Information  X 
Enter a valid email address

Nichols PLC (NICL)

  Print      Mail a friend       Annual reports

Thursday 25 July, 2013

Nichols PLC

Interim Results

RNS Number : 0916K
Nichols PLC
25 July 2013
 



 

 

Date:

Embargoed until 07.00am, Thursday 25 July 2013

 

Contacts:

John Nichols, Non-Executive Chairman

Marnie Millard, Group Chief Executive

Tim Croston, Group Finance Director

Nichols plc

Telephone:  01925 222222

Website:www.nicholsplc.co.uk

 

 

Alex Brennan/ Nick Lyon

Richard Lindley/Jonny Franklin-Adams

Hudson Sandler

N+1 Singer (Nominated Adviser)

Telephone:020 7796 4133

Telephone:  0113 388 4855/ 0207 496 3000

Email: [email protected]

Website: www.n1singer.com

 

 

 

Nichols plc

INTERIM RESULTS

 

Nichols plc, the soft drinks group, announces its interim results for the period ended 30 June 2013 (the "period").

 

Nichols plc is a highly focused soft drinks business. Its brand portfolio includes Vimto, which is sold in more than 65 countries and Levi Roots, Weight Watchers, Sunkist, Panda and Extreme Sports and Energy which are sold in the UK. The Group has a leading market position in both the "Still" and "Carbonate" drinks categories and also in the soft drinks on dispense market, where its brands include Cabana and Ben Shaws.

 

 

Highlights:

 

·     Profit before tax up 9% to £9.0m

·     Basic earnings per share up 11% to 18.76p

·     Strong net cash position of £31.2m (H1 2012: £23.6m)

·     Exclusive licence to add Extreme Sports and Energy to brand portfolio

·     Interim dividend up 13% to 6.32p

 

 

Commenting John Nichols, Non-Executive Chairman, said:

 

"I am very pleased to report another strong performance in the first half of the year, despite a subdued UK soft drinks market. The Group has maintained its growth momentum delivering increases in margin, profit, earnings per share and net cash generation.

 

During the period we were delighted to sign an exclusive agreement to add Extreme Sports and Energy to our brand portfolio, marking the Group's entry to the high-growth energy market.

 

We will continue with our strategy of introducing further new products and entering new international markets whilst importantly continuing to invest in our existing core brands."

 

Chairman's Statement

 

It is very pleasing to announce another strong performance in the first half of 2013. The Group has maintained its growth momentum delivering increases in margin, profit, earnings per share and net cash generation.  

 

As a result of our ongoing strategy of focusing on profit rather than volume growth, particularly in the highly promotional UK market, we have again delivered increased revenue per case, higher margins and good profit growth in our UK business although Group sales were flat year on year.

 

Group Profit before Tax (PBT) is £9.0m, +9% ahead of 2012 at the half year.  In addition, we have also improved our strong net cash position, with a balance as at 30 June 2013 of £31.2m (June 2012: £23.6m), an increase of £6.5m from the 2012 year end.

 

 

Results

 

 

Half year ended

30 June 2013

Half year ended

30 June 2012

% movement

 

£m

£m

 

Group Revenue

55.2

55.4

0%

Operating Profit

8.9

8.3

+7%

Operating Profit R.O.S.

16%

15%

 

Profit Before Tax

9.0

8.3

+9%

 

 

 

 

EPS (basic)

18.76p

16.88p

11%

Interim Dividend

6.32p

5.62p

13%

 

 

Trading

 

In recent years our UK gross margins have been under pressure from a combination of increased promotional activity and raw material cost inflation. In 2013 we planned to address this by reducing our promotional participation in the heavily discounted Carbonate category and growing our market share in the Still category. At the half year this plan has been successful, delivering increased gross margin and cash profit compared to the prior year.

 

Our international sales are 2% ahead of the prior year driven by further growth in our African markets, offset by lower sales of concentrate to the Middle East; however our latest information on in-country sales of finished goods for the Middle East show a small increase at the half year.     

 

 

New product launch

 

In April we signed an exclusive licence to add Extreme Sports and Energy to our brand portfolio. The brand, which is licensed from the Extreme Sports Company, targets 18 to 34 year old sports enthusiasts. The initial launch into the impulse sector in June was via our cash & carry and wholesale customers.

 

 

Dividend

 

The Board has declared a dividend of 6.32 pence per share (2012: 5.62 pence), representing an increase of 13% reflecting the robust results, strong balance sheet and the Board's ongoing confidence for the future.

 

This interim dividend will be paid on 30 August 2013 to shareholders registered on 2 August 2013.

 

 

Outlook

 

UK consumer spending remains cautious and for the remainder of 2013 we expect the soft drinks market to be characterised by low volume growth and significant promotional activity. Against this backdrop, we are pleased with the Group's performance in the first half of 2013, in particular the success of our strategy to improve margin and increase profitability.

 

In the second half of 2013 we will be finalising our revenue growth plans for 2014 and beyond including the introduction of further new products, entering new international markets and importantly continuing to invest in our existing core brands.

 

We expect Group performance for the remainder of 2013 will be similar to the first half of the year and therefore anticipate the full year results will be in line with current expectations. 

 

 

 

 

John Nichols

Non-Executive Chairman

25 July 2013

 

 

 

 

 

 

 

CONSOLIDATED INCOME STATEMENT

 


 



 

                       

Unaudited

 

 

Unaudited

Audited


Half year ended

30 Jun 2013

Half year ended

30 Jun 2012

Full year ended

31 Dec 2012





£'000

£'000

£'000





Revenue

55,154

55,357

107,788





Operating profit

8,860

8,280

20,517

Finance income

205

39

324

Finance expense

(61)

(61)

(331)





Profit before taxation

9,004

8,258

20,510

 

Taxation

(2,094)

(2,043)

(5,252)









Profit for the financial period

6,910

6,215

15,258

















Earnings per share (basic)

- all activities

 

18.76p

16.88p

41.43p

Earnings per share (diluted) - all activities

18.75p

16.86p

41.38p

Dividends paid per share

11.70p

10.30p

15.92p











CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

 


Unaudited


Unaudited


Audited


Half year

ended

30 Jun 2013


Half year

ended

30 Jun 2012


Full year

ended

31 Dec 2012


 

£'000


£'000


£'000







Profit for the financial period

6,910


6,215


15,258

 

Other comprehensive expense:

 

Defined benefit plan actuarial loss

0


0


(773)







Deferred taxation on pension obligations

0


0


78







Other comprehensive expense for the period

0


0


(695)







 

Total comprehensive income for the period

6,910


6,215


14,563







 



CONSOLIDATED STATEMENT OF FINANCIAL POSITION

 


Unaudited


Unaudited


Audited


30 Jun 2013


30 Jun 2012


31 Dec 2012








£'000


£'000


£'000

ASSETS






Non-current assets






Property, plant and equipment

1,379


1,240


1,275

Goodwill

15,973


13,658


15,973

Deferred tax assets

2,148


2,579


2,148

Total non-current assets

19,500


17,477


19,396







Current assets






Inventories

5,913


5,559


5,331

Trade and other receivables

24,374


22,413


23,741

Cash and cash equivalents

31,208


23,563


24,745

Total current assets

61,495


51,535


53,817







Total assets

80,995


69,012


73,213







LIABILITIES






Current liabilities






Trade and other payables

24,531


21,898


19,377

Current tax liabilities

2,232


1,944


2,191

Provisions

34


84


47

Total current liabilities

26,797


23,926


21,615







Non-current liabilities






Pension obligations

6,556


6,313


6,556

Deferred tax liabilities

47


51


47

Total non-current liabilities

6,603


6,364


6,603







Total liabilities

33,400


30,290


28,218







Net assets

47,595


38,722


44,995







EQUITY






Share capital

3,697


3,697


3,697

Share premium reserve

3,255


3,255


3,255

Capital redemption reserve

1,209


1,209


1,209

Other reserves

(474)


(546)


(474)

Retained earnings

39,908


31,107


37,308

Total equity

47,595


38,722


44,995







 



CONSOLIDATED STATEMENT OF CASH FLOWS

 


Unaudited

Half year ended

30 Jun 2013

Unaudited

Half year ended

30 Jun 2012

Audited

Full year ended

31 Dec 2012









£'000

£'000

£'000

£'000

£'000

£'000








Profit for the financial period


6,910


6,215


15,258








Cash flows from operating activities







Adjustments for:







Depreciation

253


221


460


Loss on sale of property, plant and equipment

4


0


2


Finance income

(205)


(39)


(324)


Finance expense

61


61


0


Taxation expense recognised in the income statement

2,094


2,043


5,252


Change in inventories

(582)


231


611


Change in trade and other receivables

(633)


(1,295)


(2,297)


Change in trade and other payables

5,093


1,825


(1,071)


Change in provisions

(13)


(55)


(92)


Change in pension obligations

0


0


(530)




6,072


2,992


2,011








Cash generated from operating activities


12,982


9,207


17,269








Tax paid


(2,052)


(1,850)


(4,545)

Net cash generated from operating activities


10,930


7,357


12,724








Cash flows from investing activities







Finance income

205


39


324


Proceeds from sale of property, plant and equipment

10


1


7


Acquisition of property, plant and equipment

(371)


(150)


(297)


Acquisition of subsidiary, net of cash acquired

0


0


(2,254)


Net cash used in investing activities


(156)


(110)


(2,220)








Cash flows from financing activities







Disposal of own shares

0


0


(4)


Dividends paid

(4,311)


(3,795)


(5,866)


Net cash used in financing activities


(4,311)


(3,795)


(5,870)








Net increase in cash and cash equivalents


6,463


3,452


4,634

Cash and cash equivalents at beginning of period


24,745


20,111


20,111

Cash and cash equivalents at end of period


31,208


23,563


24,745








 



 

NOTES          

 

1.   Basis of Preparation

The financial information set out in this Interim Report does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006.  The Group's statutory financial statements for the year ended 31 December 2012, prepared under IFRS, have been filed with the Registrar of Companies.  The auditor's report on those financial statements was unqualified and did not contain a statement under Section 498 (2) or (3) of the Companies Act 2006.

 

            The interim financial information has been prepared in accordance with the recognition and measurement principles of International Financial Reporting Standards (IFRS) and on the same basis and using the same accounting policies as used in the financial statements for the year ended 31 December 2012. The Interim Report has not been audited or reviewed in accordance with the International Standard on Review Engagement 2410 issued by the Auditing Practices Board.

 

2.   Dividends

The interim dividend of 6.32p (2012: 5.62p) will be paid on 30 August 2013 to shareholders registered on 2 August 2013.  The ex dividend date is 31 July 2013.

 

3.   Earnings Per Share

Basic earnings per share are based on the weighted average number of shares in issue in the six months to 30 June 2013 of 36,826,580 (six months to 30 June 2012 of 36,826,338 and 12 months to 31 December 2012 of 36,826,460).

 

 

 

 

Cautionary Statement

 

This Interim Report has been prepared solely to provide additional information to shareholders to assess the group's strategies and the potential for those strategies to succeed.  The Interim Report should not be relied on by any other party or for any other purpose.

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
IR BLGDRRUDBGXS

a d v e r t i s e m e n t