TIDMNICL
RNS Number : 2931Y
Nichols PLC
02 March 2017
Date: Embargoed until 0700 Thursday 2 March 2017
Contacts: John Nichols, Non-Executive Chairman
Marnie Millard, Group Chief Executive Officer
Tim Croston, Group Chief Financial Officer
Andrew Milne, Group Commercial Director
Nichols plc
Telephone: 01925 222222
Website: www.nicholsplc.co.uk
Alex Brennan Richard Lindley
Hudson Sandler N+1 Singer (Nominated Adviser)
Telephone: 020 Telephone: 0207 496 3000
7796 4133
Email: nichols@hspr.com
Nichols plc
PRELIMINARY RESULTS
Nichols plc ('Nichols' or the 'Group'), the soft drinks Group,
announces its Preliminary results for the year ended 31 December
2016.
Nichols 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, Levi Roots and Sunkist.
Highlights:
*Adjusted measures Year ended Year ended % movement
of Profit Before 31 Dec 2016 31 Dec 2015
Tax and EPS are
pre the exceptional
gain
---------------------- ------------- ------------- -----------
GBPm GBPm
---------------------- ------------- ------------- -----------
Group Revenue 117.3 109.3 +7.4%
---------------------- ------------- ------------- -----------
Operating Profit 30.3 27.8 +9.0%
---------------------- ------------- ------------- -----------
Operating Profit
margin 25.8% 25.5%
---------------------- ------------- ------------- -----------
Adjusted Profit
Before Tax* 30.4 28.0 +8.6%
---------------------- ------------- ------------- -----------
Adjusted EPS
(basic)* 66.18p 60.33p +9.7%
---------------------- ------------- ------------- -----------
Final dividend 20.3p 17.6p +15.3%
---------------------- ------------- ------------- -----------
John Nichols, Non-Executive Chairman, said:
"2016 has been another very good year for Nichols plc with the
Group delivering continued progress against our growth strategy.
This has resulted in a 9.7% increase in basic earnings per share*
and a 15.3% rise in the final dividend.
The Group has a clear strategy for growth and whilst the soft
drinks market is likely to remain challenging in 2017, the Board
remains confident of delivering continued success underpinned by
our strong brands, diversification and successful track record of
profitable growth."
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
Chairman's Statement
I am delighted to report that 2016 was another very good year
for Nichols plc. The Group's revenues increased by 7.4%, operating
profit grew by 9.0% and adjusted basic earnings per share was 9.7%
ahead of the prior year.
Trading
The Group's total revenue was GBP117.3m, 7.4% up on the prior
year (2015: GBP109.3m). This growth came from both our UK and
international markets, which emphasises the strength of our
diversified business model. As a result of the revenue growth,
operating profit increased to GBP30.3m, 9.0% ahead of 2015
(GBP27.8m).
Total sales in the UK were GBP90.7m, 7.0% up on the prior year
(2015: GBP84.8m) which is particularly pleasing given the
challenging trading environment. The growth was driven by a strong
performance from the Vimto brand and the successful integration of
The Noisy Drinks Co. Limited (Noisy) following the full acquisition
of the frozen drinks company in January 2016.
Sales from the Vimto brand grew 4.7% in the year, significantly
outperforming the UK soft drinks market where sales growth was 1.0%
(Nielsen year to date 31 December 2016). The addition of frozen
drinks has enhanced our Out of Home offer to the customer, which
also includes dispense and packaged soft drinks across both the
Still and Carbonate market. As a result, we believe Vimto Out of
Home offers a unique proposition to this segment of the soft drinks
market.
International sales for 2016 totalled GBP26.6m, representing an
8.8% increase on the prior year (2015: GBP24.4m) and a 2.7%
increase on a constant exchange rate basis. This excellent result
was driven by sales to our African markets where revenues grew by
32.5% to GBP10.5m (up 19.7% on a constant exchange rate basis). In
the Middle East, in-market Vimto sales showed healthy growth and
whilst sales of concentrate were slightly down on the prior year,
this was simply a result of the timing of shipments ahead of
Ramadan in 2017.
Exceptional gain
As described in the Chief Financial Officer's Report, the
exceptional gain in 2016 related to the step-acquisition of Noisy,
which was accounted for as an investment in associate prior to the
remaining 51% of shares being acquired in January 2016.
Dividend
Following another strong performance and reflecting the Board's
continued confidence in the outlook for the Group, the Board is
pleased to recommend a final dividend of 20.3 pence per share
(2015: 17.6 pence). If accepted by our shareholders, the total
dividend for 2016 will be 29.3 pence (2015: 25.6 pence), an
increase of 14.5% on the prior year.
Subject to shareholder approval, the final dividend will be paid
on 5 May 2017 to shareholders registered on 7 April 2017; the
ex-dividend date is 6 April 2017.
Board Changes
Following six years of service as a Non-Executive Director, John
Longworth has indicated that he will be stepping down from the
Board at the AGM on 26 April 2017. The Board would like to thank
John for his service and wish him a happy and successful future.
The process to replace John is underway and a further announcement
will be made in due course.
Outlook
In 2017, we will maintain focus on our stated growth strategy.
This includes developing our core brands and markets whilst
investing in innovation and seeking further acquisition
opportunities.
In summary, the Board is very pleased with the strong
performance in 2016 and is confident that the Group is well placed
to continue this trend in to 2017.
John Nichols
Non-Executive Chairman
1 March 2017
Chief Executive Officer's Report
I am very pleased with the excellent performance that Nichols
plc delivered in 2016 reflecting strong progress made across the
business despite the global soft drinks environment remaining
challenging. Group revenues increased 7.4% and profit before tax
(pre-exceptional gain) increased 8.6%. This performance was driven
by new product development, contributions from acquired businesses
and geographical growth. The Group continues to maintain its firm
focus of ensuring we deliver our strategy of driving value over
volume in all areas of the business. There is no doubt that the
heritage of the Vimto brand continues to resonate with our
consumers across the globe. We strive hard to ensure Vimto is as
relevant today as it was back in 1908 when the brand was born.
Available in over 85 countries worldwide, Vimto always brings a
smile to the face of our consumers whilst having a refreshingly
different approach to each of its local markets.
With the addition of the Feel Good brand, we are continuing to
develop our portfolio to meet the ever-changing needs of our
consumers. We integrated Noisy during 2016 following the
acquisition of the remaining 51% shareholding in January 2016,
representing a further successful example of our diversification
strategy.
In March 2016, the UK Chancellor announced the Government's plan
to introduce a soft drinks levy due to be effective from April
2018. As a business with a diversified product portfolio and market
presence, I believe the Group is well positioned to both comply
with and mitigate the effect of the levy.
The UK Soft Drinks Market
(As measured by Nielsen year to date 31 December 2016)
In 2016, volumes in the UK soft drinks market increased by a
modest 1.5%. The total value of the soft drinks market grew by a
marginal 1.0% year on year to a total value of GBP7.6 billion.
Within the soft drinks market, sectors that experienced growth
were Fruit Juice, Water and Mixers. However, Cola, Dilutables and
Fruit Drinks all declined.
Despite this backdrop, the Vimto Brand value increased to
GBP72.5m delivering growth of 4.7%. Whilst the category remains
highly competitive and promotionally driven, we have maintained our
stance of focussing on value over volume. Vimto Dilutes
outperformed the market by 3 percentage points and was the only top
three squash brand to achieve growth. Our ready to drink range
delivered a year on year increase of 25.6%, making Vimto the
fastest growing brand in this sector.
The UK On-Trade
(As measured by CGA, Total Licensed, year to date to 26 November
2016)
The UK on trade soft drinks sector also saw modest volume
increase of 0.8%. However, sales value was up by a healthy 3.7%.
Both packaged soft drinks and draught contributed to the value
performance with consumers seeking branded and premium soft drinks.
Other categories such as craft beers, wines, and spirits also
experienced growth primarily from premium offerings. Soft drinks
are becoming more influential in the sales mix as consumers are
enjoying premium spirits with quality branded mixers.
Operational Review
Vimto UK
We achieved an overall sales increase of the Vimto brand of
4.7%, with all ranges performing positively. However, we remain
focussed on growing our still range of products and we are pleased
to report that Still sales during 2016 increased by 5.4%. The best
performer within the range was the 500ml, which saw strong sales
growth of 28.1%. We continued to see good progress from Vimto
Mini's, introduced in 2014, which gathered strong sales momentum in
2016 as a result of distribution gains, prominent facings in front
of store chillers and the second year of our distribution drive in
the Midlands. Vimto carbonates also returned to growth with sales
up 3.3%.
To support the growth of our still ready to drink products, we
created a new above the line marketing campaign in 2016. A new
ReMixed orange toad joined our original purple Vimtoad in new
creative content primarily targeting the teenage market. A new
advert was aired via video on demand which achieved 13 million
views and featured in an extensive cinema programme that was seen
by nearly 8 million people. With our target audience in mind,
digital media also formed a large part of the marketing campaign.
This included a highly successful partnership with Snapchat where
"Vimto" lenses were available for a day. The consumer response far
surpassed what we expected and the results Snapchat have seen
previously, demonstrating the tremendous engagement we achieve when
we communicate with teenagers through Vimto. The activity achieved
8 million plays, 950 thousand shares and a total of 10.5 million
views.
The advertising campaign also supported the launch of Vimto
ReMix early in 2016 when we introduced two new variants to the
Vimto range. With exciting new juices and flavours, they both have
an added dash of our secret Vimto taste and I am delighted to
report ReMix has delivered an incremental GBP3.4m to the Vimto
brand value since launch. This represents one of our most
successful pieces of new product development since the launch of
the original Vimto brand over 100 years ago.
We also brought to market new pack formats to meet the needs of
both our customers and consumers, for example, a bespoke 3 litre
squash bottle was designed for one of our discounter customers.
In Manchester and Birmingham, Selfridges invited us to install
an off shelf fixture full of Vimto products. The "Vimto Fun
Factory" includes all of our packaged soft drinks products, offers
Vimto Slush and a collection of our most successful confectionery
products. Both parties have been extremely pleased with its
performance and it truly represents the spirit and the love our
consumers have for Vimto.
In July 2015, we acquired the Feel Good brand. Feel Good is a
range of completely natural soft drinks with absolutely no added
sugar. We have already spread some "Feel Goodness" as both
carbonated and still juice drinks were relaunched in September
2016. Feel Good has delicious new recipes and the packaging has
been redesigned to present a more modern image supporting the
unique positioning of the product range. In UK grocery, we
introduced a 4 x 275ml take home pack and we have secured new
listings for 2017 including Feel Good Kid's juice drink in a
prominent high street café chain. Our marketing activities included
a strong consumer communication plan and in store sampling to
support the relaunch in the second half of 2016.
Vimto International
Our international business again performed strongly in 2016 as
we saw our long-term international investment strategy deliver
results. A star performer for 2016 was the African region with
sales growth of 32.5% (19.7% on a constant exchange rate basis).
Pleasingly we saw good growth from our core markets including
Senegal and Guinea, as well as new territories that came on stream
contributing to strong Vimto concentrate sales. We are particularly
pleased with the brand's launch in Sudan and the work of our
partner in that territory who executed some tremendous in-market
activation.
Our partner in the Middle East, Aujan Coca-Cola Beverages
Company, delivered another successful 360-degree marketing
campaign, which included TV and outdoor advertising, in-store
activation and digital content during Ramadan. We saw magnificent
in-store execution with Vimto concentrate bottles creating a
replica model of the Burj Khalifa, towering to an unbelievable
eight metres tall and Vimto brand take overs of the Supermarket's
Ramadan aisles. As a result, Vimto brand cordial sales in its
largest market of Saudi Arabia were up 3% versus a cordial market,
which saw a decline of 2.5% (as measured by Nielsen MAT July 2016).
Social media is becoming increasingly important in the Middle East
and 2016 saw Vimto enter into a new era of communication with
younger people. The output of this activity saw some extraordinary
results with 104 million impressions over a two day period and 4.1m
views. Bloomingdales' flagship store in Dubai repeated the
successful 2015 personalised Vimto cordial bottle promotion. This
year however, every personalised bottle was stylised with Swarovski
crystals. The promotion saw a huge amount of activity on social
media with one of UAE's most famous female singers, Ahlam Al
Shamsi, who has four million followers, promoting her very own
named Vimto cordial bottle. Whilst we are synonymous with Ramadan,
it is key that the brand remains relevant to the younger generation
and becomes an everyday drink of choice. Therefore, it was
particularly pleasing to see the growth we achieved in the Still
category with our 250ml bottle and cartons.
Part of the strategy for Noisy included overseas growth. Both
Heide Park, a theme park in Germany and Gardaland, an amusement
park in Italy have a long-standing relationship with Noisy. With
Nichols plc's international expertise we will look to continue to
expand this area of our international activities.
Vimto Out of Home
It has been an exciting year for Vimto Out of Home, which
delivered strong revenue growth of 17.0%. We acquired the final
shareholding in Noisy in January 2016 and secured new business wins
in various major outlets including Morrisons café, in Compass Group
and Greene King. In 2016, we installed 35.0% more machines than we
did in the previous year, demonstrating our growth.
A new marketing initiative was launched by Vimto Out of Home to
support its unique proposition of offering both equipment and
products to its customers. This included a new website, trade
communication programme and in-field marketing sales material. We
are able to showcase our range of equipment from dispensed soft
drinks to frozen soft drinks and from Coca-Cola to milkshakes,
which are relevant to customers ranging from independent landlords
to buyers of large leisure groups.
Corporate Responsibility
2016 has proved to be another challenging year for the soft
drinks industry, notably including the UK Government's decision to
announce the introduction of the Soft Drinks Industry Levy that
will come into force in April 2018. Whilst consultation is ongoing,
the following information has been published: drinks containing
less than 5 grams of sugar per 100ml will be exempt from the levy,
juice and juice drinks with no added sugar will also be levy free
and drinks that contain a milk content over 75% will be exempt.
We have taken the issues of childhood obesity and sugar
reduction seriously for many years. All of the Group's recent new
product development has been wholly focussed on no added sugar
basis, all advertising has featured our no added sugar (NAS) ranges
and we have constantly reduced the levels of sugar in all of our
products. As a result, we have made significant progress in
2016:
-- Vimto NAS brand sales value were up 19%
-- In 2016, NAS represented a total of 41% of our Vimto sales, compared to 33% in 2015
-- 11.0% of our shoppers are buying more NAS than a year ago
-- ReMix, which has no added sugar, has added an incremental GBP3.4m to the Vimto Brand value
-- Our squash range is already levy free
Our community
We continued our work with Warrington Youth Club as our chosen
charity. Warrington Youth Club believes in "inspiring young people
to achieve" and supports young people's development by offering
opportunities to increase and develop skills, self-awareness and
confidence. This in turn enables them to make positive and healthy
life choices through a range of programmes.
Not to be outdone by our male colleagues' achievement in 2014, a
group of eleven women from Vimto volunteered to climb Kilimanjaro
in March 2016. Following a six month intensive training programme
that required huge dedication in terms of time and support from our
families, all eleven of us successfully climbed 5,895 metres to
reach the summit. As a result, we were able, through the people and
companies who kindly sponsored us, to buy three new and much needed
mini buses for the Youth Club.
Our People
We have welcomed a large number of new colleagues in 2016 and we
are very happy to have all the staff from Noisy join the Vimto
family. Our operations now stretch from Stirling to Southampton
with stop offs at our factory in Ross-on-Wye and our newly acquired
site in Thurrock. It has been a hugely challenging year but as
always, our people have responded to the changes with huge "Vim and
Vigour".
I would like to express my appreciation for all the efforts our
teams continue to show.
Every day, the teams demonstrate our company values as they
continue to DELIVER WOW and MAKE A DIFFERENCE by FINDING A BETTER
WAY.
We have a group of people who are PASSIONATE ABOUT WHAT THEY DO
and ARE PROUD TO BE PART OF OUR FAMILY.
However, most importantly THEY CREATE FUN.
Thank you all!
Our Vision
We continue to develop our rolling five-year strategy. Our
activities for both our home and overseas markets centre on four
core pillars:
More from the Core
We still have headroom for growth in our Vimto brand in both our
UK and overseas markets. Our relentless focus on 500ml and No Added
Sugar new product development will continue as will international
product development to ensure Vimto is fit for all its local
markets.
Healthier Future
The relaunch of Feel Good in the UK and further new product
development will see it firmly lead the category as a natural
healthier alternative soft drink. We will continue to focus all our
marketing activities on Vimto No Added Sugar. Through product
development, we will ensure Vimto is able to meet the challenge of
the sugar levy due in 2018.
Thirst for New
New product development and acquisition across the Group remains
core to the growth of the Group.
Wherever Whenever
With our diversified portfolio and our flexible out-sourced
global production model, it ensures we are able to meet the needs
of our consumers. We want to make sure our products are available
wherever and whenever our customers want them. We are keen to
continue to develop and expand our large presence in the Middle
East and seek new partners in the African region. The recently
opened Indian market will be a long-term growth project and we seek
to make progress in Malaysia and Indonesia in the medium term. In
the UK, we will build on our successful Midlands campaign and we
will aim to grow distribution in the South of England.
Outlook
I am very pleased with the performance by the Group during 2016.
Whilst we do anticipate some cost and foreign exchange pressures in
2017, we believe we remain well placed to mitigate the impact
through careful cost control and price recovery strategies.
We continue to invest in all parts of our organisation, which
includes both our brands and our people. Making sure that our brand
portfolio is fit for the future is critical to ensuring the
long-term success of the business. The ongoing and planned
diversification of the Group means that we are able to take
decisions that will deliver long-term sustainable success. There is
no doubt that challenges will remain in the soft drinks market and
current economic uncertainty is here to stay in the short term.
However, I believe our diversification across different routes to
market, our geographical reach and our track record of successful
and profitable brand growth puts us in a strong position to deliver
future success.
Marnie Millard
Chief Executive Officer
1 March 2017
Chief Financial Officer's Report
In 2016 Nichols delivered another strong set of results as the
Group continued its trend of delivering sustained profit growth
whilst also increasing its sales in both the UK and export markets.
One of the aims of our growth strategy is to leverage the benefits
of our diverse business model. Our 2016 performance again
demonstrates the importance of this strategy as we have delivered
growth from across the Group despite a backdrop of the continuing
challenges faced in the UK market.
Income statement
Group sales totalled GBP117.3m, an increase of GBP8.0m (7.4%)
compared to the prior year (2015: GBP109.3m).
Business 2016 2015 Year on year growth
segments GBPm GBPm GBPm %
revenue
----------- ------ ------ ----------------------
Still 59.5 54.8 4.7 8.6%
----------- ------ ------ --------- -----------
Carbonate 57.8 54.5 3.3 6.1%
----------- ------ ------ --------- -----------
Total 117.3 109.3 8.0 7.4%
----------- ------ ------ --------- -----------
The majority of the sales growth came from the Still segment
which was driven by the Vimto brand and the incremental sales of
frozen beverage following the acquisition of Noisy. The Carbonate
segment included positive growth from our sales to Africa.
UK sales
I am pleased to report strong growth in the UK, where sales
increased by 7.0% to GBP90.7m, an additional GBP5.9m compared to
the prior year (2015: GBP84.8m). This result was particularly
pleasing given that we had targeted top line growth following a
flat performance in 2015.
Within the UK, one of the key drivers of this growth was Vimto,
with sales into the grocery market increasing by 4.7%. This is
another strong performance for the brand and significantly
outperforms the total market which increased by 1.0% in the same
period (Nielsen year to date 31 December 2016). The Vimto increase
in sales came from the Still category, which increased by 14.0% and
Carbonate, which was up 3.3% compared to 2015. Elsewhere in the
portfolio, sales from the Levi Roots brand declined due to its
performance in the UK grocery market.
The other pleasing factor behind our UK performance is the
incremental sales from the acquisition of Noisy. Post the full
acquisition which was completed 8 January 2016, the net year on
year sales benefit to the Group was GBP5.8m. Noisy is a good
strategic fit with our Out of Home business and adds frozen
beverages to our portfolio of products for this sector which also
includes dispense and packaged soft drinks.
International sales
International sales totalled GBP26.6m (2015: GBP24.4m),
delivering growth of GBP2.2m (8.8%) compared to last year and 2.7%
on a constant exchange rate basis. The majority (c83%) of our
international sales are in our two key regions: Africa and the
Middle East.
Sales to our African markets grew by an underlying 19.7% and
buoyed by the stronger Euro, reported sales increased by 32.5%.
This performance came from both core and new markets. Importantly,
from a value point of view, the trend shows an increasing
proportion of concentrate sales with in-country producers rather
than sales of finished goods via in-country distributors.
Whilst our sales of concentrate to the Middle East were 7.0%
down on the prior year, it is important to note that in-country
sales of Vimto showed healthy growth during 2016. Therefore, as
explained in previous years, the timing of shipments around our
year-end is driven by the supply chain requirements ahead of the
following year's Ramadan period. Ramadan 2017 commences 27 May and
we anticipate several shipments of concentrate early in Q1
2017.
Elsewhere, sales in our remaining international markets totalled
GBP4.6m (2015: GBP4.2m), an increase of 10.8% compared to the prior
year.
Gross profit
Gross profit totalled GBP59.1m for the year, an increase of
11.6% compared to the prior year. In addition to the trading
growth, our continued focus on value over volume has contributed to
the increase in gross margin, which was 50.4% compared to 48.5% in
the prior year.
Distribution expenses
The majority of our distribution expenses relate to warehousing
and haulage in our UK business. The total cost in 2016 of GBP6.3m
(2015: GBP5.5m) equates to 5.3% of sales up from 5.0% in 2015 as a
result of a differing sales mix due to the growth in our Out of
Home business and the acquisition of Noisy.
Administrative expenses
The total cost of overheads in 2016 was GBP22.5m, which was
GBP2.9m higher than the prior year. The increase year on year is
largely due to the inclusion of the administration costs associated
with the addition of Noisy (the acquired business). Administrative
costs include depreciation and amortisation, salaries and bonuses,
administrative costs, marketing costs, as well as other
overheads.
Operating profit
As a result of the strong trading performance, operating profit
increased by 9.0% to GBP30.3m (2015: GBP27.8m). Consequently, the
operating profit margin has increased to 25.8% (2015: 25.5%).
Exceptional gain
Having initially taken a 49% stake in Noisy in March 2015, the
Group acquired the remaining shares on 8 January 2016. Under
International Financial Reporting Standards, the latter transaction
triggers a deemed disposal of the initial 49% of the shares in
Noisy and a subsequent acquisition of 100% of the shares. As a
consequence, a gain on disposal amounting to GBP1.1m arose due to
the increase in value of the 49% between March 2015 and January
2016. This gain is disclosed as an exceptional credit and is the
only exceptional item arising in the year.
Taxation
The pre-exceptional effective tax rate is 19.8%, marginally
lower than the prior year (2015: 20.7%) reflecting the reduction in
the standard rate of Corporation Tax. The exceptional gain is not
subject to tax.
Profit before tax and exceptional items
Profit before tax and exceptional items (PBT) increased by 8.5%
to GBP30.4m (2015: GBP28.0m). The Group maintained its impressive
record of PBT growth having delivered a 68% increase in the last
five years with a Compound Annual Growth Rate of 11%.
T J Croston
Chief Financial Officer
1 March 2017
Consolidated income statement
Year ended 31 December 2016
2016 2015
Before Exceptional Total Total
exceptional items
items
GBP'000 GBP'000 GBP'000 GBP'000
Revenue 117,349 - 117,349 109,279
Cost of sales (58,234) - (58,234) (56,296)
-------------------------- ------------- ------------ --------- ---------
Gross profit 59,115 - 59,115 52,983
Distribution expenses (6,271) - (6,271) (5,483)
Administrative expenses (22,519) - (22,519) (19,666)
-------------------------- ------------- ------------ --------- ---------
Operating profit 30,325 - 30,325 27,834
Finance income 214 1,087 1,301 213
Finance expense (134) - (134) (201)
Share of income from
associate - - - 190
Profit before taxation 30,405 1,087 31,492 28,036
Taxation (6,015) - (6,015) (5,803)
-------------------------- ------------- ------------ --------- ---------
Profit for the financial
year attributable
to equity holders
of the parent 24,390 1,087 25,477 22,233
Earnings per share (basic) 69.13p 60.33p
Earnings per share (diluted) 69.07p 60.25p
Earnings per share (basic) - before
exceptional items 66.18p 60.33p
Earnings per share (diluted) - before
exceptional items 66.12p 60.25p
All results relate to continuing operations.
Consolidated statement of comprehensive income
Year ended 31 December 2016
2016 2015
GBP'000 GBP'000
Profit for the financial
year 25,477 22,233
Other comprehensive income/
(expense) that will not
be reclassified to profit
or loss
Re-measurement of net
defined benefit liability (3,472) 1,632
Deferred taxation on pension
obligations and employee
benefits 601 (274)
Other comprehensive (expense)/
income for the year (2,871) 1,358
Total comprehensive income
for the year 22,606 23,591
Statement of financial position
Year ended 31 December 2016
Group Parent
2016 2015 2016 2015
ASSETS GBP'000 GBP'000 GBP'000 GBP'000
Non-current assets
Property, plant and equipment 8,715 6,061 3,970 3,928
Goodwill 23,061 19,108 2,504 2,504
Investments - - 16,566 16,566
Investment in equity - 2,970 - -
accounted associate
Intangibles 6,084 1,316 1,316 1,316
Deferred tax assets 1,436 1,098 1,436 1,098
-------------------------------- -------- -------- -------- --------
Total non-current assets 39,296 30,553 25,792 25,412
Current assets
Inventories 6,717 3,945 3,914 2,430
Trade and other receivables 31,508 27,860 25,020 20,765
Cash and cash equivalents 39,754 35,438 25,768 22,907
-------------------------------- -------- -------- -------- --------
Total current assets 77,979 67,243 54,702 46,102
-------------------------------- -------- -------- -------- --------
Total assets 117,275 97,796 80,494 71,514
-------------------------------- -------- -------- -------- --------
LIABILITIES
Current liabilities
Trade and other payables 21,456 18,127 21,008 16,981
Current tax liabilities 2,355 2,679 357 1,160
Total current liabilities 23,811 20,806 21,365 18,141
Non-current liabilities
Pension obligations and
employee benefits 6,395 3,893 6,395 3,893
Deferred tax liabilities 1,101 86 - -
Total non-current liabilities 7,496 3,979 6,395 3,893
Total liabilities 31,307 24,785 27,760 22,034
-------------------------------- -------- -------- -------- --------
Net assets 85,968 73,011 52,734 49,480
-------------------------------- -------- -------- -------- --------
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 (358) (547) 417 228
Retained earnings 78,165 65,397 44,156 41,091
Total equity 85,968 73,011 52,734 49,480
-------------------------------- -------- -------- -------- --------
Consolidated statement of cash flows
Year ended 31 December 2016
2016 2015
GBP'000 GBP'000 GBP'000 GBP'000
Cash flows from operating
activities
Profit for the financial
year 25,477 22,233
Adjustments for:
Depreciation and amortisation 1,111 502
(Profit)/ loss on sale of
property, plant and equipment (6) 16
Finance income - non-exceptional (214) (213)
Finance expense 134 201
Finance income - exceptional (1,087) -
gain
Tax expense recognised in
the income statement 6,015 5,803
Change in inventories (2,382) 767
Change in trade and other
receivables (3,036) (4,335)
Change in trade and other
payables 1,229 (1,560)
Change in pension obligations (970) (665)
794 516
Cash generated from operating
activities 26,271 22,749
Tax paid (6,116) (4,639)
---------- --------
Net cash generated from operating
activities 20,155 18,110
Cash flows from investing
activities
Finance income 214 213
Proceeds from sale of property,
plant and equipment 17 5
Acquisition of property,
plant and equipment (2,442) (1,768)
Acquisition of subsidiary (3,715) (157)
Acquisition of trade and
assets - (3,820)
Acquisition of associate
investment - (2,970)
Net cash used in investing
activities (5,926) (8,497)
Cash flows from financing
activities
Share options exercised (107) (69)
Dividends paid (9,806) (8,589)
----------------------------------- -------- ---------- -------- --------
Net cash used in financing
activities (9,913) (8,658)
Net increase in cash and
cash equivalents 4,316 955
Cash and cash equivalents
at 1 January 35,438 34,483
----------------------------------- -------- ---------- -------- --------
Cash and cash equivalents
at 31 December 39,754 35,438
----------------------------------- -------- ---------- -------- --------
Consolidated statement of changes in equity
Year ended 31 December 2016
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 2015 3,697 3,255 1,209 (560) 50,477 58,078
Dividends - - - - (8,589) (8,589)
Movement in ESOT - - - 13 (82) (69)
Transactions with
owners - - - 13 (8,671) (8,658)
--------------------- ---------- --------- ------------ ---------- ---------- ---------
Profit for the
year - - - - 22,233 22,233
Other comprehensive
income - - - - 1,358 1,358
--------------------- ---------- --------- ------------ ---------- ---------- ---------
Total comprehensive
income - - - - 23,591 23,591
--------------------- ---------- --------- ------------ ---------- ---------- ---------
At 1 January 2016 3,697 3,255 1,209 (547) 65,397 73,011
Dividends - - - - (9,806) (9,806)
Movement in ESOT - - - 189 (32) 157
Transactions with
owners - - - 189 (9,838) (9,649)
--------------------- ---------- --------- ------------ ---------- ---------- ---------
Profit for the
year - - - - 25,477 25,477
Other comprehensive
expense - - - - (2,871) (2,871)
--------------------- ---------- --------- ------------ ---------- ---------- ---------
Total comprehensive
income - - - - 22,606 22,606
--------------------- ---------- --------- ------------ ---------- ---------- ---------
At 31 December
2016 3,697 3,255 1,209 (358) 78,165 85,968
--------------------- ---------- --------- ------------ ---------- ---------- ---------
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 2016
and 31 December 2015, but has been derived from those accounts. The
accounting policies used in preparation of this preliminary
announcement have remained unchanged from those set out in the 2015
annual report, aside from as below regarding the exceptional gain
recognised. Statutory accounts for 2015 have been delivered to the
Registrar of Companies and those for the financial year ended 31
December 2016 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 gain
In the year, the Group has acquired the remaining 51% share of
Noisy, which was previously accounted for as an investment in
associate. In calculating goodwill, the fair value of consideration
has been calculated using the cash consideration plus the
directors' best estimate of deferred consideration at the
acquisition date plus the fair value of the 49% interest already
owned. To calculate goodwill, this calculation has been compared to
the net assets at the date of acquisition of the remaining 51% of
shares of Noisy, including an assessment of the fair value of
intangible assets. The exceptional gain recognised relates to the
excess of the fair value of the 49% interest over its book
value.
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 69.13 pence (2015: 60.33 pence).
Basic earnings per share (pre exceptional items) is 66.18 pence
(2015: 60.33 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 Chief Financial
Officer's Report.
Revenue Gross Profit
2016 2015 2016 2015
GBP'000 GBP'000 GBP'000 GBP'000
Still 59,523 54,791 34,702 30,452
Carbonate 57,826 54,488 24,413 22,531
Total 117,349 109,279 59,115 52,983
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 30 March 2017. 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
26 April 2017 at 11.00am.
Copies of the announcement can be found on the Investors
Relations section of the Company's website:
www.nicholsplc.co.uk.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR BFLLBDXFZBBE
(END) Dow Jones Newswires
March 02, 2017 02:00 ET (07:00 GMT)
Nichols (LSE:NICL)
Historical Stock Chart
From Apr 2024 to May 2024
Nichols (LSE:NICL)
Historical Stock Chart
From May 2023 to May 2024