REG - Applied Nutrition Ld - Expected Intention to Float
30/09/2024 08:15
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RNS Number : 1259G Applied Nutrition Limited 30 September 2024
This announcement is not for release, publication or distribution, in whole or
in part, directly or indirectly, in or into the United States, Canada, Japan,
the Republic of South Africa, Australia or any jurisdiction where to do so
would constitute a violation of the relevant laws in that jurisdiction or
which would require any registration or licensing within that jurisdiction.
This announcement is an advertisement for the purposes of Rule 3.3.2 of the
Prospectus Regulation Rules made by the Financial Conduct Authority (the
"FCA") under section 73A of the United Kingdom's Financial Services and
Markets Act 2000, as amended ("FSMA"). This announcement is not a prospectus
and investors should not purchase any securities referred to in this
announcement except on the basis of the information in any final prospectus
(the "Prospectus") published by Applied Nutrition Limited (the "Company" or
"Applied Nutrition" and, together with its subsidiaries, the "Group") and
approved by the FCA in relation to the proposed offer (the "Offer") for sale
of existing ordinary shares in the capital of the Company and admission
("Admission") of the ordinary shares in the Company (the "Shares") to trading
on London Stock Exchange plc's main market for listed securities and to
listing in the equity shares (commercial companies) category of the official
list of the FCA (the Offer and Admission together, the "Transaction"). Upon
such publication, a copy of the Prospectus will be available on the Company's
website at http://appliednutritionplc.com (http://appliednutritionplc.com) .
Applied Nutrition Limited
Announcement of Intention to Publish a Registration Document and Expected
Intention to Float on the Main Market of the London Stock Exchange
Applied Nutrition Limited, a leading sports nutrition, health and wellness
brand, today announces that it is considering an initial public offering (the
"IPO") and that it intends to publish today a registration document (the
"Registration Document"). The Company is considering applying for admission of
its ordinary shares to the equity shares (commercial companies) category of
the official list of the FCA and to trading on the main market of London Stock
Exchange plc (the "London Stock Exchange") ("Admission").
Applied Nutrition Highlights:
· Applied Nutrition is a leading sports nutrition, health and wellness brand,
which formulates and creates nutrition products.
· Founded in 2014 by Thomas Ryder, Chief Executive Officer, 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 approximately 100 different products, with
flavour and format combinations across those products resulting in over 500
stock keeping units.
· The global sports nutrition, health and wellness market, is valued at £189
billion, having grown at a CAGR of 8.0% between 2019 and 2023, and is expected
to grow at a CAGR of 8.1% from 2023 through to the end of 2028, according to
Euromonitor 1 . This trend reflects a rising global health consciousness and
increased awareness among consumers of preventive healthcare, self-medication,
and fitness and lifestyle 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 Directors believe that this model
differentiates Applied Nutrition from its competitors, by allowing it to
access new geographies and consumers quickly. A smaller proportion of sales
(approximately 9% of revenue in FY24) are made directly to the consumer (D2C)
via the Group's UK website, its US website, and through Amazon and eBay. In
recent years, Applied Nutrition's D2C offering has expanded in the UK and
internationally, with the channel delivering strong growth year on year.
· Since its founding, the Group has grown through a combination of increasing
shelf space and distribution end points with existing customers, accessing new
geographies and channels with new customers, expanding its product ranges
through variations in flavours and formats, and the launch of new products
through new product development (NPD). In 2021, JD Sports Fashion Plc (JD
Sports) acquired 32% of the share capital of Applied Nutrition from Thomas
Ryder, as a strategic initiative alongside its JD Gyms business.
· Whilst the UK is the Group's largest market in terms of revenue in any single
geography, international expansion has been a key growth driver, with the
Group's products available in more than 80 countries worldwide. In 2015,
Applied Nutrition expanded sales into Europe through its relationship with a
leading European distributor, and by 2017 Applied Nutrition's products were
being sold in 15 countries, including countries in the Middle East.
International sales further expanded into Asia Pacific in 2019. More recently,
in 2022, the Group expanded into the US, opening an office in Dallas, Texas,
as part of its wider international expansion strategy.
· Applied Nutrition is led by an experienced senior management team with deep
industry knowledge and long-term ambitions, comprising its founder and CEO,
Thomas Ryder, its COO, Steven Granite and its CFO, Joe Pollard. The Group's US
operation is led by Applied Nutrition's US CEO, Aaron Heidebreicht, who was
recruited in March 2024. With the support of the Board and the Group's 200+
employees, the senior management team's vision is to create the world's most
trusted and innovative sports nutrition, health & wellness brand.
· Since 2020, the Group has operated its in-house manufacturing from a
custom-built facility in the UK, based in Knowsley, Liverpool. In 2022, in
response to significant growth in revenue and demand for products, the Group
added a dedicated 47,000 square foot warehouse located immediately next door
to its manufacturing site. Together, these contain all the Group's UK
operations, including in-house production and manufacturing facilities,
warehouse space and office space. In 2023, the Group began to introduce
automation within its manufacturing facility and in 2024 completed an
expansion of its production lines, thereby increasing capacity to a level that
represents approximately double the amount of revenue historically generated.
· Applied Nutrition's 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. This is highlighted by
the following table which sets out certain key performance indicators of the
Group:
Year ended 31 July
2022 2023 2024
(£000)
Revenue
- UK 12,190 25,240 33,635
- Europe 4,880 7,736 10,665
- International 17,958 27,805 41,852
Total 35,028 60,781 86,152
Gross profit 14,078 27,146 41,294
Adjusted EBITDA 10,410 18,548 25,993
Free cash flow 7,459 9,337 16,891
Net cash/(debt) 5,399 12,735 18,720
Thomas Ryder, CEO of Applied Nutrition, said:
"Since launching our first Applied Nutrition product just over ten years ago,
we have demonstrated a consistent track record of delivering strong profitable
growth, becoming a trusted, premium sports nutrition, health and wellness
brand in an industry that continues to grow at pace.
I am incredibly proud that a large proportion of our manufacturing and new
product development is based in Knowsley, Liverpool. Keeping manufacturing and
new product development in-house means we can innovate faster and bring new
products to market efficiently. Our team's ability to design, test, and refine
products under one roof gives us an edge - it's a streamlined process that
allows us to move from concept to shelf in a matter of weeks. Alongside this,
we have developed a successful, low risk and cost-effective go-to-market
strategy that delivers strong and profitable growth, and allows us to scale
quickly and easily in existing and new geographies.
We are only scratching the surface of our growth opportunity and this IPO
positions us ideally for the next step of our development. With an exciting
new product roadmap and opportunities to grow with new and existing customers,
we are confident it will enable us to build the world's most trusted and
innovative sports nutrition, health & wellness brand."
Andy Bell, Non-Executive Chair of Applied Nutrition, said:
"A float on the London Stock Exchange would mark the next step in Applied
Nutrition's journey to becoming the world's most trusted and innovative sports
nutrition, health & wellness brand. The Company has delivered impressive
growth to date, driven by the increasing consumer interest in health and
wellness, and the consistent delivery of new products to Applied Nutrition's
global customer base. We are excited at the prospect of widening our
shareholder base and we are confident that a London-listing would further
enhance our brand awareness and provide a platform for continued growth."
For more information, please contact:
Alma Strategic Communications (Public Relations adviser to Applied Nutrition) T: +44 (0) 203 405 0205
Rebecca Sanders-Hewett, Joe Pederzolli, Josh Royston, Sam Modlin, Sarah Peters appliednutrition@almastrategic.com
Sole Sponsor, Sole Global Co-ordinator and Sole Bookrunner T: +44 (0) 207 260 1000
Deutsche Numis
James Taylor, Tom Jacob, Jamie Loughborough, Jonny Abbott, Henry Slater
Potential Offer Highlights:
Should Applied Nutrition proceed with an IPO, the current expectation is that:
· The Company's shares would be admitted to the equity shares (commercial
companies) category of the Official List of the FCA and to trading on the Main
Market of the London Stock Exchange
· The Offer would comprise existing shares to be sold by certain existing
shareholders of the Company
· The Offer would be a targeted offering to certain institutional investors in
the United Kingdom and elsewhere outside the United States in reliance on
Regulation S, alongside an offering to retail investors through RetailBook in
the United Kingdom only
· Immediately following Admission, the Company would have a free float of at
least 25% of issued share capital and expects that it would be eligible for
inclusion in the FTSE UK indices
· Any additional details in relation to the Offer, together with any changes to
corporate governance arrangements, would be disclosed in a Prospectus, if and
when published
· The Company has engaged Deutsche Numis as Sole Sponsor, Sole Global
Co-ordinator and Sole Bookrunner in the event the offer proceeds
A copy of the Registration Document will be uploaded to the National Storage
Mechanism and will be available for inspection at
https://data.fca.org.uk/#/nsm/nationalstoragemechanism
(https://data.fca.org.uk/#/nsm/nationalstoragemechanism) once approved by the
FCA. A copy of the Registration Document will also be available online at
http://appliednutritionplc.com/ (http://appliednutritionplc.com/) , subject to
certain access restrictions.
Access to supplemental information for bona-fide, unconnected research
analysts: Information in relation to the Company will be made available via a
link to unconnected research analysts today.
Please contact appliednutrition@almastrategic.com if you are a research
analyst and would like to receive access to the information.
Applied Nutrition: Investment highlights
Significant market opportunity
· The Group has access to a global market opportunity valued at £189
billion in 2023 2 , with structural market growth driven by an increased
consumer focus on sports nutrition, health and wellness supplements. These
consumer trends have been led by, amongst other things, consumers focusing on
improving general health whilst having a greater awareness and understanding
of the benefits of nutrition, as well as being exposed to a broader product
offering and appeal that is more accessible and convenient. By way of example,
the number of consumers who are taking protein supplements for their general
health almost doubled in 2024 when compared with 2021.
Trusted brand with broad consumer appeal
· Applied Nutrition has successfully built its reputation as a trusted
sports nutrition, health and wellness brand. The Group's in-house
manufacturing operation has received site accreditations from a number of
professional bodies, including the BRC-GS Global Food Safety certification
(AA+ grade), the HACCP Food Safety certification, the GMP certification, FDA
accreditation and ISO 22000:2018 - Food Safety Management. These
accreditations, as well as the Group's internal processes and state-of-the-art
facilities, ensure that Applied Nutrition products are manufactured in a
highly controlled environment, which allows for consistency and replication
across batches and provides assurance of delivery. The Group's trusted brand
status is also maintained through its various collaborations and partnerships
with professional athletes and sports clubs, and its Informed Sport
accreditation, which provides assurance that the Applied Nutrition products
which carry the Informed Sport mark have been tested for prohibited substances
and manufactured to high-quality standards.
· Applied Nutrition targets a wide range of consumers: professional
athletes who use sports nutrition products daily, elite gym-goers, fitness
enthusiasts, and every-day health-conscious consumers looking to improve their
health or manage their weight. With this wide range of consumers in mind, the
Group has developed and launched four key ranges under the umbrella of the
Applied Nutrition brand: "Applied Nutrition", its original range which
comprises its broadest product offering; "ABE", a highly formulated premium
range targeted at experienced gym goers; "BodyFuel", an entry level range
aimed at the price conscious consumer; and "Endurance", a specialist range
aimed at endurance athletes. Each range targets a different consumer group and
ensures that the Group continues to appeal to a broad and diversified customer
base.
Successful B2B business model
· Applied Nutrition benefits from the advantages of a predominantly B2B
business model with a low risk, highly cost-effective go-to-market strategy
which has allowed the Group to leverage local knowledge in international
markets. Customers in new geographies will utilise their market expertise and
local knowledge and collaborate with Applied Nutrition to ensure compliance
with any regulations or requirements for the sale of certain Applied Nutrition
products within their territory. Through these close customer relationships,
the Group is also able to better understand and react to consumer feedback and
market trends in international markets. In turn, this feedback is fed into
management's strategic decision making and the Group's NPD processes.
· The Group's ability to enter new geographies cost-effectively is
evidenced through its profitable track record of strong growth and
profitability throughout Europe and other international geographies. In FY21,
the Group generated revenue in Europe of £2.6 million, with such figure
increasing to £10.7 million in FY24 through growing distribution end points,
entering new geographies and increasing presence in retailers. Outside of the
UK and Europe, the Group's international revenue was £12.4 million in FY21,
with such figure increasing to £41.9 million in FY24 through significant
growth in the Middle East and new geographies. From FY21 to FY24, the number
of geographies in which the Group's products were sold increased by 58% from
52 to 82.
· Applied Nutrition's global B2B business model also provides the
Group with access to a broad range of routes-to-market, ensuring that Applied
Nutrition products are highly accessible by its diversified consumer base
through a number of different channels. The Group contracts with B2B customers
who are retailers (including speciality stores and grocers), gyms and sports
clubs (including commercial gyms and specialist shops within gyms) and
distributors, who in turn distribute Applied Nutrition products to retailers,
gyms and consumers within their relevant territories. This distribution
network is continually leveraged by the Group to allow it to access new
geographies and expand in existing geographies.
Scaled in-house manufacturing capability and NPD engine
· Innovation in the sports nutrition, health and wellness category is
vital to reaching new audiences, maintaining relevance and increasing sales
with existing customers. The Group benefits from a highly efficient in-house
manufacturing operation and NPD team with a deep understanding of consumer
needs. The Group's control of its manufacturing process enables production
flexibility, margin protection and is key to its successful NPD. Effective
in-house manufacturing and NPD enables nimbleness and allows the Group to
react quickly to and align itself with consumer trends. When compared with an
outsourced manufacturing and NPD model, the Group is able to bring in-house
manufactured product variations and certain new products to market quickly and
efficiently, as it is not highly reliant on third-party processes or subject
to the risk of third-party constraints or delays. Furthermore, this approach
to manufacturing results in attractive EBITDA margins. The Group's
manufacturing site in Knowsley, Liverpool, has recently undergone a
significant expansion, thereby increasing production capacity to a level that
represents approximately double the amount of revenue historically generated.
Impressive financial profile
· Applied Nutrition has delivered impressive financial performance with
strong revenue growth, a high operating margin, strong cash generation and a
debt-free balance sheet. The Group has increased revenue from £35 million in
FY22 to £86 million in FY24 at a CAGR of 57%. This growth has been delivered
across the Group's diversified routes-to-market and product offerings, with
all regions (UK, Europe and International) and each of the four Applied
Nutrition ranges ("Applied Nutrition", "ABE", "BodyFuel" and "Endurance")
contributing to strong revenue growth over the period.
· Profitability is a focus for the management team and the Group has
delivered a consistent adjusted EBITDA margin of approximately 30% across
FY22, FY23 and FY24. Key to the Group's high margin is its in-house
manufacturing and NPD capabilities, as well as its vertical integration within
its B2B business model which, for example, requires less marketing spending
than a D2C model.
· The Group also maintains a cash focused philosophy and plans to
maintain its strong balance sheet, with a net cash balance and no drawn debt
at Admission.
Multiple pillars to deliver long-term sustainable growth
· The Directors believe there is significant long-term opportunity
for growth and have in place a multi-pillar growth strategy underpinned by
global megatrends. In addition to consumer trends being driven by an increased
focus on sports nutrition, health and wellness globally, there is opportunity
for Applied Nutrition to achieve growth through a number of different pillars.
These pillars comprise growing through the Group's existing customers, by
increasing shelf space and distribution end points, as well as growth through
attracting new customers, both in new geographies and through new channels in
existing geographies. There is also significant room for the continued growth
of the Group's D2C offering, whilst maintaining principal focus on its B2B-led
business model. The Group will utilise its NPD capabilities to drive growth
across these pillars by expanding its existing ranges, products, formats and
flavours.
Founder-led, ambitious team
· Applied Nutrition benefits from a founder-led management team with
deep industry knowledge and long-term ambitions. The Group's founder, Thomas
Ryder, has more than 15 years of experience in the sports nutrition, health
and wellness industry across retailing, wholesaling and manufacturing, whilst
the Group's COO, Steven Granite, benefits from his experience as the CEO of a
private equity-backed food logistics business. In addition, the Group's CFO,
Joe Pollard is a qualified Chartered Accountant with experience in audit,
capital markets advisory, and corporate finance advisory, and the Group's US
CEO, Aaron Heidebreicht, also brings more than 20 years' experience in the
sports nutrition, health and wellness industry. The executive management team
is further supported by an experienced non-executive team and board, as well
as the Group's 200+ employees.
Growth strategy
The Group's growth to date has been driven by diversified execution across
both existing and new customers, underpinned by a continuous focus on NPD and
optimisation of the Group's capabilities that support growth. The Group's
total revenue in FY24 was £86.2 million, increasing from £21.8 million in
FY21. This increase in revenue is attributable to a broadly equal combination
of revenue from existing customers purchasing existing products, existing
customers purchasing new products and new customers.
Applied Nutrition's growth strategy going forward will continue to be focused
on these multiple pillars of growth which are supported by several global
consumer megatrends. These pillars include:
· Existing customers. Growth within the Group's existing customer
base can be achieved through a focus on increased shelf space and appeal. In
particular, this can be achieved through an increase in the Group's existing
product range and breadth and increased SKUs within existing product
offerings. Existing customer growth is also achieved through an expanded
rollout of distribution end points and deeper penetration across all available
channels.
· New customers. The Group can also achieve growth through access to
new customers. This includes through entry into new geographies, where the
Group can continue to leverage its proven internationally successful B2B
model, and through establishing new customer relationships within both
existing and new channels.
· D2C. The Group's D2C strategy will continue to complement its B2B
strategy in certain geographies, whilst simultaneously building its brand
awareness with consumers.
These pillars of growth will be supported by NPD and optimisation. NPD will
allow the Group to expand its existing ranges, products and flavours, and
therefore help support further growth across existing customers, new customers
and D2C. Further optimisation of the Group's in-house manufacturing and
production capabilities, where it is continuously improving operational
excellence through automation, will also help to support the growth of the
business.
Furthermore, the Group has in place specific growth strategies within each of
its key regions, which include a combination of the pillars mentioned above.
· UK: The Group's key focus in the UK is on deepening channel
penetration amongst grocers, specialist retailers, convenience retailers,
discount retailers and gyms. The grocer strategy includes increasing shelf
space with existing customers such as Asda and Tesco, and expanding across
ranges, formats and categories, as well as targeting new customers and using
grocers as a route into smaller express stores to support growth in the
convenience channel. The Group's specialist retail strategy includes
increasing shelf space with existing customers, keeping products fresh,
expanding across ranges, and leveraging the "Endurance" range and health &
wellness products to win new customers. Convenience channel growth will be
delivered through targeting vending machine providers, petrol stations,
express stores and wholesalers. The discounter strategy is based on increasing
the number of products within the "BodyFuel" range and increasing penetration
with existing, nascent and new customers. The gym channel is important for
brand awareness and Applied Nutrition is continually signing up independent
gyms and assessing national gym chains. Improving brand awareness is also
expected to drive further D2C organic growth through Applied Nutrition's own
website and Amazon.
· Europe: In Europe, growth will be targeted through developing
country-specific relationships. In Germany, Applied Nutrition recently signed
up a leading distributor, who has deep in-country connectivity and will enable
access to the grocer, gym and convenience channels within that region. In
Italy, "Applied Nutrition" and "ABE" will be used as core ranges, with an
opportunity to rollout "Endurance", as management believe it is a range which
should appeal to this market. In France, during FY24 Applied Nutrition rolled
out to approximately 80 B&M stores with the "BodyFuel" range, following
its success in the UK. The Group's key European distributor relationship will
continue to distribute products across the continent to drive growth across
the region. In addition, D2C growth in Europe will be enabled through the
launch of Amazon sales in additional countries in FY25. Applied Nutrition is
also considering launching country specific websites in FY25 across Spain,
Italy and Switzerland in partnership with its B2B customers in those
geographies who have capability of fulfilling D2C orders
· International: Outside of the UK and Europe, the Group's two
regions of focus are the Middle East and North America.
Middle East
· A significant portion of the Group's growth in the Middle East has
been through its relationship with Dr Nutrition, one of Applied Nutrition's
key customers, and further opportunities exist in the Middle East working with
this customer through increasing product registrations in certain territories
and through targeting new channels, such as pharmacies, with Applied
Nutrition's health and wellness products. In addition, the Group will be
targeting growth with other distribution customers in the region, especially
in jurisdictions where the Group's penetration is less well developed.
North America
· Applied Nutrition launched in the US in 2022 with a regional
headquarters based in Texas, and established its first major relationship,
with Walmart, in 2023. The US market has required a differentiated brand and
content strategy due to its competitive nature, where formerly efficient D2C
strategies have faced pressure from market saturation. As a result, Applied
Nutrition has used macro and micro influencers for content creation, as well
as brand collaborations with well-known brands, to grow brand awareness, which
is supported by the Group's B2B strategy. The Group's North American growth
strategy is focused on increased distribution end points within grocery,
speciality retail, convenience retail, military and gyms. The Group expects to
reach an additional 30,000 total distribution points in FY25. The Group's
ambition is to become a top 10 sports nutrition brand in the US (i.e. greater
than $50 million revenue), which management believe to be achievable in the
medium term as the Group continues to deliver to its growth strategy.
· Other international geographies
The Group intends to continue its successful strategy in growing across other
international geographies. This will include working with existing customers
to increase product penetration by registering and stocking more products and,
develop new products which will be successful in these markets. This may range
from products that the Group does not currently offer, to variations on
current products which will make them more appealing to consumers based on
local tastes. In addition, the Group is constantly developing relationships
with distributors in regions or jurisdictions where the Group's products are
either not sold, or availability and sales are extremely limited.
Alongside the above factors, the Group's growth will continue to benefit from
an increased focus on sports nutrition, health and wellness globally, which is
driving key consumer trends in the market in which the Group operates. These
trends include an increased consumer focus on living a healthy lifestyle and
consequently a greater awareness and knowledge of nutrition.
Further information on Applied Nutrition
Financial information
Consolidated statements of profit or loss and other comprehensive income
Year ended Year ended Year ended
31 July 2022 31 July 2023 31 July 2024
£'000 £'000 £'000
Revenue 35,028 60,781 86,152
Cost of sales (20,950) (33,635) (44,858)
Gross profit 14,078 27,146 41,294
Administrative expenses (4,133) (9,238) (17,555)
Adjusted operating profit(1) 9,945 17,908 25,091
Costs relating to proposed Initial Public Offering - - (1,187)
Share-based payment expense - - (165)
Operating profit 9,945 17,908 23,739
Finance income - 69 734
Finance expense (65) (51) (89)
Profit before taxation 9,880 17,926 24,384
Taxation (1,674) (4,107) (5,732)
Profit for the year 8,206 13,819 18,652
Other comprehensive income:
Gain on foreign currency translation - 60 20
Deferred tax asset on share-based payment - - 436
Total comprehensive income 8,206 13,879 19,108
Earnings per share for profit attributable to the owners of the parent(2)
Basic and diluted (£) 1.64 2.78 3.82
(1) Adjusted operating profit is a non-IFRS financial measure and is defined
as statutory operating profit of £23,739,000 (2023: £17,908,000, 2022:
£9,945,000) before £1,187,000 (2023: £Nil, 2022: £Nil) of costs related to
the proposed Initial Public Offering, and £165,000 (2023: £Nil, 2022: £Nil)
of share-based payment expense.
(2) As a result of a bonus issue of ordinary shares on 24 September 2024, the
basic and diluted earnings per share have been calculated based on a total of
5,000,000 ordinary shares.
Consolidated statements of financial position
As at As at As at
31 July 2022 31 July 2023 31 July 2024
£'000 £'000 £'000
Assets
Current assets
Inventories 8,700 12,975 19,482
Trade and other receivables 6,062 11,504 17,334
Cash and cash equivalents 5,399 12,735 18,720
Total current assets 20,161 37,214 55,536
Non-current assets
Property, plant and equipment 713 1,250 1,688
Right-of-use assets 1,233 2,116 1,792
Intangible assets 1 37 42
Deferred tax assets - - 595
Total non-current assets 1,947 3,403 4,117
Total assets 22,108 40,617 59,653
Liabilities
Current liabilities
Lease liabilities 122 259 313
Trade and other payables 5,727 9,277 9,584
Total current liabilities 5,849 9,536 9,897
Non-current liabilities
Deferred tax liabilities 162 294 -
Lease liabilities 998 1,802 1,490
Other provisions 227 234 242
Total non-current liabilities 1,387 2,330 1,732
Total liabilities 7,236 11,866 11,629
Net assets 14,872 28,751 48,024
Equity
Share capital - - -
Share based payment reserve - - 165
Foreign exchange reserve - 60 80
Retained earnings 14,872 28,691 47,779
Total equity 14,872 28,751 48,024
Consolidated statements of changes in equity
Retained earnings Total equity
Share capital Share based payment Foreign exchange reserve £'000 £'000
£'000 £'000 £'000
As at 1 August 2021 - - - 12,668 12,668
Comprehensive income
Profit for the year - - - 8,206 8,206
Transactions with owners
Dividends paid - - - (6,002) (6,002)
As at 31 July 2022 - - - 14,872 14,872
As at 1 August 2022 - - - 14,872 14,872
Comprehensive income
Profit for the year - - - 13,819 13,819
Other comprehensive income - - 60 - 60
As at 31 July 2023 - - 60 28,691 28,751
As at 1 August 2023 - - 60 28,691 28,751
Comprehensive income
Profit for the year - - - 18,652 18,652
Other comprehensive income - - 20 - 20
Share based payment - - - 436 436
Transactions with owners
Share based payments - 165 - - 165
As at 31 July 2024 - 165 80 47,779 48,024
Consolidated statements of cash flows
Year ended Year ended Year ended
31 July 2022 31 July 2023 31 July 2024
£'000 £'000 £'000
Cash flows from operating activities
Profit before taxation 9,880 17,926 24,384
Adjustments for:
Depreciation of property, plant and equipment 260 403 575
Amortisation of lease liabilities and intangible assets 213 230 336
(Profit)/loss on disposal of property, plant and equipment (8) 7 (9)
Share based payment expense - - 165
Finance income - (69) (734)
Finance expense 65 51 89
10,410 18,548 24,806
Increase in inventories (3,749) (4,275) (6,507)
Increase in trade and other receivables (301) (5,451) (5,993)
Increase in trade and other payables 1,529 1,645 4,143
Cash generated from operating activities 7,889 10,467 16,449
Tax paid (1,396) (1,950) (9,747)
Net cash flows from operating activities 6,493 8,517 6,702
Cash flows from investing activities
Purchase of intangible fixed assets (1) (42) (17)
Purchase of tangible fixed assets (293) (962) (1,039)
Sale of tangible fixed assets 27 15 35
Interest received - 69 614
Net cash used in investing activities (267) (920) (407)
Cash flows from financing activities
Repayment of borrowings (983) - -
Interest paid (19) - -
Directors' loans repaid (1,831) (7) (1)
Dividends paid (6,002) - -
Principal paid on lease liability (105) (167) (257)
Interest paid on lease liability and dilapidations (39) (43) (81)
Net cash used in financing activities (8,979) (217) (339)
Net (decrease)/increase in cash and cash equivalents (2,753) 7,380 5,956
Cash and cash equivalents at beginning of year 8,152 5,399 12,735
Effect of foreign exchange differences - (44) 29
Cash and cash equivalents at end of year 5,399 12,735 18,720
Board information
Andy Bell, Independent Non-Executive Chair
After spending a number of years working within the financial services sector,
Andy co-founded AJ Bell in 1995. Having graduated from Nottingham University
in 1987 with a first-class degree in Mathematics, he qualified as a Fellow of
the Institute of Actuaries in 1993 and built AJ Bell into one of the UK's
largest online investment platforms. Andy stepped down as Chief Executive
Officer of AJ Bell PLC on 30 September 2022 and has continued as a consultant.
A defining feature of Andy's tenure as Chief Executive Officer was a focus on
ensuring that AJ Bell's primary purpose, vision and culture were engrained in
the business. Andy believes that a strong and effective governance framework
is one of the most important foundations on which to successfully grow a
business. This approach to governance has stood the test of time as AJ Bell
has grown from being a small enterprise to a FTSE 250 listed company.
Andy was appointed Chair of Applied Nutrition in February 2024.
Andy wrote the widely acclaimed "DIY Investor", which is now in its third
edition. Andy has a number of private equity interests across a variety of
business sectors and devotes time to the charitable trust he founded in 2011,
the AJ Bell Trust. Andy was awarded a CBE in the 2024 New Year Honours List.
Thomas Ryder, Chief Executive Officer
Thomas is the Founder and CEO of Applied Nutrition. Thomas has been involved
in the sports nutrition, health and wellness market since his early twenties,
as a keen gym goer with an interest in nutrition and supplements. He started
his professional career in sports nutrition, health and wellness with a
supplements retail store in Liverpool, which led him into the wholesaling
market and ultimately to acquiring the Applied Nutrition brand. Thomas started
to manufacture his own products for Applied Nutrition in 2016, providing him
with valuable experience across retailing, wholesaling and manufacturing, as
well as managing his own brand. This vertical experience has helped Thomas
build one of the fastest growing sports nutrition, health and wellness brands
in the UK and Europe, with products now being sold globally.
Steven Granite, Chief Operating Officer
Steven is the Chief Operating Officer of Applied Nutrition and was appointed
in April 2021. He is a qualified Chartered Management Accountant and a fellow
of the Chartered Institute of Logistics & Transport.
Steven previously led a private equity backed food logistics company (Abbey
Logistics Group Limited) in roles as Finance Director, Managing Director, CEO
and Executive Chairman, until October 2023 when he led the sale of the
business to a European competitor (Sitra NV). From 2012 to 2023, Steven
founded and chaired a multi-award winning not-for-profit initiative called
'Think Logistics' which seeks to help young people from disadvantaged
backgrounds gain opportunities within the logistics sector and assist in
attracting more young people to the logistics sector. He was also a director
of 'Logistics UK' which is the UK's largest logistics trade body association
from 2019 to 2022.
Joe Pollard, Chief Financial Officer
Joe joined the Group as Chief Financial Officer in May 2021 and was appointed
to the Board of Directors at the same time. He is a Chartered Accountant,
having qualified while working for Deloitte.
He previously worked at Grant Thornton in its Corporate Finance practice
advising on M&A activity for entrepreneurs, corporate entities, and
private equity investors. He has extensive experience leading complex
transactions in multiple jurisdictions. In 2021, Joe led the team that advised
on JD Sports taking a 32% ownership interest in the Group.
Prior to joining Grant Thornton, Joe worked at Deloitte where he spent time in
both the Audit and Equity Capital Markets advisory teams. Joe holds a
first-class honours degree in Artificial Intelligence from the University of
Liverpool.
Tony Buffin, Independent Non-Executive Director
Tony is the Executive Chair of Tecsa, a software and consumer analytics
provider, which he founded in 2019 and in which Wesfarmers, Australia and
Dairy Farm International, part of the Jardine Matheson Group, are cornerstone
investors. Prior to founding Tecsa, Tony was the Chief Executive Officer of
Holland & Barrett, the UK's leading alternative health and beauty
retailer, the former Chief Operating Officer and Chief Financial Officer of
Travis Perkins PLC and prior to that was Chief Financial Officer of Coles
Group, a top 25 ASX listed retailer.
Tony spent his earlier career at Boots and Loyalty Management Group where he
led the successful sale of the business to Canadian listed Aimia Inc. He is a
fellow of the ICAEW and graduated from Cambridge University with a first class
degree in Geography. He is chair of Highbourne Group and Nobia AB.
Marnie Millard, Independent Non-Executive Director
Until December 2020, Marnie was Group Chief Executive for Nichols PLC, the
home of Vimto. Marnie now has a NED portfolio career. She chairs the boards at
UA92, Pura and Marks Electrical PLC, is the chair of the Remuneration
Committee for Applied Nutrition and is a non-executive director for Belvoir
Fruit Farms. Previously she was chair of the board at Kidly Ltd and a
non-executive director for Finsbury Food Group PLC.
She is a fellow of the Society of Leadership at St Georges House and a Board
Mentor at the Critical Eye organisation.
Marnie held the chair for the CBI in the North West of England for 3 years as
well as being an Advisor to the Board of International Trade.
Marnie was awarded an OBE in the Queen's Birthday Honours in 2018 in
recognition of her contributions to International Trade business in the North
West of England.
IMPORTANT LEGAL INFORMATION
The contents of this announcement, which has been prepared by and is the sole
responsibility of the Company, have been approved by Numis Securities Limited
trading as Deutsche Numis ("Deutsche Numis") solely for the purposes of
section 21(2)(b) of FSMA.
The information contained in this announcement is for background purposes only
and does not purport to be full or complete. No reliance should be placed for
any purposes whatsoever on the information contained in this announcement or
on its completeness, including (without limitation) in connection with any
contract or commitment or investment decision whatsoever.
This announcement is not for publication, distribution or release, in whole or
in part, directly or indirectly, in or into the United States of America. This
announcement is not an offer of securities for sale into the United States.
The securities referred to herein have not been and will not be registered
under the U.S. Securities Act of 1933, as amended (the "Securities Act"), and
may not be offered or sold in the United States, except pursuant to an
applicable exemption from the registration requirements under the Securities
Act. No public offering of securities is being made in the United States.
This announcement is not for publication, distribution or release, in whole or
in part, directly or indirectly, in or into Australia, the Republic of South
Africa, Japan, Canada or any other country outside of the United Kingdom where
such distribution may lead to a breach of any legal or regulatory requirement
(each a "Restricted Jurisdiction"). The Shares have not been, and will not be,
registered under the applicable securities laws of (and clearances have not
been, and will not be, obtained from the relevant securities authorities or
commissions of) any Restricted Jurisdiction. The distribution of this
announcement in or into (or to persons or residents in, or citizens of)
jurisdictions outside of the United Kingdom may be restricted by law and
persons into whose possession this announcement comes should inform themselves
about, and observe, any such restrictions. Any failure to comply with these
restrictions may constitute a violation of the laws of the relevant
jurisdiction.
In the member states of the European Economic Area ("EEA"), this announcement
is only addressed to and directed at persons who are qualified investors
within the meaning of the Prospectus Regulation ("Qualified Investors"). The
term "Prospectus Regulation" means either (a) Regulation (EU) 2017/1129 of the
European Parliament and of the Council (as amended) on the prospectus to be
published when securities are offered to the public or admitted to trading on
a regulated market; and repealing Directive 2003/71/EC, or (b) the United
Kingdom's version of Regulation (EU) 2017/1129 of the European Parliament and
of the Council (as amended) on the prospectus to be published when securities
are offered to the public or admitted to trading on a regulated market, which
is part of United Kingdom's law by virtue of the European Union (Withdrawal)
Act 2018, as applicable. In the United Kingdom, this announcement is only
addressed to and directed at Qualified Investors in the United Kingdom who are
reasonably believed by the Company to be persons of a kind described in
Article 19 (Investment Professionals), Article 48 (High Net Worth Individuals)
and Article 49 (High Net Worth Companies, Unincorporated Associations, etc) of
the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005,
as amended ("FPO") or any other recipient that is a Qualified Investor in the
United Kingdom to whom an invitation or inducement to engage in investment
activity (within the meaning of section 21 of FSMA) in connection with the
sale of any securities of the Company may otherwise lawfully be communicated
or caused to be communicated (together, "Relevant Persons").
Persons who fall outside these categories in the EEA or the United Kingdom,
respectively, should not rely on or act upon the matters communicated in this
announcement. Any investment activity to which this announcement relates (i)
in the United Kingdom is available only to, and may be engaged in only with,
Relevant Persons, and (ii) in any member state of the EEA is available only
to, and may be engaged only with, Qualified Investors.
This announcement may contain forward-looking statements, which relate, inter
alia, to the Group's proposed strategy, plans and objectives. Forward-looking
statements are sometimes identified by the use of terminology such as (but not
limited to) "believes", "expects", "may", "will", "could", "shall", "risk",
"intends", "estimates", "aims", "plans", "predicts", "continues", "assumes",
"positions" or "anticipates" or the negatives thereof, other variations
thereon or comparable terminology. By its very nature, such forward-looking
information requires the Company to make assumptions that may or may not
materialise. Such forward-looking statements may be price-sensitive and
involve known and unknown risks, uncertainties and other important factors
beyond the control of the Company that could cause the actual performance or
achievements of the Group to be materially different from such forward-looking
statements. Past performance is not a reliable indicator of future results
and, in particular, past performance of the Group cannot be relied upon as a
guide to future performance. Accordingly, you should not rely on any
forward-looking statements and the Company accepts no obligation to
disseminate any updates or revisions to such forward-looking statements. No
statement in this announcement is intended as a profit forecast or a profit
estimate and no statement in this announcement should be interpreted to mean
that earnings per share for the current or future financial periods would
necessarily match or exceed historical published earnings per share. As a
result, you are cautioned not to place any undue reliance on such
forward-looking statements. Neither the Company nor anyone else is under any
obligation to update or keep current the information contained in this
announcement. No representation or warranty, express or implied, is given by
or on behalf of the Company, Deutsche Numis or any of their directors,
officers, partners, employees, advisers, agents, affiliates, representatives
or any other persons as to the accuracy, fairness, completeness, verification
or sufficiency of the information or opinions contained in this announcement
or for any other statement made or purported to be made by them, or on their
behalf, in connection with the Company, the Shares or the Transaction and
nothing in the announcement will be relied upon as a promise or representation
in this respect, whether as to the past or future. Save in the case of fraud,
no liability is accepted for any errors, omissions or inaccuracies in any of
the information or opinions in this announcement or for any loss, cost or
damage suffered or incurred howsoever arising, directly or indirectly, from
any use of this announcement or otherwise in connection with the subject
matter of this announcement. Accordingly, each of the Company and Deutsche
Numis disclaims, to the fullest extent permitted by applicable law, all and
any responsibility or liability, whether arising in tort, contract or
otherwise (save as referred to above), which it might otherwise have in
respect of the announcement or any such statement.
Any purchase of Shares in the possible Offer should be made solely on the
basis of information contained in the Prospectus which may be issued by the
Company in connection with the possible Offer. The information in this
announcement is subject to change. Before purchasing any Shares, persons
viewing this announcement should ensure that they fully understand and accept
the risks which will be set out in the Prospectus, if published. Neither this
announcement, nor anything contained in the Registration Document , shall
constitute, or form part of, any offer or invitation to sell, or any
solicitation of any offer to acquire, any Shares or any other securities, 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, or act as any inducement to enter
into, any contract or commitment whatsoever.
The Company may decide not to go ahead with the possible Offer and there is
therefore no guarantee that a Prospectus will be published, the Offer will be
made or Admission will occur. Potential investors should not base their
financial decision on this announcement. Acquiring investments to which this
announcement relates may expose an investor to a significant risk of losing
all of the amount invested. Persons considering making investments should
consult an authorised person specialising in advising on such investments.
Neither this announcement, nor the Registration Document, constitutes a
recommendation concerning a possible Offer. The value of shares can decrease
as well as increase. Potential investors should consult a professional adviser
as to the suitability of a possible Offer for the person concerned.
Deutsche Numis is authorised and regulated in the United Kingdom by the FCA.
Deutsche Numis is acting exclusively for the Company and no one else in
connection with the possible Offer and will not regard any other person as a
client in relation to the possible Offer and will not be responsible to anyone
other than the Company for providing the protections afforded to its clients
nor for giving advice in relation to the possible Offer or any transaction or
arrangement referred to in this announcement. Deutsche Numis and its
affiliates may have engaged in transactions with, and provided various
investment banking, financial advisory and other services to, the Company for
which they would have received customary fees. Apart from the responsibilities
and liabilities, if any, that may be imposed on Deutsche Numis by FSMA or the
regulatory regime established thereunder, or under the regulatory regime of
any jurisdiction where the exclusion of liability under the relevant
regulatory regime would be illegal, void or unenforceable, Deutsche Numis
accepts no responsibility whatsoever for, and makes no representation or
warranty, express or implied, as to the contents of, this announcement or for
any other statement made or purported to be made by it, or on its behalf, in
connection with the Company, the Shares or the possible Offer and nothing in
this announcement will be relied upon as a promise or representation in this
respect, whether or not to the past or future.
Certain data in this announcement, including financial, statistical and
operating information has been rounded. As a result of the rounding, the
totals of data presented in this announcement may vary slightly from the
actual arithmetic totals of such data. Percentages in tables have been rounded
and accordingly may not add up to 100%.
For the avoidance of doubt, the contents of the Company's websites, or any
website directly or indirectly linked to the Company's websites, are not
incorporated by reference into, and do not form part of, this announcement.
1 Source: Euromonitor International Consumer Health Passport 2024 Edition.
2 Source: Euromonitor International Consumer Health Passport 2024 Edition.
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