Nichols plc Regulatory News (NICL)

Nichols plc

INTERIM RESULTS

Nichols plc ('Nichols', the 'Group'), the soft drinks Group, announces its interim results for the period ended 30 June 2014 (the 'period').

Nichols plc is a highly focused soft drinks business. Its brand portfolio includes Vimto, which is sold in over 65 countries and Levi Roots, Sunkist, Panda and Weight Watchers which are sold in the UK. The Group has a leading market position in both the "Still" and "Carbonate" drinks categories.

Highlights:

· Pre-exceptional Profit before Tax up 11% to £10.0m

· Pre-exceptional Basic Earnings Per Share up 13% to 21.23p

· Interim dividend up 12% to 7.1p

Commenting John Nichols, Non-Executive Chairman, said:

"Nichols has delivered another strong performance during the first half of 2014. I am pleased to report that once again the Group has delivered double digit growth in pre-exceptional profit and earnings per share. The Board anticipates that full year performance will be in line with current expectations."

Chairman's Statement

I am pleased to report that the Group has delivered another robust performance during the first half of 2014. During the period we have achieved strong growth of 11% in pre- exceptional profit and 13% in earnings per share.

Group sales for the first six months of 2014 totalled £56.6m, an increase of 3% over the prior year. The Group's on-going strategy of focusing on value over volume resulted in an enhanced operating performance with operating profit increasing by 12% to £9.9m (2013: £8.9m) and operating margins of 18% (2013:16%). Pre-exceptional profit before tax grew by 11% to £10.0m (2013: £9.0m).

Results (pre-exceptional items)

Trading

Continuing the trend from the second half of 2013, our UK sales grew to £43.8m, up by 8% compared to the corresponding period in 2013. This performance is ahead of the UK soft drinks market which grew at 2.7% (Source: Nielsen 6 months to 21 June 2014). Sales growth in the UK was largely driven by the Carbonate category which was 11% ahead compared to the first six months of 2013. Importantly, the incremental sales were achieved whilst maintaining the margin. Our sales into the Still category grew by 3% compared to the prior year.

Our international sales revenue was £12.8m at the half year, 12% behind the prior year which is in line with management expectations. The performance at the half year point is mainly driven by a shift in timing of shipments of Vimto concentrate to the Middle East. Significantly, in-country sales of finished product in the Middle East region are 7% ahead of 2013 and we expect international sales in the second half of 2014 to show improved performance in comparison to both the period and the second half of 2013.

During the period, stronger Sterling rates against both the US Dollar and the Euro have negatively impacted our international sales, accounting for 3ppts of the 12% year on year decline.

Exceptional cost

As announced on 2 July 2014, the High Court awarded damages against Nichols plc with regard to the litigation claim from Gul Bottlers (PVT) Ltd. As a consequence, a one-off exceptional cost of £8.0m has been included in the Group's consolidated income statement for the period to 30 June 2014.

Dividend

Reflecting our strong balance sheet and the Board's continued confidence in the outlook, I am pleased to announce that we are recommending an interim dividend of 7.1 pence per share, an increase of 12% over the prior year (2013: 6.32 pence). The interim dividend will be paid on 29 August 2014 to shareholders registered on 1 August 2014.

Outlook

We expect our UK performance for the remainder of 2014 to maintain the positive trend seen in the first half of the year.

In light of the strong performance of in-country sales and the change in timing of shipments to the Middle East, we anticipate International revenues in the second half of 2014 to be ahead of the prior year.

In summary, the Board believes that full year performance will be in line with current expectations.

John Nichols

Non-Executive Chairman

24 July 2014

CONSOLIDATED INCOME STATEMENT

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

CONSOLIDATED STATEMENT OF CASH FLOWS

NOTES

1. Basis of Preparation

The financial information set out in this Interim Report does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006. The Group's statutory financial statements for the year ended 31 December 2013, prepared under IFRS, have been filed with the Registrar of Companies. The auditor's report on those financial statements was unqualified and did not contain a statement under Section 498 (2) or (3) of the Companies Act 2006.

The interim financial information has been prepared in accordance with the recognition and measurement principles of International Financial Reporting Standards (IFRS) and on the same basis and using the same accounting policies as used in the financial statements for the year ended 31 December 2013. The Interim Report has not been audited or reviewed in accordance with the International Standard on Review Engagement 2410 issued by the Auditing Practices Board.

2. Dividends

The interim dividend of 7.10p (2013: 6.32p) will be paid on 29 August 2014 to shareholders registered on 1 August 2014. The ex dividend date is 30 July 2014.

3. Earnings Per Share

Basic earnings per share are based on the weighted average number of shares in issue in the six months to 30 June 2014 of 36,843,875 (six months to 30 June 2013 of 36,826,580 and 12 months to 31 December 2013 of 36,834,655).

Cautionary Statement

This Interim Report has been prepared solely to provide additional information to shareholders to assess the group's strategies and the potential for those strategies to succeed. The Interim Report should not be relied on by any other party or for any other purpose.