RNS Number:6091O
Nichols PLC
13 August 2003
Date: Embargoed until 07.00 am, Wednesday 13 August 2003
Contacts: John Nichols, Chairman
Gary Unsworth, Chief Executive
Brendan Hynes, Finance Director
Nichols plc
Telephone: 01925 222222
Alistair Mackinnon-Musson
Philip Dennis
Hudson Sandler
Telephone: 020 7796 4133
Email: nichols@hspr.co.uk
Nichols plc
INTERIM RESULTS
Nichols plc, the soft drinks, food and foodservice group, announces its interim
results for the six months to 30 June 2003.
The group has two principal operations: 1) Soft Drinks (primarily involved in
the manufacture and sale of soft drinks, including Vimto, throughout the world
and Sunkist in the UK) and 2) Food Products and Beverage Systems (including
Nichols Foods, the manufacturer and supplier to the vending, foodservice and
retail markets; Balmoral, supplier of hot beverage systems and Cabana, soft
drinks on draught).
The key points are:
* Major progress made towards group restructuring - arising from the Strategic
Review
* Move to outsourced manufacturing of Soft Drinks completed on time and to plan
* Contract packing operation now integrated into Nichols Foods at Haydock and
Stockport factory closed
* Soft Drinks Operation performing strongly
* Pre-tax (pre-exceptional) profits up10.3% on broadly flat turnover, with a
lower cost base
* On track to deliver the planned financial improvements in H2 2003 and into
2004
Commenting John Nichols, Chairman, said:
"The Board is confident the group is on track to deliver the planned financial
improvements in the second half of 2003 and into 2004".
"We expect our full year results will be broadly in line with current
expectations".
Chairman's Statement
I am pleased to announce that in the first six months of 2003 we have made
significant progress towards restructuring the group in line with the objectives
announced in March this year as part of our Strategic Review.
In our UK Soft Drinks Operation, we have now successfully completed the move to
outsourced manufacturing, on time and to plan. We have also successfully
transferred our contract packing operation and this is now integrated into the
Nichols Foods' site at Haydock and as a result, we have closed the Stockpack
factory in Stockport.
Results
Turning to trading, group turnover in the first half year to 30 June 2003 was
broadly flat at #47.80m (2002: #47.78m), with pre-exceptional profit before tax
10.3% ahead of last year at #1.82m (2002: #1.65m). This was due to a stronger
performance in our Soft Drinks Operation, helped by the favourable weather
conditions and the lower cost base as a result of outsourcing the manufacturing
function. The overall result, however, was tempered by poor trading experienced
by our hot beverage systems business, Balmoral.
An exceptional charge of #3.99 million has been taken to the profit and loss
account in the half year, as indicated in the March 2003 statement. This
represents cash items comprising mainly redundancy and relocation costs directly
associated with the moves outlined above.
The first half year has also seen, as anticipated, a heavier than normal drain
on operating cash due to restructuring costs. Lower capital expenditure in the
first six months has helped mitigate the overall impact, with the benefit of
property and asset disposals still to be realised.
Earnings per share (before exceptional items) were 3.36 pence (2002: 3.18
pence).
Having successfully completed the above actions, the board believes we are now
well positioned to deliver some of the benefits of the Strategic Review during
the second half of 2003. As reported in the group's AGM statement on the 14 May
2003, however, the full effects will not be seen until 2004. In recognition of
this we are maintaining the interim dividend at 3.00p. This will be paid on the
20 October 2003 to shareholders registered on 19 September 2003. The ex-dividend
date will be 17 September 2003.
Outlook
The board is confident the group is on track to deliver the planned financial
improvements in the second half of 2003 and into 2004. However, the competitive
trading conditions, particularly in our Balmoral operation, remain challenging.
Notwithstanding this, we expect our full year results will be broadly in line
with current market expectations.
John Nichols
Chairman
13 August 2003
Nichols plc
CONSOLIDATED PROFIT AND LOSS
Unaudited Audited
Before Exceptional Half Half Before Exceptional Year
Exceptional Items year year Exceptional Items ended 31
Items ended 30 ended Items Dec 2002
June 30 June
2003 2002
#'000 #'000 #'000 #'000 #'000 #'000 #'000
Turnover 47,800 - 47,800 47,775 96,229 - 96,229
Operating 2,206 (3,994) (1,788) 2,125 6,576 (11,180) (4,604)
(loss)/profit
Net Interest 384 - 384 470 940 - 940
Payable
(Loss)/profit 1,822 (3,994) (2,172) 1,655 5,636 (11,180) (5,544)
before Taxation
Taxation 601 (1,198) (597) 499 1,948 (1,830) 118
(Loss)/profit 1,221 (2,796) (1,575) 1,156 3,688 (9,350) (5,662)
after Taxation
Equity Dividends 1,109 - 1,109 1,109 3,253 - 3,253
Retained 112 (2,796) (2,684) 47 435 (9,350) (8,915)
(loss)/profits
(Loss)/Earnings (4.33p) 3.18p (15.57p)
per Share
(basic)
(loss)/Earnings - 3.17p -
per Share
(diluted)
Earnings per 3.36p 10.15p
Share (basic)
before
exceptional
items
Earnings per 3.35p 10.12p
Share (diluted)
before
exceptional
items
Dividends per 3.00p 3.00p 8.80p
Share
Notes
Earnings per share are based on the weighted average number of shares in issue in the six months to 30 June 2003 of
36,350,197. (Six months to 30 June 2002 of 36,349,660 and 12 months to 31 December 2002 of 36,348,326).
The interim dividend of 3.00p (2002 3.00p) will be paid on 20 October 2003 to shareholders registered on 19 September
2003. The ex-dividend date is 17 September 2003.
The figures for 31 December 2002 are extracted from the financial statements for that year which received an
unqualified auditors' report and have been filed with the Registrar of Companies.
The interim results have been prepared in accordance with the accounting policies adopted for the year ended 31
December 2002 and have been approved by the board but have not been reviewed or audited by the auditors.
Nichols plc
CONSOLIDATED BALANCE SHEET
Half year Half year Year
ended ended ended
30 June 2003 30 June 2002 31 Dec 2002
#'000 #'000 #'000
Fixed Assets
Intangible Assets 1,669 6,800 1,721
Tangible Assets 26,751 35,774 28,083
Own Shares 643 670 643
29,063 43,244 30,447
Current Assets
Stocks 10,321 9,955 9,068
Debtors 24,118 21,518 20,372
Cash at Bank and in Hand 311 1,656 1,743
34,750 33,129 31,183
Creditors
Amounts falling due within one year 31,049 26,307 24,758
Net Current assets 3,701 6,822 6,425
Total assets less current liabilities 32,764 50,066 36,872
Creditors
Amounts falling due after one year 7,515 11,212 8,939
25,249 38,854 27,933
Provisions for liabilities and charges 863 2,822 863
24,386 36,032 27,070
Share Capital & Reserves
Called up share capital 3,697 3,697 3,697
Share premium account 3,255 3,255 3,255
Capital Redemption Reserve 1,209 1,209 1,209
Profit and loss account 16,225 27,871 18,909
Equity shareholders' funds 24,386 36,032 27,070
Nichols plc
CONSOLIDATED CASH FLOW
Half year ended Half year ended Year ended
30 June 2003 30 June 2002 31 Dec 2002
#'000 #'000 #'000
Cash flow from operating activities 3,723 6,754 12,753
Returns on investments and
Servicing of finance (384) (470) (940)
Taxation (787) (791) (1,604)
Capital expenditure and
financial investment (416) (1,924) (3,185)
Acquistions and disposals - - -
Equity dividends paid (2,144) (2,144) (3,253)
Financing (1,424) (404) (2,663)
(Decrease)/Increase in Cash (1,432) 1,021 1,108
This statement will be mailed to shareholders on or about 22 August 2003 and copies will be available from The
Secretary, Nichols plc, Laurel House, 3 Woodlands Park, Ashton Road, Newton-le-Willows, WA12 0HH after that date.
Copies of this statement are now available on the Investor Relations section of the company's website:
www.nicholsplc.co.uk.
- ends -
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR BRGDIBXBGGXD