Applied Nutrition is preparing to float for more than £500 million, a sign that the London stock exchange, which has been battered by the recession, may be beginning to recover.
Tom Ryder, 40, founder of Liverpool’s Applied Nutrition has met with 27 City fund managers over the past few weeks in preparation for a possible listing in the fourth-quarter.
“We’ve realised [going public] ticks off all of our boxes. Ryder said, “We firmly believe that we could be the company to open the doors on the London Stock Exchange in this year.” He added that no decision had been made.
Applied Nutrition offers protein powders and collagen under the ABE brand, as well pre-workout supplements.
Ryder was born and raised in a Liverpool council estate. He began his training as a scaffolder at the age of 16. He was a gym enthusiast who sold supplements as a side business. At 24, he went full-time. In 2014, he switched from retail to wholesale and founded Applied Nutrition.
ABE is the brand under which the company sells collagen powders and protein supplements, mainly produced in Liverpool. Applied Nutrition products are available in Tesco Asda, Holland & Barrett and Tesco. Sir Bradley Wiggins endorses them. They are available in America through 4100 Walmart stores.
Andy Bell, the co-founder and chairman of AJ Bell Investment Platform, is now in charge. It’s believed that they are aiming for a valuation at least of £500 million. The company has advisers from Deutsche Numis. We want to make sure investors know that we’re not putting this out in front. We want to tell investors, “Come join us.” Ryder said, “Let’s keep going on this path.
Applied Nutrition expects to earn a pretax profit in the amount of £25 million for the fiscal year ending July. Sales are expected to increase by around a third, to between £80 and £85 millions.
Ryder intends to sell his 55 percent stake down to around 30 percent, netting him a possible payday of over £125 million.
Peter Cowgill has personally invested after he led the JD Sports investment.
JD Sports is also set to benefit from a windfall. In 2021, the retailer paid around £25 million (about £25 million) for a 32% stake. Sources in the city expect that the retailer will sell its stake to between 5-10%. Peter Cowgill was the former JD Sports boss who oversaw investment in Applied Nutrition. He has now invested on his own behalf.
Applied Nutrition’s potential float is one of the first signs of a recovery on London’s Stock Exchange, which was rocked by a series of takeovers and a lack of new listings, as well as a few companies moving their primary listing from London to New York.
Last week, the computer maker Raspberry Pi confirmed that it planned to float at a value of about £500,000,000. Shein, a fast fashion company founded in China, is also planning a float in London after geopolitical tensions thwarted its plans to list in New York. Shein’s float would be London’s largest in more than a decade.
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