REG - Nichols PLC - FY23 Trading Update and Appointment of NED

NicholsAnnouncement

10/01/2024 07:00

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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 £170.7m(3) (FY22:
£164.9m). 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 £67.0m(3) (FY22: £56.3m). 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
 ·      JMKN LLP                                        ·      n/a

 ·      Nichols 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 £25.4m

(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 & 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 / Hattie Dreyfus / 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. 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
 (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.

 

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
(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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