Thomas Ryder left school at 16 and went to work on a building site. Yesterday he turned 41 and is about to float his sports nutrition business, Applied Nutrition, for up to £400 million, pocketing £80-£90 million.
So how did he do it, and should individual investors subscribe for shares?
Brought up on a council estate in Kirkby, near Liverpool, Ryder was ambitious from an early age, working night and day to make extra cash and build a better life.
He was also a gym devotee, and decided to profit from his passion by selling protein powders and sports supplements in his local area.
Star backer: Coleen Rooney is a brand ambassador for protein powders firm Applied Nutrition
Applied Nutrition was founded in 2014. At first it sold supplements created by third parties, but production was soon brought in-house and, today, 90 per cent of its goods are designed and made at the group’s facilities in Knowsley on Merseyside.
This gives the business an edge, allowing it to bring new products to market fast, keep prices competitive and ensure quality is consistent.
Merchandise ranges from hydrating drinks and dietary supplements for everyday consumers to specialist compounds for professional athletes, such as martial arts darlings Molly ‘Meatball’ McCann and Paddy ‘the Baddy’ Pimblett.
The business, which has Coleen Rooney as brand ambassador, boasts hundreds of products under four distinct brands – Applied Nutrition itself, BodyFuel, Endurance and ABE, short for All Black Everything.
Each has its own niche but an emphasis on quality pervades the group – goods conform with specific standards, use top ingredients, taste appetising and look appealing.
Driven by a relentless work ethic, ferocious energy and a determination to turn Applied Nutrition into a top brand worldwide, Ryder has expanded the business at pace, with turnover of £86 million in the year to July and pre-tax profits of more than £24 million.
Bulk buy: Thomas Ryder built up Applied Nutrition from scratch
The UK accounts for almost 40 per cent of sales but Applied Nutrition’s products are available in 80 countries, including the US where it is stocked by retail giant Walmart.
Despite recent progress, Ryder believes his business is only just beginning to fulfil its potential. With a determination to create the world’s most trusted and innovative firm in its field, his team has extensive plans for growth, creating new products, moving into new markets and selling more in existing locations.
Flotation is a key part of the plan, giving Applied Nutrition greater credibility with big business customers, suppliers, employees and financiers.
Shares are on sale via AJ Bell, Hargreaves Lansdown and Interactive Investor, priced between £1.36 and £1.60. Applications must be in by 10am on Wednesday, there is a minimum subscription of £250 and the final price will be unveiled on Thursday.
Ryder owns 52 per cent of the business and is selling up to 59 million shares, netting a handy few bob in the process. But he will remain a 30 per cent shareholder and radiates commitment to the business.
JD Sports, an early investor, is reducing its holding from 31 per cent to 5 per cent, but Ryder has secured support from four of the wealthiest entrepreneurs in the North West – Mohsin Issa, the former Asda boss, Tom Morris, founder of discount chain Home Bargains and the property magnates William Ainscough and George Dawson.
With a combined fortune well in excess of £10 billion, the quartet are putting their faith in Ryder by subscribing for millions of shares.
Newly appointed chairman, Andy Bell, provides another vote of confidence in the business, having successfully built up and floated the popular investment platform AJ Bell.
Health, fitness and wellbeing are all the rage, and Applied Nutrition’s wares are highly regarded by business customers, consumers and professional athletes
Ryder is an enthusiastic proponent of his own wares, exercising vigorously seven days a week and taking supplements, powders and shakes before and after training and throughout the day.
Products are sold via specialist retailers, gyms and supermarkets, as well as online, directly and via sites such as Amazon and eBay.
The sports nutrition, health and wellness market is vast, valued at almost £190 billion per annum, and it is forecast to hit £280 billion a year by 2028.
It is also highly competitive, but Applied Nutrition tries to retain an edge through a focus on quality, top ingredients and plenty of new products.
Midas verdict: Flotations on the London market have been a rarity this year, but Applied Nutrition is well worth a closer look. Health, fitness and wellbeing are all the rage, and Applied Nutrition’s wares 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 rewards.
To be traded on: Main market Contact: appliednutrition.uk
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