TIDMNICL
RNS Number : 2008R
Nichols PLC
27 February 2019
Date: Embargoed until 0700 Wednesday 27 February 2019
Contacts: Marnie Millard, Group Chief Executive Officer
Tim Croston, Group Chief Financial Officer
Andrew Milne, Group Commercial Director
Nichols plc
Telephone: 01925 222 222
Website: www.nicholsplc.co.uk
Alex Brennan/ Hattie
O'Reilly
Hudson Sandler Richard Lindley/ Rachel Hayes
Telephone: 020 7796 N+1 Singer (Nominated Adviser
4133 and Broker)
Email: nichols@ hudsonsandler.com Telephone: 0207 496 3000
Website: www.n1singer.com
Nichols plc
2018 PRELIMINARY RESULT
Nichols plc ('Nichols' or the 'Group'), the soft drinks Group,
announces its Preliminary results for the year ended 31 December
2018 (the 'period').
Financial Highlights:
*EBITDA is the statutory Year ended Year ended % movement
profit before interest, 31 Dec 2018 31 Dec 2017
tax, depreciation and amortisation
GBPm GBPm
------------- ------------- -----------
Group Revenue 142.0 132.8 +7.0%
------------- ------------- -----------
Operating Profit 31.6 28.7 +10.1%
------------- ------------- -----------
Operating Profit margin 22% 22%
------------- ------------- -----------
Operating Profit pre-exceptional
items 31.6 30.5 +3.6%
------------- ------------- -----------
Operating Profit margin
pre-exceptional items 22% 23%
------------- ------------- -----------
EBITDA* 33.8 31.7 +6.6%
------------- ------------- -----------
Profit Before Tax (PBT)
pre-exceptional items 31.8 30.5 +4.0%
------------- ------------- -----------
PBT margin pre-exceptional
items 22% 23%
------------- ------------- -----------
Earnings per share (basic) 69.23p 62.88p +10.1%
------------- ------------- -----------
Final dividend 26.8p 23.4p +14.5%
------------- ------------- -----------
John Nichols, Non-Executive Chairman, said:
"Nichols plc delivered a strong performance in 2018, achieving
growth in revenue, profit and earnings per share, resulting in a
14.5% increase in the final dividend.
The UK sales performance was driven by the strength of the Vimto
brand, now in its 110(th) year and continuing to outperform the
wider soft drinks market, in addition to the increasing growth
opportunities in the Out of Home sector following successful
investment in this area.
As a result of the Group's diversified business model, strong
portfolio of brands and successful track record, the Board remains
confident of delivering continued profitable growth."
Chairman's Statement
2018 was a significant year for the Vimto brand, marking 110
years since my grandfather invented the drink that today is still
enjoyed in the UK and around the world.
I am pleased therefore, to announce another strong performance
from Nichols plc during this special year. In 2018, Group revenue
grew by 7.0%, Profit Before Tax was up 4.0% and we are proposing a
14.5% increase in the final dividend.
Trading
Group revenue in the year was GBP142.0m, GBP9.2m ahead of
2017.
Total sales in the UK business increased by 12.7% to GBP114.6m
(2017: GBP101.7m).
In its 110(th) year, sales of the Vimto brand grew by 12.9%,
gaining market share and significantly outperforming the UK soft
drinks category which grew at +7.8% (Nielsen MAT 29 December
2018).
Elsewhere in the UK, sales in the Out of Home channel increased
by 15.2% compared to the prior year. This strong performance was
driven by sales of both our dispensed soft drinks and frozen
beverage products which reflects the significant investment in this
part of our business over recent years.
In the international business, a strong sales performance in
Africa during the second half of the year delivered full year
growth of 6.5% in this region.
As anticipated in our 2017 Preliminary Results Statement (1
March 2018), sales to the Middle East were down on the prior year
due to the ongoing conflict in Yemen and the timing of shipments to
Saudi Arabia. As a result, sales to the Middle East region totalled
GBP9.6m (2017: GBP13.0m). The Group's total international sales
were GBP27.4m (2017: GBP31.0m).
Dividend
Reflecting the Board's ongoing confidence in the Group's
financial position, we are pleased to recommend a final dividend of
26.8 pence per share (2017: 23.4 pence).
If accepted by our shareholders, the total dividend for 2018
will be 38.1 pence (2017: 33.5 pence), an increase of 13.7% on the
prior year. Subject to shareholder approval, the final dividend
will be paid on 3 May 2019 to shareholders registered on 22 March
2019; the ex-dividend date is 21 March 2019.
Post Balance Sheet Acquisition
Alongside the continued investment in the Vimto brand, our
strategy identifies acquisition as a key driver of the Group's
future growth plans. Therefore, we are delighted to announce the
acquisition of 100% of the shares in Adrian Mecklenburgh Limited
(AML) on 1 February 2019. AML is currently one of our Out of Home
soft drinks dispense distributors covering the Kent region. This
acquisition is consistent with a number of recent successful
investments in our Out of Home business and consolidates the route
to market in the region.
Outlook
We are well positioned with a diversified business model, a
strong balance sheet and remain highly profitable. We continue to
monitor the ongoing Brexit process, taking all possible actions to
reduce the risk and we are confident that the Group can maintain
its forward momentum in 2019 and beyond.
In 2019, we expect our UK business to maintain its positive
performance driven by the strength of the Vimto brand and the
increasing opportunities in the Out of Home sector.
In our international business, we are confident that the long
term prospects in the Middle East and Africa remain strong,
although the ongoing conflict in Yemen continues to create
uncertainty for 2019.
In Summary, the Board is pleased with Nichols plc's performance
during 2018. The Vimto brand marked its 110(th) year with a 12.9%
increase in sales, the Group has delivered further profit growth
and the Board is proposing a 14.5% uplift in the final
dividend.
John Nichols
Non-Executive Chairman
26 February 2019
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
Notes to Editors:
Nichols plc is an international soft drinks business with sales
in over 85 countries, selling products in both the Still and
Carbonate categories. The Group is home to the iconic Vimto brand
which is popular in the UK and around the world, particularly in
the Middle East and Africa. Other brands in its portfolio include
Feel Good, Starslush, ICEE, Levi Roots and Sunkist.
Chief Executive Officer's Report
It is particularly pleasing to note the performance of Nichols
plc in 2018, the year when Vimto reached its 110(th) anniversary.
The Group delivered excellent revenue growth of 7.0% to reach sales
of GBP142.0m. Sales of Carbonate products grew by 12.7% and the
Still portfolio increased by 0.8%. The Still category performance
was attributable to the reduced level of trading within the Middle
East.
The Group revenue was driven by our UK business where sales
increased by 12.7% to GBP114.6m, whilst international sales
declined in the year to GBP27.4m, as we anticipated as we went into
2018. Despite experiencing a decline within the Middle East, the
Group maintained its strong gross margin of 45.7% and the growth in
gross profit was consistent with our revenue growth at 7.0%, as a
result of the continued success of our value over volume
strategy.
Financial Highlights
-- Revenue +7.0% to GBP142.0m (2017: GBP132.8m)
-- Profit Before Tax* +4.0% to GBP31.8m (2017: GBP30.5m)
-- Gross profit +7.0% to GBP64.9m (2017: GBP60.6m)
-- EPS (basic) +10.1% to 69.23p (2017: 62.88p)
-- Strong balance sheet GBP38.9m free cash (2017: GBP36.1m)
-- Final dividend +14.5% to 26.8p (2017: 23.4p)
* pre-exceptional items
These results were despite a challenging global market place and
the expected reduced trading position within the Middle East.
In April 2018, the UK government implemented the Soft Drinks
Industry Levy on drinks containing sugar of more than 4.9g per
100ml. We have been working on our sugar reduction programme for
the last six years and as a result, our total UK product portfolio
was sugar levy exempt as we went into 2018.
The impressive performance of the Vimto brand in the UK
indicates the continued consumer love for Vimto and the successful
evolution of the brand. We experienced a highly competitive UK
market place with lots of change taking place in packaging, pricing
and promotional strategies along with consolidation within the
markets we operate. However, we had one of the finest summers for
many years in the UK and despite an industry wide shortage of CO2,
Vimto performed extremely well. I would like to thank all of our
supply partners for their continued collaboration and support.
The UK Soft Drinks Market
(As measured by Nielsen year to date 29 December 2018)
In 2018, volumes in the UK soft drinks market grew at 3.0%.
Value sales were higher showing growth of 7.8%, with the market
size reaching GBP8.4 billion. Within the total soft drinks market,
with the exception of fruit drinks and breakfast drinks, all
sectors delivered value growth.
In the last twelve months, Vimto's brand value increased by an
impressive GBP10.6m (Nielsen data) and is now worth GBP87m, an
increase of 13.9%. This market outperformance has resulted in Vimto
gaining market share in both the Still and Carbonate
categories.
In spite of the market remaining highly competitive and
promotionally driven, we continue with our focus of adding value to
the category. Our product innovation, under the sub brand Remix,
has added GBP9m to our Vimto retail sales brand value in less than
4 years. The addition of new flavours across the Remix brand has
driven incremental sales through gaining increased distribution and
new customer listings.
The UK On-Trade
(As measured by CGA, Total Licensed, Total Soft Drinks, last 12
months MAT 31 October 2018)
The UK on-trade soft drinks sector saw an uplift in consumption
as volume increased by +0.3%. However, value sales have grown at a
faster rate, with an increase of +3.8% year on year reflecting the
premium nature of the category. This performance was achieved
against a head wind of outlet closures in the trade and as a
result, soft drinks outlets are down -2.1% year on year.
Draught sales in the UK on-trade have seen a mixed performance.
Draught Cola value sales grew by +3.6% ahead of volume at +1.7% in
the last 12 months. However, draught flavoured carbonates have
retracted in sales, declining -26% in value and -36% in volume.
As consumers have increased their intake of soft drinks, they do
not compromise on brand choice. All categories, including beers,
wines & spirits, are experiencing the premium effect with value
growth ahead of volume.
Operational Review
Vimto UK
In 2018, Vimto delivered impressive sales revenue growth of
12.9%, which was well ahead of the overall market. It is
encouraging that the fastest area of growth has come again from our
No Added Sugar products (+22%). Within the UK, all of our product
areas are in growth and gaining market share. UK Carbonates were up
14% and the Still products increased overall by 11%.
We continue to work in collaboration with all of our customers
across the key UK trading channels and by putting them at the heart
of what we do, we have delivered double digit growth within UK
grocery, UK wholesale, foodservice and the discounters. This is
despite a high level of customer consolidation within the UK
market, which we expect to continue as we move into 2019.
In 2018, we launched our new UK marketing campaign to focus on
our core teen target audience of 16-19 year olds. We launched the
new 'I see Vimto in you' creative programme across multiple
touchpoints in June, aimed at celebrating the uniqueness of Vimto.
It was a disruptive campaign, which included personalised video on
demand and cinema advertising and as a result, the engagement
levels were more than double the industry standard and brand
advocacy grew by 9%.
Vimto Out of Home
The Vimto Out of Home business has delivered a third consecutive
year of strong sales growth of 15.2% in 2018. A key driver of this
performance was our frozen drinks business that delivered
double-digit growth via both organic sales and innovation. Our new
Unicorn flavour proved extremely popular with our consumers and
provided incremental sales growth during the key summer trading
period. We have also made a move into the adult frozen cocktail
category launching our new FRYST brand in selected outlets and
festivals, which has brought excitement to consumers throughout the
UK.
Our branded cola ranges have performed very strongly in 2018
within the dispense sector as we have seen the continued shift by
consumers to choose and drink lower sugar variants. Our customers
across our distributor network in this area performed well once
again and continued to drive strong sales across the on-trade.
The Out of Home performance benefitted from the annualised sales
following the acquisition of DJ Drink Solutions Limited (DJ) in
June 2017, however like for like sales were up 10.3%. During 2018,
we successfully integrated the DJ business into Vimto Out of Home,
which continues to win new customer partnerships. The acquisition
of The Noisy Drink Company North West Limited in February 2018, one
of our Out of Home frozen soft drinks distributors covering the
North West region, has further consolidated our route to market in
the region and contributed to this performance.
We have also continued to invest in the operational
effectiveness of our Out of Home business, opening a state of the
art showroom and new customer service centre in Newton-le-Willows
and a new technical centre of excellence in Swindon. These
investments underpin our commitment to deliver leading edge ranges,
equipment and technical expertise to all of our customers across
the UK and Europe.
Vimto International
The African region continued to build on its strong performance
as we have seen in recent years and delivered sales revenue growth
for the full year of 6.5%. The second half year performance for
this part of the business was significantly stronger. In addition
to our focus on driving penetration of our brands in our
established markets, we also launched into two new countries across
East Africa. Kenya and Tanzania are both key markets with
well-established soft drinks categories and provide us with a
fabulous opportunity to grow sales over the next few years.
Our relationship with our partner Aujan Coca-Cola Beverages
Company in the Middle East is over 93 years old and in 2018 they
delivered another outstanding 360-degree marketing campaign. It was
entitled "The Same One" and was on air as always during Ramadan.
The campaign focused on the evolving role of women in Khaleeji
society from the 1960's to the current day and showed Vimto as a
constant feature of daily life throughout all those years.
Impressive results were delivered through excellent in-store
visibility and awareness; the TV campaign drove 99% awareness and
the digital platforms achieved 290 million impressions.
Despite extremely challenging economic conditions in the region,
the in-market sales of cordial and the 250ml ready to drink
products continued to deliver sales growth, which demonstrates the
strength of the brand and the affection our consumers have for that
special Vimto taste.
Due to the political unrest in the region during 2018, our
long-standing partner in the Yemen continued to suffer many
operational difficulties and challenges. This has made trading at
times during the year impossible and as a result, we have been
unable to ship as much concentrate as in previous years.
Overall, our sales to the Middle East region were down by 26.4%
due to the timing of shipments to Aujan and the challenges with
supply to the Yemen.
Last but certainly not least, we have continued to build
momentum in the USA with our long-standing partner Ziyad. We have
been encouraged by the successes Ziyad have delivered in 2018,
which resulted in us gaining distribution of our Vimto products in
100 Walmart stores in their Mediterranean aisle.
Brand Licensing
Our brand licensing team launched some exciting new partnerships
during 2018 that has helped to ensure the iconic Vimto flavour is
enjoyed across a range of categories. We agreed a new exciting
collaboration with Krispy Kreme that secured over 1,000
distribution points for two bespoke Vimto branded doughnuts. Vimto
Millions were developed for both UK and Europe with the product
being available and selling well in over 1,000 dispense units.
Marnie Millard
Chief Executive Officer
26 February 2019
Financial Review
Income Statement
Year ended 2018 Year ended 2017
Pre-exceptional items
---------------- ----------------------
GBPm GBPm
---------------- ----------------------
Revenue 142.0 132.8
---------------- ----------------------
Gross Profit 64.9 60.6
---------------- ----------------------
GP% 45.7% 45.7%
---------------- ----------------------
Distribution expenses (7.2) (5.9)
---------------- ----------------------
Operating expenses (26.0) (24.1)
---------------- ----------------------
EBITDA 33.8 31.7
---------------- ----------------------
Depreciation & amortisation (2.2) (1.2)
---------------- ----------------------
Operating Profit 31.6 30.5
---------------- ----------------------
Operating profit margin 22.3% 23.0%
---------------- ----------------------
Finance income 0.2 0.1
---------------- ----------------------
Finance expense (0.1) (0.2)
---------------- ----------------------
Profit Before Tax 31.8 30.5
---------------- ----------------------
PBT % 22.4% 23.0%
---------------- ----------------------
Tax (6.2) (5.5)
---------------- ----------------------
Profit after tax 25.5 25.0
---------------- ----------------------
Revenue
Group revenue for the year was GBP142.0m, an increase of 7.0%
compared to 2017.
Sales of Carbonate products grew by 12.7% in the year and income
from the sales of Still products increased by 0.8%. The Still
category was impacted by the reduced level of trading with the
Middle East.
The Group's revenue performance was driven by our UK business,
where sales increased by 12.7% to GBP114.6m, whilst and as
anticipated, international revenues declined in the year to
GBP27.4m.
Gross Profit
Gross Profit increased commensurate to revenue by 7.0% to
GBP64.9m.
It should be noted that the Gross Margin of 45.7% was in line
with the prior year despite the decline in the higher margin sales
to the Middle East.
Distribution Expenses
Distribution expenses were GBP7.2m in 2018 (2017: GBP5.9m). The
increase is reflective of the higher stock holding, as referred to
below, and the sales mix during the year. The revenue growth has
been driven by the UK business which incurs the majority of our
warehouse and distributions cost.
Operating Expenses
Operating expenses totalled GBP26.0m in the year, an increase of
7.7% compared to the prior year. The significant cause of the
increase was the full year incremental costs associated with the
acquisition of DJ Drink Solutions Limited (purchased in June 2017)
and The Noisy Drink Company North West Limited (purchased in
February 2018). In addition, GBP1.1m of bad debt provision has been
released in the year, following cash received against previously
provided for debt.
EBITDA
EBITDA grew by 6.6% to GBP33.8m.
The EBITDA growth was in-line with the revenue performance.
Operating Profit
Operating Profit increased by 3.6% to GBP31.6m.
The margin return on sales was 22.3% compared to 23.0% in the
prior year.
Finance Income and Expense
Finance income of GBP0.2m relates to the bank interest received
during the year on the Group's cash deposits.
The majority of the finance expense relates to the net interest
on the defined benefit pension liability in line with the
application of IAS 19.
Profit Before Tax
Profit Before Tax was GBP31.8m for the year, an increase of 4.0%
compared to the prior year (2017: GBP30.5m).
The margin return on sales was 22.4% compared to 23.0% in the
prior year.
Taxation
The effective rate of taxation is 19.6% (2017: 19.3%). This is
higher than the standard rate of 19%.
Statement of Financial Position
Cash
The Group cash balance at the year end was GBP38.9m (2017:
GBP36.1m).
Nichols' business model remains very cash generative and due to
favourable working capital movements, operating profit/ cash
conversion has increased to 91% (2017: 77%). The cash conversion
rate is based on net cash generated from operating activities as a
percentage of the profit for the financial year.
By exception, other points of note regard the Statement of
Financial Position are:
-- Property, plant and equipment increased by GBP2.5m to
GBP14.6m during the year. The majority of the increase was the
purchase of dispense equipment supporting the growth of the Out of
Home business.
-- The majority of the GBP3.8m increase in Goodwill was
associated with the acquisition of The Noisy Drink Company North
West Limited in February 2018.
-- The year end value of inventories was GBP7.2m, GBP2.4m higher
than the prior year. There were a number of supply chain
developments affecting the year on year stock increase, most
notably, as part of our Brexit strategic planning. In addition, the
prior year value was relatively low when compared to normal levels
of stock holding.
-- Trade and other receivables increased by 9.8% during 2018,
this was largely due to the strong growth in trading activity
compared to the prior year.
Key Performance Indicators
The following Key Performance Indicators (KPIs) are used by
management to monitor the Group's profit performance:
Revenue Growth +7.0% (2017: +13.2%)
The increase in the current year revenue as a percentage of the
prior year value.
Gross Margin 45.7% (2017: 45.7%)
Gross Profit as a percentage of revenue. This KPI is monitored
at segment (Still and Carbonate) and product level.
Operating Profit Margin 22.3% (2017: 23.0%)
Group profit before financing income or expense as a percentage
of revenue. This is considered for the Group as a whole rather than
at product level.
EBITDA GBP33.8m (2017: GBP31.7m)
EBITDA is defined as profit before interest, tax, depreciation
and amortisation.
Tim Croston
Chief Financial Officer
26 February 2019
Consolidated income statement
Year ended 31 December 2018
2018 2017
Total Before Exceptional Total
exceptional items
items
GBP,000 GBP'000 GBP'000 GBP'000
Revenue 142,037 132,789 - 132,789
Cost of sales (77,170) (72,166) - (72,166)
-------------------------- --------- ------------- ------------ ---------
Gross profit 64,867 60,623 - 60,623
Distribution expenses (7,236) (5.938) - (5,938)
Administrative expenses (25,993) (24,142) (1,801) (25,943)
-------------------------- --------- ------------- ------------ ---------
Operating profit 31,638 30,543 (1,801) 28,742
Finance income 192 134 - 134
Finance expense (77) (154) - (154)
Profit before taxation 31,753 30,523 (1,801) 28,722
Taxation (6,238) (5,548) - (5,548)
-------------------------- --------- ------------- ------------ ---------
Profit for the financial
year 25,515 24,975 (1,801) 23,174
-------------------------- --------- ------------- ------------ ---------
Earnings per share
(basic) 69.23p 62.88p
Earnings per share
(diluted) 69.19p 62.81p
Earnings per share
(basic)* 69.23p 67.76p
Earnings per share
(diluted)* 69.19p 67.69p
*before exceptional
items
All results relate to continuing operations.
Consolidated statement of comprehensive income
Year ended 31 December 2018
2018 2017
GBP'000 GBP'000
Profit for the financial year 25,515 23,174
Items that will not be reclassified
subsequently to profit or loss
Re-measurement of net defined
benefit liability (412) 1,140
Deferred taxation on pension obligations
and employee benefits (44) (113)
Other comprehensive (expense)/
income for the year (456) 1,027
Total comprehensive income for
the year 25,059 24,201
Statement of financial position
Year ended 31 December 2018
Group Parent
2018 2017 2018 2017
ASSETS GBP'000 GBP'000 GBP'000 GBP'000
Non-current assets
Property, plant and equipment 14,572 12,059 4,430 4,145
Goodwill 34,451 30,666 2,504 2,504
Investments - - 16,566 16,566
Intangibles 7,748 7,993 1,316 1,316
Deferred tax assets 835 1,065 835 1,065
----------------------------------- -------- --------- -------- ---------
Total non-current assets 57,606 51,783 25,651 25,596
Current assets
Inventories 7,164 4,815 3,894 2,342
Trade and other receivables 38,153 34,740 35,239 31,742
Cash and cash equivalents 38,896 36,058 20,070 15,422
----------------------------------- -------- --------- -------- ---------
Total current assets 84,213 75,613 59,203 49,506
----------------------------------- -------- --------- -------- ---------
Total assets 141,819 127,396 84,854 75,102
----------------------------------- -------- --------- -------- ---------
LIABILITIES
Current liabilities
Trade and other payables 22,339 21,031 22,248 14,955
Current tax liabilities 2,814 2,536 391 232
Total current liabilities 25,153 23,567 22,639 15,187
Non-current liabilities
Pension obligations and employee
benefits 2,755 2,921 2,755 2,921
Deferred tax liabilities 1,801 1,586 - -
-------- --------- -------- ---------
Total non-current liabilities 4,556 4,507 2,755 2,921
Total liabilities 29,709 28,074 25,394 18,108
----------------------------------- -------- --------- -------- ---------
Net assets 112,110 99,322 59,460 56,994
----------------------------------- -------- --------- -------- ---------
EQUITY
Share capital 3,697 3,697 3,697 3,697
Share premium reserve 3,255 3,255 3,255 3,255
Capital redemption reserve 1,209 1,209 1,209 1,209
Other reserves 666 134 1,441 909
Retained earnings 103,283 91,027 49,858 47,924
Total equity 112,110 99,322 59,460 56,994
----------------------------------- -------- --------- -------- ---------
Consolidated statement of cash flows
Year ended 31 December 2018
2018 2017
GBP'000 GBP'000 GBP'000 GBP'000
Cash flows from operating activities
Profit for the financial year 25,515 23,174
Adjustments for:
Depreciation and amortisation 2,179 1,175
Loss on sale of property, plant and
equipment 127 40
Finance income (192) (134)
Finance expense 77 154
Tax expense recognised in the income
statement 6,238 5,548
Change in inventories (2,274) 1,878
Change in trade and other receivables (3,347) (4,675)
Change in trade and other payables 1,197 (1,810)
Change in pension obligations (578) (2,334)
3,427 (158)
Cash generated from operating activities 28,942 23,016
Tax paid (5,679) (5,274)
--------- ---------
Net cash generated from operating
activities 23,263 17,742
Cash flows from investing activities
Finance income 192 134
Proceeds from sale of property, plant
and equipment - 4
Acquisition of property, plant and
equipment (3,857) (3,795)
Acquisition of trade and assets (143) -
Acquisition of subsidiary (3,814) (6,568)
Net cash used in investing activities (7,622) (10,225)
Cash flows from financing activities
Dividends paid (12,803) (11,213)
------------------------------------------- --------- --------- --------- ---------
Net cash used in financing activities (12,803) (11,213)
Net increase/ (decrease) in cash and
cash equivalents 2,838 (3,696)
Cash and cash equivalents at 1 January 36,058 39,754
------------------------------------------- --------- --------- --------- ---------
Cash and cash equivalents at 31 December 38,896 36,058
------------------------------------------- --------- --------- --------- ---------
Consolidated statement of changes in equity
Year ended 31 December 2018
Called Share Capital Other Retained Total
up share premium redemption reserves earnings equity
capital reserve reserve
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 January 2017 3,697 3,255 1,209 (358) 78,165 85,968
Dividends - - - - (11,213) (11,213)
Movement in ESOT - - - 192 (126) 66
Credit to equity for
equity-settled share
based payments - - - 300 - 300
Transactions with
owners - - - 492 (11,339) (10,847)
----------------------- ---------- --------- ------------ ---------- ---------- ---------
Profit for the year - - - - 23,174 23,174
Other comprehensive
income - - - - 1,027 1,027
----------------------- ---------- --------- ------------ ---------- ---------- ---------
Total comprehensive
income - - - - 24,201 24,201
----------------------- ---------- --------- ------------ ---------- ---------- ---------
At 1 January 2018 3,697 3,255 1,209 134 91,027 99,322
Dividends - - - - (12,803) (12,803)
Movement in ESOT - - - 23 - 23
Credit to equity for
equity-settled share
based payments - - - 509 - 509
Transactions with
owners - - - 532 (12,803) (12,271)
----------------------- ---------- --------- ------------ ---------- ---------- ---------
Profit for the year - - - - 25,515 25,515
Other comprehensive
expense - - - - (456) (456)
----------------------- ---------- --------- ------------ ---------- ---------- ---------
Total comprehensive
income - - - - 25,059 25,059
----------------------- ---------- --------- ------------ ---------- ---------- ---------
At 31 December 2018 3,697 3,255 1,209 666 103,283 112,110
----------------------- ---------- --------- ------------ ---------- ---------- ---------
Nichols plc
NOTES TO THE PRELIMINARY FINANCIAL INFORMATION
Basis of preparation
The preliminary financial information does not constitute
statutory accounts for the financial years ended 31 December 2018
and 31 December 2017, but has been derived from those accounts.
With effect from 1 January 2018, the Group has implemented two new
accounting standards; IFRS 15, Revenue from Contracts with
Customers and IFRS 9, Financial Instruments. All other accounting
policies remained unchanged from those set out in the 2017 annual
report. The adoption of IFRS 15 and IFRS 9 has had no material
effect on transition. Statutory accounts for 2017 have been
delivered to the Registrar of Companies and those for the financial
year ended 31 December 2018 will be delivered following the
Company's Annual General Meeting. The auditors have reported on
those accounts and their reports were unqualified, did not draw
attention to any matters by way of emphasis, and did not contain a
statement under 498(2) or 498(3) of the Companies Act 2006.
Exceptional costs in 2017
The Group incurred a number of costs during 2017, which by their
nature were non-recurring and were reported as exceptional items
within administrative expenses. These costs fell into three
categories: merger and acquisition expenses (GBP0.3m),
restructuring costs which represented redundancies as well as costs
incurred in respect of the exit from an operating site in the Out
of Home division (GBP1.3m) and costs incurred in preparation for
the introduction of the Soft Drinks Industry Levy (GBP0.2m).
Earnings per share
The calculation of basic earnings per share is based on earnings
attributable to ordinary shareholders divided by the weighted
average number of shares in issue during the year. Shares held in
the Employee Share Ownership Trust and Employee Benefit Trust are
treated as cancelled for the purposes of this calculation.
The calculation of diluted earnings per share is based on the
basic earnings per share adjusted to allow for the assumed
conversion of all dilutive options.
Basic earnings per share is 69.23 pence (2017: 62.88 pence).
Basic earnings per share (pre-exceptional items) is 69.23 pence
(2017: 67.76 pence).
Segmental information
The Board analyses the Group's internal reports to enable an
assessment of performance and allocation of resources. The
operating segments are based on these reports.
The Board considers the business from a product perspective and
reviews the Group on the operating segments identified below. There
has been no change to the segments during the year. Based on the
nature of the products sold by the Group, the types of customers
and methods of distribution, management consider reporting
operating segments at the Still and Carbonate level to be
reasonable. Gross profit is the measure used to assess the
performance of each operating segment as identified as a KPI in the
annual report.
Revenue Gross Profit
2018 2017 2018 2017
GBP'000 GBP'000 GBP'000 GBP'000
Still 64,683 64,139 35,398 35,168
Carbonate 77,354 68,650 29,469 25,455
Total 142,037 132,789 64,867 60,623
There are no sales between the two operating segments, and all
revenue is earned from external customers.
The operating segments gross profit is reconciled to profit
before taxation as per the consolidated income statement.
The Group's assets are managed centrally by the Board and
consequently there is no reconciliation between the Group's assets
per the statement of financial position and the segment assets.
Annual report
The annual report will be mailed to shareholders and made
available on our website on or around 20 March 2019. Copies will be
available after that date from: The Secretary, Nichols plc, Laurel
House, Woodlands Park, Ashton Road, Newton-le-Willows, WA12
0HH.
Annual General Meeting
The Annual General Meeting will be held at Nichols plc, Laurel
House, Woodlands Park, Ashton Road, Newton-le-Willows, WA12 0HH on
Wednesday 1 May 2019 at 11.00am.
Copies of the announcement can be found on the Investor
Relations section of the Company's website:
www.nicholsplc.co.uk.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
FR TFMPTMBJTBJL
(END) Dow Jones Newswires
February 27, 2019 02:00 ET (07:00 GMT)
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