Nichols plc Regulatory News (NICL)

13 Jan 2006 07:00

Nichols PLC13 January 2006 Date: Embargoed until 07.00hrs, Friday 13 January 2006 Contacts: John Nichols, Executive Chairman Brendan Hynes, Group Finance Director Nichols plc Telephone: 01925 222222 Website: www.nicholsplc.co.uk Alistair Mackinnon-Musson Philip Dennis Hudson Sandler Telephone: 020 7796 4133 Email: nichols@hspr.co.uk NICHOLS PLC ("Nichols") Disposal of Balmoral Trading Ltd ("Balmoral") to the Autobar Group Nichols plc, the soft drinks group, announces the disposal of Balmoral - its hotbeverage systems business, to the Autobar Group. Following this disposal Nichols has two principal operations, namely: 1) Soft Drinks (primarily involved in the sale of soft drinks, including Vimto, throughout the world and Panda & Sunkist in the UK) and 2) Beverage Systems (Cabana, soft drinks on draught) The disposal by Nichols of Balmoral to the Autobar Group for £6.5 million incash includes £2.4m inter-company debt and will create a small exceptionalprofit on disposal. The proceeds will be used in the short term to reduce groupdebt. The net assets of Balmoral were £4.8m including inter-company debt and thebusiness generated a profit before tax of £0.73m for the year to 31 December2004 (as shown in its last audited accounts). Balmoral's disposal is consistent with the strategy of Nichols plc to focus itsfuture efforts and investment upon developing further growth opportunitiesrelating to the soft drinks sector. The Autobar Group is considered one of Europe's leading companies in the hotbeverage and vending markets and it also owns the Pelican Rouge and Cafe Bartrading brands. Autobar has recently embarked on a series of acquisitionsacross Europe as it clearly wishes to grow its share of the hot beveragedispense market. Autobar therefore sees the purchase of Balmoral as another keymilestone in achieving its overall objectives. Commenting John Nichols, Chairman Nichols plc, said: "The disposal of Balmoral will now enable us to focus all our future efforts andinvestment entirely on the soft drinks sector. I am also pleased it has beenacquired by a major player in its sector and I would like to thank all of theBalmoral team for their support and commitment over the last six years of ourownership and to wish them well in the future". - ENDS - This information is provided by RNS The company news service from the London Stock Exchange