26th Feb 2020 09:09
(Alliance News) - Vimto maker Nichols PLC on Wednesday reported a steady annual performance with Middle East operations returning to strong growth.
Nichols's revenue in 2019 rose 3.5% on the year before to GBP147.0 million, with pretax profit rising 2.1% to GBP32.4 million.
The Merseyside-based company is paying a final dividend of 28.0 pence per share, taking the year's total to 40.4p, which would be 6.0% higher than that paid for 2018.
Both the UK and International business did well, Nichols said. UK revenue was up 2.5% to GBP117.5 million, while International revenue climbed 7.5% to GBP29.5 million.
In the Middle East, Nichols posted revenue growth of 21% to GBP11.6 million. Operations in the region have been hurt by the civil war in Yemen which left a supply route blocked. In January, Nichols also warned profit for 2020 will be below previous expectations due to a new 50% tax on non-carbonated sweetened drinks in Saudi Arabia and the UAE.
A further update on the situation will be made at the time of half-year 2020 results in July, Nichols said.
"Elsewhere across the group, we are confident that our diversified and profitable business model will support the continued growth trend into 2020 and beyond," said the company.
"In summary, the board is pleased with the group's performance in 2019. Despite the market headwinds, the business has once again delivered profitable sales growth," Nichols said.
Shares were 1.6% higher on Wednesday morning in London at a price of 1,402.00 pence each.
By George Collard; [email protected]
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