Nichols makes 'solid start' to the year

Soft drinks group Nichols said on Wednesday that "strong growth" achieved by the Vimto brand in the UK and a "solid start to the year" for its international business had largely offset "significant declines" in the UK out-of-home route to market.

As a result, Nichols said total revenue in the period decreased by 5.9% year-on-year to £30.7m, despite the marked impact of UK-wide lockdowns aimed at curbing the spread of Covid-19

Nichols stated the Vimto brand had continued to outperform the wider UK soft drinks market, achieving growth of 4.9% in value terms in the year-to-date, versus 3.2% value growth across the wider UK soft drinks market.

However, the AIM-listed firm added that trading since the year-end had remained "very challenging" in its out-of-home segment, with revenues 91.9% lower in the period than those seen in the same period twelve months earlier, with most of the group's customers' outlets remaining closed.

Looking forward, Nichols said it remained "well placed" to deliver its long-term strategic ambitions. "confident" that, underpinned by the strength of the Vimto brand and its diversified business model.

"Should the UK government's planned roadmap out of lockdown continue, and assuming the absence of further lockdowns later in the year, the board expects full-year adjusted profit before tax to be broadly in line with current market expectations," said Nichols.

As of 1045 BST, Nichols shares were up 1.33% at 1,428.75p.