Nichols PLC COVID-19 Trading Update (1303I)
31 Marzo 2020 - 12:00AM
UK Regulatory
TIDMNICL
RNS Number : 1303I
Nichols PLC
31 March 2020
Nichols plc
(the "Company" or "Group')
COVID-19 Trading Update
Nichols plc, the diversified soft drinks Group, provides the
following trading update considering the ongoing impact of
COVID-19.
Trading update
Trading in the first two months of the financial year was in
line with management's expectations.
However, as a result of the COVID-19 pandemic and the
restriction of movement of people worldwide, the Board now expects
a significant impact on the Group's financial performance in
2020.
Given the level of global uncertainty, the Board is not
currently able to provide financial guidance for the year ended 31
December 2020.
Mitigating actions
The Group entered this financial year with a strong balance
sheet, with more than GBP40m of cash and no debt. However, in light
of the uncertain outlook, the Board considers it prudent to protect
the Group's cash position in the near term and has taken the
decision to cancel the final dividend announced on 26 February 2020
of 28.0 pence per share, which was due for shareholder approval at
the upcoming AGM and expected to be paid on 1 May 2020. This
decision will conserve GBP10.4m of cash over the seasonally
critical spring and summer period. The Board will consider the
Group's cash position once through this critical trading period and
if it is appropriate will reinstate the payment of a dividend. As a
result of this decision, Ordinary Resolution 2 (proposed final
dividend) will be withdrawn from the AGM due to take place on 29
April 2020.
The Board and management team continue to plan for multiple
scenarios and explore various ways to mitigate the impact of
reduced demand on the business for a potentially sustained period.
Whilst the Group operates a co-packing and licensing model and is
therefore asset light, the Board is taking steps to remove cost,
including the re-evaluation of its marketing spend given the
changed circumstances, postponing non-essential recruitment and
suspending non-critical capital expenditure from the business.
Date of AGM
Given uncertainty regarding the duration of travel restrictions
across the UK, the Board is currently reviewing arrangements for
its AGM, and will update shareholders in due course via an RNS.
John Nichols, Non-Executive Chairman, said:
"Our first and most important objective remains to protect the
health and wellbeing of our employees and customers. At this most
challenging time, the Vimto family has once again demonstrated its
values and commitment and I would like to wholeheartedly thank all
our teams for their current and future efforts.
With a heritage of 112 years, Nichols has successfully weathered
significant challenges and changes across global markets before.
Driven by the strength of the Group's brands, robust balance sheet
and diversified business model, the Board remains absolutely
confident in Nichols' ability to both manage the near term
pressures impacting the global economy and emerge from this
unprecedented period well-placed to continue to deliver the Group's
long-term growth plans."
Contacts
Marnie Millard, Group Chief Executive Officer
Andrew Milne, Group Chief Operating Officer
David Rattigan, Group Chief Financial Officer
Nichols plc
Telephone: 0192 522 2222
Website: www.nicholsplc.co.uk
Alex Brennan / Hattie Dreyfus Steve Pearce / Rachel Hayes
Hudson Sandler N+1 Singer (Nominated Adviser)
Telephone: 0207 796 4133 Telephone: 0207 496 3000
Email: nichols@hudsonsandler.com Website: www.n1singer.com
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.
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/2014.
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
TSTVBLFXBXLEBBZ
(END) Dow Jones Newswires
March 31, 2020 02:00 ET (06:00 GMT)
Nichols (LSE:NICL)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024
Nichols (LSE:NICL)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024