Date: | Embargoed until 07.00am, Friday 6 January 2012 |
Contacts: | John Nichols, Non-Executive Chairman |
Brendan Hynes, Group Chief Executive Tim Croston, Group Finance Director |
Nichols plc |
Telephone: 01925 222222 |
Website:www.nicholsplc.co.uk |
| |
Nathan Field | Mark Brady / Nick Tulloch |
Hudson Sandler | Brewin Dolphin Ltd (Nominated Adviser) |
Telephone:020 7796 4133 | Telephone: 0845 213 4748 |
Email: nichols@hspr.com | Website: www.corporatefinance.brewin.co.uk |
Nichols plc
Pre-Close Trading Statement
Nichols plc ("the Group"), today issues the following pre-close trading update.
Trading
The Group has maintained the excellent momentum reported at the half year, with sales for the year to the 31 December 2011 increasing by 18% compared to 2010. This performance is ahead of our internal expectations, has been achieved against strong prior year comparatives (16% uplift on 2009) and despite the continued downturn affecting the UK economy.
Once again our brands have outperformed the soft drinks market in the UK and our strong and well established international business continues to deliver significant year on year growth.
In our UK business, gross margins remain under pressure due to a combination of raw material cost inflation and the exceptionally high level of promotional activity in 2011. It is therefore pleasing to report that our Operating Profit margin will be maintained as a result of ongoing productivity improvements and tight control of costs.
The Group's balance sheet remains strong, with underlying cash generation also ahead of internal expectations.
In summary, we expect Group profit to be significantly ahead of last year and ahead of current market expectations for the year ended 31 December 2011.
New Brand Launch
In January 2012, we are launching a new and innovative range of Weight Watchers branded, low calorie soft drinks into the UK and the Republic of Ireland.
Our category expertise, combined with the well established, global, Weight Watchers brand provides further growth opportunities for the Group in 2012 and beyond, as well as meeting the increasingly important health and wellbeing needs of consumers.
John Nichols
Non-Executive Chairman
Notes to Editors:
Nichols plc is a highly focused soft drinks business. Its brand portfolio includes Vimto, which is sold in over 65 countries and Levi Roots (soft drinks), Sunkist & Panda which are sold in the UK. The Group has a leading market position in both the "Stills" and "Carbonates" drinks categories and also in the soft drinks on dispense market, where its brands include Cabana, Ben Shaws & Dayla.
