5th Nov 2021 09:22
(Alliance News) - Shares in Nichols PLC soared in Friday morning trading after the Vimto owner said it expects to report 2021 profit ahead of current market expectations.
The stock jumped 8.4% to 1,220.00 pence in London.
The Merseyside-based flavoured cordial company said revenue for the first nine months of 2021 was ahead of expectations, increasing by 17% year-on-year to GBP107 million. The Vimto brand has continued to deliver a strong performance across all of its markets, Nichols highlighted.
Going forward ,the company said it sees adjusted pretax profit for 2021 ahead of the current market consensus, which stands at GBP19.1 million. Nichols now anticipates that adjusted pretax profit for the year will be in the range of GBP21 million to GBP22 million. For 2020, the company posted adjusted pretax profit of GBP11.6 million.
Looking ahead at 2022, the company warned of challenging trading conditions: "Whilst the group's revenue momentum is expected to continue into 2022, the outlook for the next financial year is adversely impacted by inflationary pressures including logistics, labour and materials, therefore profit expectations for 2022 remain unchanged."
Another trading update will be released by the group on January 12.
By Will Paige; [email protected]
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