Nichols (NICL)

Sector:

Beverages

Index:

FTSE AIM 50

1,065.00p
   
  • Change Today:
      15.00p
  • 52 Week High: 1,480.00
  • 52 Week Low: 1,030.00
  • Currency: UK Pounds
  • Shares Issued: 36.48m
  • Volume: 4,816
  • Market Cap: £388.47m
  • RiskGrade: 263

Nichols confident despite 'significant' inflationary pressures

By Josh White

Date: Wednesday 27 Jul 2022

LONDON (ShareCast) - (Sharecast News) - Soft drinks maker Nichols reported a 19.1% improvement in group revenue in its interim results on Wednesday, to £80.2m.
The AIM-traded producer of brands including Vimto and Sunkist said its adjusted operating profit was 24.2% higher year-on-year for the six months ended 30 June, at £11.2m, although its profit before tax margin narrowed by 0.2 percentage points to 12.6%.

Adjusted earnings per share came in at 24.8p, up 27% on the prior year, while cash and cash equivalents fell 13.2% to stand at £49.2m at the period end.

The board declared an interim dividend of 12.4p per share, up 26.5% on the 9.8p distribution it made at the same point last year.

Nichols said its 2022 group expectations remained unchanged, noting "significant and accelerating" inflationary pressures, particularly in ingredient and packaging costs.

It said customer, supplier and operational mitigation actions were underway.

"I'm pleased to report an encouraging financial performance in the first half of the year with 27% increases to both adjusted profit before tax and the half-year dividend," said non-executive chairman John Nichols.

"In the UK, the Vimto brand continues to outperform the broader squash market, and the group's out-of-home route-to-market experienced good growth as the wider leisure sector continues to recover from the impact of the pandemic.

"After some disruption to shipments affecting our International business in the first quarter, I am pleased to report a recovery in the second quarter which has so far continued into the second half of the year."

John Nichols said that, while the group was not immune to the "significant and accelerating" inflationary pressures impacting the consumer and the soft drinks market, it had taken "swift" mitigating actions where possible, as its adjusted profit before tax expectations for the full year remained unchanged.

"The board remains mindful of the potential earnings impact of continued inflation into the 2023 financial year and beyond.

"We have a long-term track record of growth, a proven, diversified strategy, and a quality range of brands.

"All of this is underpinned by a strong balance sheet. As a result, the board remains confident that the group is well positioned to deliver its long-term growth plans."

At 1031 BST, shares in Nichols were down 5.68% at 1,245p.

Reporting by Josh White at Sharecast.com.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Nichols Market Data

Currency UK Pounds
Share Price 1,065.00p
Change Today 15.00p
% Change 1.43 %
52 Week High 1,480.00
52 Week Low 1,030.00
Volume 4,816
Shares Issued 36.48m
Market Cap £388.47m
RiskGrade 263

Nichols Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
27.45% below the market average27.45% below the market average27.45% below the market average27.45% below the market average27.45% below the market average
55.56% above the sector average55.56% above the sector average55.56% above the sector average55.56% above the sector average55.56% above the sector average
Price Trend
43.96% below the market average43.96% below the market average43.96% below the market average43.96% below the market average43.96% below the market average
55.56% below the sector average55.56% below the sector average55.56% below the sector average55.56% below the sector average55.56% below the sector average
Income
91.02% below the market average91.02% below the market average91.02% below the market average91.02% below the market average91.02% below the market average
60% below the sector average60% below the sector average60% below the sector average60% below the sector average60% below the sector average
Growth
83.5% below the market average83.5% below the market average83.5% below the market average83.5% below the market average83.5% below the market average
100% below the sector average100% below the sector average100% below the sector average100% below the sector average100% below the sector average

What The Brokers Say

Strong Buy 0
Buy 1
Neutral 3
Sell 0
Strong Sell 0
Total 4
neutral
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Nichols Dividends

  Latest Previous
  Interim Final
Ex-Div 04-Aug-22 24-Mar-22
Paid 09-Sep-22 05-May-22
Amount 12.40p 13.30p

Trades for 31-Jan-2023

Time Volume / Share Price
12:20 1,410 @ 1,040.00p
11:58 95 @ 1,050.43p
11:51 189 @ 1,049.00p
11:50 45 @ 1,049.00p
11:42 45 @ 1,065.00p

Nichols Key Personnel

CEO Andrew Milne
CFO David Rattigan

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