LONDON (ShareCast) - - Double-digit profit and earnings per share growth
- Growth in UK and international markets
- Confident outlook despite cautious UK consumer spending

Soft drinks firm Nichols reported double-digit pre-tax profit growth during its financial year as it continues to grow its UK and international markets.

The Merseyside-based group, whose brands include Vimto, Sunkist, Panda and Weight Watchers, said group sales rose 2% to £109.9m for the year ended December 31st. Pre-tax profit, pre-exceptional items, climbed 10% to £22.5m.

Exceptional costs total £3.7m and include the implementation of a planned management restructuring and a provision of £2.0m to cover the potential costs of a litigation claim from a licensee in Pakistan.

The claim, which the company is defending, relates to the licensee's rights to manufacture and distribute Vimto cordial in Pakistan, it explained.

Operating profit margin increased to 20% from 19% in 2012. Earnings per share (EPS), before exceptional items, rose 11% to 45.8p.

UK sales gained momentum in the second half of 2013, rising by 5% year-on-year taking the full year total to £86.8m, 2% ahead of the prior year.

It also increased its market share of the Still category with sales of Vimto cordial growing to 11%.

"We continued with our planned reduction in promotional activity in the heavily discounted Carbonate sector where our sales declined by 6%," Nichols said.

Growth continued in its African markets and along with progress in the Middle East, full year sales rose 2% to £23.1m.

Non-Executive Chairman John Nichols commented: "Although economic indicators suggest signs of optimism, there is evidence that consumer spending in the UK remains cautious and we expect the UK retail market to remain challenging in 2014.

"Despite this environment we are confident that the group can maintain its strong performance into 2014. We will continue to invest in our brands and grow distribution in both our UK and international markets."

The group has proposed a final dividend of 13.3p, up from 11.7p the year before, taking total dividend for the year up 13% to 19.62p.

Net cash at the year-end jumped 39% to £34.3m.



CJ

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