Half-year Results

Another period of outperformance driven by sustained momentum across all aspects of the business

Applied Nutrition plc (LSE: APN), a leading sports nutrition, health and wellness brand, today announces its interim results for the half year ended 31 January 2026 ("H1 FY26").

Key financial information (unaudited)

Thomas Ryder, CEO of Applied Nutrition, said: "Our vision to become the world's most trusted and innovative sports nutrition, health, and wellness brand remains at the heart of our ambition. This six-month period has further highlighted both the breadth of opportunity before us and our proven ability to realise it. The performance and momentum across the business reflects a consumer environment that continues to shift decisively towards health, fitness and wellbeing.

We have continued to execute against our strategic priorities in the period, with deeper engagement and expanded shelf space with existing customers, new customer wins and entry into new channels, continued international rollout into new geographies, while further progressing the build-out of our D2C offering.

Since our IPO, we have seen an uplift in our profile, awareness, trust and credibility - exactly as we had envisaged, but even more impactful than we could have anticipated. This has enabled us to move faster and think bigger, with an innovation engine that is stronger than ever, allowing us to bring new products to market at pace, deepen customer relationships and adapt quickly to evolving consumer needs as we continue to build the business for the long term."

1 Adjusted EBITDA is a non-IFRS financial measure; calculated as operating profit before interest, tax, depreciation and amortisation and excluding the impact of exceptional items (see Chief Financial Officer's report). Adjusted profit before tax is a non-IFRS financial measure of the Group's profit before tax excluding the impact of exceptional 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 8).

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. 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.

4 Net cash excludes IFRS 16 liabilities.

Presentations

The Company is hosting a virtual presentation and Q&A session for analysts at 09:00 GMT today. To register, please email appliednutrition@almastrategic.com

Additionally, the Company is hosting a virtual presentation and Q&A session for retail investors at 16:00 GMT today. To register to attend, please use the following link: https://engageinvestor.news/APN_IP_0326

Committee changes

In accordance with UK Listing rule 6.4.6, the Company is pleased to announce that Marnie Millard, a non-executive director of the Company, will join the Audit and Risk Committee and Peter Cowgill, a non-executive director of the Company, will join the Remuneration Committee with effect from today, 23 March 2026. This will further strengthen these committees and bring them into alignment with the recommendations of the UK Corporate Governance Code as applicable to FTSE 250 companies.

Chief Executive Officer's review

Introduction and overview

As health and wellness becomes increasingly embedded in everyday consumer behaviour, we continue to benefit from a larger pool of individuals embarking on, or continuing, their wellness journey. Our ranges are designed to cater to the needs of everyone on that journey, supported by our ability to innovate rapidly and capitalise on emerging trends within the sports nutrition, health and wellness industry.

At the time of our IPO in October 2024, I stated that our listing would enhance Applied Nutrition's credibility on a global scale and allow us to accelerate our new product development (NPD). Both aspirations have been realised; customers and partners now perceive us as being in a different league in terms of trust, significantly raising our profile with both consumers and partners and our NPD capabilities have become more robust than ever, enabling us to adapt swiftly to evolving consumer trends.

This broad-based demand has been fundamental to our significant growth over the period. We have expanded our offerings to existing customers, deepened our presence in key markets and channels, and launched a substantial amount of NPD, all of which are central to our strategy.

We are pleased to report that our stronger than anticipated first half performance has enabled us to raise FY26 full-year expectations twice, in December 2025 and February 2026. Revenue, EBITDA, and cash have all increased substantially. Our inclusion in the FTSE 250 index in December was a significant milestone and a source of great pride for the Group, reflecting the progress we have made in a short space of time, although we aren't resting on our laurels and are determined to continue to evolve and drive further growth.

Notable highlights of the period included signing our first out-licensing deal with Morrisons, which was first to market in terms of the GLP-1 friendly range and also releasing more NPD than ever before in a six-month period. As well as bringing to market innovative products we continually look to improve existing products and ensure they are delivering exactly what consumers want. After extensive development, in Q1 we updated one of our flagship whey protein products "Critical Whey" which introduced a new improved mouthfeel, new appealing flavours and an improved level of protein per serving which is independently tested to assure customers of the protein content. Sales of Critical Whey in H1 FY26 were 128% ahead of the same period in FY25. Consequently, we were delighted to have delivered a better-than-expected peak period of trading.

Our vision to become the world's most trusted and innovative sports nutrition, health and wellness brand continues to fuel our ambition and I would like to take this opportunity to thank our colleagues and partners for their constant dedication - without them our growth would not be possible.

Market and opportunity

We operate within the global sports nutrition, health and wellness market, which is projected to grow to £279 billion by the end of 2028 at a CAGR of c.8.1%*. While we remain a relatively small player on a global scale, our opportunity to grow is vast, and we are well-placed to continue taking market share, supported by structural tailwinds across the sector and our expanding distribution, consistent innovation and increasing brand recognition.

Our industry continues to evolve, and health and wellness is an increasingly important consideration for consumers of all demographics globally - a trend we are well-placed to capitalise on. A recent McKinsey study highlighted that 84% and 79% of consumers in the US and UK respectively see wellness as a top or important priority, with Gen Z and Millennials accelerating spend and older cohorts increasing focus on areas such as healthy aging and prevention**. According to the study, wellness prioritisation increased year-on-year across every age group. This reinforces our own research that found health and wellness as the second-highest personal priority, marginally behind family, and 80% of respondents viewing supplements as a necessity rather than a luxury.

A first-hand example of this is ABE now being available to buy in Tesco. When I started in this industry, I couldn't imagine that pre-workout would be on the shelves of a national grocer. It is a clear sign of how far the category has moved away from appealing only to a niche customer base and moving towards something mainstream.

We are also seeing new dynamics across the market, including the growing adoption of GLP-1 treatments, which are reinforcing the focus on balanced, nutritious diets and supporting demand for products that help consumers maintain healthy lifestyles.

These patterns are expanding our opportunity, with more consumers than ever making health-conscious choices for the first time. Our broad product portfolio allows us to cater to a wide spectrum of consumers, from elite athletes and dedicated gym-goers through to everyday consumers looking to make healthier choices as part of their daily routines.

Our B2B model remains our primary route to market and continues to be a driving force of our growth, offering a robust and cost‑effective platform to expand into new international markets by leveraging local expertise. In addition, our direct‑to‑consumer channel, while a smaller component of the business, continues to deliver complementary growth and support brand awareness.

* Euromonitor International Consumer Health Passport 2024 Edition.

** McKinsey & Company, The Future of Wellness Trends Survey 2025

Performance review

As previously announced, H1 FY26 performance led us to increase our full year market expectations in December 2025 and February 2026, with revenue increasing by 57%, adjusted EBITDA by 56% and adjusted profit before tax by 54%.

As previously noted in December, the positive momentum seen in the early part of the half continued throughout, leading to a robust order book. Following this, as we entered the January peak Health, Fitness & Wellbeing trading period, both retail orders and resulting customer stock levels exceeded expectations. This outcome reflects the effectiveness of channel diversification across UK high street health retailers, grocers, and discounters. In addition, accelerated demand for several H1 FY26 product launches is anticipated to yield a more H1‑weighted revenue profile compared to previous years.

During H1, we maintained progress on our multi-pillar global growth strategy by strengthening relationships with current customers through expanded shelf presence and additional distribution points. We also successfully secured new customers and channels across our markets, while consistently advancing a robust pipeline of NPD, broadening our range, format and flavours.

Existing customers

Growth from existing customers was a core driver of our performance in H1 and was testament to the success that customers are seeing in the popularity and sell-through of our products. Additionally, we have been successful in registering products in geographies which is giving existing customers a broader choice of products.

In the UK, we delivered strong like-for-like growth throughout the spectrum of retailers, from grocer to speciality, supported by additional listings, deeper distribution and expanded product ranges. Highlights during H1 include the launch of our Critical Whey and pre-workout powder into the grocery channel for the first time.

Across Europe, there has been strong demand from both specialist and grocery channels, particularly in Spain and Germany, as we consolidated the significant growth we saw in FY25 in the region.

Internationally, strong existing customer growth was driven by expanded listings amongst key distributors, including a significant increase in sales to Latin America which rose by 110% compared to H1 FY25.

Although our US operation is still early in its development, we continued to broaden engagement with key retailers and targeted distributors during H1. We also launched products designed specifically for US consumers. Our focus in H2 is on bringing the wider Applied Nutrition range to the US and exploring exciting new flavour collaborations.

New customers & channels

We have continued to enter new channels across both existing and new geographies, whilst also securing a number of new customers.

In the UK, we have secured new retail listings, expanding our presence across UK high street health retailers, grocers and discounters. A notable example is our recent launch with Morrisons, our first out-licensing agreement, which is enabling us to reach new audiences through a range of high-protein food products. The partnership has delivered strong early sales and positive consumer feedback, demonstrating the appeal of our products in mainstream grocery environments.

Newly entered markets in Europe, Latin America, and Asia have shown positive development, and our presence has grown in these regions as well.

Innovation & NPD

Innovation remains at the core of our strategy and has been a major contributor to performance in H1. We achieved our strongest ever period of product launches, with a high level of new releases that have been well received by both customers and consumers. All of our new products have been developed in line with our three-pronged approach to NPD, with select examples including:

The strength and breadth of our NPD pipeline continues to support growth across existing customers, new customers and our D2C channel while keeping the brand front of mind for consumers.

D2C growth

Alongside our B2B model, our direct‑to‑consumer channel continues to provide a complementary route to market in certain geographies, supporting brand engagement and awareness with consumers. Our D2C channel remains a smaller part of the business but continues to grow steadily and plays an important strategic role alongside our B2B model.

Growth was achieved across all channels, with strong results from certain third-party platforms and promising subscription gains via the Applied Nutrition app.

Capital allocation and investing for growth

As outlined at the FY25 Results, the continued broadening of our customer base and increasing demand across both specialist and mainstream channels is expanding the scale of the opportunity ahead of us. In response, we are taking a disciplined approach to capital allocation, focusing on investments that will support future growth while maintaining a strong financial position.

We also continue to explore opportunities, organic and inorganic, which will allow the brand to grow in attractive markets that are either difficult to access because of trade barriers or represent a strong growth opportunity.

Post period end, the construction of our new global distribution facility and head office commenced, which represents the next phase of our growth journey. Alongside this, construction has also begun on further manufacturing enhancements, including additional automated lines and specialist production capabilities. These investments will provide additional capacity, streamline logistics, and support the continued expansion of the business both in the UK and internationally. With the new facility, production capacity is expected to increase to c.£300m of annual revenue, ensuring the Group has the robust operational platform required to deliver on the significant growth opportunities ahead.

Marketing activities

During the period, we continued to strengthen our global brand platform to drive consumer demand and accelerate distributor sell-through across key markets. Our strategy remains focused on building a trusted, performance-led brand that is the product of choice for consumers, while equipping retail and distribution partners with the tools and messaging required to maximise in-market execution.

By investing in consistent branding, targeted marketing campaigns, and clear product positioning, we enhance visibility and credibility across the globe. This included expanding our ambassador and influencer roster, and scaling marketing across owned and marketplace platforms.

In H1 we appointed a Chief Marketing Officer with extensive industry experience to lead the marketing function and further strengthen marketing infrastructure to support long-term expansion.

Leveraging our strong, trusted brand and consumer recognition, we are progressing opportunities to expand into adjacent categories and complementary growth markets, both organically and through strategic partnerships, aligned to favourable health and wellness trends.

Current trading and outlook

As previously announced, management currently expects full‑year revenue of approximately £140 million. Our performance for the year is expected to be weighted towards H1, reflecting higher retailer stock levels ahead of the peak trading period and accelerated demand for a number of H1 FY26 product launches.

We have entered H2 with continued positive momentum, supported by strong uptake of our recent NPD launches, increased brand awareness, a broadened customer base and expanding manufacturing capabilities to support future growth.

We continue to monitor the evolving situation in the Middle East and whilst we are well diversified globally, we are cognisant of the current disruption to shipping routes and purchasing activities within the region as well as the uncertainty around how long these conditions may persist. Importantly, we have managed similar disruption in the past, supported by the agility of our operations. In this instance, we are working closely with customers to adapt our routes into the region and logistics arrangements to safeguard continued supply to those customers. Although we expect some reduction in volumes into the region during the second half, at this stage there is no change to FY26 guidance.

Looking forward, our growing confidence comes from the progress we've achieved. We are entering new channels and markets, expanding our product lines for current customers, launching more new products than ever, and investing in operations to ensure efficiency and world-class facilities that match our ambitions. We're seeing increasing global demand for our products and we are in a strong position to take advantage of the rising opportunities as health, wellness, and sports nutrition become daily considerations for people across all demographics.

Thomas Ryder

Chief Executive Officer

Chief Financial Officer's review

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:

Group revenue increased 56.5% to £74.5m (H1 FY25: £47.6m). All geographies saw an increase in sales during the period compared to the prior year:

Gross profit

Gross profit increased 56.1% to £34.8m (H1 FY25: £22.3m). In H1 FY26 there were no adjusting items. In H1 FY25 all adjustments noted by the Group within the financial statements were in administrative expenses and therefore no adjustment to gross profit is necessary for comparison.

Compared to the same period in the prior year total gross margin was stable moving down 10bps to 46.7% (H1 FY25: 46.8%). There was a 110bps benefit to gross margin caused by raw material costs and product mix. This benefit was realised despite increased whey protein prices. Total protein sales increased and product category share for all protein grew (largely because of non-whey protein sales increasing by 83%) to 32.3% (H1 FY25: 30.3%). The proportion of products where the main raw material is whey protein made up a similar proportion of sales at 20.5% (H1 FY25: 20.2%). Therefore, while we continue to see a headwind from whey prices, its share of sales to the Group are at a level where the effect on margins is limited. The company is still able to pass on the increased whey price input costs as this is a market wide issue and all brands are experiencing the same. We continued to see low volatility in raw materials outside of whey.

The Group saw a 110bps increase in direct staff costs as a percentage of revenue. This was driven by:

However, the new manufacturing extension completed during H1 FY25 increased manufacturing efficiency and therefore helped to counterbalance the above.

Other direct manufacturing costs and carriage costs provided a small 10bps decrease in margin which is not considered to be significant.

Administrative expenses adjusted for exceptional items

In H1 FY26 total administrative expenses were 18.9% of revenue (H1 FY25 excluding exceptional items: 18.9%). These figures are not directly comparable since H1 FY26 had an additional £0.7m of costs related to director salaries and listed company costs compared to H1 FY25 (part of H1 FY25 having been before the Company was listed). Had the same costs been incurred in H1 FY25, administrative expenses would have made up 20.4% of revenue in the prior period comparison. We have continued to benefit from general efficiencies and economies of scale as a growing business while still investing in key areas.

As the business has grown in the period, and margins in other areas have improved, this has allowed us to increase spend on marketing. Spend on marketing, advertising and partner incentives, which are recognised as an expense in the accounts, rather than being netted off revenue as a percentage of revenue, increased 60bps. We continue to utilise this spend in a balanced way to ensure business growth is maximised but not at the cost of significantly reduced margins.

The administrative costs in H1 FY26 had £0.1m of share-based payment costs which have not been adjusted for in arriving at adjusted EBITDA (H1 FY25: £nil).

Adjusted EBITDA and adjusted EBITDA margin

A reconciliation between operating profit and adjusted EBITDA is shown below (adjustments only being relevant for the prior period). Adjusted EBITDA rose in the period 55.8% to £21.5m. We achieved EBITDA margin of 28.9% during H1 FY26 (H1 FY25: 29.0%) despite the increased relative costs noted above.

Exceptional and non-underlying items

Exceptional and non-underlying items for the period resulted in a charge of £nil (H1 FY25: charge of £1.8m). These items in H1 FY25 all related to the costs of the IPO of the Company.

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

Cash flow and cash flow conversion

Net cash from operating activities

Net cash from operating activities increased by 16.9% to £8.3m (H1 FY25: £7.1m). The Group's working capital usage (defined as inventories, plus trade and other receivables, less trade and other payables and accruals) at the end of the period was £44.4m (H1 FY25: £28.4m). This increase of 56.3% was in line with the increase in revenue (56.5%). The implied working capital days based on working capital usage at the end of the period was 109 (H1 FY25: 109), showing that working capital usage has not grown quicker than the business has generally grown.

The result of the sustained period of revenue growth during the period caused a significant increase in working capital usage. We previously outlined during our FY25 annual report how we manage working capital ensuring:

As noted in the Chief Executive Officer's statement, we had an excellent trading period in the run up to the peak January period. As a result, working capital usage at the end of January was higher than it might have been if this occurred earlier in the period since a significant portion of these trade debtors had not yet fallen due.

Other material cash flow items

Purchase of tangible fixed assets

Spend in H1 FY26 was £0.2m (H1 FY25: £0.3m). In our FY25 annual report, we outlined that over the next 18 months the Group intends to invest approximately £2.0m-£2.5m to ensure the business has the operational capacity to support its continued expansion and drive efficiencies within the business, in addition to bringing in-house some currently outsourced production and services to enhance margin and reduce reliance on outsourced providers. This work commenced in February 2026, shortly after the end of H1 FY26 and therefore we expect the majority of these costs to be incurred in H2 FY26 and H1 FY27. The £3.5m - £4.0m costs associated with fit-out of the Group's new global distribution facility and head office are expected to fall entirely in FY27.

Dividend

There was no dividend declared or paid in the period. In H1 FY25 there was a dividend declared and paid of £14.7m 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 that the Group is considering.

Cash, liquidity and banking facilities

Net cash excluding IFRS 16 liabilities increased to £26.4m (H1 FY25: £10.9m).

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 continues to be reviewed regularly.

Cash within the Company's main GBP bank account earns interest at a rate management believes 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.

Principal risks and uncertainties

The Group faces a number of risks and uncertainties that may have an adverse impact on the Group's operations, results, financial condition and prospects.

The Board has overall responsibility for oversight of risk and for maintaining a robust risk management system.

The Group's Audit and Risk Committee (ARC) supports the Board with the management of risk, with the day-today management delegated by the Board to the Executive Committee. A more detailed explanation of the risks currently faced by the Group and how the Company seeks to mitigate those risks is available in the risk management section of the Group's Annual Report and Accounts for the year ended 31 July 2025 which is available at www.appliednutritionplc.com.

Statement of director's responsibilities

The Directors are responsible for preparing the interim report in accordance with applicable law and regulations. The Directors confirm that the condensed consolidated interim financial information has been prepared in accordance with International Accounting Standard 34 ('Interim Financial Reporting') as adopted by the United Kingdom.

The interim management report includes a fair review of the information required by the Disclosure Guidance and Transparency Rules paragraphs 4.2.7 R and 4.2.8 R, namely:

The Directors of the Company are listed in the Annual report and Accounts for the financial year ending 31 July 2025. A list of current Directors is also maintained on the Company's website: www.appliednutritionplc.com. The interim report was approved by the Board of Directors and authorised for issue on 23 March 2026 and signed on its behalf by:

Joe Pollard, Chief Financial Officer

Condensed consolidated statement of comprehensive income

for the half year ended 31 January 2026

Earnings per share for profit attributable to the owners of the parent

The accompanying notes form an integral part of these condensed consolidated financial statements.

All results relate to continuing operations.

1As a result of the sub-division and redesignation 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 in issue during each period (before the addition of the effect of any potentially diluting shares), see note 10.

Condensed consolidated statement of financial position

as at 31 January 2026

The accompanying notes form an integral part of these condensed consolidated financial statements.

Condensed consolidated statement of changes in equity

for the half year ended 31 January 2026 (unaudited)

The accompanying notes form an integral part of these condensed consolidated financial statements.

​

Condensed consolidated statement of cash flows

for the half year ended 31 January 2026

The accompanying notes form an integral part of these condensed consolidated financial statements.

Notes to the condensed consolidated interim financial statements

for the half year ended 31 January 2026

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 financial statements comprise the results of the Company and its subsidiary undertakings (collectively, "the Group"); the Company is the parent and ultimate parent of the Group.

The principal activities of the Group are the formulation, manufacture, wholesale and retail of sports nutrition, health and wellness products.

These interim condensed consolidated financial statements ("interim financial statements") were approved by the Board for issue on 23 March 2026.

Basis of preparation and accounting policies

These interim financial statements for the half year ended 31 January 2026 have been prepared in accordance with UK adopted International Accounting Standard 34 'Interim Financial Reporting' and the Disclosure Guidance and Transparency Rules (DTR) of the United Kingdom's Financial Conduct Authority. The interim financial statements have been prepared on a going concern basis, under the historical cost convention. The Directors consider it appropriate to adopt the going concern basis of accounting in preparing these financial statements. The consolidated financial statements are prepared in GBP. Amounts are rounded to the nearest million, unless otherwise stated.

These interim financial statements do not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006. The information for the year ended 31 July 2025 does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. A copy of the statutory accounts for that year has been delivered to the Registrar of Companies. The auditor's report on those accounts was unqualified, did not draw attention to any matters by way of emphasis and did not contain any statement under section 498 of the Companies Act.

The interim financial statements do not include all the information and disclosures required in the annual financial statements. The financial information for the six months ended 31 January 2026 and 31 January 2025 is unaudited.

The preparation of financial statements in conformity with International Financial Reporting Standards ('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 (and therefore the accounting policies adopted in these interim financial statements are consistent with those applied by the Group in its consolidated financial statements for the year ended 31 July 2025), other than where new policies have been adopted.

Going Concern

The Group's profit for the period amounted to £15.4 million (H1 FY25: £8.9 million). The Group has net assets of £69.6 million (H1 FY25: £42.1million) which includes cash and cash equivalents of £26.4 million (H1 25: £10.9 million). As at 31 January 2026, the Group also has £10.0 million available loan finance in the form of a Revolving Credit Facility none of which has been drawn down.

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. With the continued current trading results the Directors are satisfied that there are sufficient resources to continue in business for the foreseeable future and for at least a period of 12 months from the date of signing this report. Accordingly, they continue to adopt the going concern basis in preparing these interim financial statements.

Critical accounting judgements and estimates

The preparation of these interim financial statements in accordance 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 will, by definition, seldom equal the related actual results but are based on historical experience and expectations of future events. Management believes that the estimates utilised in preparing these interim financial statements 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 these interim financial statements are discussed below:

Deferred tax assets

In order to calculate deferred tax assets on share-based payments, the Group makes estimates principally relating to the equity value of the Group at the balance sheet date. This is a key estimate used to value deferred tax asset recognition.

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 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.

The key areas of judgement are below:

Allocation of selling and marketing costs

The Group allocates 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 key area of judgement in the presentation of costs in statement of comprehensive income.

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 2026, and became effective for the Group's consolidated financial statements for the half year ended 31 January 2026, none of which have a material impact on the Group:

• Non-current Liabilities with Covenants (Amendments to IAS 1);
• Amendments to IFRS 16 - Lease liability in sale and leaseback;
• Supplier Finance Arrangements (Amendments to IAS 7 and IFRS 7); and
• Amendments to IFRS 9 and IFRS 7 Classification and Measurement of Financial Instruments.

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

• Amendments to IAS 21 Lack of Exchangeability;
• IFRS 18 - Presentation and Disclosure in Financial Statements; and
• IFRS 19 - Subsidiaries without Public Accountability: Disclosures.

Certain new standards, amendments to standards, and interpretations which 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.

Revenue

All Group revenue was generated from the sale of goods and recognised at a point in time, being when control has passed to the customer under Incoterms®. No customers make up 10% or more of revenue in the period ended 31 January 2026 (H1 FY25: one). Management considers revenue derives from one business stream being the manufacture, wholesale, and retail of sports nutrition, health, and wellness products.

Geographical reporting

Within the Group's single business stream, revenue can be disaggregated across seven product categories for the purpose of alignment with the Directors internal reporting, being: whey protein, non-whey 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 and white label packaging and rebates where they are unable to be allocated against specific product categories.

Revenue by product offering

Segmental information

The Chief Operating Decision Maker ("CODM") has been identified as the Directors. The CODM reviews the Group's internal reporting in order to assess performance and allocate resources. The CODM has determined that there is only one single operating segment, being the manufacture, wholesale, and retail of sports nutrition, health, and wellness products.

Revenue by geography and products is set out in Note 3 as required under entity wide disclosures when there is one single operating segment.

Adjusted items

As a result of its admission to the London Stock Exchange the Group incurred £3.0 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, £1.8 million, in the half year ended 31 January 2025. All of these costs were recognised within administrative expenses.

Finance income and expense

Taxation

The income tax expense for the half year ended 31 January 2026 has been calculated in accordance with IAS 34, Interim Financial Reporting, by applying the estimated annual effective tax rate expected for the full financial year ending 31 July 2026 of 26.1% to the interim profit before tax.

Earnings per share ("EPS")

The calculation of basic and diluted EPS is based on the following data:

1As a result of the sub-division and redesignation 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 in issue during each period (before the addition of the effect of any potentially diluting shares), see note 10.

Financial instruments

The Group's financial instruments comprise cash and cash equivalents, lease liabilities and items such as trade and other receivables and trade and other payables, which arise from its operations. The carrying amounts of all of the Group's financial instruments are measured at amortised cost. Financial assets do not include prepayments. Financial liabilities do not include deferred income and other taxation and social security.

The book and fair value of financial assets are as follows:

The book and fair value of financial liabilities are as follows:

Voting rights

Shareholders are entitled to one voting right per share.

Re-designation of shares

On 24 September 2024, a shareholders' resolution was passed in respect of a bonus issue of 4,990,000 new ordinary shares. A sum of £49,900 was capitalised from the Company's distributable reserves and appropriated to the shareholders of the Company in proportion to the number of ordinary shares (A1, A2, B and D) in the Company held by them respectively. As a result of the bonus issue, the total number of ordinary shares in issue increased to 5,000,000 and the resultant share capital increased to £50,000. This transaction was required to facilitate the Company's re‑registration as a PLC.

On 23 October 2024, immediately prior to the Company's admission to the Main Market of the London Stock Exchange, each of the 2,716,500 A1 ordinary shares of £0.01 each, 471,500 A2 ordinary shares of £0.01 each, 1,568,000 B ordinary shares of £0.01 each and 244,000 D ordinary shares of £0.01 each in the capital of the Company were sub‑divided and re‑designated as 250,000,000 ordinary shares of £0.0002 each in the capital of the Company.

Related party transactions

The Group's related parties include its subsidiary undertakings, key management personnel (comprising the Executive and Non-executive Directors), their closely related family members and shareholders with significant influence. Transactions and balances between the parent and its subsidiaries have been eliminated upon consolidation and are not disclosed.

Key management compensation

The remuneration of key management personnel, comprising the Executive and Non-Executive Directors of the Company, is set out below in aggregate for the Board members listed in the Statement of Directors' Responsibilities.

[1] This date is provisional and may be altered. An up-to-date financial calendar for the Company is available at www.appliednutritionplc.com