Nichols Share Discussion Threads

[coolen] 21/4/2023 22:15

Anyone else confused by the reason behind today's RNS re the cancellation of share options ?

[wad collector] 19/3/2023 10:33

Xd 15.3p this week.

[philanderer] 14/3/2023 11:28

Telegraph - Questor


Vimto maker’s bubble has been burst by rising input costs but it still holds long-term appeal

Questor share tip: supply chain overhaul at drinks company Nichols is expected to deliver margin and profit improvements in 2024 and beyond

Despite the impact of a war in Yemen, a key market, and the UK’s sugar tax, Nichols recorded a new peak in net profit of £26.5m in 2019, only for Covid, lockdowns, carbon dioxide shortages and then rising input costs to slightly burst its bubble.

One result of that is a paper loss since this column bought in January 2018, partly ameliorated by 161.5p a share in dividends (once last year’s 15.3p final payment arrives in May) and mainly this column’s fault for paying 20 times that peak earnings figure.

However, the latest results at the start of the month still show a double-digit return on capital employed and a net cash balance sheet, both of which are more than enough to keep us interested.

That said, shares in the maker of Vimto and Sunkist may not roar away, given management’s forecast of flat profits in 2023, as weakness in the domestic out-of-home market offsets strength overseas. But 2022’s £2m strategic review is leading to an overhaul of supply chains and the out-of-home business, which management believes will lead to margin and profit improvements in 2024 and beyond.

In the meantime, shareholders can take comfort from the balance sheet, collect their dividends – and wait. Nichols still has long-term appeal.

Questor says: hold

Ticker: NICL

Share price at close: £10.78

[philanderer] 08/3/2023 00:31

Nichols plc launches consumer favourite SLUSH PUPPiE in new FIZZiE format

[philanderer] 07/3/2023 12:11

Afternoon EI.

I think it's called a 'double bottom' , which is a good sign.

[philanderer] 06/3/2023 14:31

HSBC raises Nichols to 'buy' (hold)

[philanderer] 01/3/2023 14:21

Website says there's an investor presentation on friday.

[philanderer] 01/3/2023 10:18

Happy with that.

[essentialinvestor] 01/3/2023 09:45

Africa presents a big opportunity so good to see that getting a mention with
increasing sales.

[topvest] 01/3/2023 09:41

Results are very good. Weakness is due to a more challenging FY23, before improvements again in FY24 I suspect.

[justiceforthemany] 01/3/2023 09:28

Raised dividend. Results seem decent enough?

[justiceforthemany] 23/2/2023 16:30

Look to be some decent buys today.

[philanderer] 22/2/2023 23:49

Good offer in Sainsbury's this morning, 2 litre bottle vimto cordial £2, reduced from £3

[justiceforthemany] 17/2/2023 21:36

Would make a great acquisition for someone.
No debt, net cash of c.£50M
Hard to believe this was trading north of £18 in 2019. Half price now.

[essentialinvestor] 17/2/2023 16:56

That would take a very large sum

What the market may want to see is a longer term growth plan clearly outlined.

[justiceforthemany] 17/2/2023 16:39

Needs to be taken back private. Holding family can't be happy at half the price it used to be pre-Covid.

[philanderer] 17/2/2023 14:40

Sales at 976.88p showing.

[justiceforthemany] 07/2/2023 11:07

1070 paid.

[deanowls] 05/2/2023 06:58

Ramadan the last couple of years has been impacted with covid and the restrictions on mixing, I would expect to see an overall boost this year.

[essentialinvestor] 04/2/2023 14:53

Africa is the big potential market I would guess.


justice, with respect that should be the the case every year
and as such is in forecasts.

Cost inflation impacting margins perhaps their current big challenge.

[justiceforthemany] 04/2/2023 13:22

Ramadan starts next month. Should drive sales.

[topvest] 03/2/2023 18:55

I hold this, BAG and BVIC. Prefer NICL over BAG that's for sure, but the price of BAG is doing better. BAG seem a bit of a one trck pony - IRN BRU in Scotland. This is an international business exposed to the Middle East etc. Much better growth prospects.

[philanderer] 03/2/2023 14:36

Afternoon EI , agree with that. I also hold NICL, DGE and BAG

edit: hold BVIC as well :-)

[essentialinvestor] 03/2/2023 14:04

Phil, thing is NICL is still on a similarISH forward multiple to DGE! and Diageo is growing earnings at a clip.

For years NICL was a high growth business
and atm it's no longer the case.
With their previous growth the rating was arguably justified.

The possible bullish case is they reignite growth and the Vimto brand is likely worth more to a larger sector player.

I hold DGE and NICL. But attempting to be realistic.