TIDMNICL
RNS Number : 1556Z
Nichols PLC
10 January 2024
10 January 2024
Nichols plc
(the "Company" or "Group")
FY23 Trading Update and Appointment of Non-Executive
Director
FY23 Adjusted Profit Before Tax anticipated to be above market
expectations
Nichols plc, the diversified soft drinks group, is pleased to
provide the following Trading Update for the 12 months to 31
December 2023 ("FY23") and to announce the appointment of Matthew
Nichols as a Non-Executive Director to its Board.
Trading Update
The Board is pleased to announce that the Group has delivered a
strong performance in 2023 and expects to report FY23 Adjusted
Profit Before Tax(1) ("Adjusted PBT") slightly above current market
expectations(2) . Trading in the second half of the year has
continued to progress well and in accordance with our growth
strategy. In addition, we have begun to realise some of the
benefits from the restructuring of our Out of Home (OoH) business
earlier than initially anticipated.
Total Group Revenue during the year increased by 3.5% to
GBP170.7m(3) (FY22: GBP164.9m). We continued to perform well within
our Packaged business, where sales were up by 6.1%(3) , with
progress particularly strong in International where export sales
across the year were up by 16.8%(3) . In line with the Group's
expectations, revenue from our OoH business continued to reduce as
we exited from unprofitable accounts.
We are pleased that our Gross Margins have been largely
maintained despite considerable inflationary pressures early in the
year. This stability has allowed us to increase the level of
investment in the long-term strategic development of the Group.
Cash generation has remained strong throughout the year and, at
the end of December 2023, cash and cash equivalents were
GBP67.0m(3) (FY22: GBP56.3m). We have benefitted from increased
interest receipts during the year.
Outlook
The Group continues to derive considerable benefit from its
diversified business model, with an established UK position
complemented by the enhanced growth opportunities within our
International business. Within our Packaged business, we have
continued our strategy of investment in extending our product range
and in the development of our international markets during the
year, both of which are expected to continue to provide growth over
both the short and long term. The action taken to restructure our
OoH division during 2023 is beginning to provide the anticipated
benefits and the Company is confident that the business will
contribute positively to overall Group performance during 2024.
The Group intends to accelerate the rate of investment in its
longer-term development over the next 12 months in accordance with
our established strategic plan. Whilst inflationary pressures now
appear to be moderating in the UK, we remain aware of continued
uncertainty affecting some of our markets but remain confident that
necessary mitigating actions are in place.
The Group remains confident that it is well positioned to
deliver its strategic plans and deliver sustainable shareholder
returns, benefiting from the strength of its diversified business
model, brands and financial position.
Andrew Milne, Chief Executive Officer of Nichols, commented on
the Group's trading update:
"Nichols has delivered a strong performance in FY23 making good
progress against our strategic plans and achieving a PBT outcome
ahead of market expectations. This is a great testament to the
strength of the Group's business model and brands, with our
established UK position complemented by strong momentum
internationally. Looking ahead into 2024 we remain focused on
continuing to implement our strategic plans and delivering further
progress against our long term ambitions."
Non-Executive Director Appointment
The Group is also pleased to announce that Matthew (Matt)
Nichols will join the Board as a Non-Executive Director with effect
from 10 January 2024 , pursuant to the terms of the Relationship
Agreement between Nichols plc and the Nichols family, which
entitles the family to two Non-Executive Board positions.
Matthew joined the Company in September 2006 and has held
several senior roles within the Group. He currently holds the
position of Commercial Director - International within the Group's
Packaged business and is a member of the Company's Senior
Leadership Team.
Liz McMeikan, Non-Executive Chair of Nichols, commented :
"The Board is delighted to announce the appointment of Matt
Nichols as a Non-Executive Director. Matt is a highly valued member
of the Company's senior leadership team, responsible for the
leading the Company's successful International business. He will
bring a welcome diversity of perspective and I look forward to the
value his contribution will bring to the work of the Board."
The following disclosures are required regarding Matthew
Nichols' appointment pursuant to Schedule Two paragraph (g) of the
AIM Rules for Companies (the "AIM Rules").
Matthew Nichols
Matthew John Nichols (aged 41) is currently, or has during the
past five years been, a Director of the following companies:
Current directorships or partnerships Previous directorships or partnerships
* n /a
* J MKN LLP
* N ichols 3N Ltd
* Nichols Estates Ltd
* SBN Investments Ltd
* FK All Trading Ltd
* Nichols International (Holdco) Company Limited
* Llanbedrog Headland Company
Matthew currently holds 844,838 ordinary shares in the
Company
Save as set out above, there are no further information to be
disclosed in accordance with Schedule Two paragraph (g) of the AIM
Rules.
(1) Excluding exceptional items
(2) Current Group compiled market consensus for Adjusted Profit
before Taxation of GBP25.4m
(3) Unaudited
Contacts
Nichols plc Telephone: 0192 522 2222
Andrew Milne, Group Chief Executive
Officer
David Taylor, Interim Chief Financial
Officer
--------------------------------------- ----------------------------------
Singer Capital Markets (NOMAD Telephone: 0207 496 3000
& Broker)
Website: www.singercm.com
Steve Pearce / Jen Boorer
----------------------------------
Hudson Sandler (Financial PR) Telephone: 0207 796 4133
Alex Brennan / Hattie Dreyfus Email: nichols@hudsonsandler.com
/ Harry Griffiths
--------------------------------------- ----------------------------------
Notes to Editors:
Nichols plc is an international diversified soft drinks
business with sales in over 73 countries. 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 SLUSH
PUPPiE, Starslush, ICEE, Levi Roots and Sunkist.
For more information about Nichols, visit: www.nicholsplc.co.uk
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014
as it forms part of UK domestic law by virtue of the European
Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in
accordance with the Company's obligations under Article
17 of MAR.
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