Date: Embargoed until 0700 Thursday 24th July 2014

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 Richard Lindley

Hudson Sandler N+1 Singer (Nominated Adviser)

Telephone:020 7796 4133 Telephone: 0113 388 4855/ 0207 496 3000
Email: nichols@hspr.com Website: www.n1singer.com

Nichols plc INTERIM RESULTS

Nichols plc ('Nichols', the 'Group'), the soft drinks Group, announces its interim results for the period ended 30 June 2014 (the 'period').
Nichols plc is a highly focused soft drinks business. Its brand portfolio includes Vimto, which is sold in over 65 countries and Levi Roots, Sunkist, Panda and Weight Watchers which are sold in the UK. The Group has a leading market position in both the "Still" and "Carbonate" drinks categories.

Highlights:

• Pre-exceptional Profit before Tax up 11% to £10.0m
• Pre-exceptional Basic Earnings Per Share up 13% to 21.23p
• Interim dividend up 12% to 7.1p

Commenting John Nichols, Non-Executive Chairman, said:

"Nichols has delivered another strong performance during the first half of 2014. I am pleased to report that once again the Group has delivered double digit growth in pre-exceptional profit and earnings per share. The Board anticipates that full year performance will be in line with current expectations."
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Chairman's Statement

I am pleased to report that the Group has delivered another robust performance during the first half of 2014. During the period we have achieved strong growth of 11% in pre- exceptional profit and 13% in earnings per share.
Group sales for the first six months of 2014 totalled £56.6m, an increase of 3% over the prior year. The Group's on-going strategy of focusing on value over volume resulted in an enhanced operating performance with operating profit increasing by 12% to £9.9m (2013:
£8.9m) and operating margins of 18% (2013:16%). Pre-exceptional profit before tax grew by
11% to £10.0m (2013: £9.0m).

Results (pre-exceptional items)

Half Year ended

30 June 2014

Half Year ended

30 June 2013

% movement

£m

£m

Group Revenue

56.6

55.2

+3%

Operating Profit

9.9

8.9

+12%

Operating Profit R.O.S.

18%

16%

Profit Before Tax

10.0

9.0

+11%

EPS (basic)

21.23p

18.76p

+13%

Interim Dividend

7.1p

6.32p

+12%

Trading

Continuing the trend from the second half of 2013, our UK sales grew to £43.8m, up by 8% compared to the corresponding period in 2013. This performance is ahead of the UK soft drinks market which grew at 2.7% (Source: Nielsen 6 months to 21 June 2014). Sales growth in the UK was largely driven by the Carbonate category which was 11% ahead compared to the first six months of 2013. Importantly, the incremental sales were achieved whilst maintaining the margin. Our sales into the Still category grew by 3% compared to the prior year.
Our international sales revenue was £12.8m at the half year, 12% behind the prior year which is in line with management expectations. The performance at the half year point is mainly driven by a shift in timing of shipments of Vimto concentrate to the Middle East. Significantly, in-country sales of finished product in the Middle East region are 7% ahead of
2013 and we expect international sales in the second half of 2014 to show improved performance in comparison to both the period and the second half of 2013.
During the period, stronger Sterling rates against both the US Dollar and the Euro have negatively impacted our international sales, accounting for 3ppts of the 12% year on year decline.
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Exceptional cost

As announced on 2 July 2014, the High Court awarded damages against Nichols plc with regard to the litigation claim from Gul Bottlers (PVT) Ltd. As a consequence, a one-off exceptional cost of £8.0m has been included in the Group's consolidated income statement for the period to 30 June 2014.

Dividend

Reflecting our strong balance sheet and the Board's continued confidence in the outlook, I am pleased to announce that we are recommending an interim dividend of 7.1 pence per share, an increase of 12% over the prior year (2013: 6.32 pence). The interim dividend will be paid on 29 August 2014 to shareholders registered on 1 August 2014.

Outlook

We expect our UK performance for the remainder of 2014 to maintain the positive trend seen in the first half of the year.
In light of the strong performance of in-country sales and the change in timing of shipments to the Middle East, we anticipate International revenues in the second half of 2014 to be ahead of the prior year.
In summary, the Board believes that full year performance will be in line with current expectations.

John Nichols Non-Executive Chairman 24 July 2014

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CONSOLIDATED INCOME STATEMENT

Unaudited

Unaudited

Audited

Audited

before

Unaudited

after

before

after

exceptional

exceptional

exceptional

exceptional

exceptional

items

items

items

Unaudited

items

items

Half year ended 30 Jun 2014 Half year ended 30 Jun 2014 Half year ended 30 Jun 2014 Half year ended 30 Jun 2013 Full year ended 31 Dec 2013 Full year ended 31 Dec 2013 £'000 £'000 £'000 £'000 £'000 £'000 Revenue 56,625 - 56,625 55,154 109,881 109,881 Operating profit 9,930 - 9,930 8,860 22,427 22,427

Exceptional items - (7,976) (7,976) - - (3,680) Finance income 140 - 140 205 347 347

Finance expense (60) - (60) (61) (264) (264)

Profit before taxation 10,010 (7,976) 2,034 9,004 22,510 18,830

Taxation (2,188) 1,715 473 (2,094) (5,645) (4,721)

Profit for the financial period 7,822 (6,261) 1,561 6,910 16,865 14,109

Earnings per share

(basic)

- all activities

21.23p 4.24p 18.76p 38.30p

Earnings per share

(diluted) - all activities

21.21p 4.23p 18.75p 38.25p

Dividends paid per

share 13.30p 11.70p 18.02p

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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Unaudited Unaudited Audited Half year ended 30 Jun 2014 Half year ended 30 Jun 2013 Full year ended 31 Dec 2013 £'000 £'000 £'000 Profit for the financial period 1,561 6,910 14,109 Other comprehensive income:

Defined benefit plan actuarial gain 0 0 1,909

Deferred taxation on pension obligations 0 0 (308)

Other comprehensive income for the period 0 0 1,601 Total comprehensive income for the period 1,561 6,910 15,710

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CONSOLIDATED STATEMENT OF FINANCIAL POSITION Unaudited Unaudited Audited 30 Jun 2014 30 Jun 2013 31 Dec 2013 ASSETS Non-current assets £'000 £'000 £'000

Property, plant and equipment 4,791 1,379 1,295

Goodwill 16,447 15,973 16,057

Deferred tax assets 1,321 2,148 1,321

Total non-current assets 22,559 19,500 18,673

Current assets

Inventories

5,694

5,913

4,144

Trade and other receivables

23,998

24,374

22,721

Cash and cash equivalents 32,903 31,208 34,293

Total current assets 62,595 61,495 61,158 Total assets 85,154 80,995 79,831

LIABILITIES

Current liabilities

Trade and other payables

20,187

24,531

18,152

Current tax liabilities

508

2,232

1,675

Provisions 9,812 34 2,018

Total current liabilities 30,507 26,797 21,845 Non-current liabilities

Pension obligations 4,047 6,556 4,047

Deferred tax liabilities - 47 -

Total non-current liabilities 4,047 6,603 4,047 Total liabilities 34,554 33,400 25,892 Net assets 50,600 47,595 53,939

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

(598)

(474)

(598)

Retained earnings 43,037 39,908 46,376

Total equity 50,600 47,595 53,939

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CONSOLIDATED STATEMENT OF CASH FLOWS Unaudited Half year ended 30 Jun 2014 Unaudited Half year ended 30 Jun 2013 Audited Full year ended 31 Dec 2013

Profit for the financial period

Cash flows from operating activities

£'000

£'000

1,561

£'000

£'000

6,910

£'000

£'000

14,109

Adjustments for:

Depreciation

(Gain)/loss on sale of property, plant and equipment

224

(6)

253

4

513

11

Finance income

(140)

(205)

(347)

Finance expense

Taxation expense recognised in the income statement

60

473

61

2,094

0

4,721

Change in inventories

(1,518)

(582)

1,103

Change in trade and other receivables

(1,277)

(633)

1,050

Change in trade and other payables

1,964

5,093

(1,224)

Change in provisions

7,794

(13)

1,971

Change in pension obligations 0 0 (600)

7,574 6,072 7,198 Cash generated from operating activities 9,135 12,982 21,307

Tax paid (1,640) (2,052) (4,765)

Net cash generated from operating activities 7,495 10,930 16,542 Cash flows from investing activities

Finance income 151 205 316

Proceeds from sale of property, plant and

equipment 10 10 148

Acquisition of property, plant and equipment (3,724) (371) (692) Acquisition of subsidiary, net of cash acquired (87) 0 0

Acquisition of business trade and assets (335) 0 0

Net cash used in investing activities (3,985) (156) (228) Cash flows from financing activities

Disposal of own shares 0 0 (127)

Dividends paid (4,900) (4,311) (6,639)

Net cash used in financing activities (4,900) (4,311) (6,766) Net (decrease)/increase in cash and cash equivalents (1,390) 6,463 9,548

Cash and cash equivalents at beginning of period 34,293 24,745 24,745

Cash and cash equivalents at end of period 32,903 31,208 34,293

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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 2013, 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 2013. 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 7.10p (2013: 6.32p) will be paid on 29 August 2014 to shareholders registered on 1 August 2014. The ex dividend date is 30 July 2014.

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 2014 of 36,843,875 (six months to 30 June 2013 of
36,826,580 and 12 months to 31 December 2013 of 36,834,655).

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.
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