exciting growth as a result of the strategy to diversify
channels, invest in relationships with key customers, and work to increase the
penetration of the BodyFuel and Endurance ranges as they mature. Europe grew
by 46% in the year as we invested in growing partnerships with retailers and
distributors in key countries such as France, Spain, the Netherlands, and
Germany. International sales grew 3%; however, now the Group has emerged from
distributor and registration changes in the Middle East, this geography is
expected to grow more in FY26. International sales in the second half of the
financial year were 19% higher than the first half, and excluding the sales
made to the distributor who we exited a partnership with, sales grew by 13%
between FY24 and FY25.
Gross profit
Gross profit increased 19.4% to £49.3m (FY24: £41.3m). All adjustments noted
by the Group within the financial statements were in administrative expenses
and therefore no adjustment to gross profit is necessary.
Total gross margin was down 190bps at 46.0% (FY24: 47.9%) with the decline
reflecting a small non-structural change in the product mix of the Group,
along with high raw material prices in the whey protein category. Products
where the main raw material is whey protein continues to be a relatively small
part of the Group's revenue (FY25: 19%). However, the average price of whey
protein purchased by the Company in FY25 was c.30% higher than purchased in
FY24. At the end of FY25 whey prices were generally considered to have been
at historically high levels.
While the Group purchases a significant number of raw materials outside of
whey protein, none are considered to be particularly volatile, which has meant
that movement in gross margin has been relatively small, and even smaller with
whey price changes excluded.
The Group benefitted from a 70bps reduction in direct staff costs as a
percentage of revenue. This was driven by the new manufacturing extension
completed during the year which increased manufacturing efficiency. The
benefit of these efficiencies was after the effect of an increase in direct
staff hourly rates.
Administrative expenses adjusted for exceptional and non-underlying items
In FY25 total administrative expenses adjusted for exceptional and
non-underlying items were 18.2% of revenue (FY24: 18.8%) showing an increase
of 20.4% against an increase in revenue of 24.2%, highlighting benefits in two
areas:
· increased general efficiencies as we become a larger business and continue to
ensure we drive value for money across the business, including in the overhead
base, while still investing in key areas; and
· as a result of preparing to IPO the business, we made various investments in
the overhead base to ensure it was robust to withstand being a listed business
ahead of time, therefore the growth in cost in certain areas was not as
significant.
Offset against these were on the additional ongoing costs of being a listed
business, for which we saw almost a full year of impact in FY25. These costs
have been well managed and the proforma impact as we move into FY26 is not
expected to be significant.
Spend on marketing, advertising and partner incentives, which are recognised
as an expense in the accounts rather than being netted off revenue, was the
same percentage of revenue as in FY24.
Adjusted EBITDA and adjusted EBITDA margin
A reconciliation between operating profit and adjusted EBITDA is shown below.
Adjusted EBITDA rose in the period 18.8% to £30.9m (FY24: £26.0m). EBITDA
margin of 29% for FY25 (FY24: 30%) was in line with guidance at the time of
IPO, where we noted a small reduction expected as a result of the additional
costs of being a listed business.
Exceptional and non-underlying items
Exceptional and non-underlying items for the period resulted in a charge of
£1.7m (FY24: charge of £1.4m). These items in FY25 all related to the costs
of the IPO of the Group. There are not expected to be any charges in relation
to the IPO in FY26.
FY25 FY24
£m £m
Operating profit 28.1 23.7
Costs relating to IPO 1.7 1.2
Share-based payment expense - 0.2
Adjusted operating profit 29.8 25.1
Depreciation and amortisation 1.1 0.9
Adjusted EBITDA 30.9 26.0
Items between adjusted EBITDA and profit before tax
FY25 FY24
£m £m
Adjusted EBITDA 30.9 26.0
Costs relating to IPO (1.7) (1.2)
Share-based payment expense - (0.2)
Presented EBITDA 29.2 24.6
Depreciation and amortisation (1.1) (0.9)
Finance income 0.5 0.7
Finance expense (0.1) (0.1)
Profit before tax 28.5 24.3
The following items affected the profit before tax figures but not EBITDA:
· depreciation and amortisation rose compared to FY24 as a result of the
additional fixed assets;
· interest income relates to cash the Group holds on deposit. In FY25 it
declined by £0.2m to £0.5m as a result of reduced interest rates in FY25
compared to FY24, and also a lower average cash balance after the dividend
declared in October 2024 (£14.7m); and
· interest expense.
Tax
The Group's main tax exposure is to the UK, which has a general corporation
tax rate of 25%. The Group's effective rate of taxation during the year was
26.0% (FY24: 23.0%), higher than the standard rate of corporation tax
predominantly as a result of costs relating to the IPO that are not deductible
for tax in the UK.
Cash flow and cash flow conversion
Net cash generated from operations
Net cash generated from operations increased by 33.5% to £21.9m (FY24:
£16.4m). The Group's working capital usage (defined as inventories, plus
trade and other receivables, less trade and other payables) at the end of the
year was £33.1m (FY24: £27.3m). This increase of 21.2% was slightly below
the increase in revenue as a result of careful working capital management in
comparison to the growth of the business. Management continue to manage
capital expenditure, balancing:
· the need to ensure we have a good supply of raw materials on hand so that
disruptions in global shipping (e.g. the 'Red Sea Crisis') do not disrupt
production and that the Company has adequate stocks of raw materials in order
to ensure it is able to quickly react to customer orders;
· assisting our customers and distribution partners to grow by ensuring we
enable them to keep a sensible supply of our products in stock, and we do not
restrict our own growth with restrictive credit terms, sensibly balanced
against the credit risk to the Group; and
· appropriate payment terms of suppliers, ensuring that we drive the best value
we can to maximise margins since the Group is in a net cash position.
Other material cashflow items
Income tax paid
The tax paid in FY25 reduced to £6.3m compared to £9.7m in FY24. The Group
became a "very large" company in relation to corporation tax in the UK for the
first time in the FY24 financial period. This meant that tax paid during FY24
incorporated the estimate of all corporation tax due for FY24 in addition to
any amounts due for FY23 that were paid in FY24 when the Company was not
deemed to be "very large" for corporation tax. For FY25, the Company continued
to be a "very large" company for the purposes of corporation tax and is
therefore required to pay its estimated corporation tax bill for the relevant
financial year wholly within the said financial year.
Purchase of tangible fixed assets
As indicated at IPO, the Company spent approximately £1.0m on capital
expenditure during FY25 (FY24: £1.0m) as we continued to expand our
capabilities and certain specialist capacity. The most significant areas of
spend in FY25 were:
· investment in a new stick packaging machine; as a result of the successful
launch of products in more convenient formats such as stick packs and
increased consumer demand in this area, the Company purchased a machine which
allows stick packaging in this format. Currently, the Company produces the
powder and then sends it to third party service providers to place in stick
packs; bringing this service in house will increase margins, reduce reliance
on third party service providers and allow us to bring products in this format
to market quicker. This machinery was purchased in FY25, but will be delivered
and commissioned in FY26; and
· towards the end of FY25, as a result of the increased demand for capsules and
tablets, the Company invested in a new filling machine in order to ensure
capacity would meet expected future demand. In early FY26 this machinery was
commissioned and completed, although the capital expenditure was accounted for
in FY25.
As outlined in the Chief Executive Officer's review, over the next 18 months
the Group intends to invest approximately £2.0m-£2.5m to ensure the business
has the operations to support its continued expansion, drive efficiencies
within the business, in addition to bringing in-house some currently
outsourced production and services which will also enhance margin and reduce
reliance on outsourced providers.
In addition, the Company is considering an investment into machinery that will
allow us to produce one of our fastest-growing products in-house. This is a
more expensive addition with a potential cost of approximately £2.5m to
install.
Also as outlined in the Chief Executive Officer's review, in early FY27 we
expect to be able to move into a new global distribution facility and head
office. It is expected that the Company will lease this property from the
landlord, which will be a corporate entity controlled by the Chief Executive
Officer and Chief Operating Officer. The Board considered whether it would
have been better for the Company to have purchased the land and construct the
proposed new building. However, given the risks associated with such a capital
undertaking, and these risks being outside of the interests of the Company's
shareholders, the Board believes a long-lease of such a building, with an
appropriate break-clause in favour of the Company, will provide the Company
more flexibility, but with an adequate level of security to plan for future
years, and is therefore more appropriate. To avoid any perceived conflict of
interest, the Company is being advised by an independent law firm and
independent Chartered Surveyor with no connection to the Chief Executive
Officer or Chief Operating Officer. In addition, the Chief Executive Officer
or Chief Operating Officer will not vote on approval of the lease when it is
finalised, and the Chief Financial Officer will sign the lease on behalf of
the Company with approval of the Board. In October 2025, the Board approved in
principle the proposed transaction and associated capital spend, subject to
appropriate review of final documentation. This constitutes a related party
transaction as defined by the UK Listing Rules and the Company will provide
further details once the transaction is finalised.
Dividend
The dividend during the year of £14.7m (FY24: £nil) was declared in October
2024 prior to the IPO of the Company. The Company does not anticipate
declaring a further dividend before FY27 thereby retaining cash for investment
in capacity, efficiency and potential M&A opportunities.
Free cash flow and free cash flow conversion
The following is a reconciliation between net increase in cash and cash
equivalents as presented in the consolidated statement of cash flows of the
Group and free cash flow/free cash flow conversion:
FY25 FY24
£m £m
Net increase in cash and cash equivalents 0.1 5.9
IPO costs 1.7 1.2
Dividends 14.7 -
Free cash flow 16.5 7.1
Free cash flow conversion 72.4% 35.3%
Free cash flow conversion measures free cash flow as a percentage of adjusted
profit after tax, which is calculated as:
FY25 FY24
£m £m
Statutory profit after tax 21.1 18.7
Costs relating to IPO 1.7 1.2
Share-based payment expense - 0.2
Adjusted profit after tax 22.8 20.1
Liquidity and banking facilities
The Group continues to hold a £10.0m revolving credit facility with its main
bankers (Royal Bank of Scotland plc). While the Group currently has no need to
draw down on the facility should there be a significant cash requirement (e.g.
in the event of M&A), it would allow the business to deploy cash quickly.
However, given the Group's continued cash generation, the cost/benefit of such
a facility will be reviewed in FY26.
Cash within the Company's main GBP bank account earns interest at a rate
management believe is a reasonable return for the flexibility of not having
cash on term deposits. Generally, the Company does not hold significant
amounts of cash in currencies other than GBP, except for USD, which is
generally not more than 20% of the total cash the Company holds at any one
time.
Joe Pollard
Chief Financial Officer
7 November 2025
Consolidated statement of comprehensive income
For the year ended 31 July 2025
Year Year
ended ended
31 Jul 31 Jul
2025 2024
Note £m £m
Revenue 4 107.1 86.2
Cost of sales (57.8) (44.9)
Gross profit 49.3 41.3
Administrative expenses (21.2) (17.6)
Adjusted operating profit(1) 29.8 25.1
Costs relating to Initial Public Offering (1.7) (1.2)
Share-based payment expense - (0.2)
Operating profit 28.1 23.7
Finance income 9 0.5 0.7
Finance expense 9 (0.1) (0.1)
Profit before taxation 28.5 24.3
Taxation 10 (7.4) (5.6)
Profit for the year attributable to equity shareholders 21.1 18.7
Earnings per share for profit attributable to the owners of the parent
Basic and diluted (pence) 11 8.4 7.5
Other comprehensive income:
Exchange losses arising on translation of foreign operations (0.4) -
Deferred tax 10 (0.4) 0.4
Total comprehensive income for the period 20.3 19.1
1 Adjusted operating profit is a non-IFRS financial measure and is defined as
statutory operating profit of £28.1 million (FY24: £23.7 million) before
£1.7 million (FY24: £1.4 million) of costs related to the Group's Initial
Public Offering and share-based payment for schemes closed pre-IPO.
The results relate to continuing operations (2024: continuing operations).
Consolidated statement of financial position
as at 31 July 2025
31 Jul 31 Jul
2025 2024
Note £m £m
Non-current assets
Property, plant and equipment 13 2.0 1.7
Right-of-use assets 14 3.0 1.8
Intangible assets 15 0.1 -
Deferred tax assets 10 1.2 0.6
6.3 4.1
Current assets
Inventories 16 22.8 19.5
Trade and other receivables 17 27.4 17.3
Cash and cash equivalents 18 18.5 18.7
68.7 55.5
Total assets 75.0 59.6
Current liabilities
Lease liabilities 14 (0.6) (0.3)
Trade and other payables 19 (17.1) (9.5)
(17.7) (9.8)
Non-current liabilities
Deferred tax liabilities 10 (0.3) -
Lease liabilities 14 (2.4) (1.5)
Provision for liabilities 20 (0.3) (0.2)
(3.0) (1.7)
Total liabilities (20.7) (11.5)
Net assets 54.3 48.1
Equity
Share capital 21 0.1 -
Share-based payment reserve 0.2 0.2
Foreign exchange reserve 0.2 0.1
Retained earnings 53.8 47.8
Total equity 54.3 48.1
The financial statements were approved and authorised for issue by the Board
of Directors on 7 November 2025
Joe Pollard
Chief Financial Officer
Consolidated statement of changes in equity
for the year ended 31 July 2025
Share-based Foreign
Share payment exchange Retained Total
capital reserve reserve earnings equity
£m £m £m £m £m
As at 1 August 2023 - - 0.1 28.7 28.8
Comprehensive income:
Profit for the year - - - 18.7 18.7
Share-based payments - - - 0.4 0.4
Transactions with owners:
Share-based payments - 0.2 - - 0.2
Balance at 31 July 2024 - 0.2 0.1 47.8 48.1
Comprehensive income:
Profit for the year - - - 21.1 21.1
Other comprehensive income/(loss) - - 0.1 (0.9) (0.8)
Transactions with owners:
Bonus share issue 0.1 - - (0.1) -
Dividends paid - - - (14.7) (14.7)
Tax included directly in equity - - - 0.6 0.6
Balance at 31 July 2025 0.1 0.2 0.2 53.8 54.3
Consolidated statement of cash flows
for the year ended 31 July 2025
Year ended Year
ended
31 Jul 2025 31 Jul
2024
Note £m £m
Cash flows from operating activities
Operating profit 28.1 23.7
Adjustments for:
Depreciation and amortisation charges 13 & 14 1.1 0.9
Share-based payment expense 22 - 0.2
Operating cash flows before movements in working capital 29.2 24.8
Increase in inventories (3.4) (6.5)
Increase in trade and other receivables (10.9) (6.0)
Increase in trade and other payables 7.0 4.1
Net cash generated from operations 21.9 16.4
Income tax paid (6.3) (9.7)
Net cash inflow from operating activities 15.6 6.7
Cash flows from investing activities
Purchase of tangible fixed assets 13 (1.0) (1.0)
Interest received 0.6 0.6
Net cash outflow from investing activities (0.4) (0.4)
Cash flows from financing activities
Dividends paid 12 (14.7) -
Principal paid on lease liability 14 (0.3) (0.3)
Interest paid on lease liability 14 (0.1) (0.1)
Net cash outflow from financing activities (15.1) (0.4)
Net increase in cash and cash equivalents 0.1 5.9
Cash and cash equivalents at beginning of period 18.7 12.7
Effect of foreign exchange differences (0.3) 0.1
Cash and cash equivalents at end of period 18 18.5 18.7
Notes to the consolidated financial statements
For the year ended 31 July 2025
1 General Information
Applied Nutrition plc (the "Company") is a public company limited by shares,
registered and incorporated in England and Wales under the Companies Act 2006
(registered company number 09131749). The Company re-registered as a public
limited company on 1 October 2024 and its ordinary share capital was listed
on the Main Market of the London Stock Exchange on 24 October 2024.
The address of the Company's registered office is 2 Acornfield Road, Knowsley
Industrial Park, Liverpool, England, L33 7UG. The Company is the parent and
ultimate parent of the Group; the financial statements comprise the results of
the Company and its subsidiary undertakings (the "Group"). The principal
activities of the Group are the formulation, manufacture, wholesale and retail
of sports nutrition, health and wellness products.
The consolidated financial statements were approved by the Board for issue on
7 November 2025.
The financial information for the year ended 31 July 2025 and the year ended
31 July 2024 does not constitute the Company's statutory accounts for those
years. Statutory accounts for the year ended 31 July 2024 have been delivered
to the Registrar of Companies. The statutory accounts for the year ended 31
July 2025 will be delivered to the Registrar of Companies in due course. The
auditors' reports on the accounts for 31 July 2025 and the year ended 31 July
2024 were unqualified, did not draw attention to any matters by way of
emphasis, and did not contain a statement under section 498(2) or 498(3) of
the Companies Act 2006.
2 Summary of the Group's material accounting policies
The Group's material accounting policies are set out below.
2.1 Basis of preparation
The Group financial statements have been prepared in accordance with UK
adopted International Accounting Standards (IFRS) and with the requirements of
the Companies Act 2006 applicable to companies reporting under those
standards. The Group financial statements have been prepared on a going
concern basis and under the historical cost convention. The Directors consider
it appropriate to adopt the going concern basis of accounting in preparing
these financial statements.
The preparation of financial statements in conformity with IFRS requires the
use of certain critical accounting estimates, which are outlined in the
critical accounting estimates and judgements section of these accounting
policies.
It also requires management to exercise its judgement in the process of
applying the Group's accounting policies. The accounting policies have been
applied consistently to all periods presented, other than where new policies
have been adopted.
The consolidated financial statements are prepared in GBP. Amounts are rounded
to the nearest million, unless otherwise stated.
2.2 Going concern
The Group's profit before taxation for the period amounted to £28.5 million
(2024: £24.3 million). The Group has net assets of £54.3 million (2024:
£48.1 million), including cash and cash equivalents of £18.5 million (being
after the payment of a pre-IPO dividend to shareholders) compared to £18.7
million at 31 July 2024 (where there was no dividend paid). As at 31 July
2025, the Group also has £10.0 million available loan finance in the form of
a Revolving Credit Facility (RCF) which has not been drawn down.
The Directors have considered the business activities of the Group, including
the organisation's principal risks and uncertainties. With due consideration
and review, the Directors have a reasonable expectation that the Group has
adequate resources to operate over the assessment period, being the twelve
months from the date of these financial statements. In addition, the Directors
are not aware of any material uncertainties that may cast significant doubt
upon the Company or Group to continue as a going concern. Consequently, the
financial statements have been prepared on a going concern basis for the Group
and the Company.
The Directors have assessed the ability of the Company and the Group to
continue as a going concern using three-year cash flow forecasts prepared from
31 July 2025 to 31 July 2028. This is timeframe of the Group's most recently
approved strategic plan, as approved by the Board and in addition exceeds the
period over which the Group can reasonably plan capital investment with
certainty given the rapid growth of the Group and change in investment that
may be required to meet such growth.
The Directors have considered forecast expectations of performance, based on
historic data, along with available funding options in case of unexpected,
contingent requirements.
The market in which the organisation operates is forecast to grow annually
in the region of 8%, or better.
The forecasts included several scenarios including a base case and downside
case. The base case assumed revenue growth during the next 12 months on a
customer-by-customer base for the top 10 customers, and then applied a
standard rate of growth in line with market dynamics for the remainder of the
customer base and new potential customers. Profitability and cashflow
assumptions were in line with recent experience.
In the event of no further growth in the business it would remain profitable
and cash generative in the view of management and therefore while downside
scenarios with no further growth were considered they did not alter the view
of management in terms of going concern. Nor did scenarios where the working
capital requirement of the business increased.
When conducting this assessment, the Directors also considered the principal
risks and uncertainties that the Group's risk management process had
identified. This risk management process and an assessment of the principal
risks and uncertainties are detailed in the Risk Management report. This
assessment considered the risks themselves in addition to mitigating actions.
Of the principal risks and uncertainties the effect of a product safety event
or significant damage/disruption to the Group's manufacturing facilities were
considered in detail. These are the key risks that are believed to present a
risk to the going concern view of the management.
The successful initial public offering of the organisation on the London Stock
Exchange in late 2024 has provided access to potential additional funding
streams and acting as a catalyst for further, controlled, enhancement of the
product range with expansion across multiple geographic locations. On
14 October 2024, the Company entered into a RCF agreement with The Royal Bank
of Scotland Plc.
The purpose of the RCF is for general corporate and working capital purposes
of the Group as well as to finance permitted acquisitions and capital
expenditure of the Group.
The quantum of the RCF is £10,000,000 with an uncommitted accordion option
for up to £10,000,000. The terms of the RCF include: (i) the Company as
initial borrower, (ii) a term of 36 months, (iii) the margin being 1.7% above
SONIA, (iv) the provision of quarterly financial information and an annual
budget, (v) a net leverage covenant set at 2:1 (total debt to adjusted EBITDA)
and interest cover (EBITDA to net finance charges) set at 3:1, (vi) the
provision of guarantees by certain Group companies that become material from
time to time in respect of the obligations under the RCF and (vii) secured by
all asset security granted by the Company and certain other material Group
companies. The Company can terminate the RCF at any time without penalty and
therefore, if other forms of debt finance are more commercially beneficial,
the Company can do so and utilise those other forms without charge.
Based on the assessment performed, and with no additional knowledge of any
material uncertainty that may affect this assessment, the Directors believe it
is appropriate to prepare the financial statements of the Group on a going
concern basis.
2.3 New standards, amendments and interpretations not yet adopted
The following standards and interpretations apply for the first time to
financial reporting periods commencing on or after 1 January 2024, and became
effective for the Group's consolidated financial statements for the year ended
31 July 2025, none of which have a material impact on the Group:
· Non-current Liabilities with Covenants (Amendments to IAS 1);
· Amendments to IAS 1 Presentation of Financial Statements: Classification of
Liabilities as Current or Non-current;
· Amendments to IFRS 16 - Lease Liability in Sale and Leaseback; and
· Supplier Finance Arrangements (Amendments to IAS 7 and IFRS 7).
The following standards, amendments and interpretations are not yet effective
and have not been early adopted by the Group:
· Amendments to IAS 21 Lack of Exchangeability;
· IFRS 18 Presentation and Disclosure in Financial Statements;
· IFRS 19 Subsidiaries without Public Accountability: Disclosures; and
· Amendments to IFRS 9 and IFRS 7 Classification and Measurement of Financial
Instruments.
Certain new standards, amendments to standards, and interpretations have been
issued by the IASB that are effective in future accounting periods that the
Group has decided not to adopt early. These standards, amendments or
interpretations are not expected to have a material impact on the Group.
While IFRS 18 Presentation and Disclosure in Financial Statements will not
have any effect on the recognition and measurement of items in the
consolidated financial statements, it is expected to have a significant effect
on the presentation and disclosure of certain items. These effects include
changes to categorisation and sub‑totals in the statement of profit or loss,
aggregation/disaggregation and labelling of information, and disclosure of
management-defined performance measures. The Group is currently assessing the
impact of these changes.
2.4 Basis of consolidation
Subsidiaries
The Group financial statements incorporate the financial statements of Applied
Nutrition plc and entities controlled by the Company (its "subsidiaries") made
up to 31 July each year. Control is achieved where the Company has the power
to govern the financial and operating policies of an investee entity so as to
obtain benefits from its activities.
Subsidiaries are fully consolidated from the date on which control is
transferred to the Group until the date that control ceases.
Intercompany transactions, balances and unrealised gains (or losses) on
transactions between Group companies are eliminated in preparing the
consolidated accounts. Accounting policies of subsidiaries are consistent with
those policies adopted by the Group.
The Group includes foreign entities whose functional currencies are not GBP.
On consolidation, the assets and liabilities of those entities are translated
at the exchange rates at the reporting date and income and expenses are
translated at the weighted average rates during the period.
Classification of costs
Allocations of costs presented in the consolidated statement of comprehensive
income are allocated to cost of sales when management deem costs are directly
associated with fulfilling performance obligations under IFRS 15, including
the creation of those products sold by the Group. Those costs which fall
outside of these allocations, which includes all sales and marketing
associated costs, are presented within administrative expenses, excluding
finance expenses and taxation, in the consolidated statement of comprehensive
income.
2.5 Revenue recognition
Revenue comprises the fair value of the consideration received, or receivable,
for the sale of goods in the ordinary course of the Group's activities.
Revenue is shown net of value added tax, estimated returns, rebates and
discounts, and after eliminating sales within the Group.
IFRS 15 Revenue from Contracts with Customers is a principle-based model of
recognising revenue from contracts with customers. It has a five-step model
that requires revenue to be recognised when control over goods are transferred
to the customer.
Revenue represents amounts chargeable in respect of the manufacture, wholesale
and retail of products. The Group operates through a range of
business‑to‑business and direct‑to‑consumer channels, with all revenue
recognised at a point of time, being when control has passed to the customer
under Incoterms®. Payment of the transaction price is due immediately when
the customer purchases the product, or in the case of certain trade
transactions, payable on set credit terms.
Rebates are volume based and are established on management's best estimate of
the amounts necessary to meet claims by customers in respect of these rebates.
A liability is calculated at the time of sale and updated at the end of each
reporting period for changes in circumstances. Volume‑based rebates
represent variable consideration for which the estimated variable
consideration is constrained to ensure that it is highly probable that a
significant reversal in the amount of cumulative revenue recognised will not
occur when the rebate amount is realised.
2.6 Net finance costs
Finance income
Finance income comprises interest on bank deposits and is recognised on a time
proportion basis using the effective interest rate method.
Finance expense
Finance expense comprises of interest payable and lease interest which are
expensed in the period in which they are incurred.
2.7 Current and deferred taxation
The tax expense for the period comprises current and deferred tax. The current
income tax charge is calculated on the basis of tax rates and laws that have
been enacted or substantively enacted by the reporting date in the UK and US,
where the Group operates and generates taxable income and expenses.
Deferred tax balances are recognised in respect of all temporary differences
that have originated but not reversed by the reporting date, except:
· the recognition of deferred tax assets is limited to the extent that it is
probable that they will be recovered against the reversal of deferred tax
liabilities or other future taxable profits;
· any deferred tax balances are reversed if and when all conditions for
retaining associated tax allowances have been met; and
· where timing differences relate to interests in subsidiaries, the Group can
control their reversal and such reversal is not considered probable in the
foreseeable future.
Deferred income tax is determined using tax rates and laws that have been
enacted or substantively enacted by the reporting date. Deferred tax is
charged or credited to the statement of comprehensive income, except when it
relates to items charged or credited directly to equity, in which case the
deferred tax is also dealt with in equity.
Where applicable, the Group claims R&D tax reliefs in the UK in accordance
with schemes set out by HM Revenue and Customs. Projects are assessed by
management to ensure the claims made fit the criteria and definitions set out
by HM Revenue and Customs.
2.8 Foreign currency translation
Transactions in foreign currencies are recorded at the exchange rate ruling at
the date of the transaction. Monetary assets and liabilities denominated in
foreign currencies are retranslated at the rate of exchange ruling at the end
of the reporting period. All differences are taken to the consolidated
statement of comprehensive income.
Details of how the Group accounts for subsidiaries operating in foreign
currencies on consolidation is given in note 2.4.
2.9 Inventories
Inventories are stated at the lower of cost and net realisable value. Cost
comprises direct materials and, where applicable, direct labour costs and an
allocation of those overheads that have been incurred in bringing the
inventories to their present location and condition. Cost is calculated on a
weighted average cost basis. Net realisable value is the amount that can be
realised from the sale of the inventory in the normal course of business after
allowing for the costs of realisation. Provision is made for obsolete,
slow-moving or defective items where appropriate.
2.10 Property, plant and equipment
All property, plant and equipment is stated at historical cost less
accumulated depreciation. Historical cost includes expenditure that is
directly related to the acquisition of the items. Depreciation is charged to
allocate the cost of assets less their residual value over their estimated
useful lives, using the straight‑line method. Depreciation is provided on
the following basis:
· Plant and machinery - 20% straight line
· Fixtures and fitting - 33% straight line
· Motor vehicles - 20% straight line
· Computer equipment - 33% straight line
At each reporting period end date, the Group reviews the carrying amounts of
its tangible assets to determine whether there is any indication that those
assets have suffered an impairment loss. There have been no impairment
indications; however, if any such indication exists, the recoverable amount of
the asset is estimated in order to determine the extent of the impairment
loss.
Gains and losses on disposals are determined by comparing the proceeds with
the carrying amount and are recognised in the statement of comprehensive
income.
Assets under construction are not depreciated until they are put into use. All
other repairs and maintenance expenditure is charged to the consolidated
statement of comprehensive income during the financial period in which it is
incurred.
2.11 Exceptional and adjusting items
Exceptional and adjusting items are material items of income and expense
which, because of the nature and expected infrequency of events giving rise to
them, merit separate presentation to allow shareholders to understand better
the elements of financial performance in the year, so as to facilitate
comparison with prior years and to assess better trends in
financial performance. Generally the business is managed on a day-to-day
basis on adjusted EBITDA and therefore these financial accounts provide an
explanation of what management consider to be adjusted EBITDA and a
reconciliation to statutory measures of profit performance.
2.12 Research and development
Research and development expenditure that does not meet the criteria of an
intangible asset is expensed as incurred.
2.13 Cash and cash equivalents
Cash and cash equivalents are basic financial assets and comprise cash at bank
and in hand and short-term highly liquid deposits which are subject to an
insignificant risk of changes in value.
The Group recognises cash when it is within its control and, in accordance
with IFRS 9, when it has the contractual right to obtain cash from the bank.
Cash in transit between Group companies at a period end is recognised within
the receiving company's statement of financial position. Cash in transit to or
from external entities at a period end is not recognised where the Group does
not have the contractual right to obtain the cash and is therefore not deemed
to exercise control over it.
The Group's cash recognition policies are aligned with IFRS 9 as follows: in
respect of incoming receipts via electronic transfer, the Group recognises
cash as a financial asset on the transfer settlement date, and not before. In
respect of cheques received, the Group classifies these as 'promissory notes'
and recognises within cash equivalents all cheques dated and deposited with
the bank up to and including the reporting period end. In respect of card
receipts, the Group recognises a cash equivalent on the transaction date as
they are readily convertible to cash and the credit risk is deemed very low.
In respect of outgoing electronic payments, where there is often a delay
between the remittance date and the transfer settlement date, the Group
de-recognises the cash from financial assets (and de-recognises the associated
financial liability) on the transfer remittance date, and not after, when the
following conditions exist:
· there is no practical ability to withdraw, stop or cancel the
payment instruction;
· there is no practical ability to access the cash to be used for
settlement as a result of the payment instruction; and
· the settlement risk associated with the electronic payment system
is insignificant.
2.14 Financial assets
The Group classifies its financial assets at amortised cost. Management
determines the classification of its financial assets at initial recognition.
The Group's financial assets held at amortised cost comprise trade and other
receivables and cash and cash equivalents in the consolidated statement of
financial position.
These assets are non-derivative financial assets with fixed or determinable
payments that are not quoted in an active market. They arise principally
through the provision of goods and services to customers (e.g. trade
receivables), but also incorporate other types of financial assets where the
objective is to hold their assets in order to collect contractual cash flows
and the contractual cash flows are solely payments of the principal and
interest.
They are initially recognised at fair value plus transaction costs that are
directly attributable to their acquisition or issue and are subsequently
carried at amortised cost using the effective interest rate method, less
provision for impairment.
2.15 Financial liabilities
The Group measures its financial liabilities at amortised cost. All financial
liabilities are recognised in the statement of financial position when the
Group becomes a party to the contractual provision of the instrument.
The Group's financial liabilities held at amortised cost comprise trade and
other payables and other short-dated monetary liabilities in the consolidated
statement of financial position. Trade payables and other short-dated monetary
liabilities are initially recognised at fair value and subsequently carried at
amortised cost using the effective interest rate method.
Unless otherwise indicated, the carrying values of the Group's financial
liabilities measured at amortised cost represents a reasonable approximation
of their fair values.
2.16 Impairment of assets
Carrying values of assets that are subject to depreciation or amortisation are
periodically reviewed for any indicators of impairment.
If an impairment indicator is identified, the carrying value of the asset (or
cash‑generating units to which the asset has been allocated) is tested for
impairment. An impairment loss is recognised for the amount by which the
asset's carrying amount exceeds its recoverable amount.
The recoverable amount is the higher of an asset's fair value less costs to
sell and value in use. Non-financial assets that have been previously impaired
are reviewed at each reporting date to assess whether there is any indication
that the impairment losses recognised in prior periods may no longer exist or
may have decreased.
Impairment provisions for trade receivables are recognised based on the
simplified approach within IFRS 9 using the lifetime expected credit losses.
During this process the probability of the non-payment of the trade
receivables is assessed. This probability is then multiplied by the amount of
the expected loss arising from default to determine the lifetime expected
credit loss for the trade receivables.
2.17 Equity instruments
Equity is the residual interest in the assets of the Company after deducting
all liabilities and comprises the following:
· 'share capital' represents the nominal value of equity shares;
· 'share-based payment reserve' represents the cumulative fair value of options
charged to the statement of profit or loss;
· 'foreign exchange reserve' represents the cumulative value of foreign currency
translation differences; and
· 'retained earnings' represents retained earnings less retained losses net of
dividends and other adjustments.
2.18 Employee benefits
The costs of short-term employee benefits are recognised as a liability and an
expense unless those costs are required to be recognised as part of the cost
of inventory or fixed assets. The cost of any unused holiday entitlement is
recognised in the period in which the employee's services are received.
Termination benefits are recognised immediately as an expense when the Group
is demonstrably committed to terminate the employment of an employee or to
provide termination benefits.
2.19 Retirement benefit plans
The Group operates a defined contribution pension scheme. Contributions to the
scheme are charged to the statement of profit or loss and other comprehensive
income in the period to which the contributions relate. The assets of the
scheme are held separately from those of the Group.
2.20 Provisions
Provisions are recognised when the Group has a present or legal constructive
obligation as a result of past events, it is probable that an outflow of
resources will be required to settle the obligation and the amount can be
reliably estimated. Provisions are recorded for the estimated ultimate
liability that is expected to arise, taking into account the time value of
money.
A provision against lease dilapidations has been made based on senior
management's assessment of likely costs after assessing historical
expenditure.
The amount recognised as a provision is the best estimate of the consideration
required to settle the present obligation at the reporting end date, taking
into account the risks and uncertainties surrounding the obligation.
Where the effect of the time value of money is material, the amount expected
to be required to settle the obligation is recognised at present value. When a
provision is measured at present value, the unwinding of the discount is
recognised as a finance cost in profit or loss in the period in which it
arises.
2.21 Leased assets
At inception of a contract, the Group assesses whether a contract is, or
contains, a lease. A contract is, or contains, a lease if the contract conveys
the right to control the use of an identified asset for a period of time in
exchange for consideration.
To assess whether a contract conveys the right to control the use of an
identified asset, the Group assesses whether: an identified physically
distinct asset can be identified; and the Group has the right to obtain
substantially all of the economic benefits from the asset throughout the
period of use and has the ability to direct the use of the asset over the
lease term being able to restrict the usage of third parties as applicable.
All leases are accounted for by recognising a right-of-use asset and a lease
liability except for:
· leases of low‑value assets; and
· leases with a duration of twelve months or less.
Lease liabilities are measured at the present value of the contractual
payments due to the lessor over the lease term, with the discount rate
determined by reference to the rate inherent in the lease unless (as is
typically the case) this is not readily determinable, in which case the
Group's incremental borrowing rate on commencement of the lease is used.
On initial recognition, the carrying value of the lease liability also
includes:
· amounts expected to be payable under any residual value guarantee;
· the exercise price of any purchase option granted in favour of the Group if it
is reasonably certain to access that option; and
· any penalties payable for terminating the lease, if the term of the lease has
been estimated on the basis of the termination option being exercised.
Right‑of‑use assets are initially measured at the amount of the lease
liability, reduced for any lease incentives received, and increased for:
· lease payments made at or before commencement of the lease;
· initial direct costs incurred; and
· the amount of any provision recognised where the Group is contractually
required to dismantle, remove or restore the leased asset.
Subsequent to initial measurement lease liabilities increase as a result of
interest charged at a constant rate on the balance outstanding and are reduced
for lease payments made. Right-of-use assets are amortised on a straight-line
basis over the remaining term of the lease or over the remaining economic life
of the asset if, rarely, this is judged to be shorter than the lease term.
When the Group revises its estimate of the term of any lease (because, for
example, it re-assesses the probability of a lessee extension or termination
option being exercised), it adjusts the carrying amount of the lease liability
to reflect the payments to make over the revised term, which are discounted at
the revised discount rate applicable at the date of estimation. An equivalent
adjustment is made to the carrying value of the right-of-use asset, with the
revised carrying amount being amortised over the remaining (revised) lease
term.
Where the Group's property leases contain variable payment terms, payments
determined as variable are treated as a charge to the consolidated statement
of comprehensive income and not capitalised. Variable lease payments are only
included in the measurement of the lease liability if they depend on an index
or rate. In such cases, the initial measurement of the lease liability assumes
the variable element will remain unchanged throughout the lease term.
2.22 Share-based payments
Details of the share-based payment schemes the Group operated in the year can
be found in note 22 of the Group financial statements.
The fair value of employee services received in exchange for the grant of
share awards is recognised as an expense. Equity‑settled share-based
payments are measured at fair value at the date of grant and expensed on a
straight-line basis over the vesting period, based on the Group's calculation
of the value of shares that will vest. Cash-settled share-based payments are
measured at fair value at each reporting period end and expensed on a
straight‑line basis over the vesting period. The fair value of the
cash‑settled share-based payments is measured using a Probability‑Weighted
Expected Return Method (PWERM) model.
Employer social security contributions payable in connection with the grant of
share awards are considered an integral part of the grant itself and the
charge is treated as a cash-settled transaction.
2.23 Segmental reporting
Operating segments are reported in a manner consistent with the internal
reporting provided to the Chief Operating Decision Maker (CODM). The CODM, who
is responsible for allocating resources and assessing performance of the
operating segments, has been identified as the Board of Directors of the
Group. The CODM has determined that there is one single operating segment, the
manufacture and sale of sports nutrition products.
3 Critical accounting estimates and judgements
The preparation of the financial information in compliance with IFRS requires
the use of certain critical accounting estimates. It also requires the Group
management to exercise judgement and use assumptions in applying the Group's
accounting policies. The resulting accounting estimates calculated using these
judgements and assumptions may, by definition, not equal the related actual
results but are based on historical experience and expectations of future
events. Management believe that the estimates utilised in preparing the
financial information are reasonable and prudent.
Estimates and judgements are continually evaluated based on historical
experience and other factors, including expectations of future events that are
believed to be reasonable under the circumstances. In the future, actual
experience may differ from these estimates and assumptions.
The judgements and key sources of estimation uncertainty that have a
significant effect on the amounts recognised in the financial information are
discussed below:
Share-based payments
In order to calculate the value of employee share options as required by IFRS
2, the Group makes estimates principally relating to the assumptions used in
its option-pricing model. This is a key estimate used to value the share
options in issue both at grant date and at the balance sheet date.
Deferred tax assets
Deferred tax assets are recognised if sufficient taxable income is likely to
be available in the future based on management estimates and judgements. Among
other factors, the forecast results from operating activities are taken into
account and the Group assesses the recoverability of deferred tax assets at
each balance sheet date. Since future business developments are uncertain and
partly beyond the Group's control, assumptions are required to estimate future
taxable income and the timing of the realisation of deferred tax assets.
Estimates are adjusted in the period in which there are sufficient indications
for an adjustment.
Discount rates
IFRS 16 states that the lease payments shall be discounted using the lessee's
incremental borrowing rate where the rate implicit in the lease cannot be
readily determined. Accordingly, all lease payments have been discounted using
the incremental borrowing rate (IBR). The IBR has been determined by
management using a range of data including current economic and market
conditions, review of current debt and capital within the Group, lease length
and comparisons against seasoned corporate bond rates and other relevant data
points.
The Group makes judgements to estimate the IBR used to measure lease
liabilities based on expected third‑party financing costs when the interest
rate implicit in the lease cannot be readily determined. The IBR has been
determined by management using a range of data including current economic and
market conditions, review of current debt and capital within the Group, lease
length and comparisons against other relevant data points. Significant changes
in IBR would cause changes to both the value of the right-of-use assets and
corresponding lease liabilities. Sensitivity analysis on the IBR, along with
lease liabilities, are detailed in note 14.
Carrying value of trade receivables
The Group holds material trade receivable balances and the calculations of
provisions for impairment are estimates of future events and therefore
uncertain. IFRS 9 requires the Group to consider forward-looking information
and the probability of default when calculating expected credit losses. The
Group considers reasonable and supportable customer-specific and market
information about past events, current conditions and forecasts of future
economic conditions when measuring expected credit losses.
The key areas of judgement are below:
Allocation of licencing, selling and marketing costs
The Group allocates licencing, selling and marketing costs to administrative
expenses rather than cost of sales, as these are not costs directly associated
with fulfilling performance obligations under IFRS 15. This is a key area of
judgement in the presentation of costs in the consolidated statement of
comprehensive income. If this was changed, the cost of sales figure would be
higher and overheads costs would be lower (although the impact would not be
material), and there would be no net impact on the profit of the Group.
4 Revenue
All Group revenue was generated from the sale of goods and recognised at a
point of time, being when control has passed to the customer. Management
considers that revenue derives from one business stream, being the
manufacture, wholesale and retail of sports nutrition, health and wellness
products.
Volume‑based rebates are estimated at each period end based on variable
consideration and recognised within revenue. The Group anticipates all rebates
recognised will be payable at the end of each financial year.
Revenue by geography
2025 2024
£m £m
United Kingdom 48.4 33.6
Europe 15.6 10.7
Rest of the World 43.1 41.9
107.1 86.2
Within the Group's single business stream, revenue can be disaggregated across
six product categories for the purpose of alignment with the Directors'
internal reporting, being: protein, pre-workout, grab-and-go, health and
wellness, weight management, and intra-workout. An additional category is
presented, being 'other', which includes sales of raw materials, white label
packaging and rebates where certain amounts are shown separately as they are
unable to be allocated against specific product ranges.
Revenue by product offering
2025 2024
£m £m
Protein 32.0 26.1
Pre-workout 18.6 19.6
Grab-and-go 18.7 12.8
Health and wellness 18.2 9.7
Weight management 5.8 7.4
Intra-workout 13.2 10.4
Other 0.6 0.2
107.1 86.2
The following table provides information about contract liabilities with
customers. There were no contract assets as at 31 July 2025 and 31 July
2024.
2025 2024
£m £m
Deferred income 0.2 0.1
0.2 0.1
Revenue recognised in the year that was deferred from the previous year was
£0.1 million in year ended 31 July 2025 (31 July 2024: £0.1 million). The
contract liabilities relate to the deferred income in respect of the wholesale
and retail of sports nutritional, health and wellness products. Revenue is
being recognised on the transfer of control to the customer.
The Group has taken the practical expedient under IFRS 15 to not disclose
further details in respect of remaining revenue performance obligations at
each period end presented in the financial information, as all obligations are
fulfilled within one year or less.
5 Segmental reporting
The Chief Operating Decision Maker (CODM) has been identified as the Board of
Directors. The CODM reviews the Group's internal reporting in order to assess
performance and allocate resources. The CODM has determined that there is one
single operating segment, the manufacture and sale of sports nutrition
products.
Revenue by geography and products is set out in note 4, as required under
entity‑wide disclosures when there is one single operating segment. Assets
held by the Company's foreign subsidiary AN USA Holdings Inc. are immaterial
to be disclosed separately.
6 Profit before taxation
Profit before taxation is stated after charging:
2025 2024
£m £m
Depreciation of owned property, plant and equipment 0.8 0.6
Depreciation of right‑of‑use assets 0.3 0.3
In reporting financial information, the Group presents alternative performance
measures (APMs), which are not defined or specified under the requirements of
IFRS. The Group believes that these APMs, which are not considered to be a
substitute for or superior to IFRS measures, provide depth and understanding
to the users of the financial statements to allow for further assessment of
the underlying performance of the Group.
The Board considers that adjusted EBITDA is the most appropriate profit
measure by which users of the financial statements can assess the ongoing
performance of the Group. EBITDA is a commonly used measure in which earnings
are stated before net finance income, amortisation and depreciation. The Group
makes further adjustments to remove items that are exceptional or are not
reflective of the underlying operational performance either due to their
nature or level of volatility.
Adjusting items and reconciliation of operating profit (an IFRS measure) to
adjusted EBITDA:
2025 2024
£m £m
Operating profit 28.1 23.7
Adjusting items:
Costs relating to Initial Public Offering 1.7 1.2
Share-based payment expense - 0.2
Adjusted operating profit 29.8 25.1
Depreciation and amortisation 1.1 0.9
Adjusted EBITDA 30.9 26.0
As a result of its admission to the London Stock Exchange, the Group incurred
a total of £2.9 million of costs associated with the Initial Public
Offering, of which £1.2 million were recognised in the year ended 31 July
2024 and the remainder, £1.7 million, in the year ended 31 July 2025. These
costs are considered exceptional in nature as a result of the relating to a
one-off transaction.
In accordance with IFRS 2, a share-based payment expense of £nil was
recognised in the year ended 31 July 2025 (2024: £0.2 million) in respect
of a Director Share Option Plan created in FY21. There is not expected to be
further costs in relation to this scheme.
All adjusting items were recognised within administrative expenses.
Services provided by the Company's auditors
During the year, the Group obtained the following services from the Company's
auditors:
2025 2024
£m £m
Fees payable to the Company's auditors for the audit of the Company and 0.3 0.1
consolidated financial statements
Fees payable to the Company's auditors for other services:
- IPO‑related services - 0.6
Total auditors' remuneration 0.3 0.7
7 Staff costs
The average monthly number of persons (including Directors) employed by the
Group during the year was:
2025 2024
No. No.
Directors 6 4
Warehouse/production 150 147
Office 51 44
207 195
Staff costs (including Directors) are outlined below.
2025 2024
£m £m
Wages and salaries 9.7 7.8
Social security contributions and similar taxes 0.9 0.8
Share-based payment expense (note 22) - 0.2
Other pension costs 0.2 0.1
10.8 8.9
8 Director remuneration
Director remuneration comprised:
2025 2024
£m £m
Wages and salaries 0.8 0.6
Gains on exercise of share options 2.8 -
3.6 0.6
There were two Directors participating in money purchase pension schemes as at
the year ended 31 July 2025 (2024: two).
Key management personnel include all of the Directors, who together have
authority and responsibility for planning, directing and controlling the
activities of the Group's business. There are no key management personnel
other than the Directors of the Group.
9 Finance income and expense
2025 2024
£m £m
Finance income
Interest receivable 0.5 0.7
0.5 0.7
Finance expense
Interest on lease liabilities and dilapidations 0.1 0.1
0.1 0.1
10 Taxation
Analysis of charge in year
2025 2024
£m £m
Total current tax 8.0 6.4
Adjustments in respect of prior periods 0.1 (0.2)
Total current tax 8.1 6.2
Deferred tax credit
Origination and reversal of timing differences (0.6) (0.3)
Adjustment in respect of prior periods (0.1) (0.3)
Total deferred tax (0.7) (0.6)
Tax charge per statement of comprehensive income 7.4 5.6
Deferred tax charge/(credit) on share‑based payments 0.4 (0.4)
Tax charge/(credit) per statement of other comprehensive income 0.4 (0.4)
Tax credit on share‑based payments (0.6) -
Tax credit recognised directly in equity (0.6) -
The tax charges for the years presented differ from the standard rate of
corporation tax in the UK. The differences are explained below:
2025 2024
£m £m
Profit on ordinary activities before tax 28.5 24.3
Tax using the Group's domestic tax rates 7.1 6.1
Effects of:
Expenses not deductible for tax purposes 0.3 0.3
Movement on unrecognised deferred tax - (0.1)
R&D tax claim 0.1 (0.3)
Effect of tax rates in foreign jurisdictions 0.1 -
Adjustments in respect of prior periods to current tax 0.1 (0.2)
Adjustments in respect of prior periods to deferred tax (0.1) (0.2)
Income not taxable (0.1) -
Other differences (0.1) -
Total tax charge 7.4 5.6
The applicable standard rate of corporation tax in the UK in the year ended 31
July 2025 was 25% (2024: 25%). The tax charge in the current year is higher
than (2024: lower than) the standard tax charge.
Deferred taxation assets and liabilities
Deferred taxation is calculated in full using a tax rate of 25% (2024: 25%).
The following are the principal categories of deferred taxation assets and
liabilities recognised by the Group and the movements thereon during the
current and prior year.
2025 2024
£m £m
Opening balance 0.6 (0.3)
Adjustments in respect of prior periods 0.1 -
Credited to the income statement 0.6 0.5
(Charged)/credited in other comprehensive income (0.4) 0.4
0.9 0.6
2025 2024
£m £m
Accelerated capital allowances (0.3) (0.4)
Share-based payment timing differences (note 22) - 0.5
Tax losses 1.0 0.5
Other differences 0.2
0.9 0.6
The net position of £0.9m (2024: £0.6m) is reflected in the statement of
financial position as:
2025 2024
£m £m
Deferred tax assets 1.2 0.6
Deferred tax liabilities (0.3) -
Net deferred tax asset 0.9 0.6
As permitted by IAS 12, deferred taxation assets and liabilities are offset
when there is a legally enforceable right to offset current taxation assets
against current taxation liabilities and when the deferred taxes relate to the
same fiscal authority. The deferred taxation assets disclosed above are deemed
to be recoverable.
The majority of the deferred taxation balance is expected to reverse after
more than twelve months.
11 Earnings per share
Basic and diluted
2025 2024
Earnings
Earnings for the purposes of basic and diluted earnings per share, being 21.1 18.7
profit for the year attributable to equity shareholders (£m)
Number of shares
Weighted average number of shares (No. of shares)(1) 250,000,000 250,000,000
Basic and diluted earnings per share (pence) 8.4 7.5
1 As a result of the sub-division and re-designation of ordinary shares which
took place on 23 October 2024, immediately prior to the Company's admission to
the Main Market of the London Stock Exchange, the basic and diluted earnings
per share have been calculated based on a total of 250 million ordinary
shares.
The calculation of adjusted basic and diluted EPS is based on the following:
2025 2024
Profit for the period (£m) 21.1 18.7
Adjusted for:
Costs relating to Initial Public Offering (£m) 1.7 1.2
Share-based payment expense (£m) - 0.2
Tax effect of the above (£m) (0.2) (0.1)
Adjusted earnings (£m) 22.6 20.0
Adjusted basic and diluted earnings per share (pence) 9.1 8.0
12 Dividends
2025 2024
£m £m
Dividend declared before admission to the Main Market of the London Stock 14.7 -
Exchange
14.7 -
There is no final dividend for the year ended 31 July 2025 (2024: £nil).
13 Property, plant and equipment
Plant and Fixtures and Motor Computer
machinery fittings vehicles equipment Total
£m £m £m £m £m
Cost
At 1 August 2023 1.2 0.7 0.1 0.2 2.2
Additions 0.8 0.2 - - 1.0
At 31 July 2024 2.0 0.9 0.1 0.2 3.2
Depreciation
At 1 August 2023 0.6 0.3 - - 0.9
Charge for the year 0.3 0.2 - 0.1 0.6
At 31 July 2024 0.9 0.5 - 0.1 1.5
Net book amount
At 31 July 2024 1.1 0.4 0.1 0.1 1.7
Cost
At 1 August 2024 2.0 0.9 0.1 0.2 3.2
Additions 0.8 0.1 - 0.1 1.0
FX differences (0.1) - - - (0.1)
At 31 July 2025 2.7 1.0 0.1 0.3 4.1
Depreciation
At 1 August 2024 0.9 0.5 - 0.1 1.5
Charge for the year 0.4 0.2 0.1 0.1 0.8
FX differences (0.1) (0.1) - - (0.2)
At 31 July 2025 1.2 0.6 0.1 0.2 2.1
Net book amount
At 31 July 2025 1.5 0.4 - 0.1 2.0
Depreciation charges are recognised in administrative expenses in the
consolidated statement of comprehensive income.
14 Leased assets
2025 2024
Number of active leases 3 3
The Group's leases include leasehold properties for commercial and head office
use.
Extension, termination and break options
The Group sometimes negotiates extension, termination or break clauses in its
leases. In determining the lease term, management consider all facts and
circumstances that create an economic incentive to exercise an extension
option, or not exercise a termination option. Extension options (or periods
after termination options) are only included in the lease term if the lease is
reasonably certain to be extended (or not terminated).
On a case-by-case basis, the Group will consider whether the absence of a
break clause would expose the Group to excessive risk. Typically, factors
considered in deciding to negotiate a break clause include:
· the length of the lease term;
· the economic stability of the environment in which the property
is located; and
· whether the location represents a new area of operations for the
Group.
Incremental borrowing rate
The Group has adopted a rate with a range of 3.25% to 5.00% as its incremental
borrowing rate (IBR), being the rate that the individual lessee would have to
pay to borrow the funds necessary to obtain an asset of similar value to the
right-of-use asset in a similar economic environment with similar terms,
security and conditions. This rate is used to reflect the risk premium over
the borrowing cost of the Group measured by reference to the Group's
facilities.
Sensitivity analysis has been performed that shows that the effect of a 1%
decrease in the IBR used will cause an increase in lease liabilities of below
£0.1 million as at 31 July 2025 (2024: £0.1 million) and an increase in
right-of-use assets of £0.1 million (2024: £0.1 million). An increase of
1% in the IBR used will cause a decrease in lease liabilities of below £0.1
million as at 31 July 2025 (2024: same) and a decrease in right-of-use
assets of £0.1 million (2024: £0.1 million).
Right‑of‑use assets
Leasehold
property Total
£m £m
Cost
At 1 August 2023 2.5 2.5
At 31 July 2024 2.5 2.5
Depreciation
At 1 August 2023 0.4 0.4
Charge for the period 0.3 0.3
At 31 July 2024 0.7 0.7
Net book amount
At 31 July 2024 1.8 1.8
Cost
At 1 August 2024 2.5 2.5
Addition - rent modification 1.5 1.5
At 31 July 2025 4.0 4.0
Depreciation
At 1 August 2024 0.7 0.7
Charge for the period 0.3 0.3
At 31 July 2025 1.0 1.0
Net book amount
At 31 July 2025 3.0 3.0
Depreciation charges are recognised in administrative expenses in the
consolidated statement of comprehensive income.
Lease liabilities
Leasehold
property Total
£m £m
At 1 August 2023 2.1 2.1
Lease payments (0.3) (0.3)
At 31 July 2024 1.8 1.8
At 1 August 2024 1.8 1.8
Addition - rent modification 1.5 1.5
Interest expense 0.1 0.1
Lease payments (0.4) (0.4)
At 31 July 2025 3.0 3.0
The Group recognises non-current provisions for dilapidations in respect of
leased properties details of which are shown in note 20. Movement on the
provisions for dilapidations has been recognised in the consolidated statement
of comprehensive income.
Lease liabilities are as follows:
2025 2024
£m £m
Within one year 0.7 0.4
Later than one year and less than five years 2.6 1.3
After five years - 0.3
Total including interest cash flows 3.3 2.0
Less: interest cash flows (0.3) (0.2)
Total principal cash flows 3.0 1.8
Lease liabilities are comprised of the following current and non-current
amounts:
2025 2024
£m £m
Current
Amounts due within one year 0.6 0.3
Non-current
Amounts due after more than one year 2.4 1.5
Total lease liability 3.0 1.8
15 Intangible assets
All values (cost, amortisation and net book) relating to intangible assets for
the current and prior reporting year were below £0.1 million.
Addition of costs relating to intangible assets during 2025 was below £0.1
million, but taken together with the brought‑forward costs of intangible
assets as at 1 August 2024, the closing cost of intangible assets was £0.1
million.
Amortisation as at 1 August 2024 and charged during 2025 totals less than
£0.1 million.
All intangible assets during the current and prior periods related to patents
and licences.
16 Inventories
2025 2024
£m £m
Raw materials 12.8 10.7
Finished goods and goods for resale 10.0 8.8
22.8 19.5
The cost of Group inventories recognised as an expense in year to 31 July 2025
amounted to £51.4 million (2024: £40.7 million). This is included in cost of
sales. Inventory write‑offs and inventory provisions netted from gross
inventory were £0.4 million for the year to 31 July 2025 (2024: £0.9
million).
17 Trade and other receivables
2025 2024
£m £m
Amounts falling due within one year:
Trade receivables 26.4 17.1
Less: provision for impairment (0.7) (0.8)
Trade receivables - net 25.7 16.3
Corporation tax - 0.5
Prepayments 1.7 0.5
27.4 17.3
Trade receivables are amounts due from customers for goods sold in the
ordinary course of business. They are generally due for settlement within 30
to 60 days for certain credit customers and therefore are all classified as
current. Trade receivables are non‑interest bearing. The fair value of trade
and other receivables is equivalent to their carrying amount.
Under IFRS 9, the Group is required to utilise objective evidence as well as
consider forward-looking information and the probability of default when
calculating expected credit losses. The maturity of assets and history of
write‑offs is therefore used as an indicator as to the probability of
default. Trade receivables are written off if the customer has entered into
insolvency, or in the view of management there is no expectation of recovery.
The loss allowance as at 31 July 2025 and 31 July 2024 was determined as
follows for trade receivables:
Current <30 days 31-60 days 61+ days Total
As at 31 July 2024 £m £m £m £m £m
Expected credit loss rate - 4.8% 10.3% 29.2% 4.8%
Total gross carrying amount 10.1 3.7 1.7 1.6 17.1
Expected credit loss - (0.2) (0.2) (0.4) (0.8)
Total 10.1 3.5 1.5 1.2 16.3
Current <30 days 31-60 days 61+ days Total
As at 31 July 2025 £m £m £m £m £m
Expected credit loss rate - 5.8% 14.0% 12.2% 2.7%
Total gross carrying amount 19.4 2.9 1.0 3.1 26.4
Expected credit loss - (0.2) (0.1) (0.4) (0.7)
Total 19.4 2.7 0.9 2.7 25.7
18 Cash and cash equivalents
2025 2024
£m £m
Cash and cash equivalents 18.5 18.7
18.5 18.7
The fair value of cash and cash equivalents is equivalent to their carrying
amount.
19 Trade and other payables
2025 2024
£m £m
Amounts falling due within one year:
Trade payables 10.6 3.8
Corporation tax 0.5 -
Social security and other taxes 0.3 0.2
VAT 0.5 0.6
Deferred income 0.2 0.1
Accruals 5.0 4.8
17.1 9.5
Trade payables are non-interest bearing and are normally settled monthly. The
fair value of trade and other payables is equivalent to their carrying amount.
20 Provisions
Non-current
Leasehold
property
dilapidations Total
£m £m
At 1 August 2023 0.2 0.2
At 31 July 2024 0.2 0.2
At 1 August 2024 0.2 0.2
Interest expense 0.1 0.1
At 31 July 2025 0.3 0.3
As part of the Group's property leasing arrangements there is an obligation to
repair damage which occurs during the life of the lease, such as wear and
tear. These costs have been shown separately to the lease obligation liability
as detailed in note 14. The provisions are expected to be utilised by 2030 as
the leases terminate. The dilapidations provision is considered a source of
estimation. The provision has been calculated using historical experience of
actual expenditure incurred on dilapidations and estimated lease termination
dates.
21 Share capital
Allotted, called up and fully paid
2025 2024
Shares Shares
Ordinary shares of £0.0002 each
Opening number of ordinary shares - -
Sub-division and re-designation of shares 250,000,000 -
Closing number of ordinary shares 250,000,000 -
A1 ordinary shares of £0.01 each
Opening number of A1 ordinary shares 5,433 5,800
Bonus issue 2,711,067 -
Re-designation of shares (2,716,500) (367)
Closing number of A1 ordinary shares - 5,433
A2 ordinary shares of £0.01 each
Opening number of A2 ordinary shares 943 1,000
Bonus issue 470,557 -
Re-designation of shares (471,500) (57)
Closing number of A2 ordinary shares - 943
B ordinary shares of £0.01 each
Opening number of B ordinary shares 3,136 3,200
Bonus issue 1,564,864 -
Re-designation of shares (1,568,000) (64)
Closing number of B ordinary shares - 3,136
D ordinary shares of £0.01 each
Opening number of D ordinary shares 488 -
Bonus issue 243,512 -
Re-designation of shares (244,000) 488
Closing number of D ordinary shares - 488
Closing number of shares 250,000,000 10,000
2025 2024
£ £
Ordinary shares of £0.0002 each
Opening value of ordinary shares - -
Sub-division and re-designation of shares 50,000.00 -
Closing value of ordinary shares 50,000.00 -
A1 ordinary shares of £0.01 each
Opening value of A1 ordinary shares 54.33 58.00
Bonus issue 27,110.67 -
Re-designation of shares (27,165.00) (3.67)
Closing value of A1 ordinary shares - 54.33
A2 ordinary shares of £0.01 each
Opening value of A2 ordinary shares 9.43 10.00
Bonus issue 4,705.57 -
Re-designation of shares (4,715.00) (0.57)
Closing value of A2 ordinary shares - 9.43
B ordinary shares of £0.01 each
Opening value of B ordinary shares 31.36 32.00
Bonus issue 15,648.64 -
Re-designation of shares (15,680.00) (0.64)
Closing value of B ordinary shares - 31.36
D ordinary shares of £0.01 each
Opening value of D ordinary shares 4.88 -
Bonus issue 2,435.12 -
Re-designation of shares (2,440.00) 4.88
Closing value of D ordinary shares - 4.88
Closing value of share capital 50,000.00 100.00
There is a single class of ordinary shares in issue. There are no restrictions
on dividends or the repayment of capital. Shareholders are entitled to one
voting right per share.
Re-designation of shares
On 31 January 2024, 116 A1 ordinary shares, 20 A2 ordinary shares and 64 B
ordinary shares were re-designated into 200 D ordinary shares of £0.01
each.
On 18 April 2024, 171 A1 ordinary shares and 29 A2 ordinary shares were
re-designated into 200 D shares of £0.01 each.
On 6 June 2024, 42 A1 ordinary shares and 8 A2 ordinary shares were
re-designated into 50 D ordinary shares of £0.01 each.
On 7 June 2024, 38 A1 ordinary shares were re-designated into 38 D ordinary
shares of £0.01 each.
On 24 September 2024, a shareholders' resolution was passed in respect of a
bonus issue of 4,990,000 new ordinary shares. A sum of £49,900 was
capitalised from the Company's distributable reserves and appropriated to the
shareholders of the Company in proportion to the number of ordinary shares
(A1, A2, B and D) in the Company held by them respectively. As a result of the
bonus issue, the total number of ordinary shares in issue increased to
5,000,000 and the resultant share capital increased to £50,000.
This transaction was required to facilitate the Company's re-registration as
a PLC.
On 23 October 2024, immediately prior to the Company's admission to the Main
Market of the London Stock Exchange, each of the 2,716,500 A1 ordinary shares
of £0.01 each, 471,500 A2 ordinary shares of £0.01 each, 1,568,000 B
ordinary shares of £0.01 each and 244,000 D ordinary shares of £0.01 each in
the capital of the Company were sub-divided and re-designated as 250,000,000
ordinary shares of £0.0002 each in the capital of the Company.
22 Share-based payments
In the year ended 31 July 2025, the Group operated one equity-settled
share-based payment plan established following the Company's admission to the
London Stock Exchange and described below. In the year ended 31 July 2024, the
Group operated one equity‑settled share-based payment plan, all open options
of which were exercised in the year to 31 July 2025 and the scheme is now
closed. The Group recognised a total charge of £0.2 million in respect of the
equity-settled share-based payment transactions in the year ended 31 July
2024. As a result of the exercise and closing of the scheme, there are no
outstanding share options at 31 July 2025.
In the year ended 31 July 2025, the Group operated one cash-settled
share-based payment plan (2024: one).
The Group recognised a total charge of £nil in respect of the cash-settled
share-based payment transactions in the year ended 31 July 2025 (2024:
£nil). The fair value of the cash‑settled share-based payments is measured
using a Probability‑Weighted Expected Return Method (PWERM) model which
resulted in an outcome that was deemed not material. As at 31 July 2025,
AN USA Holdings Inc.'s CEO owned 10% of the shares in issue of AN USA
Holdings Inc.; as the shares held no rights to vote, or receive dividends,
and could only be bought back by AN USA Holdings Inc. at a predetermined
formulaic price and is therefore treated as a cash settled share-based payment
scheme.
Long-term Incentive Plan (LTIP)
In the year ended 31 July 2025, the Group established an equity‑settled LTIP
which forms a key component of the overall remuneration package for Executive
Directors, further details of which can be found in the Directors'
Remuneration Report. The scheme will apply from the year ending 31 July 2026
and therefore in the year to 31 July 2025 no share awards were made and the
Group recognised a total charge of £nil in respect of the LTIP's
equity‑settled share-based payment transactions (2024: £nil).
23 Financial instruments
Financial assets
The Group's financial instruments comprise cash and cash equivalents, lease
liabilities and items such as trade and other receivables and trade and other
payables, which arise from its operations. The carrying amounts of all of the
Group's financial instruments are measured at amortised cost. Financial assets
do not include prepayments. Financial liabilities do not include deferred
income and other taxation and social security.
2025 2024
£m £m
Trade receivables 25.7 16.3
Cash and cash equivalents 18.5 18.7
44.2 35.0
Financial liabilities
Financial liabilities measured at amortised cost comprise trade payables,
other payables, and accruals. It does not include deferred income and other
taxation and social security.
2025 2024
£m £m
Trade payables 10.6 3.8
Accruals 5.0 4.8
Lease liabilities 3.0 1.8
18.6 10.4
Financial risk management
The Group is exposed through its operation to the following financial risks:
credit risk, interest rate risk, foreign exchange risk and liquidity risk.
Risk management is carried out by the Directors. The Group uses financial
instruments to provide flexibility regarding its working capital requirements
and to enable it to manage specific financial risks to which it is exposed.
The Group finances its operations through cash and liquid resources and
various items such as trade debtors and trade payables which arise directly
from the Group's operations.
Credit risk
Credit risk is the risk of financial loss to the Group if a customer or
counterparty to a financial instrument fails to meet its contractual
obligations. In order to minimise the risk, the Group endeavours only to deal
with companies which are demonstrably creditworthy and this, together with the
aggregate financial exposure, is continuously monitored. The Group's review
includes external ratings, where available, and purchase limits are
established for each customer, which represents the maximum open amount
without requiring approval from the Group's finance function. The maximum
exposure to credit risk is the carrying value of its financial receivables,
trade and other receivables and cash and cash equivalents as disclosed in the
notes to the Group financial statements.
The aged receivables analysis is evaluated on a regular basis for potential
doubtful debts, considering historic, current and forward-looking information.
No impairments to trade receivables have been made to date. Further
disclosures regarding trade and other receivables are provided within the
notes to the Group financial statements.
Credit risk also arises on cash and cash equivalents and deposits with banks
and financial institutions. For banks and financial institutions, only
independently rated parties with minimum rating 'B+' are accepted. Currently,
the financial institution where the Group holds significant levels of cash is
The Royal Bank of Scotland plc, which is rated higher than B+ by all four
major credit reference agencies.
Interest and market rate risk
As at 31 July 2025, the Group had no current borrowings and used no finance
facilities or debt structures to co-ordinate business. Therefore, interest and
market rate risk exposure for the Group is minimal. The Group's policy aims to
manage the interest cost of the Group within the constraints of its financial
borrowings.
The Group has entered into significant leases for assets, namely leasehold
properties, under fixed interest rate terms. This means that the interest
rate charged on these leases is fixed for the entire term of the lease,
regardless of changes in market interest rates.
If market interest rates rise, the Group's fixed-rate leases will become less
attractive to potential lessors, as they would be able to obtain better rates
elsewhere. On renewal of these leases, this could result in the Group having
to renew or renegotiate these leases at higher rates, which would increase its
operating costs and potentially reduce its profitability.
The Group looks to mitigate this risk by committing to lease agreements in
respect of leasehold properties in advance of the end of lease terms, ensuring
management can manage and plan for interest rate change.
Foreign exchange risk
Foreign exchange risk arises when the Group enters into transactions in a
currency other than their functional currency. The Group's policy is, where
possible, to settle liabilities denominated in a currency other than its
functional currency with cash already denominated in that currency. Where
Group entities have liabilities denominated in a currency other than their
functional currency (and have insufficient reserves of that currency to settle
them), cash already denominated in that currency will, where possible, be
transferred from elsewhere in the Group.
The Group's exposure to foreign currency risk at the end of the respective
reporting period was as follows:
2025 2024
£m £m
Cash
USD 0.5 0.3
Total cash 0.5 0.3
Trade receivables
USD 0.8 0.5
Total trade receivables 0.8 0.5
Trade payables
USD 0.6 0.3
Total trade payables 0.6 0.3
The effect of a 10% strengthening and 10% weakening of the US dollar against
sterling would result in the following impact to the consolidated statement of
profit or loss and other comprehensive income:
2025 2024
£m £m
10% strengthening (0.1) (0.1)
10% weakening 0.1 0.1
Liquidity risk
Liquidity risk arises from the Group's management of working capital and the
finance charges and repayments of its financial liabilities. It is the risk
that the Group will encounter difficulty in meeting its financial obligations
as they fall due. The Group seeks to maintain sufficient cash balances and
management review cash flow forecasts on a regular basis to determine whether
the Group has sufficient cash reserves to meet future working capital
requirements and to take advantage of business opportunities.
A maturity analysis of the Group's financial liabilities and lease liabilities
is shown below:
2025 2024
£m £m
Less than one year:
Trade and other payables 10.6 3.8
Accruals 5.0 4.8
Lease liability 0.7 0.4
16.3 9.0
Later than one year and less than five years:
Lease liability 2.6 1.3
After five years:
Lease liability - 0.3
18.9 10.6
Less: interest cash flows:
Lease liability (0.3) (0.2)
Total less interest cash flows 18.6 10.4
Capital risk management
The capital structure of the business consists of cash and cash equivalents
and equity. Equity comprises share capital and retained earnings and is equal
to the amount shown as 'Equity' in the balance sheet.
The Group's current objectives when maintaining capital are to:
· safeguard the Group's ability as a going concern so that it can
continue to pursue its growth plans;
· provide a reasonable expectation of future returns to
shareholders; and
· maintain adequate financial flexibility to preserve its ability
to meet financial obligations, both current and long term.
The Group sets the amount of capital it requires in proportion to risk. The
Group manages its capital structure and adjusts it in the light of changes in
economic conditions and the risk characteristics of underlying assets. In
order to maintain or adjust the capital structure, the Group may issue new
shares or sell assets.
24 Investments in subsidiaries
The subsidiaries of the Group, all of which have been included in these
consolidated financial statements, are as follows:
Percentage of Proportion of
Country of voting ordinary shares
Subsidiary Principal activity incorporation rights held held by Group
AN USA Holdings Inc. Sale of sports nutrition products United States of America 2025: 100% 2025: 90%
(2024: 100%) (2024: 90%)
Applied Nutrition Colombia SAS Dormant Colombia, South America 2025: 100% 2025: 100%
(2024: 100%) (2024: 100%)
The Group holds direct investments in all subsidiaries.
On 4 June 2024, AN USA Holdings Inc.'s CEO was issued 10,000 class A shares.
The shares held required employment of the individual in years one, two and
three, with a further option contained with the ability to sell one‑third of
the shares per annum, starting from the fourth year of service thereafter to
AN USA Holdings Inc. at a set predetermined formulaic price (based on the
financial performance/a financial metric rather than equity value). The class
A shareholders held no rights to vote, nor receive dividends.
The A shares represent a long-term employment benefit under IAS 19 across the
service of employment. As at 31 July 2025, the employee benefit expense
accrued was £nil, as the potential liability was immaterial.
As at 31 July 2025, AN USA Holdings Inc.'s CEO owned 10% of the shares in
issue of AN USA Holdings Inc.; as the shares held no rights to vote, or
receive dividends, and could only be bought back by AN USA Holdings Inc. at a
predetermined formulaic price, it is concluded the AN USA Holdings Inc.'s CEO
held no rights to AN USA Holdings Inc.'s equity outside of the predetermined
formula, and thus no non-controlling interest (NCI) existed. No recognition of
NCI was recognised as at 31 July 2025, nor was any recognised as at 31 July
2024.
25 Related party transactions
The Group's related parties include its subsidiary undertakings, key
management personnel (comprising the Executive and Non‑Executive Directors),
their closely related family members and shareholders with significant
influence. Transactions and balances between the parent and its subsidiaries
have been eliminated upon consolidation and are not disclosed.
Key management compensation
The remuneration of key management personnel, comprising the Executive and
Non-Executive Directors of the Company, is set out below in aggregate for each
of the categories specified in IAS 24 Related Party Disclosures:
2025 2024
£m £m
Short-term employee benefits (salary and bonus) 0.9 0.6
Share-based payment expense - 0.2
0.9 0.8
Dividend
The following dividends were paid to Directors of the Company during their
term of office, or other related party:
2025 2024
£m £m
Thomas Ryder 7.9 -
Steven Granite 1.4 -
Blythe Investments 0.3 -
Scate Limited 0.1 -
Joe Pollard 0.1 -
JD Sports Fashion plc 4.6 -
Blythe Investments and Scate Limited are related parties by virtue of the fact
they are considered to be controlled by Directors of the Company.
Shareholders with significant influence
As a result of the Group's IPO on 24 October 2024, JD Sports Fashion plc
reduced its shareholding from 31.36% to less than 10% of the issued shared
capital of Applied Nutrition plc. As such, the entity no longer meets the
definition of an associate company as described by IAS 28 Investments in
Associates and Joint Ventures. Similarly, JD Sports Fashion plc no longer
meets the definition of related party, as described by IAS 24 Related Party
Disclosures.
Other related party transactions
2025 2024
£m £m
Sales (during the period of being a related party) 0.3 1.2
Amount due at period end n/a 0.1
The above transactions were with JD Sports Gyms Limited, which was considered
a related party by virtue of its ownership via JD Sports Fashion plc. This
ceased to be the case after the IPO of the Group and therefore the above
disclosure relates only to the period it was considered to be a related party.
There were no other amounts due to or from related parties as at 31 July 2025
(2024: none). The Group has not made any allowance for bad or doubtful debts
in respect of related party debtors nor has any guarantee been given or
received during the historical financial period regarding related party
transactions.
26 Retirement benefit plans
The Group operates a defined contribution retirement benefit plan for all
qualifying employees. The assets of the plan are held separately from those of
the Group in funds under the control of trustees. The total expense recognised
in the statement of profit or loss and other comprehensive income of £0.2
million (2024: £0.1 million) represents contributions payable to this plan by
the Group at rates specified in the rules of the plan. Amounts totalling less
than £0.1 million (2024: less than £0.1 million) were outstanding at the
balance sheet date.
27 Changes in liabilities from financing activities
New
Financing borrowings Non-cash
2023 cash flows Interest non-cash changes 2024
£m £m £m £m £m £m
Lease liabilities 2.1 (0.3) - - - 1.8
Total liabilities from financing activities 2.1 (0.3) - - - 1.8
New
Financing borrowings Non-cash
2024 cash flows Interest non-cash changes 2025
£m £m £m £m £m £m
Lease liabilities 1.8 (0.4) 0.1 - 1.5 3.0
Total liabilities from financing activities 1.8 (0.4) 0.1 - 1.5 3.0
28 Post balance sheet events
There have been no material post balance sheet events that would require
disclosure or adjustment to these financial statements.
Alternative Performance Measures
The financial information included in this document includes alternative
performance measures (APMs) that are not recognised under IFRS and are
unaudited. The Directors believe that these non-IFRS measures provide useful
information with respect to the performance of the Group's business and
operations. Prospective investors should not consider such non-IFRS measures
as an alternative to the IFRS measures included in the financial statements.
Adjusted EBITDA
Adjusted EBITDA is calculated as the Group's operating profit before interest,
taxes, depreciation and amortisation and excluding the impact of exceptional
items, share-based payments and significant non-underlying items. A
reconciliation is presented in note 6 of the consolidated financial
statements.
Adjusted EBITDA margin
Adjusted EBITDA margin is calculated as the Group's adjusted EBITDA (as
defined above) expressed as a percentage of revenue of the Group.
Adjusted basic and diluted earnings per share (EPS)
Adjusted basic and diluted EPS is calculated as adjusting the Group's earnings
per share for the impact of exceptional items, share-based payments and
significant non-underlying items, and also takes into account the taxation
effect thereon. A reconciliation is presented in note 11 of the consolidated
financial statements.
Free cash flow
Free cash flow is calculated as the Group's net cash from operating
activities, less capital expenditure, plus/minus net interest, less lease
payments, adjusted for exceptional items, share-based payments and significant
non-underlying items.
Free cash flow conversion
Free cash flow conversion is calculated as the Group's free cash flow (as
defined above) measured as a percentage of adjusted profit after tax.
Principal risks and uncertainties
The Group faces a number of risks and uncertainties that may have an adverse
impact on the Group's operation, results, financial condition and prospects.
The Board has overall responsibility for oversight of risk and for maintaining
a robust risk management system. The Group's Audit and Risk Committee (ARC)
supports the Board with the management of risk, with the day-to-day management
delegated by the Board to the Executive Committee.
A more detailed explanation of the risks currently faced by the Group and how
the Company seeks to mitigate those risks will be available in the risk
management section of the Group's Annual Report and Accounts for the year
ended 31 July 2025.
Risk identified Risk description and impact
Product safety and quality Any product quality issues or product non-compliance with accreditation
standards could be damaging to the Group's reputation, and could impact its
ability to provide certain products to customers. In turn, this could
adversely impact the Group's business and financial position.
Damage or disruption to manufacturing facilities All of the Group's manufacturing operations and the majority of its
warehousing are housed over two buildings on a single site. Extraordinary
events such as fire, structural collapse, machinery or mechanical failure,
closures of primary access routes, flooding or other severe weather conditions
could adversely affect the Group's ability to fulfil orders and adversely
impact the Group's financial condition.
Loss of key members of management The Group's performance relies heavily on the efforts and abilities of its
Directors and senior management team, with whom a substantial amount of
business knowledge is concentrated. The Group may be adversely affected by
the loss of one or more of its key personnel.
Reliance on key customer relationships The Group's main route to market is through B2B sales to distributors and
retailers. The loss of a significant customer relationship could have an
adverse effect on the Group's business and financial condition.
Health and safety incidents The nature of the Group's operations across manufacturing and warehousing
results in an elevated risk of health and safety incidents.
Implementation of growth strategy There is a risk that factors beyond the Group's control will limit the Group's
ability to enact and deliver all elements of its growth strategy.
Global political and economic uncertainty As a global business, the Group is exposed to arrange of economic conditions
in certain markets, as well as broader macroeconomic factors and potential
instability in the geopolitical environment.
Non-compliance with laws, regulations and best practices including corporate The Group's products are subject to a range of regulations in the UK, Europe
social responsibility and ethical sourcing and other territories concerning product liability/safety and, in certain
markets, the Group places reliance on the market expertise and local knowledge
of the relevant customer in that territory. In addition, the Group is
exposed to a range of other laws, regulations and best practice guidelines in
a wide range of areas. This increased post the listing of the Company on the
London Stock Exchange. Any failure, or perceived failure, by the Group to
comply with any of those regulations or best practice guidelines could result
in potential litigation, damage to the Group's reputation and a loss of
revenue.
Reliance on IT systems and risk of cyber breach The Group's operational and financial management are dependent on third-party
and "cloud-based" IT systems. Any significant disruption in service, whether
malicious or otherwise, could prevent the business from operating effectively
and result in reputational damage.
Credit risk The Group offers credit terms to some customers which may not be repaid
creating a material financial loss.
New product development A driver of the Group's continued success is its ability to anticipate, gauge
and react in a timely and cost-effective manner to changes in consumer
preferences and trends. If consumer sentiment or preferences change
materially in a way which is adverse to Applied Nutrition, the Group's revenue
and profitability could decrease.
Pricing and availability of raw materials External factors may result in the Group being vulnerable to fluctuations in
the pricing and availability of raw materials with an adverse impact on
production schedules and pressure on product margins. Such factors include
natural disasters, global conflicts, political instability, inflation and
changes in the supply and demand of commodities, fuel prices and freight
costs.
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