In a market often saturated with cash-burning consumer startups, Applied Nutrition stands out as a high-margin, vertically integrated powerhouse. From its humble beginnings as a local Liverpool supplements shop in 2014, the company has transformed into a global player, now exporting to over 85 countries.

The investment case is simple: Applied Nutrition is a founder-led business with a 44% three-year revenue and EBITDA CAGR, generating a 29% adjusted EBITDA margin. Unlike many competitors who outsource production, Applied Nutrition manufactures 80% of its sales in-house, giving it an “agile” advantage to capitalize on new trends like GLP-1 friendly nutrition and hydration sticks.

The Bottom Line: Applied Nutrition is a debt-free, highly cash-generative business positioned at the intersection of sports performance and the “everyday health” megatrend.

What They Sell

Applied Nutrition has successfully moved beyond its “hardcore” sports roots to capture a massive health and wellness demographic. They operate four distinct ranges:

• Applied Nutrition (60% of revenue): The core wellness range including collagen and vitamins.

• All Black Everything (ABE) (24% of revenue): A premium range for performance-focused gym-goers.

• BodyFuel (8% of revenue): An entry-level hydration and price-conscious range.

• Endurance (2% of revenue): Specialized products for runners and cyclists.

The Key Shift: Their customer base has diversified significantly. In just two years, the female demographic has doubled from 20% to 40% of their consumer base. This is no longer a niche brand; it is a mainstream lifestyle choice.

The Revenue Model: B2B Efficiency

Applied Nutrition utilizes a high-leverage B2B-first model, which accounts for 91% of total revenue. This allows the company to enter new markets with minimal capital expenditure by partnering with local distributors who provide local market expertise.

• Retail Powerhouses: Their products are stocked in mainstream giants like Tesco, Asda, Morrisons, and Ocado in the UK, and Walmart, GNC, and Vitamin Shoppe in the US.

• The Licensing “Free Lunch”: Recently, the company signed a three-year exclusive deal with Morrisons to launch 53 branded ready-meals. This deal requires zero capital expenditure from Applied Nutrition while significantly boosting brand awareness.

Vertical Integration: The Secret Sauce

The company’s most significant competitive edge is its 91,000 sq. ft. manufacturing facility in Knowsley, Liverpool. By controlling its own production, Applied Nutrition benefits from:

Superior Margins: While whey protein prices spiked 30% in FY25, the company maintained a robust 46% gross margin through agile formulation and pricing power.

Speed to Market: When a new trend emerges—such as the demand for creatine gummies or GLP-1 friendly protein for weight-loss drug users—the company can formulate and produce it in-house months before competitors can.

Efficiency: A recent factory extension increased revenue capacity to £200 million, allowing the company to scale without massive new overhead.

Growth Catalysts: The American Dream and Beyond

Applied Nutrition is currently in the early stages of a massive international rollout:

• USA Expansion: The US business is still “in its infancy” but already has listings in HEB (Texas), Hy-Vee (Midwest), and GNC.

• Latin America: A new agreement with one of the region’s largest distributors is opening doors in Mexico, Colombia, and Puerto Rico.

• Structural Tailwinds: Over 80% of UK consumers now view supplements as a necessity rather than a luxury (including myself in this 80%).

Financials: Debt-Free and Cash-Rich

For a growth company, the balance sheet is exceptionally clean:

• Revenue (FY25): £107.1m (+24.2%).

• Free Cash Flow: £16.5m, representing a 72.4% conversion rate from adjusted profit after tax.

• Net Cash: £18.5m at the end of the period, with zero debt.

  

  

Valuation

Applied Nutrition successfully listed on the London Stock Exchange in October 2024 at an offer price of 140p per share, resulting in an initial market capitalization of £350 million. Following a series of financial results that exceeded initial market expectations, the share price has appreciated to 256p, bringing the current market valuation to £640 million. Based on FY25 results, the company trades at a trailing Adjusted P/E of approximately 28.1x and an EV/Adjusted EBITDA multiple of 20.1x. This valuation reflects a growth premium justified by a 44% three-year CAGR for both revenue and adjusted EBITDA, supported by a global market opportunity projected to reach £279 billion by 2028. However, any misstep will very likely not being forgiven by the market, which can lead to a derating. We have to consider the sector’s competitiveness, therefore they can’t afford to lose any market share.

Shareholder Structure

The shareholder register demonstrates strong alignment between management and investors, with Founder-CEO Thomas Ryder and COO Steven Granite collectively retaining a 40.06% stake in the 250 million shares in issue. Strategic backing is provided by JD Sports, which holds 9.77%, alongside institutional base including Pentwater Capital (5.00%).

Risks to Consider

• Commodity Volatility: While the company is diversified, whey protein remains a key raw material vulnerable to price swings.

• Single-Site Concentration: Almost all operations are based in Knowsley. Disruption there (fire, flood) would be a significant risk, though the company carries business interruption insurance.

• Key Man Risk: Founder-CEO Thomas Ryder remains the visionary behind the brand. While a seasoned Board has been assembled post-IPO, his leadership is central to the culture.

Conclusion

Applied Nutrition represents a rare combination: hyper-growth combined with high profitability. The company has built a brand that resonates across demographics and a manufacturing engine that protects its margins. With the US expansion only just beginning and a high-margin licensing strategy kicking off in UK grocery, APN is a compelling story for investors seeking quality exposure to the global health and wellness boom.

• I look for a spread < 4%, though I keep this filter disabled in the screener. I use it purely as a reference and cross-check the average spread online to gauge real liquidity (alongside the charts). For specific sectors with high lease obligations, such as Consumer Cyclicals or Consumer Defensives, I do not apply the debt-to-profit ratio.

• This year, I am introducing a momentum rule, targeting companies with a Momentum Rank above 90. I remain flexible here and may accept 80+ depending on the number of eligible companies and their overall StockRank. If there is a tie in StockRank, I use rising momentum as the tie-breaker.

• Another filter added this year focuses on companies with maintained or upgraded earnings forecasts (where available). This is also a flexible parameter, as some companies (like Altyngold) may not have analyst coverage.

Since my broker is Trading 212, I cannot trade SETqx shares (which require market makers for liquidity). This limits my selection slightly. My final NAP 2026 portfolio, split by economic sector, is as follows:

Basic Materials

Altyngold

A gold mining and exploration company focused on assets in Kazakhstan. Its main operation is the Sekisovskoye mine, where it is currently maximising production by transitioning to high-grade underground mining. It was part of the NAPS 2025.

Thor Explorations

A gold exploration and production company that operates the Segilola mine in Nigeria. It is notable for its rapid transition from exploration to commercial production while maintaining strong operating margins.

Consumer Cyclicals

Kingfisher

An international home improvement giant and owner of iconic brands such as B&Q and Screwfix in the UK, and Castorama in France. It serves both the DIY retail market and trade professionals. It was part of the NAPS 2025.

Springfield Properties

One of Scotland’s leading house builders. It specialises in developing residential communities, offering a mix of private and affordable housing in high-growth regions.

Smiths News

The UK’s leading wholesaler of newspapers and magazines. It operates a massive logistics network and holds long-term contracts with major publishers, providing high revenue visibility.

Financials

CMC Markets

A leading global online trading platform offering derivatives (CFDs), spread betting, and stockbroking services. It is renowned for its advanced proprietary technology catering to both retail and institutional traders.

S&U

Specialists in niche lending, primarily through its Advantage Finance division, which focuses on motor finance for the non-prime market. It is characterised by conservative risk management and steady growth.

Ramsdens Holdings

A diversified financial and retail services provider operating across four segments: foreign currency exchange, pawnbroking, precious metals buying and jewellery retail.

Energy

Drax

Formerly focused on coal, Drax is now a key player in the UK’s renewable energy infrastructure as a producer of biomass and pumped-storage hydro power, as well as a pioneer in carbon capture technologies.

BP

One of the world’s "Supermajor" oil and gas companies. It is currently undergoing a strategic transition, balancing its traditional fossil fuel business with growing investments in low-carbon energy, EV charging and convenience retail.

Industrials

International Consolidated Airlines

The parent company formed by the merger of British Airways and Iberia. It manages several leading airlines (including Vueling and Aer Lingus) and operates critical routes between Europe, North America and Latin America.

Kromek

A leading developer of radiation detection technology. It provides high-resolution detectors for the medical imaging, nuclear, and security screening markets, helping to identify radioactive materials and improve diagnostic accuracy.

Technology

Focusrite

A global specialist in audio hardware and software for musicians and podcasters. Its audio interfaces, such as the Scarlett range, are industry standards and benefit from the global growth in digital content creation.

Computacenter

A leading provider of IT infrastructure services. It helps corporate and public sector organisations design, procure and manage their hardware and software, with a strong focus on managed services and consultancy.

Telecoms

Airtel Africa

A provider of telecommunications and mobile money services operating across 14 countries in Africa. It represents a growth play focused on the low penetration of data and financial services across the continent.

Vodafone

One of the world’s largest telecommunications companies. It provides mobile and fixed-line services, with a current strategic focus on simplifying its structure and optimising operations in core markets.

Consumer Defensives

M P Evans

A company dedicated to the sustainable production of palm oil in Indonesia. It manages its own plantations and mills, benefiting from international sustainability certifications to access biofuel and consumer markets.

Wynnstay

A supplier of agricultural products to livestock and arable farmers in the UK. It manufactures and markets everything from animal feed and seeds to health products, acting as a vital pillar of the British food supply chain.

Healthcare

GSK

One of the world’s largest biopharmaceutical companies. Following the demerger of its consumer business, it focuses exclusively on innovative medicines and vaccines, with a particular emphasis on immunology and infectious diseases.

Utilities

Yu

An independent supplier of energy and multi-utility solutions (gas, electricity, and water) to the UK business sector. It uses technology to optimise billing and customer service in a traditionally complex market.

All content published on this page reflects my own comments, ideas, and thoughts. Nothing should be considered a recommendation or financial advice to buy or sign up for any product. Please do your own research and seek advice from a regulated financial advisor for personalised service. Any action you take is your own responsibility; neither Substack nor I shall be held liable for any losses or decisions you may make.

Last year, the NAP portfolio (based on Stockopedia’s StockRanks) delivered a cracking 34.20% return, outperforming the FTSE All-Share Index, which rose 18.65%.

All stocks started with an equal weighting of 5%. There was a clear winner that ended the year with a 24.1% weighting on its own, while no other stock increased its weighting beyond 7.4%.

2025 was a year that saw resource stocks soar. My biggest winner was Altyngold, which went up 484.91%. The second-best performer was International Personal Finance, which received a takeover bid that sent the price up 78.63% from the start of the year. The third-best performing stock was Airtel Africa with a 68.70% return; this stock was added mid-year to replace Ocean Wilsons, which no longer qualified for the portfolio following its merger with Hansa.

There were some stinkers in the portfolio, but they were largely offset by the winners. The worst-performing stock was PayPoint, which saw its shares plummet after a profit warning, ending the year 40.29% below the purchase price.

Find below the NAPS 2025 table.

El siguiente artículo es mi análisis e interpretación de la empresa. Cualquier opinión no debe ser tratada como una recomendación de compra o venta de ningún producto financiero. Haz tu propia investigación y ante cualquier duda consulta a un asesor financiero regulado.

Gaming Realms es una empresa con sede en Londres, Reino Unido, dedicada al desarrollo, publicación y licencia de contenido de juegos móviles, con un enfoque en juegos de dinero real y sociales. Es conocida por su marca Slingo, que combina elementos de tragaperras y bingo, y opera en mercados regulados como Reino Unido, Estados Unidos, Canadá, Malta, Gibraltar y otros.

La empresa opera en dos segmentos:

Licencias: Gaming Realms desarrolla sus juegos y después vende licencias a sus clientes, en su mayoría casinos y operadores de juegos de azar online, destacando grandes nombres del sector como Draft Kings, Entain (Bwin, Coral, Ladbrokes), Flutter (Paddy Power, Betfair) y Lottomatica.

Publicación social: Distribución de videojuegos “freemium”.

Historia

Gaming Realms fue fundada el 8 de marzo de 2001 por Simon Collins y Patrick Southon. Inicialmente, la empresa se centró en el desarrollo y publicación de juegos móviles. En 2015 la empresa adquirió la marca Slingo, un juego creado en 1995, que permitió a Gaming Realms expandir su portfolio, evolucionando hacia un modelo de negocio centrado en las licencias B2B (business to business).

Directivos

El equipo directivo de Gaming Realms incluye a profesionales con experiencia en el sector.

Presidente ejecutivo: Michael Buckley es el presidente ejecutivo de Gaming Realms desde 2013. Tiene experiencia en el sector del juego, habiendo fundado y dirigido Cashcade desde el 2000 hasta su venta por £96m en 2009.

Director Ejecutivo (CEO): Mark Seagal se unió a Gaming Realms como director financiero en 2013 procedente de Bwin. Anteriormente fué director financiero en Cashcade. En 2023 se convirtió en CEO.

Director Financiero (CFO): Geoff Green fue contratado como asistente de Mark Seagal en 2019, mientras éste era director financiero. Tras el ascenso de Mark Seagal a CEO, Geoff Green fue a su vez ascendido a CFO.

Directores no ejecutivos: Gaming Realms cuenta con 4 directores no ejecutivos, todos ellos con amplia experiencia en el sector del juego y las apuestas.

• Mark Blandford: Fue propietario de una cadena de casas de apuestas durante 15 años, pasando a fundar y dirigir Sportingbet.com en 1998 hasta 2008.

• Anna Massion: Tras una carrera como analista, Anna Massion es directora independiente no ejecutiva en varias empresas, así como haber sido directora de investigación del sector del juego y alojamiento durante 6 años en Hedgeye Risk Management.

• Jim Ryan: CEO de Pala Interactive, un operador de apuestas B2B en Estados Unidos. Anteriormente fue CEO de Bwin.party y ha participado en algunas de las operaciones de compra-venta más importantes del sector.

• Mark Wilson: Inversor y consejero en diversas empresas del sector audiovisual, inmobiliario y del juego.

Accionistas Mayoritarios

El mayor accionista de Gaming Realms es su presidente ejecutivo, Michael Buckley, el cuál cuenta con un 8.72% de las acciones de la empresa. El siguiente en la lista es Richard Ricci, CEO del broker Panmure Liberum, con un 6.06% de la propiedad. El tercer mayor accionista individual es el director no ejecutivo Mark Blandford, con un 4.27% de las acciones. En cuanto a las instituciones destacan Canaccord con un 4.07%, Schroder con un 3.52% y M&G con un 3.05%. El resto de instituciones poseen menos de un 3% cada una y la suma del resto de directivos es de menos de un 1% entre todos ellos.

No se han registrado transacciones por parte de los directivos en prácticamente dos años, para ser exactos desde agosto de 2023, y entre las instituciones, Canaccord rebajó su posición de un 5.55% a 4.07% el 22 de enero de 2025 y no hay ningún otro registro de transacciones de ninguna institución que posea o haya superado el 3% del total de las acciones de Gaming Realms.

Ventas (Año Fiscal 2024)

Más de la mitad de las ventas se generan en Estados Unidos, representando £17.7m, con los £11.7m restantes repartidos entre Malta, Gibraltar, Isla de Man, Reino Unido y el resto del mundo.

En cuanto a la distribución por segmentos, las licencias generan £24.5m lo que representa un 86% de las ventas, mientras que el segmento de publicación social aporta £4m.

Balance de Situación

Gaming Realms tiene un balance de situación robusto a fecha de 31 de diciembre de 2024 tras la publicación de sus resultados para el año 2024, con £20.28m en activos corrientes. Dentro de los activos no corrientes intangibles, que suman un total de £14.77m, encontramos que £5.88m se corresponden con propiedad intelectual y £6.69m a fondos de comercio. La suma total de los activos es de £39.02m.

Beneficios y Pérdidas

En las últimas cuentas publicadas por la empresa correspondientes al año 2024, los ingresos fueron de £28.46m (£23.42m en 2023), convertidos a £8.34m (£5.17m en 2023) en beneficios antes de impuestos, dejándonos con un beneficio por acción de 2.87p (1.96p en 2023).

Flujo de Caja

En el flujo de caja encontramos un flujo de caja operativo de £12.5m y un flujo de caja libre de £5.9m, con una conversión de EBITDA a efectivo del 49.2%.

Competidores

Resulta bastante curioso que los que podrían ser los principales competidores de Gaming Realms son también socios con los que se ha lanzado conjuntamente juegos licenciados de Slingo. Entre estas empresas encontramos DraftKings, Bet365, Entain o Zynga.

Ventajas competitivas y riesgos

La principal ventaja competitiva de Gaming Realms es la propiedad de la marca Slingo, que permite generar beneficios con altos márgenes de beneficios al proveer licencias para utilizar la marca. Estas licencias tienen un margen del 46% con respecto al EBITDA. La licencia para operar en 20 mercados y un equipo directivo experimentado en el sector es otro punto a favor de Gaming Realms con respecto a sus competidores, además de disponer de un balance de situación sólido para un negocio de este tipo, sin deudas y con £13.5 millones en efectivo, que con el precio actual se corresponde a aproximadamente un 10% del valor de mercado.

Existen riesgos como cambios legislativos o que la popularidad del juego Slingo decaiga, lo que reduciría drásticamente los ingresos de la empresa. Sin embargo, la tendencia sigue el alza, la empresa sigue creciendo e incluso el precio de las acciones, que ha estado en un rango durante bastante tiempo, ha despegado en los últimos meses.

Precio y valoración

Con un precio de 46.7p y los beneficios por acción reportados, la compañía está cotizando a un ratio de precio/beneficios de 12.6, el cuál es bastante razonable para una empresa que se encuentra en crecimiento y tiene un balance de situación sólido. Además el ratio entre el precio y el crecimiento de los beneficios es de 0.6, por lo que el precio actual está por debajo del ratio al que están creciendo los beneficios.

La desventaja que encuentro en Gaming Realms es la falta del pago de un dividendo, que puede resultar bastante útil mientras se espera a que el precio continúe subiendo, como por ejemplo durante el año que ha estado operando dentro de un rango. Sin embargo la empresa sí que está a favor de la compra de sus propias acciones, habiendo anunciado la compra de hasta 6 millones en acciones que parece ser que finalizó el 1 de mayo, ya que desde entonces no hay más transacciones de compras de acciones por parte de la propia empresa.

Previsiones

Según el consenso de los analistas que cubren la empresa, habrá un crecimiento total para el año actual, con una pequeña desaceleración en el crecimiento prevista para 2026 y vuelta a un gran ratio de crecimiento para 2027.

Conclusión

En mi opinión Gaming Realms me resulta una empresa bastante interesante. Me ha sorprendido encontrarme un balance de situación robusto con activos corrientes en positivo y que se corresponde a aproximadamente un 15% de la capitalización de mercado. En otras empresas de software se puede encontrar que el valor de los activos corrientes es negativo, ya que requieren pocos activos corrientes para operar y la mayoría de los activos son intangibles como la propiedad intelectual.

La falta de dividendos es un argumento en contra, aunque acepto que empresas que están en fase de crecimiento decidan invertir en continuar el crecimiento del negocio, algo que ha estado funcionando perfectamente en Gaming Realms. Al menos la compra de acciones por parte de la empresa se realizó en su mayoría cuando el precio estaba operando dentro del rango en el que simplemente estaba la empresa cotizando a un precio muy por debajo de su valor, por lo que al menos sí que ha habido un retorno para los accionistas.

All content published on this page reflects my own comments, ideas, and thoughts. Nothing should be considered a recommendation or financial advice to buy or sign up for any product. Please do your own research and seek professional advice from a regulated financial advisor for personalised service. Any action you take is your own responsibility; neither Substack nor I shall be held liable for any losses or decisions you may make.

One of the core mantras of investing is diversification—not putting all your eggs in one basket. Guided by these key principles, I have decided to test new ways to diversify my investment portfolio. Following the research published by Ed Croft, CEO of Stockopedia, I have built a portfolio this year that doesn’t require as much active management as my main one.

The principle of the No Admin Portfolio (NAP) consists of selecting 20 stocks at the start of each year, choosing two from each sector (Consumer Cyclical, Energy, Telecoms, Tech, Financials, etc.), and investing an equal amount in each. For instance, if we invest £1,000, we would buy £50 worth of shares in each company. At the end of the year, the portfolio is sold, and all profits and dividends are reinvested into the companies selected for the following year.

The selection process is straightforward, especially when using a screening tool. You configure your desired filters and sort them from highest to lowest, selecting the top two companies in each sector based on your chosen metrics. In my case, I used Stockopedia’s screening tool to exclude companies with a market cap of less than £20 million, as they can be difficult to trade due to low share availability. I also excluded companies with a bid-ask spread greater than 400 points, which helps filter out larger companies that suffer from similar liquidity issues. Additionally, I excluded companies with debt greater than three times their gross profit, though I remained flexible with this filter depending on the sector. Once the filters were applied, I ranked the results by StockRank—a Stockopedia algorithm that evaluates a company based on Quality, Value, and Momentum.

After filtering and ranking, I selected the companies for each sector. I remained flexible here as well, sometimes choosing only one company from a specific sector and an extra one from another, based on their StockRank. It is also worth noting that I am investing within my ISA, so certain companies may not be available if they don’t meet ISA regulations or if they aren’t offered by my specific investment platform.

The NAP doesn’t have to be entirely “hands-off.” You can take action based on specific events that fundamentally change the investment case—such as a takeover bid or a profit warning. In these cases, you might decide to sell that position and replace it with the next highest StockRank company in the same sector. You could also choose to rebalance the portfolio semi-annually, every four months, or quarterly to make it more dynamic; however, I will stick to an annual approach for now to keep administration to a minimum.

Following this introduction, here is the portfolio.

Note: I have mentioned Stockopedia and their StockRanks algorithm several times in this article. I have not received any payment from Stockopedia to promote their products, nor do I have any business relationship with the company. I mention them simply because I find their platform useful for gathering in-depth company information.

My name is Abel. I moved to the UK in 2014, with a few stints spent living back in Spain.

On this page, I will cover topics related to personal finance and investing specifically focused on the UK. My goal is to help you take advantage of the opportunities this country offers to grow your wealth.

If you are looking for someone to tell you that cryptocurrencies like Bitcoin will make you rich, you won’t find that here. Instead, I will focus on how to maximise your savings and how to become a sensible investor.

I will start publishing content soon, so watch this space.

See you soon!