- Liverpool supplement IPO planned
- £1 billion valuation targeted
- Market revitalisation hoped
A supplement manufacturer based in Liverpool, catering to professional athletes and fitness enthusiasts, is discussing a potential autumn flotation with investment banks.
A £1 billion flotation is planned by a sports supplement manufacturer that JD Sports Fashion partially owns. This transaction can potentially revitalise London’s dormant market for new share offerings.
In recent weeks, Liverpool-based Applied Nutrition has interviewed investment financiers about a potential autumn listing.
This weekend, City sources reported that Deutsche Numis was among the contenders for a position on the float, which could be one of the largest in the United Kingdom this year.
An individual knowledgeable of the situation advised that there had been no definitive decision to proceed with an initial public offering (IPO).
Applied Nutrition, established in 2014, designs and manufactures high-quality nutritional supplements for professional athletes and fitness enthusiasts.
It serves as the designated nutrition partner of several clubs in the English Football League, including Glasgow Rangers of the Scottish Premiership and Bolton Wanderers of League One.
Additionally, the corporation, whose merchandise is distributed in 65 countries, has formed alliances with professional wrestlers, boxers, and athletes from disciplines such as cycling, basketball, and rugby league.
Applied Nutrition Eyes £1 Billion IPO
One of its most prominent brands is ABE (All Black Everything), a pre-workout collection currently carried by Walmart, the largest brick-and-mortar retailer globally and a former proprietor of Asda.
The company’s portfolio also includes the hydration drink BodyFuel.
Just under one-third of the shares are owned by JD Sports, while Thomas Ryder, the proprietor of Applied Nutrition, holds the majority stake.
The company’s chief operating officer, Steven Granite, is widely believed to be the rightful owner of the remaining shares.
Should the company go public with a valuation of £1 billion, Mr Ryder’s stake would elevate him to the esteemed group of wealthiest individuals in Britain.
Having recently experienced substantial revenue and profit expansion, Applied Nutrition has established a sales target of £100 million for the ongoing fiscal year.
Late last year, Mr. Ryder reportedly stated, “Our margins have remained robust despite our rapid growth, and our most recent results also include the establishment of our US operation, which is expanding at a healthy rate.
“Our current fiscal year’s objective is to generate revenue of £100 million, and the initial four months have performed exceedingly well.”
Applied Nutrition’s Impressive Growth Surge
In the financial statements for the period ending in July of the previous year, revenue increased by 74% to £61.2 million, while earnings before interest, taxes, depreciation, and amortisation rose by 80% to £18.1 million.
It also established its first international subsidiary in Texas to expand its presence in the United States.
Since 2021, the London-listed £6 billion retailer JD Sports Fashion has owned a stake in Applied Nutrition.
As documented by Companies House, Peter Cowgill, the former CEO of JD, occupied a position on the board of Applied Nutrition until his resignation in 2022.
This week, the incumbent JD finance chief, Dominic Platt, was promoted to director of Applied Nutrition.
An effective listing of Applied Nutrition would significantly bolster the London Stock Exchange’s endeavours to attract rapidly growing firms to go public.
London’s IPO Drought Deepens
The City has been significantly affected by the increasing number of companies deciding to relocate their listings to the United States. This week, Flutter Entertainment, the owner of Paddy Power, was the most recent to make such a decision.
The number of companies that went public in London decreased by half the previous year, and the amount of money raised from initial public offerings (IPOs) decreased by 40% annually.
The float of chip designer ARM Holdings in New York was interpreted as additional evidence that London is no longer a financial powerhouse.
In response, the City regulator declared its intention to undertake reforms to the listing regulations in London.
The problematic macroeconomic conditions that caused an overall deceleration in M&A market activity in 2023 also impacted initial public offerings (IPOs), according to Scott McCubbin, head of IPOs for EY in the United Kingdom and Ireland. Activity slowed to a relative halt towards the end of the year.
Consistency is crucial for the stability of equity markets; therefore, although declining inflation and interest rate reductions may decrease in the latter half of 2024, the forthcoming elections in the United Kingdom and the United States may cause substantial IPO activities to be postponed until 2025.
