For release 7:00am Monday 10 November 2025

 

Applied Nutrition plc

(the "Company" or the "Group")

Final results for the year ended 31 July 2025

 

Delivery ahead of IPO guidance with significant momentum into FY26

 

Applied Nutrition plc (LSE: APN), a leading sports nutrition, health and wellness brand, today announces its final results for the year ended 31 July 2025 ("FY25").

 

Group financial highlights

·	FY25 revenue up 24.2% to £107.1m (FY24: £86.2m), ahead of IPO guidance and in line with recently upgraded market expectations
·	Adjusted EBITDA1 up 18.8% to £30.9m (FY24: £26.0m) ahead of IPO guidance, unadjusted operating profit up 18.6% to £28.1m (FY24: £23.7m)
·	Strong free cash flow conversion3 of 72.4% (FY24: 35.3%) and net cash4 at period end of £18.5m

 

Operational and strategic highlights

·	Delivery in line with multi-pillar, global growth strategy
	o	Deepened relationships with existing customers, through increased shelf space and distribution
	o	Extended our global footprint and entered numerous new geographies in key regions including Latin America and Asia
	o	New products and formats launched in the year include Vimto-flavoured gels and hydration products, and Sparkling Collagen Protein Water
·	Completion of factory extension in August 2024, and further efficiency gains in FY25, have increased revenue capacity to c.£200 million

 

Current trading and outlook

·	The strong acceleration in sales growth in the final quarter of FY25 has continued into the first quarter of the new financial year
·	We move into FY26 with positive trends in market share across key channels, with a clear opportunity to capture further share in both the UK and internationally
·	Capital investment to further increase capacity and capabilities to support continued growth
·	Despite a strong Q1 FY26, given that the financial year is still at an early stage, the Board believes it is prudent to maintain current market expectations for FY26

 

Thomas Ryder, CEO of Applied Nutrition, said: "This set of results shows us over-delivering on targets we set at IPO while setting the stage for the next phase of our growth. The performance reflects the strength of our strategy, disciplined execution, and growing traction in the market. In the year we have deepened our relationships with existing customers and secured new customers across both existing and new geographies, all while continually broadening our ranges, formats, and flavours.

 

With solid progress behind us and encouraging trading trends continuing, we are focused on key opportunities with a view to continuing our ambition to become the world's most trusted and innovative sports nutrition, health, and wellness brand."

 

Key financial information

	FY25	FY24	Change
Revenue (£m)	107.1	86.2	24.2%
Gross profit (£m)	49.3	41.3	19.4%
Adjusted EBITDA1 (£m)	30.9	26.0	18.8%
Adjusted profit before tax1 (£m)	30.2	25.7	17.5%
Adjusted basic and diluted EPS2 (p)	9.1	8.0	13.8%
Free cash flow3 (£m)	16.5	7.1	132.4%
Free cash flow conversion3	72.4%	35.3%	105.1%
Statutory results
Operating profit (£m)	28.1	23.7	18.6%
Profit before taxation (£m)	28.5	24.3	17.3%
Basic and diluted EPS (p)	8.4	7.5	12.0%

 

¹ Adjusted EBITDA is a non-IFRS financial measure; calculated as operating profit before interest, taxes, depreciation and amortisation and excluding the impact of exceptional items, share-based payments and significant non-underlying items (see note 6). Adjusted profit before tax is a non-IFRS financial measure of the Group's profit before tax excluding the impact of exceptional items, share-based payments and significant non-underlying items.

 

² Adjusted basic and diluted earnings per share is a non-IFRS financial measure, which adjusts earnings per share for the impact of exceptional items, share-based payments and significant non-underlying items, and also takes into account the taxation effect thereon (see note 11).

 

³ Free cash flow is a non-IFRS measure representing the Group's net cash from operating activities, less capital expenditure, plus/minus net interest, less lease payments, adjusted for exceptional items, share-based payments and significant non-underlying items.  Free cash flow conversion is a non-IFRS measure of the Group's free cash flow (as defined above) measured as a percentage of adjusted profit after tax. The calculation for free cash flow and free cash flow conversion is shown in the Chief Financial Officer's review.

 

⁴ Net cash excludes IFRS 16 liabilities.

 

Cautionary Statement - Certain statements included or incorporated by reference within this announcement may constitute "forward-looking statements" in respect of the Group's operations, performance, prospects and/or financial condition. Forward-looking statements are sometimes, but not always, identified by their use of a date in the future or such words and words of similar meaning as "anticipates", "aims", "due", "could", "may", "will", "should", "expects", "believes", "intends", "plans", "potential", "targets", "goal" or "estimates". By their nature, forward looking statements involve a number of risks, uncertainties and assumptions and actual results or events may differ materially from those expressed or implied by those statements. Accordingly, no assurance can be given that any particular expectation will be met, and reliance should not be placed on any forward-looking statement. Additionally, forward-looking statements regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. No responsibility or obligation is accepted to update or revise any forward-looking statement resulting from new information, future events or otherwise. Nothing in this announcement should be construed as a profit forecast. This announcement does not constitute or form part of any offer or invitation to sell, or any solicitation of any offer to purchase any shares or other securities in the Company, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any contract or commitment or investment decisions relating thereto, nor does it constitute a recommendation regarding the shares or other securities of the Company. Past performance cannot be relied upon as a guide to future performance and persons needing advice should consult an independent financial adviser. Statements in this announcement reflect the knowledge and information available at the time of its preparation. Liability arising from anything in this announcement shall be governed by English law. Nothing in this announcement shall exclude any liability under applicable laws that cannot be excluded in accordance with such laws.

 

Presentations

The Company is hosting a virtual presentation and Q&A session for analysts at 09.00 GMT today. To register, please email appliednutrition@almastrategic.com

 

Additionally, the Company is hosting a virtual presentation and Q&A session for retail investors at 15:00 GMT today. To register to attend, please use the following link: https://engageinvestor.com/event/68d2b74841d8c34b7a2b34da

 

 

Information for investors can be found on the Group's website at www.appliednutritionplc.com

 

Applied Nutrition plc	via Alma
Thomas Ryder, Chief Executive Officer
Steven Granite, Chief Operating Officer
Joe Pollard, Chief Financial Officer
Alma Strategic Communications (Public Relations adviser to Applied Nutrition)	+44 (0) 203 405 0205 appliednutrition@almastrategic.com
Rebecca Sanders-Hewett, Sam Modlin, Joe Pederzolli, Sarah Peters

 

Notes to editors

 

Applied Nutrition plc (LSE: APN) is a leading sports nutrition, health and wellness brand, which formulates and creates nutrition products with a stated aim of being the world's most trusted and innovative brand in the market.

 

Headquartered in the UK, the Group sells products in over 85 countries worldwide and has a diverse product range, targeting elite athletes, gym goers and health-conscious consumers. Applied Nutrition has developed and launched four ranges under the umbrella of the Applied Nutrition brand - Applied Nutrition, ABE, BodyFuel, and Endurance. Across the four ranges, the Group sells over 120 different products.

 

The Group's success has been built on an exceptional product range developed in-house in Knowsley, Liverpool, by a team of experts, allowing products to be developed efficiently delivering new innovation to the market, keeping existing products up to date, and introducing products aligned with latest trends.

 

The Group largely operates a global business-to-business (B2B) model, which has facilitated a low risk, highly cost-effective go-to-market strategy and has enabled strong, profitable growth in the UK, Europe and other international geographies. The business model and strategy has enabled the Group to become a fast-growing, highly profitable and cash generative global supplier in the sports nutrition, health and wellness market.

 

For further information, please visit www.appliednutritionplc.com

 

Chief Executive Officer's review

 

Introduction and overview

 

Our first year as a listed company on the Main Market of the London Stock Exchange has once again demonstrated our ability to deliver, with a year of continued momentum and opportunity. We are pleased strong trading has enabled us to deliver full-year results ahead of initial market expectations, with performance having been driven by the successful execution of our growth strategy. We are also confident our IPO in October 2024 has already delivered the increase in profile, awareness and credibility we had anticipated.

 

Our B2B model remains our chosen route to market which enables a low-risk, highly cost-effective go-to-market strategy which has allowed us to leverage local knowledge in international markets. Additionally, our direct-to-consumer channel, though a smaller component of the Group, continues to deliver complementary growth.

 

Our vision to become the world's most trusted and innovative sports nutrition, health and wellness brand continues to fuel our ambition, and this year has further demonstrated both the scale of the opportunity that lies ahead and our ability to deliver against it.

 

Market and opportunity

 

Since founding the business in 2014, the sports nutrition, health and wellness market has changed dramatically. When I started in the industry, supplements were thought of just for bodybuilders, but now consumers across all demographics are becoming ever-increasingly health conscious. Health and wellness is for everyone and, as a result, our products cater to all types of consumers, from elite performers to everyday consumers looking to make more health-conscious decisions.

 

Our opportunity is presently underpinned by the industry's strong growth projections. The global sports nutrition, health and wellness market is projected to grow to £279 billion by the end of 2028 at a CAGR of c.8.1%*.

 

Recent consumer research reinforces the structural tailwinds across the sports nutrition, health and wellness market. In a survey we conducted of 2,000 UK consumers aged 18-65, health and wellness emerged as the second-highest personal priority, marginally behind family, emphasising the increasing societal focus on everyday wellbeing. Building on this, 64% said that they had reduced spending on social activities to invest in their health over the last twelve months. Notably, over 80% of respondents now view supplements as a necessity rather than a luxury, with protein, vitamins, creatine, pre-workout, hydration and recovery products proving the most popular offerings for survey respondents. These trends in consumer behaviour align directly with Applied Nutrition's focus on delivering trusted, high-quality products that support healthier lifestyles and sustained wellbeing as part of daily routines.

 

Sports nutrition and health and wellness products are increasingly becoming a mainstay on retailer websites and shelves globally and these supportive market dynamics provide us with strong confidence for the future success of the Group. While we remain a relatively small player in the global market, our constant innovation, growth and expanding distribution provides a clear platform to continue taking share in our growing markets.

 

* Euromonitor International Consumer Health Passport 2024 Edition.

 

Performance review

 

FY25 performance was ahead of market expectations as we grew revenues by c.24% and adjusted EBITDA by c.19% with profit before tax increasing by c.17%. We want to thank our partners, customers, and staff in helping us achieve this. Notwithstanding the additional costs of being a listed business, we have delivered the same underlying profit margins as in FY24.

 

FY25 has seen us once again deliver against our multi-pillar, global growth strategy: deepening relationships with existing customers through increased shelf space and distribution end points as well as securing new customers and channels across both existing and new geographies, all while continuing to deliver a consistent pipeline of new product development (NPD), expanding our ranges, formats and flavours.

 

Existing customers

 

Existing customer growth is achieved through our focus on increased shelf space which is achieved by increased SKUs within existing product offerings, the expansion of our existing product range as well as expanded rollout of distribution end points and achieving deeper penetration across all available channels.

 

Strengthening our relationships with existing customers has been one of the most important drivers of performance in FY25. In the UK, revenue from existing customers grew significantly, supported by deeper engagement with major retail partners, where our previously announced joint business plan (JBP) has unlocked additional shelf space in a national retailer with a broader range of listings in new and existing categories, in addition to deeper distribution within their estate. The JBP has provided the retailer with early access to new product development, allowing them to take new products to market quickly.

 

A key success of the JBP has been our ability to appeal to consumers across the breadth of the retailers' category offering and deliver new products in line with consumer demands. These products showcase our ability to innovate in an agile way, such as with popular offerings in a new format, new products based on consumer demand, new innovation, as well as growing classic sports nutrition products.

 

We have continued to see excellent progress in UK retail, with both additional listings and deeper penetration. Taking into account recent data, total product placements across grocery and high street increased by over 95% in 2025 compared to 2024*.

 

In Europe, existing customer growth was supported by the strength of our long-standing distributor relationships and the increasing recognition of the Applied Nutrition brand. Performance has been driven by expanded listings in discount retail and specialist channels, as well as ongoing growth at gyms and sports clubs.

 

Existing customer growth in international markets was more measured, reflecting the previously announced exit from an agreement with a distributor. Excluding the sales made to that distributor, international sales grew by 13% between FY24 and FY25 and we have a clear pathway to accelerated growth across the region in FY26.

 

While the US business remains in its infancy, we have continued to develop relationships with key retail and certain distribution partners, as well as launch tailored products catered towards US consumers.

 

 

* Source: Circana - Major Multiples (moving annual), store count where scanned (week ending 04/10/25).

 

 

New customers & channels

 

Leveraging our proven internationally successful B2B model, new customer relationships are established within both existing and new channels, including entry into new geographies.

 

We made good progress in winning listings with new retailers and expanding into additional channels during the year. In the UK, significant new wins included several major multiples, positioning our products alongside everyday consumer staples and significantly broadening our reach. Being present in mainstream grocery enhances brand visibility and ensures that our products are accessible to a wide consumer base.

 

Internationally, we extended our global footprint and entered numerous new geographies in eastern Europe, Latin America and Asia. As previously announced, we also made encouraging progress in Latin America, where we have entered new geographies in the region and we are benefitting from growing consumer demand. We also continue to explore opportunities with local partners in new markets, which will allow the brand to grow in markets that are difficult to access because of trade barriers.

 

In the US, we have continued to build our presence across both specialist and grocery channels. Key progress includes our launch of the AN Performance range with The Vitamin Shoppe as well as the previously announced listings with three major new partners: GNC Corporate, Hy-Vee and H-E-B.

 

Innovation & NPD

 

NPD allows us to expand our existing ranges, products and flavours, and therefore help support further growth across existing customers, new customers and direct-to-consumer (D2C). Innovation is at our core and is enabled by our in-house manufacturing capability. Our commitment to NPD fuels customer engagement, drives consumer demand, and helps us remain agile in the rapidly evolving sports nutrition, health and wellness market.

 

In the year we released a series of new products that have been very well-received across our customer and consumer base. These new products have been developed in line with our three-pronged approach to NPD:

 

·	Fill opportunity gaps: In late 2024 we launched a Sparkling Collagen Protein Water, tapping into consumer demand for refreshing, low-calorie ways to hydrate and hit protein goals.
·	Keeping products fresh: Across the market, there had been a lack of innovation in the range of products marketed to endurance athletes; therefore in early 2025 we launched a collaboration with Vimto in our Endurance range offering products such as gels and effervescent tablets to introduce new flavours in the category. The partnership with Vimto has driven our Endurance range to be the fastest-growing Energy and Hydration brand in the UK grocery and high street*.
·	Access emerging trends: In 2025 we launched specific ranges of products in different formats, which allows them to appeal to broader audiences. For example, we introduced creatine in a gummy format to make it more accessible and convenient for consumers who are starting to use creatine for benefits beyond sports performance. We also began offering health and wellness products such as collagen in stick-packs, which are preferred by some consumers for their convenience.

 

In addition to the examples above, we continued to build out our product portfolio, especially in more recently developed ranges, such as the launch of protein offerings and wellbeing products in the BodyFuel range.

 

* Source: Circana - Major Multiples, Value % Growth L12wks, Brands with 52 week sales of >£1m (week ending 06/09/2025).

 

D2C growth

 

Our D2C strategy will continue to complement our B2B strategy in certain geographies, whilst simultaneously building Applied Nutrition's brand awareness with consumers. Our D2C channel remains a smaller part of the business but continues to grow steadily and plays an important complementary role alongside our B2B model.

 

Overall D2C sales were aided by improvement in the customer experience with the launch of the Applied Nutrition app and enablement of subscription options via our app and website, amongst other incremental improvements to our D2C offering.

 

Capital allocation and investing for growth

 

Future investment

 

We continue to follow a disciplined approach to capital allocation, with a focus on investing in growth while maintaining a strong financial position. Our priority remains reinvesting in the business to support future expansion while ensuring we have the capability to pursue opportunities that can enhance shareholder returns.

 

As announced at the time of IPO, we had completed a manufacturing extension, increasing production capacity to c.£160m of revenue in early FY25. Throughout the year, we focused on driving efficiencies in our manufacturing processes and, as a result, we are now comfortable that the capacity of our current facility now allows the Group's revenues to be increased to c.£200m.

 

Taking into account current trading and the lead time required to plan and execute further manufacturing capacity projects, we have begun to execute our latest phase of investment to ensure we can continue to expand and deliver in line with the growth opportunity we see. This includes further automation, specialist production (which is currently outsourced), additional storage capacity (where third-party warehousing is currently being utilised) and additional office space. The following capital projects will support the current trajectory of the Group:

 

Production expansion 

 

Over the next 18-24 months we intend to invest approximately £2.0m to £2.5m to ensure the business has the operations to support its continued expansion, drive efficiencies and reduce reliance on outsourced providers. This investment is expected to increase capacity to c.£300m of revenue and will include: 

 

·	Additional automated packaging lines adding capacity and efficiency. This will benefit margins as less labour hours are needed to produce the same volumes.
·	A new gel machine, as a result of the continued growth of the Company's gel products. There has been a significant increase in the demand for products from the Company in gel format in recent years: in existing products; new products brought to market (such as the Vimto gel collaboration); and extension of other products into a gel format as a new option.

 

In addition, the Company is considering an investment into machinery that will allow us to produce in-house one of our fastest-growing products. This is a more expensive addition with a potential cost of approximately £2.5m to install. However, the Company estimates that based on current volumes the payback period would be in the region of four years. This would be reduced if our volumes increase, or the Company is able to secure contracts to produce on a white label basis, resulting in increased utilisation. 

 

Further investment will be assessed on a case-by-case basis where volume requirements and payback meet our criteria. 

 

New global distribution facility and head office

 

We intend to enter a lease for a newly purpose-built warehouse adjacent to our current location which will provide the following benefits:

 

·	increase storage capacity by an estimated 180% and improve margins by eliminating the need for use of several external third party warehouses and reduce inefficiencies resulting from these multiple locations of stock;
·	additional single-site office space which will allow all non-manufacturing teams to work on the same site and increase collaboration; and
·	provide a new headquarters to host our existing and potential global partners

 

While the purchase of the land and construction of the building will be borne by the landlord, we will incur the normal costs of fit-out and associated equipment which may be required. The current estimate for this is £3.5m to £4.0m. We expect to sign the lease before the end of 2025, and any agreement will be subject to planning permission and completed construction. The landlord expects to be granted planning permission in late 2025 and construction to be finished in early FY27, although these approximate timings are subject to change.

 

After the move is complete, our current warehouses will be repurposed for expanded production and for raw materials and packaging storage, respectively, while the new warehouse will be dedicated to finished goods storage and distribution.

 

Marketing activities

 

We continue to build out our brand strategy, designed to deliver a strong, trusted brand that drives demand and makes us the product of choice for consumers. In our model, the focus is not only on reaching end users but also on equipping distributors with the tools, messaging, and brand equity needed to accelerate sell-through. By investing in consistent branding, targeted marketing campaigns, and clear product positioning, we enhance visibility and credibility across the globe. We have multiple avenues of achieving this by interacting with customers, whether that be through partnerships and collaborations, attending exhibitions and other promotional activity.

 

Within the period, we have made significant progress with our marketing activities. We signed several brand ambassadors and influencers and launched our first TV advert to promote our products.

 

Post period, we appointed a Chief Marketing Officer with extensive industry experience to lead the marketing team and support our global growth.

 

Leveraging our strong, trusted brand and consumer recognition, we are progressing opportunities, both internally and through partnerships, to expand into adjacent growth markets and capitalise on the consumer trends we benefit from.

 

Current trading and outlook

 

The positive momentum experienced in the final quarter of FY25 has continued into the opening months of the new financial year, supported by strong consumer demand across our core categories and growing recognition of our brands both in the UK and internationally. Early FY26 trading trends reflect a continuation of the progress made in market share through deeper distribution, increased shelf space and an expanding product range.

 

Our investment in additional capacity, automation and new product formats positions the Group to deliver sustained growth over the medium term. We remain confident that our core strengths: our B2B-focused model, breadth of high-quality products and industry-leading innovation will continue to underpin strong revenue growth and profitability over the long term.

 

While the trajectory of the business remains encouraging with a strong Q1 FY26, it is still early in the financial year; therefore our full year expectations for FY26 remain unchanged at this stage.

 

 

Chief Financial Officer's review

 

The Group's financial performance for the year ended 31 July 2025 is reported in accordance with UK-adopted international accounting standards and applicable law.

 

Group results overview

 

The Board measures and judges the financial performance of the Group predominantly on the following key performance indicators which cover both profitability and cash generation:

 

	FY25	FY24	Change
Revenue (£m)	107.1	86.2	24.2%
Gross profit (£m)	49.3	41.3	19.4%
Adjusted EBITDA (£m)	30.9	26.0	18.8%
Adjusted profit before tax (£m)	30.2	25.7	17.5%
Adjusted basic and diluted EPS (p)	9.1	8.0	13.8%
Free cash flow (£m)	16.5	7.1	132.4%
Free cash flow conversion	72.4%	35.3%	105.1%
Statutory results
Operating profit (£m)	28.1	23.7	18.6%
Profit before taxation (£m)	28.5	24.3	17.3%
Basic and diluted EPS (p)	8.4	7.5	12.0%

 

Revenue

 

FY25 revenue has been driven by growth across each of our key regions, and we continue to benefit from our B2B business model as well as continued growth of our D2C offering.

 

Geography	FY25	FY24	Change
UK	£48.4m	£33.6m	+44.0%
Europe	£15.6m	£10.7m	+45.8%
International	£43.1m	£41.9m	+2.9%

 

Group revenue increased 24.2% to £107.1m (FY24: £86.2m). The Company did not make any acquisitions or disposals during the period and therefore all revenue growth is organic. H2 FY25 delivered approximately £60m of revenue, reflecting timing of customer orders (H2 FY24: £40.8m).

 

All geographies saw an increase in sales during the year. UK sales grew 44% as we continued to see exciting growth as a result of the strategy to diversify channels, invest in relationships with key customers, and work to increase the penetration of the BodyFuel and Endurance ranges as they mature. Europe grew by 46% in the year as we invested in growing partnerships with retailers and distributors in key countries such as France, Spain, the Netherlands, and Germany. International sales grew 3%; however, now the Group has emerged from distributor and registration changes in the Middle East, this geography is expected to grow more in FY26. International sales in the second half of the financial year were 19% higher than the first half, and excluding the sales made to the distributor who we exited a partnership with, sales grew by 13% between FY24 and FY25.

 

Gross profit

 

Gross profit increased 19.4% to £49.3m (FY24: £41.3m). All adjustments noted by the Group within the financial statements were in administrative expenses and therefore no adjustment to gross profit is necessary.

 

Total gross margin was down 190bps at 46.0% (FY24: 47.9%) with the decline reflecting a small non-structural change in the product mix of the Group, along with high raw material prices in the whey protein category. Products where the main raw material is whey protein continues to be a relatively small part of the Group's revenue (FY25: 19%). However, the average price of whey protein purchased by the Company in FY25 was c.30% higher than purchased in FY24. At the end of FY25 whey prices were generally considered to have been at  historically high levels.

 

While the Group purchases a significant number of raw materials outside of whey protein, none are considered to be particularly volatile, which has meant that movement in gross margin has been relatively small, and even smaller with whey price changes excluded.

 

The Group benefitted from a 70bps reduction in direct staff costs as a percentage of revenue. This was driven by the new manufacturing extension completed during the year which increased manufacturing efficiency. The benefit of these efficiencies was after the effect of an increase in direct staff hourly rates.

 

Administrative expenses adjusted for exceptional and non-underlying items

 

In FY25 total administrative expenses adjusted for exceptional and non-underlying items were 18.2% of revenue (FY24: 18.8%) showing an increase of 20.4% against an increase in revenue of 24.2%, highlighting benefits in two areas:

 

·	increased general efficiencies as we become a larger business and continue to ensure we drive value for money across the business, including in the overhead base, while still investing in key areas; and
·	as a result of preparing to IPO the business, we made various investments in the overhead base to ensure it was robust to withstand being a listed business ahead of time, therefore the growth in cost in certain areas was not as significant.

 

Offset against these were on the additional ongoing costs of being a listed business, for which we saw almost a full year of impact in FY25. These costs have been well managed and the proforma impact as we move into FY26 is not expected to be significant.

 

Spend on marketing, advertising and partner incentives, which are recognised as an expense in the accounts rather than being netted off revenue, was the same percentage of revenue as in FY24.

 

Adjusted EBITDA and adjusted EBITDA margin

 

A reconciliation between operating profit and adjusted EBITDA is shown below. Adjusted EBITDA rose in the period 18.8% to £30.9m (FY24: £26.0m). EBITDA margin of 29% for FY25 (FY24: 30%) was in line with guidance at the time of IPO, where we noted a small reduction expected as a result of the additional costs of being a listed business.

 

Exceptional and non-underlying items

 

Exceptional and non-underlying items for the period resulted in a charge of £1.7m (FY24: charge of £1.4m). These items in FY25 all related to the costs of the IPO of the Group. There are not expected to be any charges in relation to the IPO in FY26.

 

	FY25 £m	FY24 £m
Operating profit	28.1	23.7
Costs relating to IPO	1.7	1.2
Share-based payment expense	-	0.2
Adjusted operating profit	29.8	25.1
Depreciation and amortisation	1.1	0.9
Adjusted EBITDA	30.9	26.0

 

 

 

 

 

 

 

 

 

Items between adjusted EBITDA and profit before tax

 

	FY25 £m	FY24 £m
Adjusted EBITDA	30.9	26.0
Costs relating to IPO	(1.7)	(1.2)
Share-based payment expense	-	(0.2)
Presented EBITDA	29.2	24.6
Depreciation and amortisation	(1.1)	(0.9)
Finance income	0.5	0.7
Finance expense	(0.1)	(0.1)
Profit before tax	28.5	24.3

 

The following items affected the profit before tax figures but not EBITDA:

 

·	depreciation and amortisation rose compared to FY24 as a result of the additional fixed assets;
·	interest income relates to cash the Group holds on deposit. In FY25 it declined by £0.2m to £0.5m as a result of reduced interest rates in FY25 compared to FY24, and also a lower average cash balance after the dividend declared in October 2024 (£14.7m); and
·	interest expense.

 

Tax

 

The Group's main tax exposure is to the UK, which has a general corporation tax rate of 25%. The Group's effective rate of taxation during the year was 26.0% (FY24: 23.0%), higher than the standard rate of corporation tax predominantly as a result of costs relating to the IPO that are not deductible for tax in the UK.

 

Cash flow and cash flow conversion

 

Net cash generated from operations

 

Net cash generated from operations increased by 33.5% to £21.9m (FY24: £16.4m). The Group's working capital usage (defined as inventories, plus trade and other receivables, less trade and other payables) at the end of the year was £33.1m (FY24: £27.3m). This increase of 21.2% was slightly below the increase in revenue as a result of careful working capital management in comparison to the growth of the business. Management continue to manage capital expenditure, balancing:

 

·	the need to ensure we have a good supply of raw materials on hand so that disruptions in global shipping (e.g. the 'Red Sea Crisis') do not disrupt production and that the Company has adequate stocks of raw materials in order to ensure it is able to quickly react to customer orders;
·	assisting our customers and distribution partners to grow by ensuring we enable them to keep a sensible supply of our products in stock, and we do not restrict our own growth with restrictive credit terms, sensibly balanced against the credit risk to the Group; and
·	appropriate payment terms of suppliers, ensuring that we drive the best value we can to maximise margins since the Group is in a net cash position.

 

Other material cashflow items

Income tax paid

 

The tax paid in FY25 reduced to £6.3m compared to £9.7m in FY24. The Group became a "very large" company in relation to corporation tax in the UK for the first time in the FY24 financial period. This meant that tax paid during FY24 incorporated the estimate of all corporation tax due for FY24 in addition to any amounts due for FY23 that were paid in FY24 when the Company was not deemed to be "very large" for corporation tax. For FY25, the Company continued to be a "very large" company for the purposes of corporation tax and is therefore required to pay its estimated corporation tax bill for the relevant financial year wholly within the said financial year.

 

Purchase of tangible fixed assets

 

As indicated at IPO, the Company spent approximately £1.0m on capital expenditure during FY25 (FY24: £1.0m) as we continued to expand our capabilities and certain specialist capacity. The most significant areas of spend in FY25 were:

 

·

investment in a new stick packaging machine; as a result of the successful launch of products in more convenient formats such as stick packs and increased consumer demand in this area, the Company purchased a machine which allows stick packaging in this format. Currently, the Company produces the powder and then sends it to third party service providers to place in stick packs; bringing this service in house will increase margins, reduce reliance on third party service providers and allow us to bring products in this format to market quicker. This machinery was purchased in FY25, but will be delivered and commissioned in FY26; and

·

towards the end of FY25, as a result of the increased demand for capsules and tablets, the Company invested in a new filling machine in order to ensure capacity would meet expected future demand. In early FY26 this machinery was commissioned and completed, although the capital expenditure was accounted for in FY25.

 

As outlined in the Chief Executive Officer's review, over the next 18 months the Group intends to invest approximately £2.0m-£2.5m to ensure the business has the operations to support its continued expansion, drive efficiencies within the business, in addition to bringing in-house some currently outsourced production and services which will also enhance margin and reduce reliance on outsourced providers.

 

In addition, the Company is considering an investment into machinery that will allow us to produce one of our fastest-growing products in-house. This is a more expensive addition with a potential cost of approximately £2.5m to install.

 

Also as outlined in the Chief Executive Officer's review, in early FY27 we expect to be able to move into a new global distribution facility and head office. It is expected that the Company will lease this property from the landlord, which will be a corporate entity controlled by the Chief Executive Officer and Chief Operating Officer. The Board considered whether it would have been better for the Company to have purchased the land and construct the proposed new building. However, given the risks associated with such a capital undertaking, and these risks being outside of the interests of the Company's shareholders, the Board believes a long-lease of such a building, with an appropriate break-clause in favour of the Company, will provide the Company more flexibility, but with an adequate level of security to plan for future years, and is therefore more appropriate. To avoid any perceived conflict of interest, the Company is being advised by an independent law firm and independent Chartered Surveyor with no connection to the Chief Executive Officer or Chief Operating Officer. In addition, the Chief Executive Officer or Chief Operating Officer will not vote on approval of the lease when it is finalised, and the Chief Financial Officer will sign the lease on behalf of the Company with approval of the Board. In October 2025, the Board approved in principle the proposed transaction and associated capital spend, subject to appropriate review of final documentation. This constitutes a related party transaction as defined by the UK Listing Rules and the Company will provide further details once the transaction is finalised.

 

Dividend

 

The dividend during the year of £14.7m (FY24: £nil) was declared in October 2024 prior to the IPO of the Company. The Company does not anticipate declaring a further dividend before FY27 thereby retaining cash for investment in capacity, efficiency and potential M&A opportunities.

 

 

 

 

Free cash flow and free cash flow conversion

 

The following is a reconciliation between net increase in cash and cash equivalents as presented in the consolidated statement of cash flows of the Group and free cash flow/free cash flow conversion:

 

	FY25 £m	FY24 £m
Net increase in cash and cash equivalents	0.1	5.9
IPO costs	1.7	1.2
Dividends	14.7	-
Free cash flow	16.5	7.1
Free cash flow conversion	72.4%	35.3%

 

Free cash flow conversion measures free cash flow as a percentage of adjusted profit after tax, which is calculated as:

 

	FY25 £m	FY24 £m
Statutory profit after tax	21.1	18.7
Costs relating to IPO	1.7	1.2
Share-based payment expense	-	0.2
Adjusted profit after tax	22.8	20.1

 

Liquidity and banking facilities

 

The Group continues to hold a £10.0m revolving credit facility with its main bankers (Royal Bank of Scotland plc). While the Group currently has no need to draw down on the facility should there be a significant cash requirement (e.g. in the event of M&A), it would allow the business to deploy cash quickly. However, given the Group's continued cash generation, the cost/benefit of such a facility will be reviewed in FY26.

 

Cash within the Company's main GBP bank account earns interest at a rate management believe is a reasonable return for the flexibility of not having cash on term deposits. Generally, the Company does not hold significant amounts of cash in currencies other than GBP, except for USD, which is generally not more than 20% of the total cash the Company holds at any one time.

 

 

Consolidated statement of comprehensive income

For the year ended 31 July 2025

 

		Year	Year
		ended	ended
		31 Jul	31 Jul
		2025	2024
	Note	£m	£m
Revenue	4	107.1	86.2
Cost of sales		(57.8)	(44.9)
Gross profit		49.3	41.3
Administrative expenses		(21.2)	(17.6)
Adjusted operating profit1		29.8	25.1
Costs relating to Initial Public Offering		(1.7)	(1.2)
Share-based payment expense		-	(0.2)
Operating profit		28.1	23.7
Finance income	9	0.5	0.7
Finance expense	9	(0.1)	(0.1)
Profit before taxation		28.5	24.3
Taxation	10	(7.4)	(5.6)
Profit for the year attributable to equity shareholders		21.1	18.7
Earnings per share for profit attributable to the owners of the parent
Basic and diluted (pence)	11	8.4	7.5
Other comprehensive income:
Exchange losses arising on translation of foreign operations		(0.4)	-
Deferred tax	10	(0.4)	0.4
Total comprehensive income for the period		20.3	19.1

 

1 Adjusted operating profit is a non-IFRS financial measure and is defined as statutory operating profit of £28.1 million (FY24: £23.7 million) before £1.7 million (FY24: £1.4 million) of costs related to the Group's Initial Public Offering and share-based payment for schemes closed pre-IPO.

 

The results relate to continuing operations (2024: continuing operations).

 

 

Consolidated statement of financial position

as at 31 July 2025

 

		31 Jul	31 Jul
		2025	2024
	Note	£m	£m
Non-current assets
Property, plant and equipment	13	2.0	1.7
Right-of-use assets	14	3.0	1.8
Intangible assets	15	0.1	-
Deferred tax assets	10	1.2	0.6
		6.3	4.1
Current assets
Inventories	16	22.8	19.5
Trade and other receivables	17	27.4	17.3
Cash and cash equivalents	18	18.5	18.7
		68.7	55.5
Total assets		75.0	59.6
Current liabilities
Lease liabilities	14	(0.6)	(0.3)
Trade and other payables	19	(17.1)	(9.5)
		(17.7)	(9.8)
Non-current liabilities
Deferred tax liabilities	10	(0.3)	-
Lease liabilities	14	(2.4)	(1.5)
Provision for liabilities	20	(0.3)	(0.2)
		(3.0)	(1.7)
Total liabilities		(20.7)	(11.5)
Net assets		54.3	48.1
Equity
Share capital	21	0.1	-
Share-based payment reserve		0.2	0.2
Foreign exchange reserve		0.2	0.1
Retained earnings		53.8	47.8
Total equity		54.3	48.1

 

The financial statements were approved and authorised for issue by the Board of Directors on 7 November 2025

 

Joe Pollard

Chief Financial Officer

 

 

Consolidated statement of changes in equity

for the year ended 31 July 2025

 

		Share-based	Foreign
	Share	payment	exchange	Retained	Total
	capital	reserve	reserve	earnings	equity
	£m	£m	£m	£m	£m
As at 1 August 2023	-	-	0.1	28.7	28.8
Comprehensive income:
Profit for the year	-	-	-	18.7	18.7
Share-based payments	-	-	-	0.4	0.4
Transactions with owners:
Share-based payments	-	0.2	-	-	0.2
Balance at 31 July 2024	-	0.2	0.1	47.8	48.1
Comprehensive income:
Profit for the year	-	-	-	21.1	21.1
Other comprehensive income/(loss)	-	-	0.1	(0.9)	(0.8)
Transactions with owners:
Bonus share issue	0.1	-	-	(0.1)	-
Dividends paid	-	-	-	(14.7)	(14.7)
Tax included directly in equity	-	-	-	0.6	0.6
Balance at 31 July 2025	0.1	0.2	0.2	53.8	54.3

 

 

 

Consolidated statement of cash flows

for the year ended 31 July 2025

 

		Year ended	Year ended
		31 Jul 2025	31 Jul 2024
	Note	£m	£m
Cash flows from operating activities
Operating profit		28.1	23.7
Adjustments for:
Depreciation and amortisation charges	13 & 14	1.1	0.9
Share-based payment expense	22	-	0.2
Operating cash flows before movements in working capital		29.2	24.8
Increase in inventories		(3.4)	(6.5)
Increase in trade and other receivables		(10.9)	(6.0)
Increase in trade and other payables		7.0	4.1
Net cash generated from operations		21.9	16.4
Income tax paid		(6.3)	(9.7)
Net cash inflow from operating activities		15.6	6.7
Cash flows from investing activities
Purchase of tangible fixed assets	13	(1.0)	(1.0)
Interest received		0.6	0.6
Net cash outflow from investing activities		(0.4)	(0.4)
Cash flows from financing activities
Dividends paid	12	(14.7)	-
Principal paid on lease liability	14	(0.3)	(0.3)
Interest paid on lease liability	14	(0.1)	(0.1)
Net cash outflow from financing activities		(15.1)	(0.4)
Net increase in cash and cash equivalents		0.1	5.9
Cash and cash equivalents at beginning of period		18.7	12.7
Effect of foreign exchange differences		(0.3)	0.1
Cash and cash equivalents at end of period	18	18.5	18.7

 

 

 

 

Notes to the consolidated financial statements

For the year ended 31 July 2025

 

1 General Information

Applied Nutrition plc (the "Company") is a public company limited by shares, registered and incorporated in England and Wales under the Companies Act 2006 (registered company number 09131749). The Company re-registered as a public limited company on 1 October 2024 and its ordinary share capital was listed on the Main Market of the London Stock Exchange on 24 October 2024.

 

The address of the Company's registered office is 2 Acornfield Road, Knowsley Industrial Park, Liverpool, England, L33 7UG. The Company is the parent and ultimate parent of the Group; the financial statements comprise the results of the Company and its subsidiary undertakings (the "Group"). The principal activities of the Group are the formulation, manufacture, wholesale and retail of sports nutrition, health and wellness products.

 

The consolidated financial statements were approved by the Board for issue on 7 November 2025.

 

The financial information for the year ended 31 July 2025 and the year ended 31 July 2024 does not constitute the Company's statutory accounts for those years. Statutory accounts for the year ended 31 July 2024 have been delivered to the Registrar of Companies. The statutory accounts for the year ended 31 July 2025 will be delivered to the Registrar of Companies in due course. The auditors' reports on the accounts for 31 July 2025 and the year ended 31 July 2024 were unqualified, did not draw attention to any matters by way of emphasis, and did not contain a statement under section 498(2) or 498(3) of the Companies Act 2006.

 

2 Summary of the Group's material accounting policies

The Group's material accounting policies are set out below.

 

2.1 Basis of preparation

The Group financial statements have been prepared in accordance with UK adopted International Accounting Standards (IFRS) and with the requirements of the Companies Act 2006 applicable to companies reporting under those standards. The Group financial statements have been prepared on a going concern basis and under the historical cost convention. The Directors consider it appropriate to adopt the going concern basis of accounting in preparing these financial statements.

 

The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates, which are outlined in the critical accounting estimates and judgements section of these accounting policies.

 

It also requires management to exercise its judgement in the process of applying the Group's accounting policies. The accounting policies have been applied consistently to all periods presented, other than where new policies have been adopted.

 

The consolidated financial statements are prepared in GBP. Amounts are rounded to the nearest million, unless otherwise stated.

 

2.2 Going concern

The Group's profit before taxation for the period amounted to £28.5 million (2024: £24.3 million). The Group has net assets of £54.3 million (2024: £48.1 million), including cash and cash equivalents of £18.5 million (being after the payment of a pre-IPO dividend to shareholders) compared to £18.7 million at 31 July 2024 (where there was no dividend paid). As at 31 July 2025, the Group also has £10.0 million available loan finance in the form of a Revolving Credit Facility (RCF) which has not been drawn down.

 

The Directors have considered the business activities of the Group, including the organisation's principal risks and uncertainties. With due consideration and review, the Directors have a reasonable expectation that the Group has adequate resources to operate over the assessment period, being the twelve months from the date of these financial statements. In addition, the Directors are not aware of any material uncertainties that may cast significant doubt upon the Company or Group to continue as a going concern. Consequently, the financial statements have been prepared on a going concern basis for the Group and the Company.

 

The Directors have assessed the ability of the Company and the Group to continue as a going concern using three-year cash flow forecasts prepared from 31 July 2025 to 31 July 2028. This is timeframe of the Group's most recently approved strategic plan, as approved by the Board and in addition exceeds the period over which the Group can reasonably plan capital investment with certainty given the rapid growth of the Group and change in investment that may be required to meet such growth.

 

The Directors have considered forecast expectations of performance, based on historic data, along with available funding options in case of unexpected, contingent requirements.

 

The market in which the organisation operates is forecast to grow annually in the region of 8%, or better.

 

The forecasts included several scenarios including a base case and downside case. The base case assumed revenue growth during the next 12 months on a customer-by-customer base for the top 10 customers, and then applied a standard rate of growth in line with market dynamics for the remainder of the customer base and new potential customers. Profitability and cashflow assumptions were in line with recent experience.

 

In the event of no further growth in the business it would remain profitable and cash generative in the view of management and therefore while downside scenarios with no further growth were considered they did not alter the view of management in terms of going concern. Nor did scenarios where the working capital requirement of the business increased.

 

When conducting this assessment, the Directors also considered the principal risks and uncertainties that the Group's risk management process had identified. This risk management process and an assessment of the principal risks and uncertainties are detailed in the Risk Management report. This assessment considered the risks themselves in addition to mitigating actions. Of the principal risks and uncertainties the effect of a product safety event or significant damage/disruption to the Group's manufacturing facilities were considered in detail. These are the key risks that are believed to present a risk to the going concern view of the management.

 

The successful initial public offering of the organisation on the London Stock Exchange in late 2024 has provided access to potential additional funding streams and acting as a catalyst for further, controlled, enhancement of the product range with expansion across multiple geographic locations. On 14 October 2024, the Company entered into a RCF agreement with The Royal Bank of Scotland Plc.

 

The purpose of the RCF is for general corporate and working capital purposes of the Group as well as to finance permitted acquisitions and capital expenditure of the Group.

 

The quantum of the RCF is £10,000,000 with an uncommitted accordion option for up to £10,000,000. The terms of the RCF include: (i) the Company as initial borrower, (ii) a term of 36 months, (iii) the margin being 1.7% above SONIA, (iv) the provision of quarterly financial information and an annual budget, (v) a net leverage covenant set at 2:1 (total debt to adjusted EBITDA) and interest cover (EBITDA to net finance charges) set at 3:1, (vi) the provision of guarantees by certain Group companies that become material from time to time in respect of the obligations under the RCF and (vii) secured by all asset security granted by the Company and certain other material Group companies. The Company can terminate the RCF at any time without penalty and therefore, if other forms of debt finance are more commercially beneficial, the Company can do so and utilise those other forms without charge.

 

Based on the assessment performed, and with no additional knowledge of any material uncertainty that may affect this assessment, the Directors believe it is appropriate to prepare the financial statements of the Group on a going concern basis.

 

2.3 New standards, amendments and interpretations not yet adopted

The following standards and interpretations apply for the first time to financial reporting periods commencing on or after 1 January 2024, and became effective for the Group's consolidated financial statements for the year ended 31 July 2025, none of which have a material impact on the Group:

 

·	Non-current Liabilities with Covenants (Amendments to IAS 1);
·	Amendments to IAS 1 Presentation of Financial Statements: Classification of Liabilities as Current or Non-current;
·	Amendments to IFRS 16 - Lease Liability in Sale and Leaseback; and
·	Supplier Finance Arrangements (Amendments to IAS 7 and IFRS 7).

 

The following standards, amendments and interpretations are not yet effective and have not been early adopted by the Group:

 

·	Amendments to IAS 21 Lack of Exchangeability;
·	IFRS 18 Presentation and Disclosure in Financial Statements;
·	IFRS 19 Subsidiaries without Public Accountability: Disclosures; and
·	Amendments to IFRS 9 and IFRS 7 Classification and Measurement of Financial Instruments.

 

Certain new standards, amendments to standards, and interpretations have been issued by the IASB that are effective in future accounting periods that the Group has decided not to adopt early. These standards, amendments or interpretations are not expected to have a material impact on the Group.

 

While IFRS 18 Presentation and Disclosure in Financial Statements will not have any effect on the recognition and measurement of items in the consolidated financial statements, it is expected to have a significant effect on the presentation and disclosure of certain items. These effects include changes to categorisation and sub‑totals in the statement of profit or loss, aggregation/disaggregation and labelling of information, and disclosure of management-defined performance measures. The Group is currently assessing the impact of these changes.

 

2.4 Basis of consolidation

Subsidiaries

The Group financial statements incorporate the financial statements of Applied Nutrition plc and entities controlled by the Company (its "subsidiaries") made up to 31 July each year. Control is achieved where the Company has the power to govern the financial and operating policies of an investee entity so as to obtain benefits from its activities.

 

Subsidiaries are fully consolidated from the date on which control is transferred to the Group until the date that control ceases.

 

Intercompany transactions, balances and unrealised gains (or losses) on transactions between Group companies are eliminated in preparing the consolidated accounts. Accounting policies of subsidiaries are consistent with those policies adopted by the Group.

 

The Group includes foreign entities whose functional currencies are not GBP. On consolidation, the assets and liabilities of those entities are translated at the exchange rates at the reporting date and income and expenses are translated at the weighted average rates during the period.

 

Classification of costs

Allocations of costs presented in the consolidated statement of comprehensive income are allocated to cost of sales when management deem costs are directly associated with fulfilling performance obligations under IFRS 15, including the creation of those products sold by the Group. Those costs which fall outside of these allocations, which includes all sales and marketing associated costs, are presented within administrative expenses, excluding finance expenses and taxation, in the consolidated statement of comprehensive income.

 

2.5 Revenue recognition

Revenue comprises the fair value of the consideration received, or receivable, for the sale of goods in the ordinary course of the Group's activities. Revenue is shown net of value added tax, estimated returns, rebates and discounts, and after eliminating sales within the Group.

 

IFRS 15 Revenue from Contracts with Customers is a principle-based model of recognising revenue from contracts with customers. It has a five-step model that requires revenue to be recognised when control over goods are transferred to the customer.

 

Revenue represents amounts chargeable in respect of the manufacture, wholesale and retail of products. The Group operates through a range of business‑to‑business and direct‑to‑consumer channels, with all revenue recognised at a point of time, being when control has passed to the customer under Incoterms®. Payment of the transaction price is due immediately when the customer purchases the product, or in the case of certain trade transactions, payable on set credit terms.

 

Rebates are volume based and are established on management's best estimate of the amounts necessary to meet claims by customers in respect of these rebates. A liability is calculated at the time of sale and updated at the end of each reporting period for changes in circumstances. Volume‑based rebates represent variable consideration for which the estimated variable consideration is constrained to ensure that it is highly probable that a significant reversal in the amount of cumulative revenue recognised will not occur when the rebate amount is realised.

 

2.6 Net finance costs

Finance income

Finance income comprises interest on bank deposits and is recognised on a time proportion basis using the effective interest rate method.

 

Finance expense

Finance expense comprises of interest payable and lease interest which are expensed in the period in which they are incurred.

 

2.7 Current and deferred taxation

The tax expense for the period comprises current and deferred tax. The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the UK and US, where the Group operates and generates taxable income and expenses.

 

Deferred tax balances are recognised in respect of all temporary differences that have originated but not reversed by the reporting date, except:

 

·	the recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
·	any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
·	where timing differences relate to interests in subsidiaries, the Group can control their reversal and such reversal is not considered probable in the foreseeable future.

 

Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date. Deferred tax is charged or credited to the statement of comprehensive income, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity.

Where applicable, the Group claims R&D tax reliefs in the UK in accordance with schemes set out by HM Revenue and Customs. Projects are assessed by management to ensure the claims made fit the criteria and definitions set out by HM Revenue and Customs.

 

2.8 Foreign currency translation

Transactions in foreign currencies are recorded at the exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the rate of exchange ruling at the end of the reporting period. All differences are taken to the consolidated statement of comprehensive income.

 

Details of how the Group accounts for subsidiaries operating in foreign currencies on consolidation is given in note 2.4.

 

2.9 Inventories

Inventories are stated at the lower of cost and net realisable value. Cost comprises direct materials and, where applicable, direct labour costs and an allocation of those overheads that have been incurred in bringing the inventories to their present location and condition. Cost is calculated on a weighted average cost basis. Net realisable value is the amount that can be realised from the sale of the inventory in the normal course of business after allowing for the costs of realisation. Provision is made for obsolete, slow-moving or defective items where appropriate.

 

2.10 Property, plant and equipment

All property, plant and equipment is stated at historical cost less accumulated depreciation. Historical cost includes expenditure that is directly related to the acquisition of the items. Depreciation is charged to allocate the cost of assets less their residual value over their estimated useful lives, using the straight‑line method. Depreciation is provided on the following basis:

 

·      Plant and machinery - 20% straight line

·      Fixtures and fitting - 33% straight line

·      Motor vehicles - 20% straight line

·      Computer equipment - 33% straight line

 

At each reporting period end date, the Group reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. There have been no impairment indications; however, if any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss.

 

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the statement of comprehensive income.

 

Assets under construction are not depreciated until they are put into use. All other repairs and maintenance expenditure is charged to the consolidated statement of comprehensive income during the financial period in which it is incurred.

 

2.11 Exceptional and adjusting items

Exceptional and adjusting items are material items of income and expense which, because of the nature and expected infrequency of events giving rise to them, merit separate presentation to allow shareholders to understand better the elements of financial performance in the year, so as to facilitate comparison with prior years and to assess better trends in financial performance. Generally the business is managed on a day-to-day basis on adjusted EBITDA and therefore these financial accounts provide an explanation of what management consider to be adjusted EBITDA and a reconciliation to statutory measures of profit performance.

 

2.12 Research and development

Research and development expenditure that does not meet the criteria of an intangible asset is expensed as incurred.

 

2.13 Cash and cash equivalents

Cash and cash equivalents are basic financial assets and comprise cash at bank and in hand and short-term highly liquid deposits which are subject to an insignificant risk of changes in value.

 

The Group recognises cash when it is within its control and, in accordance with IFRS 9, when it has the contractual right to obtain cash from the bank.

 

Cash in transit between Group companies at a period end is recognised within the receiving company's statement of financial position. Cash in transit to or from external entities at a period end is not recognised where the Group does not have the contractual right to obtain the cash and is therefore not deemed to exercise control over it.

 

The Group's cash recognition policies are aligned with IFRS 9 as follows: in respect of incoming receipts via electronic transfer, the Group recognises cash as a financial asset on the transfer settlement date, and not before. In respect of cheques received, the Group classifies these as 'promissory notes' and recognises within cash equivalents all cheques dated and deposited with the bank up to and including the reporting period end. In respect of card receipts, the Group recognises a cash equivalent on the transaction date as they are readily convertible to cash and the credit risk is deemed very low.

 

In respect of outgoing electronic payments, where there is often a delay between the remittance date and the transfer settlement date, the Group de-recognises the cash from financial assets (and de-recognises the associated financial liability) on the transfer remittance date, and not after, when the following conditions exist:

 

·      there is no practical ability to withdraw, stop or cancel the payment instruction;

·      there is no practical ability to access the cash to be used for settlement as a result of the payment instruction; and

·      the settlement risk associated with the electronic payment system is insignificant.

 

2.14 Financial assets

The Group classifies its financial assets at amortised cost. Management determines the classification of its financial assets at initial recognition.

 

The Group's financial assets held at amortised cost comprise trade and other receivables and cash and cash equivalents in the consolidated statement of financial position.

 

These assets are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They arise principally through the provision of goods and services to customers (e.g. trade receivables), but also incorporate other types of financial assets where the objective is to hold their assets in order to collect contractual cash flows and the contractual cash flows are solely payments of the principal and interest.

 

They are initially recognised at fair value plus transaction costs that are directly attributable to their acquisition or issue and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment.

 

2.15 Financial liabilities

The Group measures its financial liabilities at amortised cost. All financial liabilities are recognised in the statement of financial position when the Group becomes a party to the contractual provision of the instrument.

 

The Group's financial liabilities held at amortised cost comprise trade and other payables and other short-dated monetary liabilities in the consolidated statement of financial position. Trade payables and other short-dated monetary liabilities are initially recognised at fair value and subsequently carried at amortised cost using the effective interest rate method.

 

Unless otherwise indicated, the carrying values of the Group's financial liabilities measured at amortised cost represents a reasonable approximation of their fair values.

 

2.16 Impairment of assets

Carrying values of assets that are subject to depreciation or amortisation are periodically reviewed for any indicators of impairment.

 

If an impairment indicator is identified, the carrying value of the asset (or cash‑generating units to which the asset has been allocated) is tested for impairment. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount.

 

The recoverable amount is the higher of an asset's fair value less costs to sell and value in use. Non-financial assets that have been previously impaired are reviewed at each reporting date to assess whether there is any indication that the impairment losses recognised in prior periods may no longer exist or may have decreased.

Impairment provisions for trade receivables are recognised based on the simplified approach within IFRS 9 using the lifetime expected credit losses. During this process the probability of the non-payment of the trade receivables is assessed. This probability is then multiplied by the amount of the expected loss arising from default to determine the lifetime expected credit loss for the trade receivables.

 

 

 

 

2.17 Equity instruments

Equity is the residual interest in the assets of the Company after deducting all liabilities and comprises the following:

 

·	'share capital' represents the nominal value of equity shares;
·	'share-based payment reserve' represents the cumulative fair value of options charged to the statement of profit or loss;
·	'foreign exchange reserve' represents the cumulative value of foreign currency translation differences; and
·	'retained earnings' represents retained earnings less retained losses net of dividends and other adjustments.

 

2.18 Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense unless those costs are required to be recognised as part of the cost of inventory or fixed assets. The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received. Termination benefits are recognised immediately as an expense when the Group is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

 

2.19 Retirement benefit plans

The Group operates a defined contribution pension scheme. Contributions to the scheme are charged to the statement of profit or loss and other comprehensive income in the period to which the contributions relate. The assets of the scheme are held separately from those of the Group.

 

2.20 Provisions

Provisions are recognised when the Group has a present or legal constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. Provisions are recorded for the estimated ultimate liability that is expected to arise, taking into account the time value of money.

 

A provision against lease dilapidations has been made based on senior management's assessment of likely costs after assessing historical expenditure.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation.

 

Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

 

2.21 Leased assets

At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

 

To assess whether a contract conveys the right to control the use of an identified asset, the Group assesses whether: an identified physically distinct asset can be identified; and the Group has the right to obtain substantially all of the economic benefits from the asset throughout the period of use and has the ability to direct the use of the asset over the lease term being able to restrict the usage of third parties as applicable.

 

All leases are accounted for by recognising a right-of-use asset and a lease liability except for:

 

·      leases of low‑value assets; and

·      leases with a duration of twelve months or less.

 

Lease liabilities are measured at the present value of the contractual payments due to the lessor over the lease term, with the discount rate determined by reference to the rate inherent in the lease unless (as is typically the case) this is not readily determinable, in which case the Group's incremental borrowing rate on commencement of the lease is used.

 

On initial recognition, the carrying value of the lease liability also includes:

 

·	amounts expected to be payable under any residual value guarantee;
·	the exercise price of any purchase option granted in favour of the Group if it is reasonably certain to access that option; and
·	any penalties payable for terminating the lease, if the term of the lease has been estimated on the basis of the termination option being exercised.

 

Right‑of‑use assets are initially measured at the amount of the lease liability, reduced for any lease incentives received, and increased for:

 

·	lease payments made at or before commencement of the lease;
·	initial direct costs incurred; and
·	the amount of any provision recognised where the Group is contractually required to dismantle, remove or restore the leased asset.

 

Subsequent to initial measurement lease liabilities increase as a result of interest charged at a constant rate on the balance outstanding and are reduced for lease payments made. Right-of-use assets are amortised on a straight-line basis over the remaining term of the lease or over the remaining economic life of the asset if, rarely, this is judged to be shorter than the lease term. When the Group revises its estimate of the term of any lease (because, for example, it re-assesses the probability of a lessee extension or termination option being exercised), it adjusts the carrying amount of the lease liability to reflect the payments to make over the revised term, which are discounted at the revised discount rate applicable at the date of estimation. An equivalent adjustment is made to the carrying value of the right-of-use asset, with the revised carrying amount being amortised over the remaining (revised) lease term.

 

Where the Group's property leases contain variable payment terms, payments determined as variable are treated as a charge to the consolidated statement of comprehensive income and not capitalised. Variable lease payments are only included in the measurement of the lease liability if they depend on an index or rate. In such cases, the initial measurement of the lease liability assumes the variable element will remain unchanged throughout the lease term.

 

2.22 Share-based payments

Details of the share-based payment schemes the Group operated in the year can be found in note 22 of the Group financial statements.

 

The fair value of employee services received in exchange for the grant of share awards is recognised as an expense. Equity‑settled share-based payments are measured at fair value at the date of grant and expensed on a straight-line basis over the vesting period, based on the Group's calculation of the value of shares that will vest. Cash-settled share-based payments are measured at fair value at each reporting period end and expensed on a straight‑line basis over the vesting period. The fair value of the cash‑settled share-based payments is measured using a Probability‑Weighted Expected Return Method (PWERM) model.

 

Employer social security contributions payable in connection with the grant of share awards are considered an integral part of the grant itself and the charge is treated as a cash-settled transaction.

 

2.23 Segmental reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker (CODM). The CODM, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Board of Directors of the Group. The CODM has determined that there is one single operating segment, the manufacture and sale of sports nutrition products.

 

 

 

 

3 Critical accounting estimates and judgements

The preparation of the financial information in compliance with IFRS requires the use of certain critical accounting estimates. It also requires the Group management to exercise judgement and use assumptions in applying the Group's accounting policies. The resulting accounting estimates calculated using these judgements and assumptions may, by definition, not equal the related actual results but are based on historical experience and expectations of future events. Management believe that the estimates utilised in preparing the financial information are reasonable and prudent.

 

Estimates and judgements are continually evaluated based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. In the future, actual experience may differ from these estimates and assumptions.

 

The judgements and key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial information are discussed below:

 

Share-based payments

In order to calculate the value of employee share options as required by IFRS 2, the Group makes estimates principally relating to the assumptions used in its option-pricing model. This is a key estimate used to value the share options in issue both at grant date and at the balance sheet date.

 

Deferred tax assets

Deferred tax assets are recognised if sufficient taxable income is likely to be available in the future based on management estimates and judgements. Among other factors, the forecast results from operating activities are taken into account and the Group assesses the recoverability of deferred tax assets at each balance sheet date. Since future business developments are uncertain and partly beyond the Group's control, assumptions are required to estimate future taxable income and the timing of the realisation of deferred tax assets. Estimates are adjusted in the period in which there are sufficient indications for an adjustment.

 

Discount rates

IFRS 16 states that the lease payments shall be discounted using the lessee's incremental borrowing rate where the rate implicit in the lease cannot be readily determined. Accordingly, all lease payments have been discounted using the incremental borrowing rate (IBR). The IBR has been determined by management using a range of data including current economic and market conditions, review of current debt and capital within the Group, lease length and comparisons against seasoned corporate bond rates and other relevant data points.

 

The Group makes judgements to estimate the IBR used to measure lease liabilities based on expected third‑party financing costs when the interest rate implicit in the lease cannot be readily determined. The IBR has been determined by management using a range of data including current economic and market conditions, review of current debt and capital within the Group, lease length and comparisons against other relevant data points. Significant changes in IBR would cause changes to both the value of the right-of-use assets and corresponding lease liabilities. Sensitivity analysis on the IBR, along with lease liabilities, are detailed in note 14.

 

Carrying value of trade receivables

The Group holds material trade receivable balances and the calculations of provisions for impairment are estimates of future events and therefore uncertain. IFRS 9 requires the Group to consider forward-looking information and the probability of default when calculating expected credit losses. The Group considers reasonable and supportable customer-specific and market information about past events, current conditions and forecasts of future economic conditions when measuring expected credit losses.

 

The key areas of judgement are below:

 

Allocation of licencing, selling and marketing costs

The Group allocates licencing, selling and marketing costs to administrative expenses rather than cost of sales, as these are not costs directly associated with fulfilling performance obligations under IFRS 15. This is a key area of judgement in the presentation of costs in the consolidated statement of comprehensive income. If this was changed, the cost of sales figure would be higher and overheads costs would be lower (although the impact would not be material), and there would be no net impact on the profit of the Group.

4 Revenue

All Group revenue was generated from the sale of goods and recognised at a point of time, being when control has passed to the customer. Management considers that revenue derives from one business stream, being the manufacture, wholesale and retail of sports nutrition, health and wellness products.

 

Volume‑based rebates are estimated at each period end based on variable consideration and recognised within revenue. The Group anticipates all rebates recognised will be payable at the end of each financial year.

 

Revenue by geography

 

	2025	2024
	£m	£m
United Kingdom	48.4	33.6
Europe	15.6	10.7
Rest of the World	43.1	41.9
	107.1	86.2

 

Within the Group's single business stream, revenue can be disaggregated across six product categories for the purpose of alignment with the Directors' internal reporting, being: protein, pre-workout, grab-and-go, health and wellness, weight management, and intra-workout. An additional category is presented, being 'other', which includes sales of raw materials, white label packaging and rebates where certain amounts are shown separately as they are unable to be allocated against specific product ranges.

 

Revenue by product offering

 

	2025	2024
	£m	£m
Protein	32.0	26.1
Pre-workout	18.6	19.6
Grab-and-go	18.7	12.8
Health and wellness	18.2	9.7
Weight management	5.8	7.4
Intra-workout	13.2	10.4
Other	0.6	0.2
	107.1	86.2

 

The following table provides information about contract liabilities with customers. There were no contract assets as at 31 July 2025 and 31 July 2024.

 

	2025	2024
	£m	£m
Deferred income	0.2	0.1
	0.2	0.1

 

Revenue recognised in the year that was deferred from the previous year was £0.1 million in year ended 31 July 2025 (31 July 2024: £0.1 million). The contract liabilities relate to the deferred income in respect of the wholesale and retail of sports nutritional, health and wellness products. Revenue is being recognised on the transfer of control to the customer.

 

The Group has taken the practical expedient under IFRS 15 to not disclose further details in respect of remaining revenue performance obligations at each period end presented in the financial information, as all obligations are fulfilled within one year or less.

 

5 Segmental reporting

The Chief Operating Decision Maker (CODM) has been identified as the Board of Directors. The CODM reviews the Group's internal reporting in order to assess performance and allocate resources. The CODM has determined that there is one single operating segment, the manufacture and sale of sports nutrition products.

Revenue by geography and products is set out in note 4, as required under entity‑wide disclosures when there is one single operating segment. Assets held by the Company's foreign subsidiary AN USA Holdings Inc. are immaterial to be disclosed separately.

 

 

6 Profit before taxation

Profit before taxation is stated after charging:

 

	2025	2024
	£m	£m
Depreciation of owned property, plant and equipment	0.8	0.6
Depreciation of right‑of‑use assets	0.3	0.3

 

In reporting financial information, the Group presents alternative performance measures (APMs), which are not defined or specified under the requirements of IFRS. The Group believes that these APMs, which are not considered to be a substitute for or superior to IFRS measures, provide depth and understanding to the users of the financial statements to allow for further assessment of the underlying performance of the Group.

 

The Board considers that adjusted EBITDA is the most appropriate profit measure by which users of the financial statements can assess the ongoing performance of the Group. EBITDA is a commonly used measure in which earnings are stated before net finance income, amortisation and depreciation. The Group makes further adjustments to remove items that are exceptional or are not reflective of the underlying operational performance either due to their nature or level of volatility.

 

Adjusting items and reconciliation of operating profit (an IFRS measure) to adjusted EBITDA:

 

	2025	2024
	£m	£m
Operating profit	28.1	23.7
Adjusting items:
Costs relating to Initial Public Offering	1.7	1.2
Share-based payment expense	-	0.2
Adjusted operating profit	29.8	25.1
Depreciation and amortisation	1.1	0.9
Adjusted EBITDA	30.9	26.0

 

As a result of its admission to the London Stock Exchange, the Group incurred a total of £2.9 million of costs associated with the Initial Public Offering, of which £1.2 million were recognised in the year ended 31 July 2024 and the remainder, £1.7 million, in the year ended 31 July 2025. These costs are considered exceptional in nature as a result of the relating to a one-off transaction.

 

In accordance with IFRS 2, a share-based payment expense of £nil was recognised in the year ended 31 July 2025 (2024: £0.2 million) in respect of a Director Share Option Plan created in FY21. There is not expected to be further costs in relation to this scheme.

 

All adjusting items were recognised within administrative expenses.

 

Services provided by the Company's auditors

During the year, the Group obtained the following services from the Company's auditors:

 

	2025	2024
	£m	£m
Fees payable to the Company's auditors for the audit of the Company and consolidated financial statements	0.3	0.1
Fees payable to the Company's auditors for other services:
- IPO‑related services	-	0.6
Total auditors' remuneration	0.3	0.7

7 Staff costs

The average monthly number of persons (including Directors) employed by the Group during the year was:

 

	2025	2024
	No.	No.
Directors	6	4
Warehouse/production	150	147
Office	51	44
	207	195

 

Staff costs (including Directors) are outlined below.

 

	2025	2024
	£m	£m
Wages and salaries	9.7	7.8
Social security contributions and similar taxes	0.9	0.8
Share-based payment expense (note 22)	-	0.2
Other pension costs	0.2	0.1
	10.8	8.9

 

 

8 Director remuneration

Director remuneration comprised:

 

	2025	2024
	£m	£m
Wages and salaries	0.8	0.6
Gains on exercise of share options	2.8	-
	3.6	0.6

 

There were two Directors participating in money purchase pension schemes as at the year ended 31 July 2025 (2024: two).

 

Key management personnel include all of the Directors, who together have authority and responsibility for planning, directing and controlling the activities of the Group's business. There are no key management personnel other than the Directors of the Group.

 

9 Finance income and expense

 

	2025	2024
	£m	£m
Finance income
Interest receivable	0.5	0.7
	0.5	0.7
Finance expense
Interest on lease liabilities and dilapidations	0.1	0.1
	0.1	0.1

 

 

 

 

 

 

 

 

 

 

10 Taxation

Analysis of charge in year

	2025	2024
	£m	£m
Total current tax	8.0	6.4
Adjustments in respect of prior periods	0.1	(0.2)
Total current tax	8.1	6.2
Deferred tax credit
Origination and reversal of timing differences	(0.6)	(0.3)
Adjustment in respect of prior periods	(0.1)	(0.3)
Total deferred tax	(0.7)	(0.6)
Tax charge per statement of comprehensive income	7.4	5.6
Deferred tax charge/(credit) on share‑based payments	0.4	(0.4)
Tax charge/(credit) per statement of other comprehensive income	0.4	(0.4)
Tax credit on share‑based payments	(0.6)	-
Tax credit recognised directly in equity	(0.6)	-

 

The tax charges for the years presented differ from the standard rate of corporation tax in the UK. The differences are explained below:

	2025	2024
	£m	£m
Profit on ordinary activities before tax	28.5	24.3
Tax using the Group's domestic tax rates	7.1	6.1
Effects of:
Expenses not deductible for tax purposes	0.3	0.3
Movement on unrecognised deferred tax	-	(0.1)
R&D tax claim	0.1	(0.3)
Effect of tax rates in foreign jurisdictions	0.1	-
Adjustments in respect of prior periods to current tax	0.1	(0.2)
Adjustments in respect of prior periods to deferred tax	(0.1)	(0.2)
Income not taxable	(0.1)	-
Other differences	(0.1)	-
Total tax charge	7.4	5.6

 

The applicable standard rate of corporation tax in the UK in the year ended 31 July 2025 was 25% (2024: 25%). The tax charge in the current year is higher than (2024: lower than) the standard tax charge.

 

Deferred taxation assets and liabilities

Deferred taxation is calculated in full using a tax rate of 25% (2024: 25%). The following are the principal categories of deferred taxation assets and liabilities recognised by the Group and the movements thereon during the current and prior year.

 

	2025	2024
	£m	£m
Opening balance	0.6	(0.3)
Adjustments in respect of prior periods	0.1	-
Credited to the income statement	0.6	0.5
(Charged)/credited in other comprehensive income	(0.4)	0.4
	0.9	0.6

 

	2025	2024
	£m	£m
Accelerated capital allowances	(0.3)	(0.4)
Share-based payment timing differences (note 22)	-	0.5
Tax losses	1.0	0.5
Other differences	0.2
	0.9	0.6

The net position of £0.9m (2024: £0.6m) is reflected in the statement of financial position as:

 

	2025	2024
	£m	£m
Deferred tax assets	1.2	0.6
Deferred tax liabilities	(0.3)	-
Net deferred tax asset	0.9	0.6

 

As permitted by IAS 12, deferred taxation assets and liabilities are offset when there is a legally enforceable right to offset current taxation assets against current taxation liabilities and when the deferred taxes relate to the same fiscal authority. The deferred taxation assets disclosed above are deemed to be recoverable.

 

The majority of the deferred taxation balance is expected to reverse after more than twelve months.

 

 

11 Earnings per share

Basic and diluted

 

	2025	2024
Earnings
Earnings for the purposes of basic and diluted earnings per share, being profit for the year attributable to equity shareholders (£m)	21.1	18.7
Number of shares
Weighted average number of shares (No. of shares)1	250,000,000	250,000,000
Basic and diluted earnings per share (pence)	8.4	7.5

 

1 As a result of the sub-division and re-designation of ordinary shares which took place on 23 October 2024, immediately prior to the Company's admission to the Main Market of the London Stock Exchange, the basic and diluted earnings per share have been calculated based on a total of 250 million ordinary shares.

 

The calculation of adjusted basic and diluted EPS is based on the following:

 

	2025	2024
Profit for the period (£m)	21.1	18.7
Adjusted for:
Costs relating to Initial Public Offering (£m)	1.7	1.2
Share-based payment expense (£m)	-	0.2
Tax effect of the above (£m)	(0.2)	(0.1)
Adjusted earnings (£m)	22.6	20.0
Adjusted basic and diluted earnings per share (pence)	9.1	8.0

 

 

12 Dividends

 

	2025	2024
	£m	£m
Dividend declared before admission to the Main Market of the London Stock Exchange	14.7	-
	14.7	-

 

There is no final dividend for the year ended 31 July 2025 (2024: £nil).

 

 

 

 

 

 

 

 

13 Property, plant and equipment

 

	Plant and	Fixtures and	Motor	Computer
	machinery	fittings	vehicles	equipment	Total
	£m	£m	£m	£m	£m
Cost
At 1 August 2023	1.2	0.7	0.1	0.2	2.2
Additions	0.8	0.2	-	-	1.0
At 31 July 2024	2.0	0.9	0.1	0.2	3.2
Depreciation
At 1 August 2023	0.6	0.3	-	-	0.9
Charge for the year	0.3	0.2	-	0.1	0.6
At 31 July 2024	0.9	0.5	-	0.1	1.5
Net book amount
At 31 July 2024	1.1	0.4	0.1	0.1	1.7
Cost
At 1 August 2024	2.0	0.9	0.1	0.2	3.2
Additions	0.8	0.1	-	0.1	1.0
FX differences	(0.1)	-	-	-	(0.1)
At 31 July 2025	2.7	1.0	0.1	0.3	4.1
Depreciation
At 1 August 2024	0.9	0.5	-	0.1	1.5
Charge for the year	0.4	0.2	0.1	0.1	0.8
FX differences	(0.1)	(0.1)	-	-	(0.2)
At 31 July 2025	1.2	0.6	0.1	0.2	2.1
Net book amount
At 31 July 2025	1.5	0.4	-	0.1	2.0

 

Depreciation charges are recognised in administrative expenses in the consolidated statement of comprehensive income.

 

 

14 Leased assets

	2025	2024
Number of active leases	3	3

 

The Group's leases include leasehold properties for commercial and head office use.

 

Extension, termination and break options

The Group sometimes negotiates extension, termination or break clauses in its leases. In determining the lease term, management consider all facts and circumstances that create an economic incentive to exercise an extension option, or not exercise a termination option. Extension options (or periods after termination options) are only included in the lease term if the lease is reasonably certain to be extended (or not terminated).

 

On a case-by-case basis, the Group will consider whether the absence of a break clause would expose the Group to excessive risk. Typically, factors considered in deciding to negotiate a break clause include:

 

·      the length of the lease term;

·      the economic stability of the environment in which the property is located; and

·      whether the location represents a new area of operations for the Group.

 

Incremental borrowing rate

The Group has adopted a rate with a range of 3.25% to 5.00% as its incremental borrowing rate (IBR), being the rate that the individual lessee would have to pay to borrow the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment with similar terms, security and conditions. This rate is used to reflect the risk premium over the borrowing cost of the Group measured by reference to the Group's facilities.

 

Sensitivity analysis has been performed that shows that the effect of a 1% decrease in the IBR used will cause an increase in lease liabilities of below £0.1 million as at 31 July 2025 (2024: £0.1 million) and an increase in right-of-use assets of £0.1 million (2024: £0.1 million). An increase of 1% in the IBR used will cause a decrease in lease liabilities of below £0.1 million as at 31 July 2025 (2024: same) and a decrease in right-of-use assets of £0.1 million (2024: £0.1 million).

 

Right‑of‑use assets

 

	Leasehold
	property	Total
	£m	£m
Cost
At 1 August 2023	2.5	2.5
At 31 July 2024	2.5	2.5
Depreciation
At 1 August 2023	0.4	0.4
Charge for the period	0.3	0.3
At 31 July 2024	0.7	0.7
Net book amount
At 31 July 2024	1.8	1.8
Cost
At 1 August 2024	2.5	2.5
Addition - rent modification	1.5	1.5
At 31 July 2025	4.0	4.0
Depreciation
At 1 August 2024	0.7	0.7
Charge for the period	0.3	0.3
At 31 July 2025	1.0	1.0
Net book amount
At 31 July 2025	3.0	3.0

 

Depreciation charges are recognised in administrative expenses in the consolidated statement of comprehensive income.

 

Lease liabilities

 

	Leasehold
	property	Total
	£m	£m
At 1 August 2023	2.1	2.1
Lease payments	(0.3)	(0.3)
At 31 July 2024	1.8	1.8
At 1 August 2024	1.8	1.8
Addition - rent modification	1.5	1.5
Interest expense	0.1	0.1
Lease payments	(0.4)	(0.4)
At 31 July 2025	3.0	3.0

 

The Group recognises non-current provisions for dilapidations in respect of leased properties details of which are shown in note 20. Movement on the provisions for dilapidations has been recognised in the consolidated statement of comprehensive income.

 

Lease liabilities are as follows:

 

	2025	2024
	£m	£m
Within one year	0.7	0.4
Later than one year and less than five years	2.6	1.3
After five years	-	0.3
Total including interest cash flows	3.3	2.0
Less: interest cash flows	(0.3)	(0.2)
Total principal cash flows	3.0	1.8

 

Lease liabilities are comprised of the following current and non-current amounts:

 

	2025	2024
	£m	£m
Current
Amounts due within one year	0.6	0.3
Non-current
Amounts due after more than one year	2.4	1.5
Total lease liability	3.0	1.8

 

 

15 Intangible assets

All values (cost, amortisation and net book) relating to intangible assets for the current and prior reporting year were below £0.1 million.

 

Addition of costs relating to intangible assets during 2025 was below £0.1 million, but taken together with the brought‑forward costs of intangible assets as at 1 August 2024, the closing cost of intangible assets was £0.1 million.

 

Amortisation as at 1 August 2024 and charged during 2025 totals less than £0.1 million.

 

All intangible assets during the current and prior periods related to patents and licences.

 

 

16 Inventories

	2025	2024
	£m	£m
Raw materials	12.8	10.7
Finished goods and goods for resale	10.0	8.8
	22.8	19.5

 

The cost of Group inventories recognised as an expense in year to 31 July 2025 amounted to £51.4 million (2024: £40.7 million). This is included in cost of sales. Inventory write‑offs and inventory provisions netted from gross inventory were £0.4 million for the year to 31 July 2025 (2024: £0.9 million).

 

 

17 Trade and other receivables

	2025	2024
	£m	£m
Amounts falling due within one year:
Trade receivables	26.4	17.1
Less: provision for impairment	(0.7)	(0.8)
Trade receivables - net	25.7	16.3
Corporation tax	-	0.5
Prepayments	1.7	0.5
	27.4	17.3

Trade receivables are amounts due from customers for goods sold in the ordinary course of business. They are generally due for settlement within 30 to 60 days for certain credit customers and therefore are all classified as current. Trade receivables are non‑interest bearing. The fair value of trade and other receivables is equivalent to their carrying amount.

 

Under IFRS 9, the Group is required to utilise objective evidence as well as consider forward-looking information and the probability of default when calculating expected credit losses. The maturity of assets and history of write‑offs is therefore used as an indicator as to the probability of default. Trade receivables are written off if the customer has entered into insolvency, or in the view of management there is no expectation of recovery.

 

The loss allowance as at 31 July 2025 and 31 July 2024 was determined as follows for trade receivables:

 

	Current	<30 days	31-60 days	61+ days	Total
As at 31 July 2024	£m	£m	£m	£m	£m
Expected credit loss rate	-	4.8%	10.3%	29.2%	4.8%
Total gross carrying amount	10.1	3.7	1.7	1.6	17.1
Expected credit loss	-	(0.2)	(0.2)	(0.4)	(0.8)
Total	10.1	3.5	1.5	1.2	16.3
	Current	<30 days	31-60 days	61+ days	Total
As at 31 July 2025	£m	£m	£m	£m	£m
Expected credit loss rate	-	5.8%	14.0%	12.2%	2.7%
Total gross carrying amount	19.4	2.9	1.0	3.1	26.4
Expected credit loss	-	(0.2)	(0.1)	(0.4)	(0.7)
Total	19.4	2.7	0.9	2.7	25.7

 

 

18 Cash and cash equivalents

	2025	2024
	£m	£m
Cash and cash equivalents	18.5	18.7
	18.5	18.7

 

The fair value of cash and cash equivalents is equivalent to their carrying amount.

19 Trade and other payables

	2025	2024
	£m	£m
Amounts falling due within one year:
Trade payables	10.6	3.8
Corporation tax	0.5	-
Social security and other taxes	0.3	0.2
VAT	0.5	0.6
Deferred income	0.2	0.1
Accruals	5.0	4.8
	17.1	9.5

 

Trade payables are non-interest bearing and are normally settled monthly. The fair value of trade and other payables is equivalent to their carrying amount.

 

 

 

 

 

 

 

 

 

20 Provisions

Non-current

 

	Leasehold
	property
	dilapidations	Total
	£m	£m
At 1 August 2023	0.2	0.2
At 31 July 2024	0.2	0.2
At 1 August 2024	0.2	0.2
Interest expense	0.1	0.1
At 31 July 2025	0.3	0.3

 

As part of the Group's property leasing arrangements there is an obligation to repair damage which occurs during the life of the lease, such as wear and tear. These costs have been shown separately to the lease obligation liability as detailed in note 14. The provisions are expected to be utilised by 2030 as the leases terminate. The dilapidations provision is considered a source of estimation. The provision has been calculated using historical experience of actual expenditure incurred on dilapidations and estimated lease termination dates.

 

 

21 Share capital

Allotted, called up and fully paid

 

	2025	2024
	Shares	Shares
Ordinary shares of £0.0002 each
Opening number of ordinary shares	-	-
Sub-division and re-designation of shares	250,000,000	-
Closing number of ordinary shares	250,000,000	-
A1 ordinary shares of £0.01 each
Opening number of A1 ordinary shares	5,433	5,800
Bonus issue	2,711,067	-
Re-designation of shares	(2,716,500)	(367)
Closing number of A1 ordinary shares	-	5,433
A2 ordinary shares of £0.01 each
Opening number of A2 ordinary shares	943	1,000
Bonus issue	470,557	-
Re-designation of shares	(471,500)	(57)
Closing number of A2 ordinary shares	-	943
B ordinary shares of £0.01 each
Opening number of B ordinary shares	3,136	3,200
Bonus issue	1,564,864	-
Re-designation of shares	(1,568,000)	(64)
Closing number of B ordinary shares	-	3,136
D ordinary shares of £0.01 each
Opening number of D ordinary shares	488	-
Bonus issue	243,512	-
Re-designation of shares	(244,000)	488
Closing number of D ordinary shares	-	488
Closing number of shares	250,000,000	10,000

 

 

	2025	2024
	£	£
Ordinary shares of £0.0002 each
Opening value of ordinary shares	-	-
Sub-division and re-designation of shares	50,000.00	-
Closing value of ordinary shares	50,000.00	-
A1 ordinary shares of £0.01 each
Opening value of A1 ordinary shares	54.33	58.00
Bonus issue	27,110.67	-
Re-designation of shares	(27,165.00)	(3.67)
Closing value of A1 ordinary shares	-	54.33
A2 ordinary shares of £0.01 each
Opening value of A2 ordinary shares	9.43	10.00
Bonus issue	4,705.57	-
Re-designation of shares	(4,715.00)	(0.57)
Closing value of A2 ordinary shares	-	9.43
B ordinary shares of £0.01 each
Opening value of B ordinary shares	31.36	32.00
Bonus issue	15,648.64	-
Re-designation of shares	(15,680.00)	(0.64)
Closing value of B ordinary shares	-	31.36
D ordinary shares of £0.01 each
Opening value of D ordinary shares	4.88	-
Bonus issue	2,435.12	-
Re-designation of shares	(2,440.00)	4.88
Closing value of D ordinary shares	-	4.88
Closing value of share capital	50,000.00	100.00

 

There is a single class of ordinary shares in issue. There are no restrictions on dividends or the repayment of capital. Shareholders are entitled to one voting right per share.

 

Re-designation of shares

On 31 January 2024, 116 A1 ordinary shares, 20 A2 ordinary shares and 64 B ordinary shares were re-designated into 200 D ordinary shares of £0.01 each.

 

On 18 April 2024, 171 A1 ordinary shares and 29 A2 ordinary shares were re-designated into 200 D shares of £0.01 each.

 

On 6 June 2024, 42 A1 ordinary shares and 8 A2 ordinary shares were re-designated into 50 D ordinary shares of £0.01 each.

 

On 7 June 2024, 38 A1 ordinary shares were re-designated into 38 D ordinary shares of £0.01 each.

 

On 24 September 2024, a shareholders' resolution was passed in respect of a bonus issue of 4,990,000 new ordinary shares. A sum of £49,900 was capitalised from the Company's distributable reserves and appropriated to the shareholders of the Company in proportion to the number of ordinary shares (A1, A2, B and D) in the Company held by them respectively. As a result of the bonus issue, the total number of ordinary shares in issue increased to 5,000,000 and the resultant share capital increased to £50,000. This transaction was required to facilitate the Company's re-registration as a PLC.

 

On 23 October 2024, immediately prior to the Company's admission to the Main Market of the London Stock Exchange, each of the 2,716,500 A1 ordinary shares of £0.01 each, 471,500 A2 ordinary shares of £0.01 each, 1,568,000 B ordinary shares of £0.01 each and 244,000 D ordinary shares of £0.01 each in the capital of the Company were sub-divided and re-designated as 250,000,000 ordinary shares of £0.0002 each in the capital of the Company.

 

 

22 Share-based payments

In the year ended 31 July 2025, the Group operated one equity-settled share-based payment plan established following the Company's admission to the London Stock Exchange and described below. In the year ended 31 July 2024, the Group operated one equity‑settled share-based payment plan, all open options of which were exercised in the year to 31 July 2025 and the scheme is now closed. The Group recognised a total charge of £0.2 million in respect of the equity-settled share-based payment transactions in the year ended 31 July 2024. As a result of the exercise and closing of the scheme, there are no outstanding share options at 31 July 2025.

 

In the year ended 31 July 2025, the Group operated one cash-settled share-based payment plan (2024: one).

 

The Group recognised a total charge of £nil in respect of the cash-settled share-based payment transactions in the year ended 31 July 2025 (2024: £nil). The fair value of the cash‑settled share-based payments is measured using a Probability‑Weighted Expected Return Method (PWERM) model which resulted in an outcome that was deemed not material. As at 31 July 2025, AN USA Holdings Inc.'s CEO owned 10% of the shares in issue of AN USA Holdings Inc.; as the shares held no rights to vote, or receive dividends, and could only be bought back by AN USA Holdings Inc. at a predetermined formulaic price and is therefore treated as a cash settled share-based payment scheme.

 

Long-term Incentive Plan (LTIP)

In the year ended 31 July 2025, the Group established an equity‑settled LTIP which forms a key component of the overall remuneration package for Executive Directors, further details of which can be found in the Directors' Remuneration Report. The scheme will apply from the year ending 31 July 2026 and therefore in the year to 31 July 2025 no share awards were made and the Group recognised a total charge of £nil in respect of the LTIP's equity‑settled share-based payment transactions (2024: £nil).

 

 

23 Financial instruments

Financial assets

The Group's financial instruments comprise cash and cash equivalents, lease liabilities and items such as trade and other receivables and trade and other payables, which arise from its operations. The carrying amounts of all of the Group's financial instruments are measured at amortised cost. Financial assets do not include prepayments. Financial liabilities do not include deferred income and other taxation and social security.

 

	2025	2024
	£m	£m
Trade receivables	25.7	16.3
Cash and cash equivalents	18.5	18.7
	44.2	35.0

 

Financial liabilities

Financial liabilities measured at amortised cost comprise trade payables, other payables, and accruals. It does not include deferred income and other taxation and social security.

 

	2025	2024
	£m	£m
Trade payables	10.6	3.8
Accruals	5.0	4.8
Lease liabilities	3.0	1.8
	18.6	10.4

 

Financial risk management

The Group is exposed through its operation to the following financial risks: credit risk, interest rate risk, foreign exchange risk and liquidity risk. Risk management is carried out by the Directors. The Group uses financial instruments to provide flexibility regarding its working capital requirements and to enable it to manage specific financial risks to which it is exposed.

 

The Group finances its operations through cash and liquid resources and various items such as trade debtors and trade payables which arise directly from the Group's operations.

 

Credit risk

Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations. In order to minimise the risk, the Group endeavours only to deal with companies which are demonstrably creditworthy and this, together with the aggregate financial exposure, is continuously monitored. The Group's review includes external ratings, where available, and purchase limits are established for each customer, which represents the maximum open amount without requiring approval from the Group's finance function. The maximum exposure to credit risk is the carrying value of its financial receivables, trade and other receivables and cash and cash equivalents as disclosed in the notes to the Group financial statements.

 

The aged receivables analysis is evaluated on a regular basis for potential doubtful debts, considering historic, current and forward-looking information. No impairments to trade receivables have been made to date. Further disclosures regarding trade and other receivables are provided within the notes to the Group financial statements.

 

Credit risk also arises on cash and cash equivalents and deposits with banks and financial institutions. For banks and financial institutions, only independently rated parties with minimum rating 'B+' are accepted. Currently, the financial institution where the Group holds significant levels of cash is The Royal Bank of Scotland plc, which is rated higher than B+ by all four major credit reference agencies.

 

Interest and market rate risk

As at 31 July 2025, the Group had no current borrowings and used no finance facilities or debt structures to co-ordinate business. Therefore, interest and market rate risk exposure for the Group is minimal. The Group's policy aims to manage the interest cost of the Group within the constraints of its financial borrowings.

 

The Group has entered into significant leases for assets, namely leasehold properties, under fixed interest rate terms. This means that the interest rate charged on these leases is fixed for the entire term of the lease, regardless of changes in market interest rates.

 

If market interest rates rise, the Group's fixed-rate leases will become less attractive to potential lessors, as they would be able to obtain better rates elsewhere. On renewal of these leases, this could result in the Group having to renew or renegotiate these leases at higher rates, which would increase its operating costs and potentially reduce its profitability.

 

The Group looks to mitigate this risk by committing to lease agreements in respect of leasehold properties in advance of the end of lease terms, ensuring management can manage and plan for interest rate change.

 

Foreign exchange risk

Foreign exchange risk arises when the Group enters into transactions in a currency other than their functional currency. The Group's policy is, where possible, to settle liabilities denominated in a currency other than its functional currency with cash already denominated in that currency. Where Group entities have liabilities denominated in a currency other than their functional currency (and have insufficient reserves of that currency to settle them), cash already denominated in that currency will, where possible, be transferred from elsewhere in the Group.

 

 

 

 

 

The Group's exposure to foreign currency risk at the end of the respective reporting period was as follows:

 

	2025	2024
	£m	£m
Cash
USD	0.5	0.3
Total cash	0.5	0.3
Trade receivables
USD	0.8	0.5
Total trade receivables	0.8	0.5
Trade payables
USD	0.6	0.3
Total trade payables	0.6	0.3

 

The effect of a 10% strengthening and 10% weakening of the US dollar against sterling would result in the following impact to the consolidated statement of profit or loss and other comprehensive income:

 

	2025	2024
	£m	£m
10% strengthening	(0.1)	(0.1)
10% weakening	0.1	0.1

 

Liquidity risk

Liquidity risk arises from the Group's management of working capital and the finance charges and repayments of its financial liabilities. It is the risk that the Group will encounter difficulty in meeting its financial obligations as they fall due. The Group seeks to maintain sufficient cash balances and management review cash flow forecasts on a regular basis to determine whether the Group has sufficient cash reserves to meet future working capital requirements and to take advantage of business opportunities.

 

A maturity analysis of the Group's financial liabilities and lease liabilities is shown below:

 

	2025	2024
	£m	£m
Less than one year:
Trade and other payables	10.6	3.8
Accruals	5.0	4.8
Lease liability	0.7	0.4
	16.3	9.0

 

Later than one year and less than five years:
Lease liability	2.6	1.3
After five years:
Lease liability	-	0.3
	18.9	10.6
Less: interest cash flows:
Lease liability	(0.3)	(0.2)
Total less interest cash flows	18.6	10.4

 

Capital risk management

The capital structure of the business consists of cash and cash equivalents and equity. Equity comprises share capital and retained earnings and is equal to the amount shown as 'Equity' in the balance sheet.

 

 

The Group's current objectives when maintaining capital are to:

·      safeguard the Group's ability as a going concern so that it can continue to pursue its growth plans;

·      provide a reasonable expectation of future returns to shareholders; and

·      maintain adequate financial flexibility to preserve its ability to meet financial obligations, both current and long term.

 

The Group sets the amount of capital it requires in proportion to risk. The Group manages its capital structure and adjusts it in the light of changes in economic conditions and the risk characteristics of underlying assets. In order to maintain or adjust the capital structure, the Group may issue new shares or sell assets.

 

 

24 Investments in subsidiaries

The subsidiaries of the Group, all of which have been included in these consolidated financial statements, are as follows:

			Percentage of	Proportion of
		Country of	voting	ordinary shares
Subsidiary	Principal activity	incorporation	rights held	held by Group
AN USA Holdings Inc.	Sale of sports nutrition products	United States of America	2025: 100%	2025: 90%
			(2024: 100%)	(2024: 90%)
Applied Nutrition Colombia SAS	Dormant	Colombia, South America	2025: 100%	2025: 100%
			(2024: 100%)	(2024: 100%)

 

The Group holds direct investments in all subsidiaries.

 

On 4 June 2024, AN USA Holdings Inc.'s CEO was issued 10,000 class A shares. The shares held required employment of the individual in years one, two and three, with a further option contained with the ability to sell one‑third of the shares per annum, starting from the fourth year of service thereafter to AN USA Holdings Inc. at a set predetermined formulaic price (based on the financial performance/a financial metric rather than equity value). The class A shareholders held no rights to vote, nor receive dividends.

 

The A shares represent a long-term employment benefit under IAS 19 across the service of employment. As at 31 July 2025, the employee benefit expense accrued was £nil, as the potential liability was immaterial.

 

As at 31 July 2025, AN USA Holdings Inc.'s CEO owned 10% of the shares in issue of AN USA Holdings Inc.; as the shares held no rights to vote, or receive dividends, and could only be bought back by AN USA Holdings Inc. at a predetermined formulaic price, it is concluded the AN USA Holdings Inc.'s CEO held no rights to AN USA Holdings Inc.'s equity outside of the predetermined formula, and thus no non-controlling interest (NCI) existed. No recognition of NCI was recognised as at 31 July 2025, nor was any recognised as at 31 July 2024.

 

 

25 Related party transactions

The Group's related parties include its subsidiary undertakings, key management personnel (comprising the Executive and Non‑Executive Directors), their closely related family members and shareholders with significant influence. Transactions and balances between the parent and its subsidiaries have been eliminated upon consolidation and are not disclosed.

 

Key management compensation

The remuneration of key management personnel, comprising the Executive and Non-Executive Directors of the Company, is set out below in aggregate for each of the categories specified in IAS 24 Related Party Disclosures:

 

	2025	2024
	£m	£m
Short-term employee benefits (salary and bonus)	0.9	0.6
Share-based payment expense	-	0.2
	0.9	0.8

Dividend

The following dividends were paid to Directors of the Company during their term of office, or other related party:

 

	2025	2024
	£m	£m
Thomas Ryder	7.9	-
Steven Granite	1.4	-
Blythe Investments	0.3	-
Scate Limited	0.1	-
Joe Pollard	0.1	-
JD Sports Fashion plc	4.6	-

 

Blythe Investments and Scate Limited are related parties by virtue of the fact they are considered to be controlled by Directors of the Company.

 

Shareholders with significant influence

As a result of the Group's IPO on 24 October 2024, JD Sports Fashion plc reduced its shareholding from 31.36% to less than 10% of the issued shared capital of Applied Nutrition plc. As such, the entity no longer meets the definition of an associate company as described by IAS 28 Investments in Associates and Joint Ventures. Similarly, JD Sports Fashion plc no longer meets the definition of related party, as described by IAS 24 Related Party Disclosures.

 

Other related party transactions

 

	2025	2024
	£m	£m
Sales (during the period of being a related party)	0.3	1.2
Amount due at period end	n/a	0.1

 

The above transactions were with JD Sports Gyms Limited, which was considered a related party by virtue of its ownership via JD Sports Fashion plc. This ceased to be the case after the IPO of the Group and therefore the above disclosure relates only to the period it was considered to be a related party.

 

There were no other amounts due to or from related parties as at 31 July 2025 (2024: none). The Group has not made any allowance for bad or doubtful debts in respect of related party debtors nor has any guarantee been given or received during the historical financial period regarding related party transactions.

 

 

26 Retirement benefit plans

The Group operates a defined contribution retirement benefit plan for all qualifying employees. The assets of the plan are held separately from those of the Group in funds under the control of trustees. The total expense recognised in the statement of profit or loss and other comprehensive income of £0.2 million (2024: £0.1 million) represents contributions payable to this plan by the Group at rates specified in the rules of the plan. Amounts totalling less than £0.1 million (2024: less than £0.1 million) were outstanding at the balance sheet date.

 

 

 

 

 

 

 

 

 

 

 

 

 

27 Changes in liabilities from financing activities

 

				New
		Financing		borrowings	Non-cash
	2023	cash flows	Interest	non-cash	changes	2024
	£m	£m	£m	£m	£m	£m
Lease liabilities	2.1	(0.3)	-	-	-	1.8
Total liabilities from financing activities	2.1	(0.3)	-	-	-	1.8
				New
		Financing		borrowings	Non-cash
	2024	cash flows	Interest	non-cash	changes	2025
	£m	£m	£m	£m	£m	£m
Lease liabilities	1.8	(0.4)	0.1	-	1.5	3.0
Total liabilities from financing activities	1.8	(0.4)	0.1	-	1.5	3.0

 

 

28 Post balance sheet events

There have been no material post balance sheet events that would require disclosure or adjustment to these financial statements.

 

 

Alternative Performance Measures

 

The financial information included in this document includes alternative performance measures (APMs) that are not recognised under IFRS and are unaudited. The Directors believe that these non-IFRS measures provide useful information with respect to the performance of the Group's business and operations. Prospective investors should not consider such non-IFRS measures as an alternative to the IFRS measures included in the financial statements.

 

Adjusted EBITDA

Adjusted EBITDA is calculated as the Group's operating profit before interest, taxes, depreciation and amortisation and excluding the impact of exceptional items, share-based payments and significant non-underlying items. A reconciliation is presented in note 6 of the consolidated financial statements.

 

Adjusted EBITDA margin

Adjusted EBITDA margin is calculated as the Group's adjusted EBITDA (as defined above) expressed as a percentage of revenue of the Group.

 

Adjusted basic and diluted earnings per share (EPS)

Adjusted basic and diluted EPS is calculated as adjusting the Group's earnings per share for the impact of exceptional items, share-based payments and significant non-underlying items, and also takes into account the taxation effect thereon. A reconciliation is presented in note 11 of the consolidated financial statements.

 

Free cash flow

Free cash flow is calculated as the Group's net cash from operating activities, less capital expenditure, plus/minus net interest, less lease payments, adjusted for exceptional items, share-based payments and significant non-underlying items.

 

Free cash flow conversion

Free cash flow conversion is calculated as the Group's free cash flow (as defined above) measured as a percentage of adjusted profit after tax.

 

Principal risks and uncertainties

 

The Group faces a number of risks and uncertainties that may have an adverse impact on the Group's operation, results, financial condition and prospects.

 

The Board has overall responsibility for oversight of risk and for maintaining a robust risk management system. The Group's Audit and Risk Committee (ARC) supports the Board with the management of risk, with the day-to-day management delegated by the Board to the Executive Committee.

 

A more detailed explanation of the risks currently faced by the Group and how the Company seeks to mitigate those risks will be available in the risk management section of the Group's Annual Report and Accounts for the year ended 31 July 2025.

 

Risk identified	Risk description and impact
Product safety and quality	Any product quality issues or product non-compliance with accreditation standards could be damaging to the Group's reputation, and could impact its ability to provide certain products to customers.  In turn, this could adversely impact the Group's business and financial position.
Damage or disruption to manufacturing facilities	All of the Group's manufacturing operations and the majority of its warehousing are housed over two buildings on a single site.  Extraordinary events such as fire, structural collapse, machinery or mechanical failure, closures of primary access routes, flooding or other severe weather conditions could adversely affect the Group's ability to fulfil orders and adversely impact the Group's financial condition.
Loss of key members of management	The Group's performance relies heavily on the efforts and abilities of its Directors and senior management team, with whom a substantial amount of business knowledge is concentrated.  The Group may be adversely affected by the loss of one or more of its key personnel.
Reliance on key customer relationships	The Group's main route to market is through B2B sales to distributors and retailers.  The loss of a significant customer relationship could have an adverse effect on the Group's business and financial condition.
Health and safety incidents	The nature of the Group's operations across manufacturing and warehousing results in an elevated risk of health and safety incidents.
Implementation of growth strategy	There is a risk that factors beyond the Group's control will limit the Group's ability to enact and deliver all elements of its growth strategy.
Global political and economic uncertainty	As a global business, the Group is exposed to arrange of economic conditions in certain markets, as well as broader macroeconomic factors and potential instability in the geopolitical environment.
Non-compliance with laws, regulations and best practices including corporate social responsibility and ethical sourcing	The Group's products are subject to a range of regulations in the UK, Europe and other territories concerning product liability/safety and, in certain markets, the Group places reliance on the market expertise and local knowledge of the relevant customer in that territory.  In addition, the Group is exposed to a range of other laws, regulations and best practice guidelines in a wide range of areas. This increased post the listing of the Company on the London Stock Exchange. Any failure, or perceived failure, by the Group to comply with any of those regulations or best practice guidelines could result in potential litigation, damage to the Group's reputation and a loss of revenue.
Reliance on IT systems and risk of cyber breach	The Group's operational and financial management are dependent on third-party and "cloud-based" IT systems.  Any significant disruption in service, whether malicious or otherwise, could prevent the business from operating effectively and result in reputational damage.
Credit risk	The Group offers credit terms to some customers which may not be repaid creating a material financial loss.
New product development	A driver of the Group's continued success is its ability to anticipate, gauge and react in a timely and cost-effective manner to changes in consumer preferences and trends.  If consumer sentiment or preferences change materially in a way which is adverse to Applied Nutrition, the Group's revenue and profitability could decrease.
Pricing and availability of raw materials	External factors may result in the Group being vulnerable to fluctuations in the pricing and availability of raw materials with an adverse impact on production schedules and pressure on product margins. Such factors include natural disasters, global conflicts, political instability, inflation and changes in the supply and demand of commodities, fuel prices and freight costs.