Interim Results

Nichols PLC
02 August 2006

                    
Date:               Embargoed until 07.00hrs, Wednesday 2 August 2006

Contacts:           John Nichols, Executive Chairman
                    Brendan Hynes, Group Finance Director
                    Nichols plc
                    Telephone:  [phone]
                    Website:    www.nicholsplc.co.uk

                    Alistair Mackinnon-Musson
                    Nicola Savage
                    Hudson Sandler
                    Telephone:  [phone]
                    Email:      [e-mail]


Photographs available:  On request from Hudson Sandler, as above


                                  Nichols plc

                                INTERIM RESULTS


Nichols plc, the soft drinks group, announces its Interim results for the six
months to 30 June 2006.

The Group has two principal operations:
     
1)   Soft Drinks (primarily involved in the sale of soft drinks, including
     Vimto, throughout the world and Panda & Sunkist in the UK) and

2)   Beverage Systems (Cabana, soft drinks on draught 'dispense')


Highlights:
     
•    Sales from continuing operations up 6.7% on June 2005

•    Profit before tax up 15.1% (on continuing activities & before exceptional 
     items) on June 2005

•    EPS up 18.8% to 5.11 pence (2005: 4.30 pence)

•    Interim dividend up 4.8% to 3.30 pence per share (2005: 3.15 pence)

•    Cash inflow of £8.76 million (2005: outflow of £8.04 million) in first
     half (before financing)

•    Net cash balance at period end £2.44 million (2005: £9.01 million debt)

•    Vimto continues to grow market share at maintained margin on increased
     volumes

•    Panda successfully re-formulated, re-launched and to be supported by
     national TV & cinema advertising during the school holidays

•    International sales (of Vimto) ahead of last year

•    Five new distributors added to the Cabana business


Commenting John Nichols, Chairman, said:

'We are now a stronger and more focused business with no borrowings, positive
cash and our core brands, particularly Vimto, continuing to perform strongly in
a highly competitive market place'.

'Given the momentum we now have and with better than average summer weather so
far, we anticipate that our full year results will show further progress'.


Chairman's Statement

The Group's re-shaping continues to produce real benefits and I am therefore
extremely pleased to report a fourth consecutive year of improved Interim
profits and a much stronger balance sheet and cash position.

In the six months to 30 June 2006 profit on continuing activities before
exceptional items was up 15.1% on last year to £2.27 million (2005: £1.97
million). Turnover on continuing operations was also ahead, up 6.7% to £26.19
million (2005: £24.54 million).

The first half year saw the disposal of Balmoral, our hot beverage business, in
mid-January for £6.5 million in cash and in March the sale of a surplus freehold
property in Golborne, Greater Manchester, for a further £6.1 million in cash.
The combination of these two events also enabled the Group to repay all its bank
borrowings in the first half, resulting in a net cash inflow (before financing)
of  £8.76 million (2005: £8.04 million outflow).

We are now a highly focused soft drinks and dispense business, comprising two
operations: 1) Soft Drinks - the sale of the Vimto brand throughout the world
and the Panda and Sunkist brands in the UK; and 2) Beverage Systems - namely
Cabana, soft drinks on draught ('dispense').  All our efforts and investment are
now concentrated on these two areas.


Soft Drinks Operation

I am delighted to report that our core Vimto brand has continued to grow its
share in a highly competitive marketplace. This has also been achieved with a
sensible mix of promotional activity enabling us to maintain our margin and to
grow successfully both our sales value as well as our sales volumes.

In April we re-launched the Panda brand, aimed at the children's market, as a
natural flavoured, sugar free, soft drink.  To date it has been very well
received by the trade and for the first time ever, during the school holidays it
is being supported by a national TV and cinema advertising campaign.

Today, Vimto is available in over 65 countries overseas and our international
business (sales of the Vimto brand) has performed well in the first half year,
with our core long-term markets in the Middle East and Africa both showing
increased sales over last year.


Beverage Systems Operation

With the disposal of Balmoral in January 2006, this division is now entirely
focused on dispensing cold soft drinks on draught. In the first half year we
successfully attracted five new distributors to our Cabana business and the
transformation of beverage systems to a franchised distribution model continues.

2006 is a year of transition for Beverage Systems, but given the changes made to
date, it is now well on its way to securing a place as the third largest
operator in this sector.


Results

Turnover on continuing operations in the half year to 30 June 2006 was up 6.7%
to £26.19 million (2005: £24.54 million).

Profit before tax increased by 15.1% to £2.27 million (2005: £1.97 million,
pre-exceptional).

Exceptional items comprise an exceptional gain of £2.16 million on the disposal
of Balmoral Trading Limited and a gain of £0.13 million on the disposal of the
long leasehold property at Golborne.  This was offset by £2.11 million of
exceptional charges associated with the re-structuring of our Cabana business,
principally non-cash items relating to asset impairment and onerous lease
contracts.

FRS 17 costs, including interest charges, relate to the company adopting the new
accounting standard in relation to the final salary pension scheme, which is now
closed to new members.

FRS 20 'Share Based Payments' will be adopted for the first time in 2006; the
Interim results include an estimate of the impact on the half year results.

Cash inflow (before financing) was £8.76 million (2005: £8.04 million outflow)
with net cash balances of £2.44 million (2005:  £9.01 million debt).

Earnings per share increased by 18.8% to 5.11 pence (2005: 4.30 pence).

Given the consistent progress we have made, the strong cash position, and our
confidence in the future, the Board has approved a 4.8% increase in the Interim
dividend to 3.30 pence per share (2005: 3.15 pence).

The dividend will be paid on 15 September 2006 to shareholders registered on 11
August 2006. The ex-dividend date will be 9 August 2006.


Outlook

The Group is now a stronger and more focused business with no borrowings,
positive cash and its core brands, particularly Vimto, continuing to perform
strongly in a highly competitive market place. We expect this robust trading to
continue into the second half of the year.

Given the momentum we now have in our core business and with a better than
average summer so far, we anticipate that our full year results will show
further progress.


John Nichols
Chairman

2 August 2006



CONSOLIDATED PROFIT AND LOSS ACCOUNT

                                                            Unaudited                          Unaudited       Audited
                                                  Half year ended 30 June 2006                  Restated
                                                    Before       Exceptional       Total Half year ended      Full year
                                               exceptional         items and                30 June 2005          ended
                                                 items and             FRS17                                31 Dec 2005
                                                     FRS17           charges
                                                   charges
                                                     £'000             £'000       £'000           £'000          £'000
Turnover
     Continuing operations                          26,188                 0      26,188          24,542         51,521
     Discontinued operations                             0                 0           0           5,994         11,815
                                                    26,188                 0      26,188          30,536         63,336
Operating profit / (loss)

     Continuing operations                           2,250           (2,170)          80           2,255          6,166
     Discontinued operations                             0                 0           0             276            537
Profit on disposal of                                    0             2,166       2,166               0              0
subsidiary undertaking and
tangible fixed assets
Net interest receivable / (payable)                     25              (60)        (35)           (280)          (707)

Profit before taxation                               2,275              (64)       2,211           2,251          5,996
Taxation                                                                             336             675          1,999

Profit after taxation                                                              1,875           1,576          3,997

Earnings per share (basic)                                                         5.11p           4.30p         10.91p
Earnings per share (diluted)                                                       5.09p           4.28p         10.88p

Dividends per share                                                                3.30p           3.15p          9.25p



CONSOLIDATED BALANCE SHEET

                                                            Unaudited                Unaudited                  Audited
                                                                                      Restated
                                                         30 June 2006             30 June 2005              31 Dec 2005
                                                                £'000                    £'000                    £'000
Fixed assets
Intangible assets                                               9,248                    9,718                    9,504
Tangible assets                                                 4,053                   13,564                   13,563

                                                               13,301                   23,282                   23,067

Current assets
Stocks                                                          3,053                    4,799                    3,972
Debtors                                                        17,599                   16,892                   14,592
Cash at bank and in hand                                        2,448                        0                        0

                                                               23,100                   21,691                   18,564

Creditors
Amounts falling due within one year                            13,097                   21,808                   17,532

Net current assets / (liabilities)                             10,003                    (117)                    1,032

Total assets less current liabilities                          23,304                   23,165                   24,099

Creditors
Amounts falling due after one year                                  0                    1,271                      750

                                                               23,304                   21,894                   23,349

Provisions for liabilities and charges                          2,287                    1,182                    1,452

Net assets excluding pension liability                         21,017                   20,712                   21,897

Pension liability                                               4,406                    3,223                    4,906

Net assets including pension liability                         16,611                   17,489                   16,991

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
Other reserves                                                  (698)                    (698)                    (698)
Profit and loss account                                         9,148                   10,026                    9,528

Shareholders' funds                                            16,611                   17,489                   16,991



CONSOLIDATED CASH FLOW

                                                           Unaudited                 Restated                   Audited
                                                           Half year                 Half year                Full year
                                                               ended                     ended                    ended
                                                        30 June 2006              30 June 2005              31 Dec 2005
                                                               £'000                     £'000                    £'000

Operating profit before exceptional items                      2,250                     2,531                    6,703
Exceptional items - non cash costs                             1,930                         0                    (159)
Exceptional items - cash costs                                 (232)                     (346)                  (1,194)
Amortisation and depreciation                                    829                       961                    2,061
(Profit)/ loss on sale of tangible fixed                           8                       111                      (7)
assets
Working capital movements                                    (4,972)                       755                    3,300
Pension scheme contributions                                   (500)                     (500)                  (1,000)

Cash flow from operating activities                            (687)                     3,512                    9,704
after exceptional items

Returns on investments and
servicing of finance                                            (35)                     (280)                    (575)

Taxation                                                       (482)                     (778)                  (2,004)

Capital expenditure, fixed asset
disposals and financial investment                             5,760                     (744)                  (1,556)

Acquisitions and disposals                                     6,455                   (7,609)                  (8,215)

Equity dividends paid                                        (2,255)                   (2,144)                  (3,309)

Cash inflow/ (outflow) before use of                           8,756                   (8,043)                  (5,955)
liquid resources

Financing - increase in short term deposits                        0                     2,750                    2,750

Financing - repayment of borrowings                          (6,308)                   (2,725)                      217

Increase / (decrease) in cash                                  2,448                   (8,018)                  (2,988)



STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
                                                    Unaudited                      Restated                     Audited
                                              Half year ended               Half year ended             Full year ended
                                                 30 June 2006                  30 June 2005                 31 Dec 2005
                                                        £'000                         £'000                       £'000

Profit for the period                                   1,875                         1,576                       3,997

Actual return less expected return                          0                             0                       1,004
on pension scheme assets
Experience gains and losses arising                         0                             0                     (1,194)
on the scheme liabilities
Changes in the assumptions                                  0                             0                     (2,316)
underlying the present value of the
scheme liabilities
Movement on deferred taxation                               0                             0                         752
relating to pension liability

Total recognised gains and losses                       1,875                         1,576                       2,243
for the period

Prior year adjustment                                       0                       (3,723)                     (1,579)

Total recognised gains and losses                       1,875                       (2,147)                         664
since last financial statements


Notes:


1.    Basis of preparation

The figures for 31 December 2005 are extracted from the financial statements for
that year which received an unqualified auditor's report and have been filed
with the Registrar of Companies.  The Interim results which are unaudited have
been prepared in accordance with accounting policies adopted for the year ended
31 December 2005 and have been approved by the board.  The information set out
in this Interim report does not constitute statutory accounts within the meaning
of the Companies Act.

2.    Profit Before Tax (and exceptional items)

Profit before tax (and exceptional items) can be split between continuing and
discontinued activities as shown in the table below.

                                                    June 2006        June 2005            December 2005

PBT on continuing activities                            2,275            1,975                    6,644
PBT on discontinued activities                              0              276                      537

Profit Before Tax                                       2,275            2,251                    7,181


3.    Dividends

The Interim dividend of 3.30p (2005: 3.15p) will be paid on 15 September 2006 to
shareholders registered on 11 August 2006.  The ex dividend date is 9 August
2006.

4.    Earnings per share

Earnings per share are based on the weighted average number of shares in issue
in the six months to 30 June 2006 of 36,693,536 (six months to 30 June 2005 of
36,656,419 and 12 months to 31 December 2005 of 36,633,627).

5.    Change in accounting policies

FRS 20 'Share Based Payments' will be adopted for the first time in the
financial statements for the year ended 31 December 2006.  The Interim financial
statements include an estimate of the impact of the FRS 20 charge on the half
year results.

The impact of FRS 21 'Events after the balance sheet' has resulted in a
restatement in the comparative Interim profit and loss and balance sheet figures
to reflect the dividend declared after the prior year Interim period not being
recognised as a liability in the prior year Interim balance sheet.

In respect of FRS 17 'Retirement Benefits', no interim valuation of the assets
and liabilities of the scheme has been carried out and accordingly, the
statement of total recognised gains and losses has not been updated to reflect
any actuarial gain or loss.  An estimate of the charge has however been made and
this is reflected in the profit and loss account.

6.    Exceptional Items

On 12 January 2006, the group disposed of Balmoral Trading Limited for a cash
consideration of £6.5m.

On 3 March 2006, the group completed the sale of surplus long leasehold property
at Golborne for a cash consideration of £6.1m.

During the period, Cabana changed its business model from an in house model to a
distributor based model.  This has resulted in an impairment of the fixed assets
of £1.6m, a provision for onerous leases of £0.4m and redundancy costs of £0.1m.
     
7.   This statement will be mailed to shareholders on or about 14 August 2006
and copies will be available from The Secretary, Nichols plc, Laurel House, 5
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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