Nichols Share Discussion Threads

[cockneyrebel] 24/3/2010 11:35

Frauddy - the results were right on the revised up broker forecasts. I'm completely happy - I've also had an 8p+ divi.

Cash generation is great and I'm sure we are in for the hot summer we haven't seen in a long time.

Again if you were a member of the wide awake club you'd have been in these a while ago and be holdingh a nice profit now.

Sadly you have just become the third Chuckle Brother .

CR

[davebowler] 24/3/2010 09:32

Nichols (Brewin Dolphin)

Final Results – ADD (From BUY – since 21/01/10) – 12m Price Target: 400p - Current Price: 362.5p – Market Cap: £132.6m

· Headline numbers were very much in line with our expectations. Sales grew by 29% to £72.4m, EBIT increased by 27% to £12.5m and profits pre exceptionals by 22% to £12.2m. A slightly higher tax charge reduced EPS growth to 17%. This is the fourth year of well into double digit EPS growth. Cash generation was strong with net balances rising by £5.2m to £11.2m.

· Vimto's UK sales grew by 26% in a year where the soft drinks market grew by 2%. The increase is on top of 16% growth in 2008. International sales grew by 33% year on year to £12.0m. The Middle East accounts for a significant proportion of this and saw growth of 39% in 2009. Its Saudi Arabian partner built a $50m bottling factory two years ago with substantial spare capacity. Dispense sales grew by 36% year on year. Excluding a first time contribution from Dayla its underlying sales growth was 5%.

· Vimto's sales growth has continued into the current year. We believe our forecasts are conservative reflecting the year has just started. Our profit estimate for the current year has increased slightly to £12.95m (EPS 25.5p) and our forecast sensitivity moved to 4. Nichol's investment into the Vimto brand in the UK and International markets bodes well for above average future growth. Our twelve month target price moves from 380p to 400p. At this level the group will be on a current year EV/EBITDA multiple of 9.3x.

[ygor705] 24/3/2010 07:39

EPS up 17% which is just short of consensus (20%) and the dividend is 9% higher. I make the pe 15.4 at last night's closing share price and the new yield c3.7% gross. Balance sheet is now stuffed with cash which offers further opportunities for organic expansion. This is not a fly-by-night operation and its has good overseas earnings. The results were not quite as good as I had hoped but they are sustainable and I'm certainly not going to open a vein about it. Still looks ok to me and the takeover potential remains.

[cockneyrebel] 23/3/2010 14:46

Where's Fraddy then? He was deramping these a couple of days ago.

CR

[cockneyrebel] 23/3/2010 11:26

Agree ygor - we'll see tomorrow :-)

ywes thickasmice - YSP a shambles imo.

CR

[thickasmince] 23/3/2010 04:30

A strange reason for me buying these some years ago was the fact that I saw, and still do, more Vimto ltter on the streets than Coca Cola. Not a great investment strategy but hasn't done too badly for me. And I like the divi and continues to grow in these times. I was also informed by a local retailer that the kids loved the different flavour from the usual suspects. I find this type of research just as fruitfulas the numbers game when I recently reviewed my portfolio.

CR, sad to see the farce at YSP, an old haunt of ours.

[ygor705] 22/3/2010 17:34

EPS up 20% at AG Barr and dividend up 10%. Most likely predator therefore growing quickly. Suspect that NICL will have performed even more strongly. Alcoholic drinks are also likely to get caned in the budget and the punters won't just drink water..............looks a pretty reasonable bet to me.

[cockneyrebel] 22/3/2010 14:00

You're missing it Frauddy! lol.

Getting away - 'significantly ahead' - results Weds - new high then I reckon now the seller's done.

CR

[cambium] 22/3/2010 13:04

all buying BAG ;o)

[cockneyrebel] 22/3/2010 12:58

Bit of stock shifting before Weds results

CR

[cockneyrebel] 22/3/2010 07:57

Strong results from BAG

CR

[cockneyrebel] 21/3/2010 18:26

Frauddy - you know you're clueless - and you know you want to buy.

Nichols plc
STRATEGIC ACQUISITION & POSITIVE TRADING UPDATE


"Profitability will be significantly ahead of market expectations"


Nichols plc is a highly focused soft drinks and soft drinks on
dispense business, comprising these two operations.

Acquisition


Nichols plc today announces the acquisition of the trade, brand and assets of
the Ben Shaws 'soft drinks on draught' business, for an undisclosed sum. Ben
Shaws is the number four player in the UK soft drinks dispense market - behind
Nichols' Dispense Operation, which is the number three.


In bringing together the Group's current Dispense Operation with Ben Shaws, this
acquisition consolidates the two largest remaining independent branded soft
drinks dispense businesses into a single stable. It also provides Nichols with
further growth opportunities in this sector and will enable it to maintain its
strong growth of the last two years.


It is anticipated the acquisition will be earnings enhancing during 2010.


Trading Update


Following the Group's exceptionally strong first half performance announced last
August (Group sales up 28%) the Board is delighted to report this positive
momentum continued into the second half. As a result, the Group's full year
revenues for the 12 months to 31 December 2009 were well ahead of internal
projections and considerably up on last year. The Board therefore expects the
Group's profitability will be significantly ahead of current market
expectations.



Commenting John Nichols, Non-Executive Chairman, said:


"Despite the economic downturn, we had an exceptionally strong year, beating
both our internal and the City's forecasts and also increasing our market share
significantly ahead of industry trends. With the acquisition of Ben Shaws
consolidating our key position in the dispense market we view the future with
confidence".


Preliminary Results


Nichols plc will announce its Preliminary results on Wednesday 24 March 2010.

[ygor705] 18/3/2010 16:28

Yes CR we are now more or less at the bottom end of the trend line. Would stick more in but I'm riding the Petrofac demerger situation at the moment!

[cockneyrebel] 15/3/2010 17:50

Going to retest that high before the results date I suspect - lovely strong close today and it won't take much buying to take it there - these are pretty tight.

CR

[liam1om] 15/3/2010 16:28

Bought in today, liked the positive outlook in the last statement and chart turning up at this point.

[cockneyrebel] 15/3/2010 15:18

Results Weds week and they are going to beat.

CR

[cockneyrebel] 09/3/2010 12:52

goes XD tonight for that 8p divi so suspect a few will be in before the close.

I fancy these for a good run here up to the results in a fortnights time.

CR

[ygor705] 09/3/2010 09:55

Yes............they really benefited from the retro trend and their strong balance sheet will help them in the future. Still think they will fall to AG Barr at some point and meanwhile we have a pretty inflation/recession-proof investment paying good dividends.

[cockneyrebel] 09/3/2010 08:37

Cheers - not too bad - hope you're well too.

Reckon these will be a lot higher on the results - if they just meet forecasts the H2 will have been massive. That's the winfer half - get a nice hot summer and these could have a cracking year imo.

CR

[ygor705] 08/3/2010 21:26

Thanks CR. Hope yr well by the way..........its been a while!

[cockneyrebel] 08/3/2010 21:15

just a way of paying a divi before the end of the tax year and for the shareholders to avoid the 50% top rate coming in on Apr 6. A final divi needs a vote - an interim can be paid without a vote.

Symantics - it's not an extra divi, just the final divi renamed basically.

CR

[ygor705] 08/3/2010 20:00

Can anybody explain to me the significance of changing the name of the last dividend payment from final to 2nd interim ?

[ygor705] 22/2/2010 17:50

.........and another high today!