Last checked at 21 Jan 2010 12:07
| Date: | Immediate, Thursday 21 January 2010
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| Contacts: | John Nichols, Non-Executive Chairman | |
| Brendan Hynes, Group Chief Executive Tim Croston, Group Finance Director | ||
| Nichols plc | ||
| Telephone: 01925 222222 | ||
| Website:www.nicholsplc.co.uk | ||
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| Alistair Mackinnon-Musson | Mark Brady | |
| Nathan Field | Brewin Dolphin Ltd | |
| Hudson Sandler | (NOMAD) | |
| Telephone:020 7796 4133 | Telephone: 0845 213 4748 | |
| Email: nichols@hspr.com | Website: www.corporatefinance.brewin.co.uk | |
Nichols plc
STRATEGIC ACQUISITION & POSITIVE TRADING UPDATE
"Profitability will be significantly ahead of market expectations"
Nichols plc is a highly focused soft drinks and soft drinks on dispense business, comprising these two operations.
Acquisition
Nichols plc today announces the acquisition of the trade, brand and assets of the Ben Shaws 'soft drinks on draught' business, for an undisclosed sum. Ben Shaws is the number four player in the UK soft drinks dispense market - behind Nichols' Dispense Operation, which is the number three.
In bringing together the Group's current Dispense Operation with Ben Shaws, this acquisition consolidates the two largest remaining independent branded soft drinks dispense businesses into a single stable. It also provides Nichols with further growth opportunities in this sector and will enable it to maintain its strong growth of the last two years.
It is anticipated the acquisition will be earnings enhancing during 2010.
Trading Update
Following the Group's exceptionally strong first half performance announced last August (Group sales up 28%) the Board is delighted to report this positive momentum continued into the second half. As a result, the Group's full year revenues for the 12 months to 31 December 2009 were well ahead of internal projections and considerably up on last year. The Board therefore expects the Group's profitability will be significantly ahead of current market expectations.
Commenting John Nichols, Non-Executive Chairman, said:
"Despite the economic downturn, we had an exceptionally strong year, beating both our internal and the City's forecasts and also increasing our market share significantly ahead of industry trends. With the acquisition of Ben Shaws consolidating our key position in the dispense market we view the future with confidence".
Preliminary Results
Nichols plc will announce its Preliminary results on Wednesday 24 March 2010.
- ENDS -
Notes to Editors:
Nichols plc is a highly focused soft drinks and soft drinks on dispense business, comprising two operations:
| 1. | Soft Drinks (sales and marketing of the Vimto brand throughout the world, where it is now available in over 65 countries, and of the Panda & Sunkist brands in the UK).
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| 2. | Dispense (namely the Cabana, Beacon, Cariel & Dayla soft drinks on draught 'dispense' businesses) |