Applied Nutrition Ltd, the Liverpool-based sports health brand, on Monday said it is planning to float on the London Stock Exchange.

The company, founded in 2014 by its Chief Executive Thomas Ryder, is backed by FTSE 100 listed JD Sports Fashion PLC, which holds a 32% interest.

A potential listing has been estimated to value the firm at around £500 million, according to reports.

Ryder said: ‘We are only scratching the surface of our growth opportunity and this IPO positions us ideally for the next step of our development.’

‘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,’ he added.

The firm said the offer would be targeted to certain institutional investors alongside an offering to retail investors through RetailBook in the UK only.

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.

Deutsche Numis has been appointed as sole sponsor, sole global co-ordinator and sole bookrunner in the event the offer proceeds.

Applied Nutrition said it delivered ‘impressive’ financial performance with strong revenue growth, a high operating margin, strong cash generation and a debt-free balance sheet.

Revenue has risen to £86 million in financial 2024 from £35 million in financial 2022, compound annual growth 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.

Further, the firm said it has delivered a consistent adjusted earnings before interest, tax, depreciation and amortisation margin of around 30% across 2022 to 2024.

Key to the high margin is in-house manufacturing and new product development capabilities, the firm pointed out.

Copyright 2024 Alliance News Ltd. All Rights reserved.