Final Results

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

Operational and strategic highlights

Current trading and outlook

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

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 [email protected]

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

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:

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: 

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:

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:

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.

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:

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.

Items between adjusted EBITDA and profit before tax

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

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:

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:

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:

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

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

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

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

Consolidated statement of cash flows

for the year ended 31 July 2025

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:

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

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:

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:

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:

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

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

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

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

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:

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:

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:

7 Staff costs

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

Staff costs (including Directors) are outlined below.

8 Director remuneration

Director remuneration comprised:

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

10 Taxation

Analysis of charge in year

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

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.

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

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

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:

12 Dividends

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

13 Property, plant and equipment

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

14 Leased assets

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

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

Lease liabilities

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:

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

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

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

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:

18 Cash and cash equivalents

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

19 Trade and other payables