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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Nichols Plc | LSE:NICL | London | Ordinary Share | GB0006389398 | ORD 10P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| -4.00 | -0.40% | 994.00 | 970.00 | 998.00 | 998.00 | 966.00 | 966.00 | 15,323 | 16:35:12 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Btld & Can Soft Drinks,water | 170.74M | 18.36M | 0.5034 | 19.83 | 364.06M |
TIDMNICL
RNS Number : 5682L
Nichols PLC
20 July 2017
Hot Features
Premium
Date: Embargoed until 0700 Thursday 20 July 2017
Contacts: John Nichols, Non-Executive Chairman
Marnie Millard, Group Chief Executive Officer
Tim Croston, Group Chief Financial Officer
Andrew Milne, Group Commercial Director
Nichols plc
Telephone: 01925 222 222
Website: www.nicholsplc.co.uk
Alex Brennan Richard Lindley
Hudson Sandler N+1 Singer (Nominated Adviser)
Telephone: 020 Telephone: 0207 496 3000
7796 4133
Email: nichols@hspr.com
Nichols plc
INTERIM RESULTS & BOARD APPOINTMENT
Nichols plc ('Nichols' or the 'Group'), the soft drinks Group, announces its Interim results for the half year ended 30 June 2017 (the 'period').
Nichols is an international soft drinks business with sales in over 85 countries, selling products in both the Still and Carbonate categories. The Group is home to the iconic Vimto brand which is popular in the UK and around the world, particularly in the Middle East and Africa. Other brands in its portfolio include Feel Good, Starslush, Levi Roots and Sunkist.
Highlights:
*Profit Before Half Year Half Year % movement
Tax and EPS were ended ended
adjusted measures 30 June 30 June 2016
in 2016, excluding 2017
the exceptional
gain recognised.
--------------------- ----------- -------------- -----------
GBPm GBPm
--------------------- ----------- -------------- -----------
Group Revenue 63.5 56.5 +12.4%
--------------------- ----------- -------------- -----------
Operating Profit 12.7 11.9 +7.1%
--------------------- ----------- -------------- -----------
Operating Profit
margin 20.0% 21.0%
--------------------- ----------- -------------- -----------
Adjusted Profit
Before Tax* 12.7 11.9 +6.8%
--------------------- ----------- -------------- -----------
PBT margin 20.0% 21.1%
--------------------- ----------- -------------- -----------
Adjusted EPS
(basic)* 27.67 25.77 +7.4%
--------------------- ----------- -------------- -----------
Interim dividend 10.1 pence 9.0 pence +12.2%
--------------------- ----------- -------------- -----------
John Nichols, Non-Executive Chairman, said:
"Nichols has delivered another strong performance in the first half of the year. Our sales momentum, which continues to outperform the UK market coupled with successful management of input costs has delivered solid profit growth."
"Whilst we anticipate that market conditions will remain challenging during the second half of the year, we have a clear strategy and, underpinned by the strength of our brands and our diversified business model, we are confident of delivering full year results in line with expectations."
Chairman's Statement
The Group has delivered another strong performance in the first half of 2017. Revenue has increased by 12.4% (10.7% on a constant currency basis) and despite input cost challenges faced in the UK, the Group's Profit Before Tax grew by 6.8% with the interim dividend being increased by 12.2%.
Trading
Total Group revenue grew by 12.4% to GBP63.5m in the first six months of 2017 (H1 2016: GBP56.5m). Once again, the growth has been delivered from both our UK and international trading which highlights the strength of our diversified business model.
In the UK, revenue totalled GBP47.5m (H1 2016: GBP44.5m) an increase of 6.7% compared to the prior year. This performance compares favourably to the total soft drinks market which showed total growth of 2.9% in the same period (Nielsen year to date to 17 June 2017). Within the UK, the Vimto brand has continued to outperform the market with sales up 10% versus the same period in 2016. The Vimto brand's strong growth has been driven by both the Still and Carbonate segments and this sustained performance demonstrates the strength of our core brand.
International revenues increased by 33.5% in the period to GBP16.0m (H1 2016: GBP12.0m), which is 24.7% on a constant currency basis. In Africa, revenues were up by 30.9% (20.2% on a constant currency basis), which continues the strong momentum reported in 2016 (H1 2016: +21.0%). Sales to the Middle East were 19.8% ahead of the same period in 2016 (15.9% on a constant currency basis). As anticipated, the first quarter benefited from shipments of concentrate for Ramadan 2017, some of which were originally scheduled for Q4 2016.
Acquisition of DJ Drink Solutions Limited
Acquisitions are a key component of our strategic growth plan, as demonstrated in recent years with our successful move into frozen beverages via the purchase of The Noisy Drinks Co. Limited and the addition of the Feel Good brand. We are therefore delighted to announce the acquisition of 100% of the shares in DJ Drink Solutions Limited ('DJ') on 2 June 2017. DJ is the largest of our Out of Home dispensed soft drinks distributors covering the North West and North East regions. This acquisition consolidates our route to market in the two regions and is consistent with our successful business model already operating in other regions in the UK.
Dividend
Reflecting the Board's continued confidence in the outlook for the Group, the Board is pleased to announce an interim dividend of 10.1 pence per share, an increase of 12.2% compared to the prior year (2016: 9.0 pence). The interim dividend will be paid on 25 August 2017 to shareholders registered on 28 July 2017; the ex-dividend date is 27 July 2017.
Board Appointment
Following John Longworth's departure at the AGM in April, we are delighted to announce the appointment of Helen Keays to the Board as an Independent Non-Executive Director and Chair of the Remuneration Committee with effect from 1 September 2017.
Helen has a background in marketing and brings a wealth of non-executive experience to the Board and is currently Senior Independent Director at Domino's Pizza Group plc and a Non- Executive Director and Chair of Remuneration at Communisis plc.
Helen Margaret Keays (aged 53) has held the following directorships within the five years prior to the date of this announcement:
Name Current directorships Previous directorships
Helen Keays Communisis plc Majestic Wine
plc
Domino's Pizza Mattioli Woods
Group plc plc
SBT Trading Limited
There are no other disclosures in respect of AIM Rule 17 and Schedule 2 part (g).
Summary and Outlook
In summary, the Board is pleased with the Group's performance in the first half of 2017. We have delivered double-digit revenue growth, managed the industry wide input cost pressures with a 6.8% increase in Profit Before Tax and announce a 12.2% increase in the interim dividend.
Whilst we anticipate that market conditions will remain challenging during the second half of the year, the Board currently expects our full year earnings to be in line with expectations.
John Nichols
Non-Executive Chairman
19 July 2017
CONSOLIDATED INCOME STATEMENT
Half year Full
ended Half year ended year
ended
30-Jun-17 30-Jun-16 31-Dec-16
Unaudited Unaudited
Unaudited before Unaudited after
exceptional exceptional exceptional
items items items Audited
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Revenue 63,504 56,520 - 56,520 117,349
Operating profit
(pre-exceptional
items) 12,717 11,869 - 11,869 30,325
Exceptional
items - - 1,087 1,087 1,087
Finance income 74 118 - 118 214
Finance expense (60) (67) - (67) (134)
Profit before
taxation 12,731 11,920 1,087 13,007 31,492
------------ ----------------- ------------- ------------- ----------
Taxation (2,534) (2,423) (217) (2,640) (6,015)
Profit for the
financial period 10,197 9,497 870 10,367 25,477
------------ ----------------- ------------- ------------- ----------
Earnings per
share (basic) 27.67p 25.77p 28.13p 69.13p
Earnings per
share (diluted)
- all activities 27.65p 25.74p 28.10p 69.07p
Dividends paid
per share 20.30p 17.60p 26.60p
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Unaudited Unaudited Audited
Half year Half year Full year
ended ended ended
30-Jun-2017 30-Jun-2016 31-Dec-2016
GBP'000 GBP'000 GBP'000
Profit for the financial period 10,197 10,367 25,477
Items that will not be reclassified subsequently to profit or loss
Re-measurement of net defined
benefit liability - - (3,472)
Deferred taxation on pension obligations and employee benefits - - 601
Other comprehensive income for the period - - (2,871)
Total comprehensive income for the period 10,197 10,367 22,606
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Unaudited Unaudited Audited
30-Jun-2017 30-Jun-2016 31-Dec-2016
GBP'000 GBP'000 GBP'000
ASSETS
Non-current assets
Property, plant and
equipment 9,924 8,019 8,715
Goodwill 29,415 22,593 23,061
Intangibles 6,006 6,163 6,084
Deferred tax assets 1,436 1,098 1,436
Total non-current
assets 46,781 37,873 39,296
----------- ----------- -----------
Current assets
Inventories 6,036 6,731 6,717
Trade and other receivables 36,957 33,045 31,508
Cash and cash equivalents 29,276 32,778 39,754
Total current assets 72,269 72,554 77,979
----------- ----------- -----------
Total assets 119,050 110,427 117,275
----------- ----------- -----------
LIABILITIES
Current liabilities
Trade and other payables 20,624 27,521 21,456
Current tax liabilities 2,607 2,315 2,355
Total current liabilities 23,231 29,836 23,811
----------- ----------- -----------
Non-current liabilities
Pension obligations 5,954 3,012 6,395
Deferred tax liabilities 1,101 1,104 1,101
----------- ----------- -----------
Total non-current
liabilities 7,055 4,116 7,496
----------- ----------- -----------
Total liabilities 30,286 33,952 31,307
----------- ----------- -----------
Net assets 88,764 76,475 85,968
----------- ----------- -----------
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 (268) (573) (358)
Retained earnings 80,871 68,887 78,165
----------- ----------- -----------
Total equity 88,764 76,475 85,968
----------- ----------- -----------
CONSOLIDATED STATEMENT OF CASH FLOWS
Unaudited Unaudited Audited
Half year ended Half year ended Full year ended
30-Jun-2017 30-Jun-2016 31-Dec-2016
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Profit for the financial period 10,197 10,367 25,477
Cash flows from operating activities
Adjustments for:
Depreciation 362 453 954
Amortisation 78 78 157
Exceptional credit - (1,087) (1,087)
Loss/ (profit) on sale of property, plant and
equipment 15 3 (6)
Finance income (74) (118) (214)
Finance expense 60 67 134
Tax expense recognised in the income statement 2,534 2,640 6,015
Change in inventories 536 (2,395) (2,382)
Change in trade and other receivables (5,448) (4,487) (3,036)
Change in trade and other payables (859) 7,429 1,229
Change in pension obligations (441) (881) (970)
--------------------------------------------------- --------- ---------- --------- --------- --------- ---------
(3,237) 1,702 794
Cash generated from operating activities 6,960 12,069 26,271
Tax paid (2,314) (3,040) (6,116)
--------------------------------------------------- --------- ---------- --------- --------- --------- ---------
Net cash generated from operating activities 4,646 9,029 20,155
Cash flows from investing activities
Finance income 74 118 214
Proceeds from sale of property, plant and equipment 3 - 17
Acquisition of property, plant and equipment (1,758) (1,237) (2,442)
Acquisition of subsidiary, net of cash acquired (6,040) (4,056) (3,715)
Net cash used in investing activities (7,721) (5,175) (5,926)
Cash flows from financing activities
Funds from ESOT/ (share options exercised) 84 (26) (107)
Dividends paid (7,487) (6,488) (9,806)
--------------------------------------------------- --------- ---------- --------- --------- --------- ---------
Net cash used in financing activities (7,403) (6,514) (9,913)
Net (decrease)/ increase in cash and cash
equivalents (10,478) (2,660) 4,316
Cash and cash equivalents at beginning of period 39,754 35,438 35,438
--------------------------------------------------- --------- ---------- --------- --------- --------- ---------
Cash and cash equivalents at end of period 29,276 32,778 39,754
--------------------------------------------------- --------- ---------- --------- --------- --------- ---------
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 2016, 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 2016. 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. New Accounting Standards
There are a number of new accounting standards, along with amendments and interpretations to standards, which are effective for future year-ends that have not been applied in preparing these Interim results. Management has in particular considered the potential impact of the implementation of IFRS 9, IFRS 15 and IFRS 16. It is expected that neither IFRS 9 nor IFRS 15 will have a material impact on the consolidated financial statements of the Group. Management are reviewing the impact of IFRS 16, which will become effective for the 31 December 2019 year end. The current total minimum lease payments on operating leased assets is GBP3.2m which is considered materially similar to the asset and liability that would be recognised if IFRS 16 were effective at the current time.
3. Exceptional Gain in 2016
Having initially taken a 49% stake in The Noisy Drinks Co. Limited (Noisy) in March 2015, the Group acquired the remaining shares on 8 January 2016. Under International Financial Reporting Standards, the latter transaction triggered a deemed disposal of the initial 49% of the shares in Noisy and a subsequent acquisition of 100% of the shares. As a consequence, a profit on disposal amounting to GBP1.1m arose due to the increase in value of the 49% between March 2015 and January 2016. This profit was disclosed as an exceptional gain in 2016.
4. Dividends
The interim dividend of 10.1 pence (2016: 9.0 pence) will be paid on 25 August 2017 to shareholders registered on 28 July 2017. The ex-dividend date is 27 July 2017.
5. 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 2017 of 36,853,794 (six months to 30 June 2016 of 36,849,942 and 12 months to 31 December 2016 of 36,853,888).
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
Interim Report
The interim report will be available on the Company's website (www.nicholsplc.co.uk) on or around 20 July 2017.
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 DGGDRIUBBGRC
(END) Dow Jones Newswires
July 20, 2017 02:00 ET (06:00 GMT)
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