Source - LSE Regulatory
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.

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)

Rebecca Sanders-Hewett, Joe Pederzolli, Josh Royston, Sam Modlin, Sarah Peters

T:  +44 (0) 203 405 0205

appliednutrition@almastrategic.com

Sole Sponsor, Sole Global Co-ordinator and Sole Bookrunner

Deutsche Numis

James Taylor, Tom Jacob, Jamie Loughborough, Jonny Abbott, Henry Slater

T:  +44 (0) 207 260 1000


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 once approved by the FCA. A copy of the Registration Document will also be available online at 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

31 July 2022

£'000

Year ended

31 July 2023

£'000

Year ended

31 July 2024

£'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 profit1

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 parent2




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

31 July 2022

£'000

As at

31 July 2023

£'000

As at

31 July 2024

£'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

 

 

 

Share capital

£'000

 

Share based payment

£'000

 

Foreign exchange reserve

£'000

Retained earnings

£'000

Total equity

£'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

31 July 2022

£'000

Year ended

31 July 2023

£'000

Year ended

31 July 2024

£'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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