Nichols plc Regulatory News (NICL)

Nichols plc

INTERIM RESULTS

Nichols plc ('Nichols' or the 'Group'), the soft drinks Group, announces its Interim results for the period ended 30 June 2016 (the 'period').

Nichols is an international soft drinks business with sales in over 70 countries, selling products in both the Still and Carbonate categories. The Group is home to the iconic Vimto brand which is popular in the UK and around the world, particularly in the Middle East and Africa. Other brands in its portfolio include Feel Good, Starslush, Levi Roots and Sunkist.

Financial Highlights:

John Nichols, Non-Executive Chairman, said:

"The Board is pleased with the Group's strong performance in the first half of the year, with UK sales growth continuing to outperform the market. Group revenue increased by 3.3% and Group profit increased by 9%, which reflects the strengths of the Group's business model. As a result of this performance and our confidence in the outlook for Nichols, we are pleased to recommend an interim dividend of 9.0 pence per share which represents a 12.5% increase compared to the prior year."

Chairman's Statement

Nichols has produced another strong performance in the first half of 2016. Group sales have increased by 3.3%, profit growth (before exceptional credits) was 9.2% and the interim dividend has increased by 12.5% compared to the prior year.

Trading

Total revenues for the Group increased by 3.3% to £56.5m in the first half of 2016 (2015: £54.7m). This revenue growth was driven by our UK sales, which is particularly pleasing in the context of the continued challenges in the UK soft drinks market. Group operating profit increased by 10.8% to £11.9m (2015: £10.7m) delivering an increase in margin to 21% (2015: 20%) as a result of the sales growth and our continued strategy to focus on value over volume.

Our UK sales increased by 4.7% to £44.5m (2015: £42.6m). During the same period, revenues in the overall UK soft drinks market declined by 0.5% (Source: Nielsen 6 months to 18 June 2016). This outperformance of the market was driven by the strong growth of our Still Ready To Drink range, the launch of Vimto Remix into both the Still and Carbonate categories, and most notably the incremental sales from the acquisition of The Noisy Drinks Co. Limited.

Total international sales in the period were in line with our expectations at £12.0m (2015: £12.1m). As anticipated, the majority of our sales to the Middle-East will occur in the second half of the year due to the phasing of in-country production. In the Africa region, we have seen an excellent performance driven by our current markets and the opening of new territories.

Exceptional Profit

Having initially taken a 49% stake in The Noisy Drinks Co. Limited (Noisy) in March 2015, the Group acquired the remaining shares on 8 January 2016. Under International Financial Reporting Standards, the latter transaction triggers a deemed disposal of the initial 49% of the shares in Noisy and a subsequent acquisition of 100% of the shares. As a consequence, a profit on disposal amounting to £1.1m arose due to the increase in value of the 49% between March 2015 and January 2016. This profit is disclosed as an exceptional credit.

Dividend

As a result of the strong Group performance in the first half of 2016 and the Board's continued confidence in the outlook, I am pleased to recommend an interim dividend of 9.0 pence per share, which represents a 12.5% increase compared to the prior year (2015: 8.0 pence).

The interim dividend will be paid on 26 August 2016 to shareholders registered on 29 July 2016. The ex-dividend date is 28 July 2016.

Outlook

In our UK markets we expect performance in the second half of 2016 to continue the trend seen in the first six months of the year. In addition, we will re-launch the Feel Good brand in the autumn ahead of the important Christmas trading period into both the Still and Carbonate categories. As explained above, we expect a stronger second half of the year in our Middle East markets and as a result, our total international sales are anticipated to deliver growth for the full year.

In summary, the Board is pleased with the strong performance in the first half of 2016 and is confident that full year results will be in line with market expectations.

John Nichols

Non-Executive Chairman

21 July 2016

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 2015, 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 2015. 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 9.0p (2015: 8.0p) will be paid on 26 August 2016 to shareholders registered on 29 July 2016. The ex dividend date is 28 July 2016.

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 2016 of 36,849,942 (six months to 30 June 2015 of 36,849,257 and 12 months to 31 December 2015 of 36,849,638).

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

Interim Report

The interim report will be available on the Company's website (www.nicholsplc.co.uk) on or around 21 July 2016.

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.