19th Jul 2018 09:30
LONDON (Alliance News) - Nichols PLC on Thursday lifted its payout for the first half of current year on the back of a strong performance in core UK division.
The company proposed an interim dividend of 11.30 pence per share, up 12% from 10.10p paid the year prior.
The soft drinks maker said pretax profit grew by 2.7% to GBP13.1 million for the six months to the end of June from GBP12.7 million reported a year earlier. Revenue rose 2.3% to GBP65.0 million from GBP63.5 million.
The result was driven by strong performance in the UK business, the company said. UK sales totalled GBP53.8 million in the period, representing an increase of 13% compared to the prior year.
The Vimto brand has significantly outperform the market with sales up 9.0% versus 3.7% increase in the market, the company said.
Elsewhere in the UK, Out of Home revenue improved by 14%, with the growth coming from both dispense and frozen product sales.
Total international sales dropped to GBP11.2 million from GBP16.0 million reported a year ago, in line with the company's expectations. The majority of the reduction is a result of lower sales in the Middle East due to the ongoing conflict in Yemen and the timing of shipments to Saudi Arabia.
Elsewhere in the international business, sales to Africa totalled GBP6.8 million, down 3.7% compared to the year before. However, Nichols said it is confident that full-year sales to this region will deliver year-on-year growth.
"Nichols plc has delivered a solid performance in the first half of 2018 with growth in revenue, profit before tax and earnings per share," said Non-Executive Chairman John Nichols.
"We have been managing the widely reported market challenges in the Middle East and as a result, the Board is confident of delivering full year results in line with expectations," added Nichols.
Shares in Nichols were trading 0.5% higher on Thursday at 1,495.00p each.
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