Interim Results

Nichols PLC 15 August 2001 Date: For immediate release, Wednesday 15 August 2001 Contacts: John Nichols, Chairman Gary Unsworth, Chief Executive Simon Nichols, Finance Director Nichols plc Telephone: 01925 222222 Alistair Mackinnon-Musson Philip Dennis Hudson Sandler Telephone: 020 7796 4133 Email: nichols@hspr.co.uk Nichols plc Interim Results for the Six Months ended 30 June 2001 Nichols plc, the soft drinks, food and foodservice group, announces its interim results. The group has three principal operations: Soft Drinks (primarily involved in the manufacture and sale of soft drinks, including Vimto, throughout the world and Sunkist in the UK), Food Products and Beverage Systems (including Nichols Foods, the manufacturer and supplier to the vending, foodservice and retail markets; Balmoral, supplier of hot beverage systems and Cabana, soft drinks on draught) and Co-packing (which includes Stockpack, the group's contract food packing operation). The key points are: * Turnover increased by 6% to £45.25m * Operating profit of £2.3m * Earnings per share of 3.36p * Continued growth in market share of Vimto in the South East * Vending operation continues to expand with new retail product launches John Nichols, Chairman, commented: 'Prospects for the second half are far more encouraging. The Soft Drinks operation is in a far better position than last year, while Balmoral remains buoyant and Cabana is making real progress.' Please find attached: Chairman's Statement Tables of figures CHAIRMAN'S STATEMENT The first half-year has been rather less encouraging than we would have hoped, largely the result of a fundamental change in the phasing of customer orders from the first half to the second, particularly in our Soft Drinks and Co-Packing Operations. The second half, however, has begun more positively. Evidence that orders are being recouped together with the operational benefits expected to feed through from improvements made in the first half, gives the Board confidence that annual profit growth will be achieved by the year end. Against this backdrop, in the first half-year the group saw the following major achievements within its operations: Soft Drinks Operation * Continued growth in market share of the Vimto brand following ongoing and successful advertising, particularly in the South East of England. * Product listings gained for the Sunkist soft drinks brand into major multiple retailers including Kwik Save Somerfield. * International sales remained buoyant and orders from the Middle East will show through in the second-half. * Orders have been received for the new markets of China and South Africa and these launches are now underway. Food Products and Beverage Systems Division * Nichols Foods has seen sales growth over the same period last year, albeit at lower overall margin due to adverse market conditions and the changing mix of the new developing markets, such as single portion wet and dry sachets. * The vending operation continues to expand with new retail product launches (such as Galaxy) showcased at Avex - the premier European vending exhibition. * Following the launch of Buendia Colombian coffee and the Galaxy range of drinking chocolate in the last quarter of 2000, the retail area has seen distribution gains within major multiples and these are now being translated into increasing sales. * Our dispense systems businesses of Cabana (soft drinks dispense) and Balmoral (hot beverages) have both seen encouraging sales growth in the first half of the year. * At Cabana, the major restructuring completed in 2000, has restored the business from its loss making position, returning to profit in the second quarter. The scale of change in Cabana cannot be overstated and the way and speed in which the business is moving forward is most encouraging. Co-packing * Sales in the first half-year at Stockpack were disappointing, with several customer contracts deferred until the second half. Customer commitments for the rest of the financial year, together with new customer promotions and launches give confidence for a better second half. Against the tough and challenging trading conditions outlined above, with growing customer consolidation, increased competitive pressures leading to some margin erosion, and a fundamental change in the phasing of certain key customer orders, group turnover in the six months to 30 June 2001 was up by 6% to £45.25m and operating profit was £2.3m. Earnings per share were 3.36p per share. The interim dividend will be maintained at 3p and will be paid on 22 October 2001 to shareholders registered on 21 September 2001. The ex-dividend date will be 19 September 2001. Overall Our continued desire to drive best practice across the group, together with high levels of people development and increased sales focus, will see the group's operations drive performance forward. Focus on the group's cost base will also help the company progress in what are undoubtedly tough market conditions. Prospects for our Soft Drinks Operation are more encouraging than at this time last year, with stronger summer sales expected. Additionally, sales of both equipment and ingredients at Balmoral remain buoyant, and with Cabana making excellent progress, moving from first half losses into profit, prospects for both the dispense businesses are encouraging. These factors give the Board confidence of achieving year on year profit growth by the year end. John Nichols Chairman 15 August 2001 Consolidated profit and loss account Unaudited Audited Half year ended Half year ended Year ended 30 June 2001 30 June 2000 31 Dec 2000 £'000 £'000 £'000 Turnover 45,252 42,725 90,416 --------- --------- --------- Operating profit 2,306 3,107 8,525 Net interest payable 560 436 966 --------- --------- --------- Profit before taxation 1,746 2,671 7,559 Taxation 523 801 2,311 --------- --------- --------- 1,223 1,870 5,248 Equity dividends 1,109 1,109 3,253 --------- --------- --------- Retained profits 114 761 1,995 --------- --------- --------- Earnings per share (basic) 3.36p 5.11p 14.35p Earnings per share (fully diluted) 3.36p 5.11p 14.34p Dividends per share 3.00p 3.00p 8.80p Notes Earnings per share are based on the weighted average number of shares in issue in the six months to 30 June 2001 of 36,383,222. (Six months to 30 June 2000 of 36,590,330 and 12 months to 31 December 2000 of 36,572,740). The interim dividend of 3.00p (2000 3.00p) will be paid on 22 October 2001 to shareholders registered on 21 September 2001. The ex-dividend date will be 19 September 2001. The figures for 31 December 2000 are extracted from the financial statements for that year which received an unqualified auditors' report and have been filed with the Registrar of Companies. The interim results have been prepared in accordance with the accounting policies adopted for the year ended 31 December 2000 and have been approved by the board but have not been reviewed or audited by the auditors. Consolidated balance sheet Unaudited Audited Half year ended Half year ended Year ended 30 June 2001 30 June 2000 31 Dec 2000 £'000 £'000 £'000 Fixed assets Intangible assets 7,239 7,504 7,303 Tangible assets 35,866 34,097 35,078 Own shares 642 540 687 --------- --------- --------- 43,747 42,141 43,068 Current assets Stocks 9,575 8,329 8,368 Debtors 21,971 19,229 19,290 Cash at bank and in hand 761 971 572 --------- --------- --------- 32,307 28,529 28,230 Creditors: Amounts falling due within one year 27,290 26,541 21,348 --------- --------- --------- Net current assets 5,017 1,988 6,882 Total assets less current liabilities 48,764 44,129 49,950 Creditors: Amounts falling due after one year 10,900 8,000 12,200 --------- --------- --------- 37,864 36,129 37,750 Provision for liabilities and charges 2,581 2,194 2,581 --------- --------- --------- 35,283 33,935 35,169 --------- --------- --------- Share capital and reserves Called up share capital 3,697 3,697 3,697 Share premium account 3,255 3,255 3,255 Capital redemption reserve 1,209 1,209 1,209 Profit and loss account 27,122 25,774 27,008 --------- --------- --------- Equity shareholders' funds 35,283 33,935 35,169 --------- --------- --------- Consolidated cash flow statement Unaudited Audited Half year ended Half year ended Year ended 30 June 2001 30 June 2000 31 Dec 2000 £'000 £'000 £'000 Cash flow from operating activities 5,998 5,391 10,268 Returns on investments and servicing of finance (560) (436) (966) Taxation (512) (302) (1,995) Capital expenditure and financial investment (3,415) (3,897) (7,166) Acquisitions and disposals (133) (2,130) (2,021) Equity dividends paid (2,144) (2,070) (3,179) Management of liquid resources 6,000 7,000 (8,000) Financing -- -- 12,191 --------- --------- --------- Increase / (decrease) in cash 5,234 3,556 (868) --------- --------- --------- This statement will be mailed to shareholders on or about 22 August 2001 and copies will be available from The Secretary, Nichols plc, Laurel House, 3 Woodlands Park, Ashton Road, Newton-le-Willows, WA12 0HH after that date. Copies of this statement are now available on the Investor Relations section of the company's website: www.nicholsplc.co.uk. Ends

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