REG - Nichols PLC - AGM Trading Update and Board Changes

NicholsAnnouncement

26/04/2023 07:00

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RNS Number : 4315X  Nichols PLC  26 April 2023

26 April 2023

Nichols plc

(the "Company" or "Group")

AGM Trading Update and Board Changes

 

Nichols plc, the diversified soft drinks Group, provides the following trading
update for the three months to 31 March 2023 ("the period"), to coincide with
the Company's Annual General Meeting ("AGM") taking place later today.

Group revenue for the period increased by 4.2% year-on-year to £41.2m.

This positive performance reflected good progress in the Group's Packaged(1)
business, which saw revenues increase by 7.7% to £32.0m. This was principally
driven by an accelerated performance in the International Packaged route to
market, where revenue grew by 20.1% as strong momentum in Africa continued
from FY22. Within the UK Packaged route to market, the Group saw revenue
marginally ahead of the prior year as the business continued to progress its
value over volume strategy.

As expected, the Group's Out of Home ("OoH") business has seen a slower start
to 2023 than in the prior year, with revenues down 7.8% to £9.2m, as
continued significant cost of living pressures are being experienced.

Cash and cash equivalents at the end of the period remained strong at £55.7m
(31 December 2022: £56.3m).

 

Outlook

The Group continues to take actions to mitigate the expected significant
inflationary pressure in line with forecasts. The Group's Adjusted PBT(2)
expectations for FY23(3) remain unchanged and the Board remains confident in
its long-term strategic growth plans.

 

Board Changes

Chair Succession

As previously announced on 11 January 2023, Elizabeth (Liz) McMeikan has been
appointed as the Group's next Non-Executive Chair following the retirement of
John Nichols after 15 years as Non-Executive Chairman. Liz joined the Group as
a Non-Executive Director on 1 February 2023 and will become Non-Executive
Chair following the conclusion of the AGM later today, subject to her
re-appointment by shareholders as a Director.

The Group confirms that John Nichols will remain on the Board as a
Non-Executive Director. John will take the second of the two Nichols family
Board positions, sitting alongside fellow Non-Executive Director James
Nichols, agreed as part of the Relationship Agreement signed in July 2020.

 

Resignation of Director

The Group also announces that David Rattigan, the Company's Chief Financial
Officer, has resigned from the Board and will leave the Group at the end of
April 2023.

The Board has now commenced a search for a new CFO and shareholders will be
updated in due course. Gary Eden, Group Financial Controller, who has been
with the Group for two and a half years will assume the responsibilities of
the finance function and will report to the Board with the assistance of John
Gittins, Independent NED and Chair of the Audit Committee.

John Nichols, Chairman, said "On behalf of the Board, I would like to thank
David for his contribution over the past three years. During this time we have
made important strategic progress whilst having to navigate significant market
headwinds and David has been instrumental in enabling the Company to achieve
that. We wish him all the best for the future."

 

1 Refers to the Group's International Packaged and UK Packaged routes to
market. As announced in the Group's 2022 Annual Report and Accounts,
commencing 2023 the Board has changed the Group's operating segments it
reviews the results for and makes decisions on as chief operating decision
maker. These segments will now be Packaged, Out of Home and Corporate.

2 Excluding exceptional items

3 FY23 expectations refers to a Group compiled market consensus of adjusted
PBT £25.3m

 

 

Contacts

 

 Nichols plc                                       Telephone: 0192 522 2222

 Andrew Milne, Group Chief Executive Officer

 Singer Capital Markets (NOMAD & Broker)           Telephone: 0207 496 3000

 Steve Pearce / Jen Boorer                         Website: www.singercm.com (http://www.singercm.com)

 Hudson Sandler (Financial PR)                     Telephone: 0207 796 4133

 Alex Brennan / Charlotte Cobb / Harry Griffiths   Email: nichols@hudsonsandler.com (mailto:nichols@hudsonsandler.com)

 

 

Notes to Editors:

Nichols plc is an international diversified soft drinks business with sales in
over 73 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 SLUSH PUPPiE, Feel Good, Starslush, ICEE, Levi
Roots and Sunkist.

For more information about Nichols, visit: www.nicholsplc.co.uk
(http://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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