21st Jul 2021 14:41
(Alliance News) - Nichols PLC on Wednesday reported healthy revenue and earnings growth in the first half of the year.
The Merseyside-based owner of the Vimto brand posted pretax profit for the half year ended June 30 of GBP8.6 million, up sharply from GBP2.9 million a year prior.
Revenue for the same period grew 14% to GBP67.4 million. The company's flagship Vimto brand value grew 2.7% in the UK, with Vimto Dilutes "significantly outperforming the market".
Vimto's growth was underpinned by a strong international performance, with 42% revenue growth compared to the six-month period a year prior. Its African business performed particularly strongly, with revenue growth of 23%.
The group's 2021 financial guidance remains unchanged.
"The continued strong performance of the Vimto brand, the group's robust balance sheet and our diversified business model has ensured a resilient financial performance in the period with growth across each of our reporting segments," commented Non-Executive Chair John Nichols.
"The UK government's planned roadmap out of lockdown continues and although at a more cautious pace than originally planned, the group's positive start to the year means that we remain confident that it will achieve the board's expectations for the year."
Nichols will pay an interim dividend of 9.8 pence a share, down 65% from 28.0p a year prior. The chunkier payout from the first half of 2020 came after the company withdrew a final dividend for 2019. It paid a 28.0p dividend for the first half of 2020 to "to reinstate the value of the final proposed dividend from 2019 of 28.0p as the interim dividend for 2020".
The stock was down 1.0% at 1,425.44p in London on Wednesday afternoon in London.
By Will Paige; [email protected]
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