MIDAS STOCK TIPS: Coleen Rooney-backed Applied Nutrition has the power to grow your money
Thomas Ryder left school at the age of 16 and went to work on a construction site. Yesterday he turned 41 and is about to launch his sports nutrition company. Applied nutritionfor up to £400 million, with proceeds of £80-£90 million.
How did he do that, and should individual investors subscribe to shares?
Ryder, who grew up on a council estate in Kirkby, near Liverpool, was ambitious from an early age, working day and night to earn extra money and build a better life.
He was also a gym enthusiast and decided to capitalize on his passion by selling protein powders and sports supplements in his area.
Star Endorser: Coleen Rooney is a brand ambassador for protein powder company Applied Nutrition
Applied Nutrition was founded in 2014. Initially selling supplements made by third parties, production was soon brought in-house and today 90 percent of its products are designed and made at the group’s facilities in Knowsley on the Merseyside.
This gives the company an edge, allowing it to quickly bring new products to market, keep prices competitive and quality consistent.
The merchandise ranges from hydration drinks and nutritional supplements for the everyday consumer to specialist formulations for professional athletes, such as martial arts enthusiasts Molly ‘Meatball’ McCann and Paddy ‘the Baddy’ Pimblett.
The company, which has Coleen Rooney as its brand ambassador, has hundreds of products under four different brands: Applied Nutrition itself, BodyFuel, Endurance and ABE, short for All Black Everything.
Each has its own niche, but an emphasis on quality permeates the group: goods meet specific standards, use the best ingredients, taste tasty and look attractive.
Driven by a relentless work ethic, ferocious energy and a determination to make Applied Nutrition a top global brand, Ryder has expanded the business rapidly, with a turnover of £86 million in the year to July and a pre-tax profit of over £24 million.
Bulk Purchase: Thomas Ryder built Applied Nutrition from the ground up
The UK accounts for almost 40 percent of sales, but Applied Nutrition products are available in 80 countries, including the US, where the products are offered by retail giant Walmart.
Despite recent progress, Ryder believes his company is only just beginning to realize its potential. With a determination to create the world’s most trusted and innovative company in its field, his team has extensive plans for growth, creating new products, entering new markets and selling more in existing locations.
Going public is a key part of the plan, giving Applied Nutrition greater credibility with major corporate customers, suppliers, employees and financiers.
Shares can be purchased through AJ Bell, Hargreaves Lansdown and Interactive Investor, at prices between £1.36 and £1.60. Applications are due by 10am on Wednesday, there is a minimum entry fee of £250 and the final price will be announced on Thursday.
Ryder owns 52 percent of the company and sells up to 59 million shares, netting a pretty penny. But he remains a 30 percent shareholder and exudes commitment to the company.
JD Sports, an early investor, is reducing its stake from 31 per cent to 5 per cent, but Ryder has won backing from four of the richest entrepreneurs in the North West: Mohsin Issa, the former Asda boss, Tom Morris, founder of discount chain Home Bargains and real estate magnates William Ainscough and George Dawson.
With a combined fortune of more than £10 billion, the quartet are putting their faith in Ryder by subscribing to millions of shares.
Newly appointed Chairman, Andy Bell, provides another vote of confidence in the business, having successfully built and launched the popular AJ Bell investment platform.
Health, fitness and wellness are all the rage and Applied Nutrition’s items are highly regarded by business customers, consumers and professional athletes.
Ryder is an enthusiastic proponent of his own products, training vigorously seven days a week and taking supplements, powders and shakes before and after training and throughout the day.
Products are sold through specialty stores, gyms and supermarkets, as well as online, directly and through sites such as Amazon and eBay.
The sports nutrition, health and wellness market is huge, valued at almost £190 billion per year, and expected to reach £280 billion per year by 2028.
In addition, it is a very competitive company, but Applied Nutrition tries to maintain its lead by focusing on quality, top ingredients and many new products.
Midas judgment: Flotations in the London market have been a rarity this year, but Applied Nutrition is certainly worth a look. Health, fitness and wellness are all the rage and Applied Nutrition’s items are highly regarded by business customers, consumers and professional athletes. At a price range of £1.36 to £1.60, the stock should deliver long-term returns.
To be traded on: Main market Contact: appliednutrition.uk
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