Nichols : Interim Report

Date: Embargoed until 0700 Thursday 23rd July 2015

Telephone: 01925 222222
Website:www.nicholsplc.co.uk
Alex Brennan Richard Lindley

Email: nichols@hspr.com

Nichols plc ('Nichols', the 'Group'), the soft drinks Group, announces its Interim results for the period ended 30 June 2015 (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 and Panda which are sold in the UK. The Group has a leading market position in both the "Still" and "Carbonate" drinks categories.

"The Board are pleased with the Group's performance in the first half of 2015, with UK sales growth outperforming the market and Group profit increasing by 9%. We look forward to the incremental contribution from both the Feel Good brand and the acquisition of The Noisy Drinks Company Limited announced at our AGM earlier in the year."

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Chai rm an' s St atement

The Group has delivered another solid performance in the first six months of 2015. UK sales growth of 2.0% has outperformed the market, Group profit has increased by 9% and earnings per share is up by 11.4%.

Total Group sales were £54.7m, in line with the same period in 2014 (2014 restated:
£54.7m). Profit Before Tax has increased by 9% to £10.9m (2014: £10.0m) delivering a 200 basis points improvement to the PBT margin as we continue to deliver our value over
volume strategy.
UK sales have outperformed the market with a 2% increase in revenue in the first half of
2015 whilst the UK market has declined by 0.1% (source: Nielsen 6 months to 20 June
2015). Significantly, this performance has been driven by the Vimto brand with sales increasing by 3.4% in the period compared to 2014. Within the Vimto brand performance,
the Still category has delivered strong growth of 8% whilst sales in Carbonate have declined
by 3% reflecting the market trend in this heavily promoted category. On a like for like basis, excluding the discontinued Weight Watchers and Extreme brands, our UK sales increased by 2.8% in the period.
Export sales at the half year point are 5.8% behind the same period in 2014. This is due to delayed shipments to the Yemen as a consequence of the recent conflict in the country. Elsewhere, sales to Aujan Coca-Cola, our main partner in the Middle East, are ahead of the prior year. Sales to Africa are comparable at the half year (4% ahead on a constant currency basis).

Reflecting the Group's performance and the Board's continued confidence in the outlook, I am pleased to declare an interim dividend of 8.0 pence per share, an increase of 12.7% over the prior year (2014: 7.1 pence).
The interim dividend will be paid on 28 August 2015 to shareholders registered on 31 July
2015; the ex-dividend date is 30 July 2015.

We are delighted to announce the acquisition of the Feel Good brand. Feel Good is an established range of premium juice drinks containing no added sugar and 100% natural ingredients. The brand is sold in the UK through the retail and on-trade channels, in addition there are export sales to mainland Europe.
The acquisition is a key part of our growth strategy and we plan to further develop the Feel Good brand across our established UK and international markets supported by increased marketing resource and investment.
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We welcome Mr John Gittins (aged 55) who has been appointed to the Board as Independent Non-Executive Director and Chair of the Audit Committee. John is currently Finance Director at AIM listed Fairpoint Group plc and has over 20 years experience as PLC Executive and Non-Executive Director.
He will be replacing Mr Eric Healey who stepped down from the Board in March of this year.

We are satisfied with the Group's results in the first half of 2015, in particular the continued strong performance from the Vimto brand in a challenging UK market.
Nichols plc is well positioned to continue its growth trend. The balance sheet remains strong and we look forward to the incremental contribution from both the Feel Good brand and the partial acquisition of The Noisy Drinks Company Limited announced at our AGM earlier in the year.
In summary, the Board is confident that full year performance will be in line with market expectations.

Non-Executive Chairman
23 July 2015
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Earnings per share

(basic)

- all activities

Earnings per share

(diluted) - all activities

Dividends paid per share 15.30p 13.30p 20.40p

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Remeasurement of net defined benefit liability 0 0 (2,796) Deferred taxation on pension obligations and

employee benefits 0 0 436

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Property, plant and equipment 5,235 4,791 4,817

Goodwill 16,447 16,447 16,447

Investment accounted for using the equity

method 2,927 - -

Deferred tax assets 1,699 1,321 1,699

Cash and cash equivalents 31,814 32,903 34,483

Provisions - 9,812 -

Pension obligations 5,309 4,047 6,190

Deferred tax liabilities 70 - 70

Retained earnings 53,555 43,037 50,477

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Adjustments for:

Depreciation 239 224 480

Loss/(profit) on sale of property, plant and

equipment 1 (6) (80) Finance income (119) (140) (257) Finance expense 60 60 - Share of result in associate (147) - - Tax expense recognised in the income statement 2,197 473 3,776

Change in inventories 17 (1,518) (568) Change in trade and other receivables (4,824) (1,277) (787) Change in trade and other payables 2,873 1,964 1,324

Change in provisions - 7,794 (2,018)

Change in pension obligations (881) - (653)

Tax paid (1,860) (1,640) (3,465)

Finance income 136 151 239

Proceeds from sale of property, plant and

equipment 1 10 124

Acquisition of property, plant and equipment (660) (3,724) (4,034) Acquisition of subsidiary, net of cash acquired - (87) (85) Acquisition of business trade and assets - (335) (305)

Acquisition of associate (2,780) - -

Funds provided to ESOT 0 0 (129)

Dividends paid (5,640) (4,900) (7,518)

Cash and cash equivalents at beginning of

period 34,483 34,293 34,293

Cash and cash equivalents at end of period 31,814 32,903 34,483

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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 2014, 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 2014. 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.

The interim dividend of 8.0p (2014: 7.1p) will be paid on 28 August 2015 to shareholders registered on 31 July 2015. The ex dividend date is 30 July 2015.

Basic earnings per share are based on the weighted average number of shares in issue in the six months to 30 June 2015 of 36,849,257 (six months to 30 June 2014 of 36,843,875 and 12 months to 31 December 2014 of 36,846,564).

The interim report will be posted to shareholders and be available on the Company's website
(www.nicholsplc.co.uk) on or around 29 July 2015.

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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