Interim Results

Nichols PLC 13 August 2003 Date: Embargoed until 07.00 am, Wednesday 13 August 2003 Contacts: John Nichols, Chairman Gary Unsworth, Chief Executive Brendan Hynes, 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 Nichols plc, the soft drinks, food and foodservice group, announces its interim results for the six months to 30 June 2003. The group has two principal operations: 1) Soft Drinks (primarily involved in the manufacture and sale of soft drinks, including Vimto, throughout the world and Sunkist in the UK) and 2) 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). The key points are: • Major progress made towards group restructuring - arising from the Strategic Review • Move to outsourced manufacturing of Soft Drinks completed on time and to plan • Contract packing operation now integrated into Nichols Foods at Haydock and Stockport factory closed • Soft Drinks Operation performing strongly • Pre-tax (pre-exceptional) profits up10.3% on broadly flat turnover, with a lower cost base • On track to deliver the planned financial improvements in H2 2003 and into 2004 Commenting John Nichols, Chairman, said: 'The Board is confident the group is on track to deliver the planned financial improvements in the second half of 2003 and into 2004'. 'We expect our full year results will be broadly in line with current expectations'. Chairman's Statement I am pleased to announce that in the first six months of 2003 we have made significant progress towards restructuring the group in line with the objectives announced in March this year as part of our Strategic Review. In our UK Soft Drinks Operation, we have now successfully completed the move to outsourced manufacturing, on time and to plan. We have also successfully transferred our contract packing operation and this is now integrated into the Nichols Foods' site at Haydock and as a result, we have closed the Stockpack factory in Stockport. Results Turning to trading, group turnover in the first half year to 30 June 2003 was broadly flat at £47.80m (2002: £47.78m), with pre-exceptional profit before tax 10.3% ahead of last year at £1.82m (2002: £1.65m). This was due to a stronger performance in our Soft Drinks Operation, helped by the favourable weather conditions and the lower cost base as a result of outsourcing the manufacturing function. The overall result, however, was tempered by poor trading experienced by our hot beverage systems business, Balmoral. An exceptional charge of £3.99 million has been taken to the profit and loss account in the half year, as indicated in the March 2003 statement. This represents cash items comprising mainly redundancy and relocation costs directly associated with the moves outlined above. The first half year has also seen, as anticipated, a heavier than normal drain on operating cash due to restructuring costs. Lower capital expenditure in the first six months has helped mitigate the overall impact, with the benefit of property and asset disposals still to be realised. Earnings per share (before exceptional items) were 3.36 pence (2002: 3.18 pence). Having successfully completed the above actions, the board believes we are now well positioned to deliver some of the benefits of the Strategic Review during the second half of 2003. As reported in the group's AGM statement on the 14 May 2003, however, the full effects will not be seen until 2004. In recognition of this we are maintaining the interim dividend at 3.00p. This will be paid on the 20 October 2003 to shareholders registered on 19 September 2003. The ex-dividend date will be 17 September 2003. Outlook The board is confident the group is on track to deliver the planned financial improvements in the second half of 2003 and into 2004. However, the competitive trading conditions, particularly in our Balmoral operation, remain challenging. Notwithstanding this, we expect our full year results will be broadly in line with current market expectations. John Nichols Chairman 13 August 2003 Nichols plc CONSOLIDATED PROFIT AND LOSS Unaudited Audited Before Exceptional Half Half Before Exceptional Year Exceptional Items year year Exceptional Items ended 31 Items ended 30 ended Items Dec 2002 June 30 June 2003 2002 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Turnover 47,800 - 47,800 47,775 96,229 - 96,229 Operating 2,206 (3,994) (1,788) 2,125 6,576 (11,180) (4,604) (loss)/profit Net Interest 384 - 384 470 940 - 940 Payable (Loss)/profit 1,822 (3,994) (2,172) 1,655 5,636 (11,180) (5,544) before Taxation Taxation 601 (1,198) (597) 499 1,948 (1,830) 118 (Loss)/profit 1,221 (2,796) (1,575) 1,156 3,688 (9,350) (5,662) after Taxation Equity Dividends 1,109 - 1,109 1,109 3,253 - 3,253 Retained 112 (2,796) (2,684) 47 435 (9,350) (8,915) (loss)/profits (Loss)/Earnings (4.33p) 3.18p (15.57p) per Share (basic) (loss)/Earnings - 3.17p - per Share (diluted) Earnings per 3.36p 10.15p Share (basic) before exceptional items Earnings per 3.35p 10.12p Share (diluted) before exceptional items Dividends per 3.00p 3.00p 8.80p Share Notes Earnings per share are based on the weighted average number of shares in issue in the six months to 30 June 2003 of 36,350,197. (Six months to 30 June 2002 of 36,349,660 and 12 months to 31 December 2002 of 36,348,326). The interim dividend of 3.00p (2002 3.00p) will be paid on 20 October 2003 to shareholders registered on 19 September 2003. The ex-dividend date is 17 September 2003. The figures for 31 December 2002 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 2002 and have been approved by the board but have not been reviewed or audited by the auditors. Nichols plc CONSOLIDATED BALANCE SHEET Half year Half year Year ended ended ended 30 June 2003 30 June 2002 31 Dec 2002 £'000 £'000 £'000 Fixed Assets Intangible Assets 1,669 6,800 1,721 Tangible Assets 26,751 35,774 28,083 Own Shares 643 670 643 29,063 43,244 30,447 Current Assets Stocks 10,321 9,955 9,068 Debtors 24,118 21,518 20,372 Cash at Bank and in Hand 311 1,656 1,743 34,750 33,129 31,183 Creditors Amounts falling due within one year 31,049 26,307 24,758 Net Current assets 3,701 6,822 6,425 Total assets less current liabilities 32,764 50,066 36,872 Creditors Amounts falling due after one year 7,515 11,212 8,939 25,249 38,854 27,933 Provisions for liabilities and charges 863 2,822 863 24,386 36,032 27,070 Share Capital & 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 16,225 27,871 18,909 Equity shareholders' funds 24,386 36,032 27,070 Nichols plc CONSOLIDATED CASH FLOW Half year ended Half year ended Year ended 30 June 2003 30 June 2002 31 Dec 2002 £'000 £'000 £'000 Cash flow from operating activities 3,723 6,754 12,753 Returns on investments and Servicing of finance (384) (470) (940) Taxation (787) (791) (1,604) Capital expenditure and financial investment (416) (1,924) (3,185) Acquistions and disposals - - - Equity dividends paid (2,144) (2,144) (3,253) Financing (1,424) (404) (2,663) (Decrease)/Increase in Cash (1,432) 1,021 1,108 This statement will be mailed to shareholders on or about 22 August 2003 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 - This information is provided by RNS The company news service from the London Stock Exchange

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