2nd Jul 2014 12:41
LONDON (Alliance News) - Nichols PLC said Wednesday that it has been ordered by the High Court to pay damages of PKR1.36 billion, equivalent to GBP8.0 million, plus costs to Gul Bottlers PVT Ltd.
Nichols has been defending a claim related to Gul's rights to manufacture and distribute Vimto cordial in Pakistan, and said the ruling is the courts assessment of Gul's loss of profit for the duration of a contract it signed in September 2011.
Nichols said it "fundamentally disagrees" with the amount of the award, and is considering its options for appeal with its professional advisers.
The costs on top of the damages are expected to be between GBP1.0 million and GBP1.5 million.
The company said that whilst the court's decision was disappointing, it will not hit its future underlying trading expectations, nor will it effect its strategy to invest in its brands and future growth plans.
Nichols posted an exceptional costs of GBP2.0 million in its full-year results for 2013 as a provision for the claim.
The soft drinks group reiterated confidence in meeting its full-year expectations as it traded well in the first-half of the year.
Nichols will announce its interim results July 24.
Shares in Nichols were trading down 8.9% at 870.75 pence Wednesday afternoon.
By Hana Stewart-Smith; [email protected]; @hanassallnews
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