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A manufacturer of sports supplements part-owned by JD Sports Fashion is beginning preparations for a £1bn flotation that could help breathe fresh life into London’s moribund market for new share offerings.

Sky News has learnt that Applied Nutrition, which is based in Liverpool, has been interviewing investment bankers in recent weeks about a listing that could take place in the autumn.

City sources said this weekend that Deutsche Numis was among those in contention for a role on the float, which could rank among the largest in the UK this year.

One person close to the situation cautioned that no firm decision had been taken to press ahead with an initial public offering (IPO).

Founded in 2014, Applied Nutrition formulates and makes premium nutrition supplements for professional athletes and gym enthusiasts.

It is the official nutrition partner of a range of English Football League clubs, including League One’s Bolton Wanderers, and the Scottish Premiership side Glasgow Rangers.

Bolton Wanderers' Victor Adeboyejo (left) celebrates scoring with team-mates Dion Charles and Josh Dacres-Cogley. Pic: Martin Rickett/PA Wire
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Bolton Wanderers players celebrate scoring a goal last month. Pic: Martin Rickett/PA Wire

The company, which sells its products in 65 countries, also has partnerships with professional boxers, wrestlers and in sports including basketball, cycling and rugby league.

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Its largest brands include ABE – All Black Everything – which is a pre-workout range now stocked by Walmart, the world’s biggest physical retailer and former owner of Asda.

Other products in its portfolio include BodyFuel, a hydration drink.

JD Sports owns just under a third of the shares, while Applied Nutrition’s founder, Thomas Ryder, holds a majority stake.

The remaining shares are understood to be owned by Steven Granite, the company’s chief operating officer.

If it achieves a £1bn valuation by going public, Mr Ryder’s stake would propel him into the ranks of Britain’s richest people.

Applied Nutrition has seen rapid growth in sales and profits in recent years, and has set a £100m sales target for the current financial year.

“Our margins have remained strong despite our rapid growth and our latest results also include the setting-up of our US operation, which is growing at a healthy rate,” Mr Ryder reportedly said late last year.

“Now we’re aiming for £100m turnover in the current financial year, and the first four months are ahead of plan.”

Accounts for the year to the end of July last year disclosed a 74% rise in turnover to £61.2m, with earnings before interest, tax, depreciation and amortisation rising by 80% to £18.1m.

It also launched its first overseas subsidiary in Texas to build its presence in the US.

JD Sports Fashion, the £6bn London-listed retailer, has held a stake in Applied Nutrition since 2021.

Peter Cowgill, JD’s former boss, sat on the board of Applied Nutrition but resigned in 2022, according to Companies House records.

Dominic Platt, the current JD finance chief, was appointed as a director of Applied Nutrition this week.

A successful listing for Applied Nutrition would represent a shot in the arm for the London Stock Exchange’s efforts to attract fast-growing companies to float.

Decisions by a growing number of companies to shift their listings to the US – with Paddy Power-owner Flutter Entertainment becoming the latest example this week – have cast a pall over the City.

Last year saw the number of companies going public in London halving, with proceeds raised from initial public offerings (IPOs) falling by 40% year-on-year.

Chip designer ARM Holdings’ float in New York was interpreted as a further sign that London is no longer punching its weight as a financial centre.

The City regulator has responded by announcing plans to reform London’s listing rules.

“The challenging macroeconomic conditions which drove a slowdown in overall M&A market activity in 2023 had a knock-on effect on IPOs, with a relative pause in activity towards the end of the year,” said Scott McCubbin, UK and Ireland IPO leader at EY, the accountancy firm.

“The stability of equity markets hinges on consistent conditions so whilst falling inflation and interest rate reductions may ease in the first half of 2024, the upcoming UK and US elections in the latter half might delay significant IPO activities until 2025.”

Applied Nutrition and JD Sports Fashion both declined to comment.

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Elon Musk sues OpenAI and Sam Altman, saying company putting profit over the public good

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Elon Musk sues OpenAI and Sam Altman, saying company putting profit over the public good

Elon Musk, the multi-billionaire owner of Tesla and X, is suing artificial intelligence company OpenAI, accusing the firm of prioritising profit over developing AI for the public good.

Mr Musk is bringing the suit against OpenAI, which he co-founded, and its chief executive, Sam Altman, for breaching a contract by reneging on its pledge to develop AI carefully and make the tech widely available.

The company behind the ground-breaking generative AI chatbot, ChatGPT, has “been transformed into a closed-source de facto subsidiary of the largest technology company, Microsoft”, a court filing said.

The court action is the latest in a series of challenges to Mr Altman who was ousted from his position at OpenAI by the company board and briefly went to work at Microsoft, OpenAI’s biggest shareholder, before being returned to his post.

The AI giant was originally founded as a not-for-profit company but has grown to have commercial interests, which has caused tension between board members and founders.

By embracing a close relationship with Microsoft, OpenAI and its top executives have set that pact “aflame” and are “perverting” the company’s mission, Mr Musk alleges in the lawsuit.

“Under its new board, it is not just developing but is actually refining an AGI [artificial general intelligence] to maximize profits for Microsoft, rather than for the benefit of humanity”, the filing said.

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A key part of OpenAI’s mission to benefit humanity, the court filing said, was to make the company software open source and share it, but this has not happened.

Instead, the company operates on a for-profit model.

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Mr Musk has his own AI company, called xAI and has said OpenAI is not focused enough on the potential harms of AI.

As well as alleging breach of contract, Mr Musk’s claim said OpenAI is violating fiduciary duty and is engaged in unfair business practices. A jury trial has been sought by Mr Musk.

OpenAI and Microsoft have been contacted for comment.

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Home Office figures show how vital immigration is to the economy

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Home Office figures show how vital immigration is to the economy

The Home Office immigration system statistics for 2023 tell a different story to the one that dominates the political discourse.

While government commentary and policy has focused on illegal migration via small boats, the largest driver of rising immigration is people coming to work, primarily in a health and care sector that would not function without them.

Some 616,000 work visas were issued in 2023, 337,240 to “primary applicants”, up 26% on 2022 and a staggering 250% rise on pre-pandemic levels, with a further 279,131 to their dependants, an increase of 81%.

Health and social care visas were the largest driver of the increase, the number almost doubling in a year to 146,477, with more than 100,000 of these granted to carers.

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This expansion is the consequence of a deliberate policy decision in 2021 to make up a post-COVID, post-Brexit shortfall in staff.

With preferential status removed from European Union candidates, east Asia and west and southern Africa are the primary source of care workers.

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More than 18,000 came from India, with 7,000 from Bangladesh and Pakistan respectively. A further 18,000 came from Nigeria, 15,000 from Zimbabwe and 10,000 from Ghana.

Applications for skilled work visas in other sectors were broadly flat, perhaps reflecting a cooling labour market in a flatlining economy that has almost a million job vacancies and 2.5 million workers classified as long-term sick.

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Home Secretary James Cleverly has moved to cut numbers, banning care workers from bringing dependents, a change that may force recruiters to spread the net even wider to fill holes in British care homes.

The minimum salary threshold for skilled worker visas is also rising to £38,700 a year, up more than 50% and now more than the average salary, but such is the acute challenge of the NHS, health and care employers are exempt from paying the new figure.

One area where the government can point to falling immigration is among students but that will be no cause for celebration in higher education, where overseas candidates underwrite the cost of the domestic population.

Student visa applications fell 5% to 616,000, reflecting a more competitive international market and a tightening of rules from this year, which will see only postgraduates able to bring family members with them.

There was also a small decrease in the number of temporary visas granted to season workers in agriculture, who now overwhelmingly come from central Asia, but that was offset by a rise in youth mobility visas granted to under-30s from 12 eligible countries including Canada, Australia, New Zealand and South Korea.

From health and care to agriculture and education, cutting immigration will come at a price.

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Sainsbury’s to cut 1,500 jobs in cost-cutting plan

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Sainsbury's to cut 1,500 jobs in cost-cutting plan

Sainsbury’s has revealed plans to cut around 1,500 roles as part of a previously announced shake-up of its operations.

Sky News revealed earlier this month how the company, which also owns Argos, had refused to rule out job losses under the strategy update for investors.

It included a greater focus on food within its supermarkets, claiming more space from general merchandise and clothing.

Sainsbury’s said it was also targeting greater use of automation under the plans, which aimed to save £1bn over three years to boost investment in the business.

The company said it hoped to redeploy many of the 1,500 people affected by the changes.

The jobs will go at its store support centre, contact centre operations, in its in-store bakeries and in its general merchandise fulfilment network.

Sainsbury’s said it had proposed to colleagues in its Widnes contact centre, who operate the Careline service, that they should transfer to an existing partner.

It said a more efficient way of providing its bakery service meant jobs would go in that part of the business.

Chief executive Simon Roberts said: ”Our Next Level Sainsbury’s strategy is about giving customers more of what they come to Sainsbury’s for – outstanding value, unbeatable quality food and great service.

“One of the ways we’re going to deliver on this promise is through our Save and Invest to Win programme.

“As we move into the next phase of our strategy, we are making some difficult, but necessary decisions.

“The proposals we’ve been talking to teams about today are important to ensure we’re better set up to focus on the things that create a real impact for our customers, delivering good food for all of us and building a platform for growth.

“I know today’s news is unsettling for affected colleagues and we will do everything we can to support them.”

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