1 July 2025

Supreme plc

("Supreme," the "Company" or the "Group")

Audited Financial Statements for the year ended 31 March 2025

·    Robust trading across FY25, underpinned by earnings-enhancing acquisitions

·    Record level of Adjusted EBITDA¹, up 6% to £40.5 million

·    Diversification ambitions accelerated by the acquisitions of Typhoo Tea and Clearly Drinks

·    Delivered major enhancements to in-house manufacturing capacity and capabilities

Supreme (AIM:SUP), a leading brand owner, manufacturer, and supplier of fast-moving consumer goods, announces its audited results for the year ended 31 March 2025 ("FY25" of "the Period").

Financial Highlights

·      Strong Adjusted EBITDA¹ growth of 6% with record levels of £40.5 million achieved (FY24: £38.1 million).

·      Revenue growth of 4% to £231.1 million, thanks to acquisitions plus strong sales traction across the product mix with our vaping products (both owned and branded, now reported under a unified category) continuing to perform well.

·      Drinks & Wellness doubled to £48.8 million (FY24: £23.9 million) boosted by the acquisitions of Clearly Drinks and Typhoo Tea.

·      Gross profit % of 32% (FY24: 29%), growth of 10%, as a result of increased manufacturing across the Group with the addition of Clearly Drinks as well as efficiencies across the business.

·      Positive Adjusted net cash position at year end after investing £25.6 million in strategic acquisitions.

Operational Highlights

·      Strategic M&A activity supported the Group's diversification ambitions, adding approximately £40 million of profitable, annualised non-vape revenue to the Group.

·      Delivered major enhancements to in-house manufacturing capacity and capabilities, supporting future growth across multiple product categories.

·      Successfully relocated to a new, purpose-built head office and operational hub in Trafford Park, Manchester, reflecting the scale and ambition of the business.

·      Renewed £40 million borrowing facility to continue to underpin ongoing investment in strategic acquisitions and innovation-led growth initiatives.

Dividend

·    A final dividend, subject to shareholder approval at the Annual General Meeting on 18 September 2025, of 3.4 pence per share.

·    The Group paid an interim dividend of 1.8 pence per share, which together with the final dividend would take total dividends for the year to 5.2 pence per share, an 10% increase on the prior year dividend.

Outlook / Current Trading

·    Supreme has made a positive start to FY26 and expects to deliver another profitable and highly cash-generative year, trading in line with current market expectations⁵.

·    Alongside an ongoing focus on accelerating organic growth, strategic cross-selling, and new product R&D, the Group remains committed to exploring complementary acquisitions to further exploit Supreme's premier distribution footprint.

·    Supreme is ideally positioned to accelerate new business exploration activities, deliver continued organic growth, and target further profit margin improvements, all while ensuring the Group continues to offer consumers great quality products at affordable prices - pivotal in the current economic climate.

Sandy Chadha, Chief Executive Officer of Supreme, commented:

"I am pleased to report another strong performance from Supreme, which has seen the business extend its sector reach through a number of highly complementary acquisitions.

Across the year, the team has been focused on enhancing our in-house manufacturing capabilities alongside further consolidating our distribution footprint, punctuated by our new Manchester HQ, The Ark, being fully operational.

With our more recent acquisitions of Clearly Drinks and Typhoo Tea now fully integrated into the business, our team is now fully focused on leveraging both cross and up-sell opportunities alongside developing an exciting range of new products to deliver to market.

As a business, we remain firmly committed to further expanding our product set, ensuring our customers have access to a diverse range of competitively priced products, and I look forward to updating all our stakeholders later in the year on our continued progress."

Retail Investor Presentation

A presentation for retail investors covering the results for the year ended 31 March 2025 will be held at 2.30 p.m. on Tuesday, 1 July 2025.

The online presentation is open to all existing and potential shareholders and registration is free. Questions can be submitted during the presentation and will be addressed at the end.

To register for the event, please go to: https://www.equitydevelopment.co.uk/news-and-events/supreme-fy-results-investor-presentation-1july2025

^1. Adjusted EBITDA means operating profit before depreciation, amortisation and Adjusted items (as defined in Note 7 of the financial statements). Adjusted items include share-based payments charge, fair value movements on non-hedge accounted derivatives and non-recurring items.

^2. Adjusted Profit before tax means profit before tax and Adjusted items (as defined in Note 7 of the financial statements) Adjusted items include share-based payments charge, fair value movements on non-hedge accounted derivatives and non-recurring items.

^3. Adjusted EPS means Earnings per share, where Earnings are defined as profit after tax but before amortisation of acquired intangibles and Adjusted items (as defined in Note 7 of the financial statements). Adjusted items include share-based payments, fair value movements on non-hedge accounted derivatives and non-recurring items.

^4. Adjusted net cash means net debt as defined in Note 20 to these financial statements excluding the impact of IFRS16.

^5. Analysts' consensus immediately before this announcement for the year ending 31 March 2026 was revenue of £236 million and Adjusted EBITDA¹ of £36.5 million.

Enquiries:

About Supreme

Supreme supplies products across three operating divisions: Vaping (previously known as 'Vaping' and 'Branded Distribution'), Drinks & Wellness ('Sports Nutrition & Wellness' combined with Typhoo Tea and Clearly Drinks), and Electricals (previously 'Batteries' and 'Lighting'). The Company's capabilities span from product development and manufacturing through to its extensive retail distribution network and direct to consumer capabilities. This vertically integrated platform provides an excellent route to market for well-known brands and products.

The Group has over 3,000 active business accounts with retail customers who manage over 10,000 branded retail outlets. Customers include B&M, Home Bargains, Poundland, Tesco, Sainsburys, Morrisons, Amazon, The Range, Costcutter, Asda, Halfords, Iceland, Waitrose, Aldi and HM Prison & Probation Service.

In addition to distributing globally-recognised brands such as Duracell, Energizer and Panasonic, and supplying lighting products exclusively under the Energizer, Eveready, Black & Decker and JCB licences across 45 countries, Supreme has also built a strong portfolio of in-house brands, most notably 88Vape. The Company has a growing footprint in Sports Nutrition & Wellness via its principal Sci-MX brand, and has recently expanded into the soft drinks and hot beverages markets with the acquisitions of Typhoo Tea and Clearly Drinks, adding well-known and established brands to its portfolio.

https://investors.supreme.co.uk/

Chairman's Statement

I am pleased to report that Supreme traded strongly across FY25, achieving solid topline growth while effectively managing our cost base to ensure that we are well positioned to meet our long-term targets. Through strategic beverage business acquisitions, we entered new markets which have provided diversified revenue streams and new touchpoints for our ever-growing retail network. Concurrently, we prudently navigated well-publicised regulatory changes to the UK's vaping landscape to deliver a solid performance in that segment.

Our three newly consolidated categories - Electricals (formerly the separate categories Batteries and Lighting), Vaping (largely consisting of the previous Vaping and Branded Distribution categories), and Drinks & Wellness (formerly Sports Nutrition & Wellness plus the addition of soft drinks via the acquisition of Clearly Drinks Limited and the newly-acquired Typhoo Tea business) - have performed well and are profitable and resilient.

Supreme delivered a record financial performance in FY25 and ended the Period in a positive Adjusted net cash adjusted position after investing £25.6 million in strategic acquisitions. The Group delivered revenue growth of 4% to £231.1 million (FY24: £221.2 million), and Adjusted EBITDA of £40.5 million (FY24: £38.1 million), representing an increase of 6%. 

FY25 was another solid year for Supreme's Vaping division. Whilst revenue for the consolidated category, which now includes ElfBar and Lost Mary product distribution, reduced by £11.4 million, this was due to the inevitable reduction in UK disposable vape sales of £16.6 million as retailers began preparing for the disposable vapes ban which officially came into effect on 1 June 2025. The remainder of the category revenue grew by £5.3 million (growth of 8%) and achieved gross margin gains as a result of manufacturing efficiencies and scale benefits. Our Drinks & Wellness category doubled revenue to £48.8 million (FY24: £23.9 million). The Sports Nutrition & Wellness products within this category grew by £1 million thanks to the excellent performance of existing brands (principally Sci-MX), whilst the remainder of the growth arose from the acquisitions of Clearly Drinks in June 2024 and Typhoo Tea in November 2024. The increased synergies that these transactions have generated have enabled us to accelerate new product development and explore opportunities to cross-sell and upsell innovative and in-demand products to existing and potential customers. As we commenced operations in the Soft Drinks market earlier this year, we decided to consolidate this category and our long-standing Sports Nutrition & Wellness segment to streamline our increasingly diversified product offering.

Our newly consolidated Electricals category experienced a 6% reduction in revenue, reflecting an overall market decline. Our work across the Lighting and Batteries markets continues to be a low-maintenance, cash-generative source of income for the business and an important touchpoint with our retail customers.

FY25 was a year of uncertainty for many UK and global businesses. During the period, we successfully navigated inflationary pressures, regulatory developments, and broader concerns around global trade to achieve stable growth, and, most importantly, upheld our commitment to providing consumers with easy access to high-quality, low-price products.

Regarding our broader exposure to the UK vaping market, Supreme remains supportive of the UK Government's policy. We were appropriately prepared for the ban on disposable vapes that was implemented on 1 June 2025, and we have managed the transition to pods and other vaping alternatives responsibly, having retained all major customers. As a leading player in the UK's vaping industry, we continue to provide our counsel to the Government, having advised on legislation around taxation on vaping.

Supreme holds a strong stance against underage vaping, as demonstrated by our proactive measures such as redesigning packaging and renaming our own-brand flavours to ensure our products do not attract individuals younger than 18 years old. Vaping is an effective and affordable smoking cessation tool and we firmly believe that adults looking to quit smoking should be supported in the most cost-effective and low-risk way.

As part of our wider diversification strategy, we are delighted to now be an active player in the soft drinks sector following the immediately earnings-enhancing acquisition of Clearly Drinks Ltd for £15.6 million in June 2024 (net of cash acquired). Clearly Drinks has been seamlessly integrated into the Group and has provided us with access to a 150,000 sq. ft., fully-automated drinks manufacturing facility, as well as the opportunity for further product development beyond Clearly Drinks' existing brands. Our augmented manufacturing capabilities, combined with our ongoing new product development work and sticky customer relationships, have the potential to significantly benefit the Group.

In November 2024, we acquired the iconic British brand Typhoo Tea for £10.2 million (which included stock with a fair value of £6.7 million). By combining Typhoo Tea's rich product portfolio with Supreme's Soft Drinks and Sports Nutrition & Wellness categories, we have unlocked new avenues for sales, marketing and product innovation. This acquisition also instantly extended Supreme's UK retail reach, welcoming high-street names such as Holland & Barrett into our fold and positioning us well for future growth.

Supreme's strong cash flows put us in a strong position to capitalise on further M&A opportunities to maintain a diverse and competitive offering of high-value, low-cost products. Our team are experts in recognising comparable, well-priced, immediately earnings-enhancing brands and integrating them into the Supreme portfolio with a keen focus on our core business offering.

During the year, and in line with the Quoted Companies Alliance (QCA) Corporate Governance Code (which emphasises regular board performance reviews), we undertook a full Board evaluation - conducted by an external party - to assess and enhance our governance practices. This included interviews, observations and assessments of board and committee operations, and detailed questionnaires completed by each director and the senior management team and advisors. Ultimately, there were no major concerns or immediate changes arising as a result of the review yet it provided assurance as to the appropriateness of our practices and policies.

We also moved our headquarters 'The Ark' to our new state-of the-art facility during the period, the final phase of our relocation plan. Ark epitomises Supreme's growth as a business, as well as our continued commitment to providing the best possible working environment for our team.

The Board remains pleased with the Group's performance, and on its behalf, I would like to thank all our employees for their continued expertise, energy, and commitment which continues to support our growth. Our management team has driven Supreme to produce strong results, and we are confident that they can lead the Group to achieve its future growth ambitions.

Paul McDonald

Non-executive Chair 

30 June 2025

Chief Executive Officer's Review

Introduction

Supreme delivered another strong performance across the year ended 31 March 2025, supported by a number of highly strategic acquisitions which have accelerated our ongoing diversification ambitions. Pleasingly, our diverse product portfolio continues to resonate with consumers and retailers alike, including our new drinks brands such as the iconic Typhoo Tea.

The Group delivered solid revenue growth of 4% to £231.1 million (FY24: £221.2 million), alongside a 16% increase in gross profit to £73.7 million (FY24: £63.5 million). Adjusted EBITDA¹ also increased to record levels of £40.5 million (FY24: £38.1 million), which represented a 6% improvement on the prior year. The Group generated operating cash of £25.1 million (FY24: £27.1 million), further demonstrating the highly cash-generative nature of our core operations. Adjusted net cash⁴ on 31 March 2025 was £1.2 million and the Group proposes to pay a final dividend of 3.4 pence per share, resulting in 5.2 pence per share in total for the year (FY24: 4.7 pence per share in total).

The Group has again seen strong sales traction across our product mix, with our vaping products, both owned and branded (now reported under a unified Vaping category), continuing to perform well even after the highly publicised UK disposable vapes ban which came into effect on 1 June 2025. In addition, our newly created Drinks & Wellness category delivered a strong performance, buoyed by the acquisitions of Clearly Drinks and the historic UK tea brand, Typhoo Tea. These highly complementary brands have been seamlessly integrated into the Group, creating a number of cross-selling opportunities within our existing customer base alongside expertise and inspiration for ongoing new product development initiatives.

FY25 has been another significant period of strategic, operational and financial progress for Supreme, and I strongly believe that we remain firmly on track to deliver sustainable growth momentum in FY26 and beyond.

Operational Review

I am delighted with the strong operational performance of the Group, which further demonstrates that our vertically integrated platform provides the best route to market for both Supreme and our customers. Supreme's successful track record of developing and distributing our own products, alongside providing a truly unique distribution platform for reputable third parties, has underpinned our robust financial growth.

Management will therefore continue to focus on the following strategic growth drivers:

·    Continue to explore and execute on complementary earnings-enhancing acquisitions;

·    Further leverage cross-selling opportunities to expand our customer footprint and average revenue per customer;

·    Continue to explore and develop new product verticals that complement Supreme's customer base, focused on a high quality and good value consumer proposition;

·    Leverage our new manufacturing and distribution footprint to create ongoing economies of scale and explore bringing the manufacture of even more products in-house; and

·    Enhance online distribution and services to further grow our B2B and D2C sales channels.

Vaping

The Group's vaping activities, which include own brand sales alongside our branded Lost Mary and ElfBar vape products, remained stable with sales for the Period of £129.0 million (FY24: £140.3 million). The Group reported revenue of UK disposable vapes of £54.1 million (FY24: £70.7 million). This performance was anticipated and in line with our expectations as the business prepared itself and its retail customers for the recently implemented UK ban on disposable vapes. The quality of the Group's earnings has not been compromised, as evidenced by the strong gross margins year-on-year and the disciplined stock management strategy, meaning that the Group does not require any extensive stock provisions this year end to protect the business from any profit exposure in FY26. This market transition has been carefully and prudently managed with respect to cashflow and stock holding, with Supreme continuing to support the transition to pods and other disposable vape alternatives with all our major customers.

Non-disposable vape activity continues to be strong, with the business delivering revenue growth of £5.3 million (8%) and gross margin expansion in our core vaping business. During FY25, the business focused internally on enhancing manufacturing processes, ongoing automation and sourcing consolidation, which, when combined with the impact of inflationary product price increases introduced in Q4 FY25, enabled the Group to produce record gross profits levels.

As a responsible manufacturer and key long-standing player within the vaping industry, during FY25 we acted as a sounding board and a knowledge base for the UK Government while it designed its legislation around new taxes on vaping, currently ear-marked for October 2026, and hosted several visits and consultations at our facility. We view the forthcoming levy on vaping as an opportunity to reframe the commercial positioning of our vaping products. As a well-invested, cash-generative business, Supreme is well placed to navigate the resulting changes in manufacturing and working capital with confidence and resilience. In contrast, other businesses within the industry may lack the financial strength to adapt, potentially creating attractive M&A opportunities for Supreme which we will monitor attentively.  

We continue to work with our key vaping customers and partners to ensure a smooth transition as any new legislative measures are absorbed by the market. Vaping remains a credible, sustainable, and highly effective smoking cessation tool endorsed by global public health officials and is integral to the UK Government's 'Achieving Smoke-free 2030' initiative.

Drinks & Wellness

Our newly created Drinks & Wellness category has been formed by combining our existing Sports Nutrition & Wellness category with our newly acquired soft drinks and hot beverages businesses, Clearly Drinks and Typhoo Tea. Given the similarities in the nature of the products and innovation pipeline, as well as the management team overseeing these areas of our business, we are confident that we can maximise the operational overlap which will strengthen and accelerate our market reach as we look to grow our footprint in this expanding market.

With regards to our wellness products, both revenue and gross profit grew 5% in FY25, driven in part by further gains by our principal Sci-MX brand where new product development continued to drive growth. The acquisition of Sci-MX in FY22 is representative of Supreme's effective M&A strategy; identifying and integrating a well-recognised and high-potential UK consumer brand that had been neglected and was therefore in decline. In its first year under Supreme's ownership, the brand was reformulated and re-branded and manufacturing was brought in-house. The brand was integrated into Supreme's core platform of resource, including warehouse and account management, and the business was immediately returned to profitability and wide-scale UK distribution. In FY25, revenue from Sci-MX totalled £10 million, a brand we acquired for just £1.4 million.

The acquisition of Clearly Drinks in June 2024, a manufacturer of soft drinks and bottled-at-source spring water, represented an important strategic development for Supreme's Drinks & Wellness category as it enabled Supreme to expand into the wellness drinks market in which protein and vitamin-infused drinks are gathering sizeable traction with consumers. Clearly Drinks has allowed us to expand our manufacturing capabilities and know-how, supporting our growing innovation pipeline and ambitions to roll-out new products that we are confident will deliver returns in FY26.

By merging Supreme's entrepreneurial drive and expansive customer network with Clearly Drinks' £20+ million revenue base, generating an almost 40% gross margin across contract manufacturing and its own soft drink and bottled water brands, Supreme is now unlocking significant cross-sell opportunities, most notably securing a listing for the Perfectly Clear brand with one of Supreme's largest clients. This ongoing collaboration has also created a robust pipeline of further incremental revenue prospects by combining Clearly Drinks' storied brand portfolio with Supreme's go-to-market expertise, while simultaneously delivering immediate cost-savings through the integration of support functions and overheads. Moreover, Supreme's manufacturing innovations have accelerated Clearly Drinks' product development and production resilience, positioning our unified business for sustained growth and enhanced operational efficiency.

In November 2024, Supreme entered the black and herbal tea market through the high-profile acquisition of the trade and assets of Typhoo Tea out of administration. Typhoo, which is one of the UK's most iconic brands, had reported a decline in both sales and profitability over several years as a result of ineffective rebranding, poorly executed outsourced manufacturing, and a prohibitive cost base. Supreme's intention is to realign the brand, pricing, and flavour profile to suit mainstream distribution as well as to bring manufacturing back inhouse.

As well as the signature Typhoo brand, the acquisition also included the purchase of several other long-standing UK tea brands including Heath & Heather, QT, Lift, and London Fruit & Herb. Supreme is confident that it can profitably distribute and grow these brands with the right support and strategic influence from our trusted model and experienced team.

By integrating Typhoo's rich product portfolio with Supreme's Soft Drinks and Sports Nutrition & Wellness categories, the business has now been able to capitalise on sales, marketing and product innovation opportunities. Our teams are now focused on expanding product listings across supermarkets, discounters, wholesalers and online platforms, and we are focused on developing our own-label or licensed offerings under established brands, mirroring Supreme's proven track record across the batteries and lighting markets. Most importantly, the acquisition has broadened our UK retail footprint, enabling us to develop new relationships with even more established high-street names, including Holland & Barrett, which will facilitate our continued growth.

For the year ended 30 September 2024, Typhoo Tea reported unaudited revenue of approximately £20 million and a loss before tax of approximately £4.6 million. In the four months under Supreme's ownership, the business reported revenue of £6.1 million and contributed positively - albeit modestly - to the Group's Adjusted EBITDA position. In these four months, the priority has been to stabilise the brand and its positioning in the market, determine a cost-effective and ethical supply chain, and re-establish inhouse manufacturing.

Looking to the future, we will work on widening the distribution of the acquired brands via Supreme's own network as well as exploring the out-of-home market and expanding internationally in territories of high brand recognition.  

Electricals

Our batteries and lighting category recorded a modest revenue decline of 6% from £57.0 million to £53.4 million, reflecting the longer-term market trend across these categories and the ongoing cost challenges facing consumers. Despite the much-publicised slowdown in consumer spending, both categories continue to serve as low-maintenance, cash-generative segments for Supreme, benefitting from established customer relationships and efficient distribution networks. We have worked hard to drive increasing rates of return at a gross profit level for this category by managing the Group's currency exposure and devising smart, scaled shipping policies.

Outlook

Supreme has made a positive start to FY26 and expects to deliver another profitable and highly cash-generative year, trading in line with current market expectations⁵.

Alongside an ongoing focus on accelerating organic growth, strategic cross-selling, and new product R&D, the Group remains committed to exploring complementary acquisitions to further exploit Supreme's premier distribution footprint.

The Board is cognisant of further potential changes to the UK vaping market, especially given the industry's relative nascence, however, it is encouraged by how the Group successfully navigated the disposable vapes ban and the effort the team has put into accommodating the transition to pod and rechargeable devices. We remain excited by the myriad of opportunities our entry into the drinks market is generating, as well as the continued strong performance of our key wellness brands and look ahead with anticipation to new product launches which are central to our market share expansion objectives.

Supreme is in an ideal position to accelerate new business exploration activities, deliver continued organic growth, and target further profit margin improvements, all while ensuring we continue to offer consumers great quality products at affordable prices - pivotal in the current economic climate.

Sandy Chadha

Chief Executive Officer

30 June 2025

^1. Adjusted EBITDA means operating profit before depreciation, amortisation and Adjusted items (as defined in Note 7 of the financial statements). Adjusted items include share-based payments charge, fair value movements on non-hedge accounted derivatives and non-recurring items.

^2. Adjusted Profit before tax means profit before tax and Adjusted items (as defined in Note 7 of the financial statements) Adjusted items include share-based payments charge, fair value movements on non-hedge accounted derivatives and non-recurring items.

^3. Adjusted EPS means Earnings per share, where Earnings are defined as profit after tax but before amortisation of acquired intangibles and Adjusted items (as defined in Note 7 of the financial statements). Adjusted items include share-based payments, fair value movements on non-hedge accounted derivatives and non-recurring items.

^4. Adjusted net cash means net debt as defined in Note 20 to these financial statements excluding the impact of IFRS16.

^5. Analysts' consensus immediately before this announcement for the year ending 31 March 2026 was revenue of £236 million and Adjusted EBITDA¹ of £36.5 million.

Chief Finance Officer's Review

I am pleased to present our financial results for FY25, a year in which the Group delivered another strong financial performance. Building on the momentum of previous years, we achieved growth across key financial metrics. Revenue increased by 4% to £231.1 million (FY24: £221.2 million), and Adjusted EBITDA¹ grew by 6% to £40.5 million (FY24: £38.1 million). The growth was largely a result of the strategic M&A undertaken in the year which took the business into new verticals, diversified the business' product mix, enhanced the Group's portfolio of owned brands, and increased its breadth of manufacturing.

The Group maintained a robust financial position, ending the year Adjusted net cash positive with net assets increasing by £18.5 million to £76.5 million (FY24: £58.0 million). This ongoing balance sheet strength is particularly noteworthy given the Group's ongoing investment into both strategic acquisitions and organic initiatives.

A summary of the key financial results is presented below, followed by further detail on divisional performance, group profitability and cash flow.

Financial highlights

Revenue

Group revenue for FY25 was £231.1 million, representing an increase of 4% compared to the prior year (FY24: £221.2 million). £25.0 million of revenue was generated from the two major acquisitions made during the year whilst revenue from disposable vapes fell by £16.6 million. In Electricals (formerly the Batteries and Lighting divisions), revenue fell by £3.7 million whilst the remainder of the core business grew by £5.2 million (2%). Further details by division are presented below.

Revenue for Electricals fell by £3.7 million (6%) to £53.4 million (FY24: £57.0 million), owing to a reduction in retail sales arising evenly across Batteries and Lighting. Whilst these markets have been in long term decline, especially batteries, Supreme has always been able to outperform the overall market trend. It is important to note that the reduction reported by Supreme in FY25 was modest relative to the overall market decline.

Revenue for Vaping fell £11.4 million overall but removing the impact of the disposable vape sales, the underlying category grew by £5.3 million (8%). The reduction in disposable vape revenue arose largely within the 88vape range where Supreme consciously and intentionally de-emphasised disposables during the Period, reducing stock holding and tightening SKU discipline to minimise any inventory risk on 1 June 2025 when these items were prohibited from sale in the UK. All of this proactive stock management led, predictably, to lower sales which we see as a short term temporal issue as the market evolves to the regulation change. Away from disposable vapes, the remainder of the category performed robustly with strong sales particularly online via the 88vape.com website.

Revenue from Drinks & Wellness broadly doubled from £23.9 million in FY24 to £48.8 million in FY25. £18.9 million arose in Clearly Drinks, the soft drinks manufacturer Supreme acquired in Q1 FY25, and £6.1 million arose with the addition of Typhoo Tea, which was acquired in Q3 FY25. The underlying Wellness business grew 5% to £18.9 million, largely as a result of the further gains made by the Sci-MX brand in particular which has experienced new product development and continued growth.  

Gross profit

Gross profit increased to £73.7 million (FY24: £63.5 million), representing 32% of sales (FY24: 29%). All categories reported improved or stable gross margins as a result of scale, ongoing cost control as well as favourable mix within categories (increased focus on powders within Wellness, for instance, and increased volumes in e-liquids within Vaping). Undoubtedly, the blended gross margin % benefitted from the addition of Clearly Drinks into the Group, where manufacturing margins are almost 40% and a reduced reliance on disposable vape revenue where distribution margins are lower. 

Adjusted EBITDA¹

Administrative expenses reported within Adjusted EBITDA were £33.3million (FY24: £25.4 million). The year-on-year increase was mainly driven by:

·      The overheads in relation to the businesses acquired during the Period totalling £5.8 million;

·      £0.7 million in respect of additional people costs due to business-wide living wage and inflationary pay-rises as well as investment in people to support the depth and quality of our management teams; and

·      £0.5 million of incremental expenditure in respect of advertising.

Adjusted EBITDA¹ increased to £40.5 million (FY24: £38.1 million), growth of 6%.

Adjusted items

Adjusted items totalled £0.7 million credit (FY24: £0.6 million charge). As in previous years, these primarily related to fair value movements on forward contracts and share-based payment charges, which together amounted to £0.6 million (FY24: £0.6 million). In addition, the Group recognised a net credit of £1.2 million in connection with acquisitions completed during FY25. This comprised advisory ("transaction") and integration ("acquisition") costs associated with onboarding the acquired businesses.  These costs were offset by negative goodwill of £4.1 million on the acquisition of Typhoo Tea reduced by £1.2 million in respect of ransom payments to key Typhoo suppliers.  These costs were deducted from the goodwill recognised to produce a net gain on bargain purchase reflecting the substantial discount at which Supreme acquired the assets.

The Board believes that by adjusting these items from profitability, it was able to understand the underlying performance of the business more clearly and further information pertaining to these items can be found in Note 7 to these financial statements.

Finance costs

Finance costs (net of interest income) were £1.6 million in FY25 (FY24: £1.9 million), split between interest arising from borrowings (net of interest on deposits) in the financial year of £0.7 million, amortised arrangement fees of £0.1 million and the interest relating to the lease liabilities under IFRS16 of £0.8 million.

Taxation

The Group incurred a tax charge of £7.4 million (FY24: £7.7 million), giving rise to an effective tax rate of 24% (FY24: 26%).

Profit after tax and earnings per share

Profit after tax was £23.5 million compared to £22.4 million in FY24, growth of 5%. As a result, earnings per share increased by 5% to 20.1p (FY24: 19.1p) and on a fully diluted basis increased from 18.1p to 19.5p. On an adjusted profit after tax basis, which we consider to be a better measure of performance, adjusted earnings (as calculated in note 11) were £25.3 million (FY24: £24.5 million) and adjusted earnings per share³ was 21.6p (FY24: 20.9p).

Dividends

In line with our dividend policy of distributing c.25% of net profit, the Group paid an interim dividend of 1.8p per share in January 2025. A final dividend of 3.4p per share will be proposed at the Annual General Meeting, scheduled to take place 18 September 2025, taking the total dividend for the year to 5.2p per share (FY24: 4.7p per share). This will be paid on 23 September 2025 to shareholders on the register at the close of business on 22 August 2025. The ex-dividend date will be 21 August 2025.

Cashflow

The Group generated £25.1 million of operating cash in the Period which it largely reinvested back into the business via the acquisitions of Clearly Drinks and Typhoo Tea which totalled £25.6 million (net of cash acquired).

Capital expenditure principally related to £1 million to fit out Supreme's brand new head offices, £1 million investment into the agile "pilot" canning line at Clearly Drinks that is expected to facilitate smaller scale opportunities, £0.8 million investment into Supreme's new tea manufacturing facility that opened in April 2025, and £0.4 million to establish nicotine pouch manufacturing in the UK.

£1.0 million was generated via the sale of property inherited as part of the acquisition of Liberty Flights acquisition in 2022.

Movements in working capital, tax payment and dividends payments were all part of the ordinary course of business at Supreme.

In respect of financing, the Group refinanced all of its borrowing facilities during the year. The Group replaced its revolving credit facility for an asset-backed lending facility (the scale of the facilities are comparable and both the outgoing and replacement facilities are with HSBC, but the arrangement and non-utilisation fees are both less expensive under the new facility). At year-end, the balance sheet reported net cash for the Group of £1.2 million and £38 million of unutilised borrowings.

Net debt

Use of non-GAAP measures

As in previous years, certain non-GAAP metrics are used in this report to provide clarity and comparability. These are clearly defined in the notes to the financial statements and reconciled where applicable.

Suzanne Smith

Chief Finance Officer

30 June 2025

^1. Adjusted EBITDA means operating profit before depreciation, amortisation and Adjusted items (as defined in Note 7 of the financial statements). Adjusted items include share-based payments charge, fair value movements on non-hedge accounted derivatives and non-recurring items.

^2. Adjusted Profit before tax means profit before tax and Adjusted items (as defined in Note 7 of the financial statements) Adjusted items include share-based payments charge, fair value movements on non-hedge accounted derivatives and non-recurring items.

^3. Adjusted EPS means Earnings per share, where Earnings are defined as profit after tax but before amortisation of acquired intangibles and Adjusted items (as defined in Note 7 of the financial statements). Adjusted items include share-based payments, fair value movements on non-hedge accounted derivatives and non-recurring items.

^4. Adjusted net cash means net debt as defined in Note 20 to these financial statements excluding the impact of IFRS16.

Consolidated Statement of Comprehensive Income

for the Year Ended 31 March 2025

Note 1: Adjusted EBITDA, which is defined as operating profit before depreciation, amortisation and Adjusted items (as defined in Note 7) is a non-GAAP metric used by management and is not an IFRS performance measure.

All results derive from continuing operations.

Consolidated Statement of Financial Position

as at 31 March 2025