company profile nichols plc - wordpress.com

COMPANY PROFILE

Nichols plc

REFERENCE CODE: 87D8105C-F671-4DAE-95A1-0A0ECC96CF2APUBLICATION DATE: 20 Sep 2013www.marketline.comCOPYRIGHT MARKETLINE. THIS CONTENT IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED OR DISTRIBUTED.

TABLE OF CONTENTS

Company Overview..............................................................................................3

Key Facts...............................................................................................................3

Business Description...........................................................................................4

History...................................................................................................................5

Key Employees.....................................................................................................6

Key Employee Biographies..................................................................................7

Major Products and Services..............................................................................9

Top Competitors.................................................................................................10

Company View.....................................................................................................11

Locations and Subsidiaries...............................................................................13

Nichols plc © MarketLine

Nichols plcTABLE OF CONTENTS

COMPANY OVERVIEW

Nichols is engaged in the supply of soft drinks to the retail, wholesale, catering, and licensed andleisure industries. Its brand portfolio includes Vimto, Levi Roots, Weight Watchers, Sunkist, Panda,Cabana and Ben Shaws.The company primarily operates in the UK, Middle East, China and Africa.It is headquartered in Newton Le Willows, the UK and employs around 162 people.

The company recorded revenues of £107.8 million (approximately $170.9 million) in the fiscal yearended December 2012, an increase of 9% over 2011. The company's operating profit was £20.5million (approximately $32.5 million) in fiscal 2012, an increase of 13% over 2011. Its net profit was£15.3 million (approximately $24.2 million) in fiscal 2012, an increase of 14.5% over 2011.

KEY FACTS

Nichols plcHead OfficeLaurel HouseWoodlands ParkAshton RoadNewton Le WillowsMerseyside WA12 0HHGBR

44 1925 222 222Phone

44 1925 222 233Fax

http://www.nicholsplc.co.ukWeb Address

107.7Revenue / turnover(GBP Mn)

DecemberFinancial Year End

162Employees

NICLLondon StockExchange Ticker


Nichols plcCompany Overview

BUSINESS DESCRIPTION

Nichols is a UK-based company that is engaged in producing soft drinks and other beverages. Thecompany distributes its products to the retail, wholesale, vending, catering, licensed, and leisureindustries. The company has operations in the UK, Middle East, China and Africa.

The company's brand portfolio includes Vimto, which is sold in over 65 countries and Levi Roots,Weight Watchers, Sunkist and Panda that are sold in the UK.The company offers still and carbonatesdrinks. The company offers soft drinks on dispense market, where its brands include Cabana andBen Shaws.

The company's subsidiaries include Beacon Holdings, Beacon Drinks, Ben Shaws Dispense Drinks,Cabana (Holdings), Cabana Soft Drinks, Cariel Soft Drinks, Dayla Liquid Packing and Festival DrinksLimited.

Dayla manufactures cold soft drinks on draught and supplies into soft drink wholesalers. Ben ShawsDispense Drinks supplies cold soft drinks on draught into pubs, clubs, restaurants and other leisureoutlets through a national network of distributors. Cabana is a wholesale supplier of cold soft drinkson draught into pubs, clubs, restaurants and other leisure outlets.


Nichols plcBusiness Description

HISTORY

Nichols traces its roots back to the establishment of Vimto, a fruit flavored cordial, created by JohnNoel Nichols in 1908.

In 1919, Vimto's first export sales were sent to Guayana.

The company introduced Vimto carbonated drink in addition to Vimto cordial in 1921.

Vimto was registered as a trademark in India in 1924.

In 1929, the business was incorporated and renamed to J.N.Nichols & Company Ltd.

J.N.Nichols (Vimto) Ltd was listed on the Manchester stock exchange in 1961.

In 1964, Vimto was for the first time produced in cans.

The company acquired Cabana Soft Drinks, a Preston based dispense drinks business in 1986.

In 2000, the company changed its name to Nichols plc.

Nichols was transferred to the AIM (Alternative Investment Market) in 2004.

In 2005, the company acquired Beacon Drinks, a south coast based dispense drinks business. Inthe same year, Nichols acquired the Panda brand from Hall & Woodhouse.

Nichols acquired Cariel, a Scottish based dispense drinks business in 2006.

In 2008, the company acquired a 50% holding in Dayla Liquid Packing Ltd (Dayla), a soft drinkspackaging solution provider.

Nichols acquired the trade, brand and assets of the Ben Shaws soft drinks on draught business in2010. In the same year, Nichols acquired the remaining 50% of Dayla.

In 2011, Nichols acquired remaining 50% holding in Dayla Liquid Packing Ltd (Dayla), a soft drinkspackaging solution provider.

The company appointed N+1 Brewin as the it's nominated adviser and broker, in February 2012.

In May 2013, Nichols appointed Marnie Millard as its Group Chief Executive Officer.


Nichols plcHistory

KEY EMPLOYEES

CompensationBoardJob TitleName

Executive BoardGroup Chief Executive OfficerMarnie Millard

203000 GBPExecutive BoardGroup Finance DirectorTim J Croston

Non Executive BoardChairmanP John Nichols

Non Executive BoardDirectorJohn Longworth

Non Executive BoardDirectorEric Healey

Senior ManagementManaging Director, VimtoInternational

Jim McDonnell


Nichols plcKey Employees

KEY EMPLOYEE BIOGRAPHIES

Marnie Millard

Board: Executive BoardJob Title: Group Chief Executive OfficerSince: 2013

Ms. Millard has been the group Chief Executive Officer at Nichols since May 2013. She joined thegroup in 2012 as a Managing Director of Vimto Soft Drinks. Ms. Millard worked in the soft drinksindustry for the last 17 years in a number of senior roles at Macaw Soft Drinks, Refresco Ltd and,more recently at Gerber Soft Drinks.

Tim J Croston

Board: Executive BoardJob Title: Group Finance DirectorSince: 2010Age: 49

Mr. Croston has been the Group Finance Director at Nichols since 2010. He initially joined thecompany as Group Financial Controller in 2005 and moved to Finance and Operations Director forthe Soft Drinks Division in 2007.

P John Nichols

Board: Non Executive BoardJob Title: ChairmanSince: 2007Age: 63

Mr. Nichols has been the Chairman at Nichols since 2007. He has been a Director at the companysince 1976. Mr. Nichols served as the Managing Director in 1986 and the Chairman in 1999 at thecompany.

John Longworth

Board: Non Executive BoardJob Title: DirectorSince: 2010Age: 54


Nichols plcKey Employee Biographies

Mr. Longworth has been a Director at Nichols since 2010. He serves as a Non-Executive Directorat the Cooperative Group and is a Competition Commission panel Member. Mr. Longworth servesas the Chairman at SVA Limited, a business he founded in 2010. He also served as a Main BoardDirector at Asda and a Director at Tesco Stores.

Eric Healey

Board: Non Executive BoardJob Title: DirectorSince: 2011Age: 64

Mr. Healey has been a Director at Nichols since 2011. He served as a Senior Partner at aninternational accounting firm. Mr. Healey is a Chartered Accountant. He is a Member of the AuditCommittee at the University of Salford and an Adviser to a number of enterprises.

Jim McDonnell

Board: Senior ManagementJob Title: Managing Director, Vimto InternationalSince: 2006

Mr. McDonnell has been the Managing Director of Vimto International at Nichols since 2006. Hepreviously held senior management roles at General Mills in the US and United Biscuits in the UK.


Nichols plcKey Employee Biographies

MAJOR PRODUCTS AND SERVICES

Nichols is a UK-based company that is engaged in producing soft drinks and other beverages. The company's key products and brands include the following:

Products:

Soft drinksDispensed cold drinks

Brands:

VimtoPandaSunkistCabanaBen ShawsDaylaLevi RootsWeight Watchers


Nichols plcMajor Products and Services

TOP COMPETITORS

The following companies are the major competitors of Nichols plc

Britvic PlcA.G. Barr plcGreene King plc


Nichols plcTop Competitors

COMPANY VIEW

A statement by John Nichols, the Chairman at Nichols is given below.The statement has been takenfrom the company’s 2012 annual report.

I am pleased to report that 2012 was another very strong year for Nichols plc. Once again we havedelivered double digit growth in profit, earnings per share and cash.

Group sales increased to £107.8m, up 9% on 2011, an excellent performance against our own toughprior year comparatives and the challenging UK retail environment. Continued high levels of rawmaterial inflation impacted our UK gross margins; however, the sales growth combined with strongcost control led to increased operating margins. Overall the Group delivered a 13% increase in profit,with profit before tax of £20.5m, a £2.4m increase on 2011. As a result, earnings per share increased14% to 41.4p.

TRADING

Continuing the trend of recent years, sales growth has been delivered from both our domestic andexport businesses.

Our UK sales grew 9% in 2012 to £85m, outperforming the UK soft drinks market which grew 3%(AC Nielsen 52 week data to 5 Jan 2013). The growth was driven by a strong performance from ourcore Vimto brand and our innovative new products such as Levi Roots and the recently launchedWeight Watchers range of soft drinks.

Export sales totalled £22.7m in the year, up 8% against the prior year’s tough comparatives (2011+31%). Within the regions, the momentum in Africa continued with sales up 22% (2011 +28%) andsales into mainland Europe also increased by 24%. Sales into the Middle East region were broadlyflat on last year partly due to the timing of shipments at the end of 2012 as well as the strongcomparatives from the prior year (2011 +24%).

DIVIDEND

Following another strong performance and reflecting confidence in the outlook, the Board is pleasedto recommend a final dividend of 11.7 pence per share. This takes the total 2012 dividend to 17.32pence (2011: 15.30 pence), an increase of 13%. If approved, the final dividend will be paid on 3 May2013 to shareholders registered on 2 April 2013; the ex-dividend date is 27 March 2013.

SUCCESSION ANNOUNCEMENT

We have announced that after ten successful years with the Group, Brendan Hynes, Chief ExecutiveOfficer, has informed the Board of his intention to step down at the AGM on 1 May 2013, in order


Nichols plcCompany View

to pursue a non-executive portfolio career. He will hand over the leadership of the business to MarnieMillard from the date of the AGM. Marnie is currently Managing Director of our UK Soft Drinksbusiness. To ensure a seamless transition, Brendan will be available to assist with the handoverthrough to the end of 2013.

The Board would like to thank Brendan for his contribution, which has helped to ensure that thebusiness has made consistently strong progress during the last ten years.

OUTLOOK

2012 was extremely challenging for the UK soft drinks market and the broader grocery market asconsumer spending was restrained by the economic environment.The industry also had to deal withthe effects of the second wettest summer on record, further dampening demand for soft drinks.Against this backdrop, the Group again outperformed the market, delivering EPS growth of 14%,profit growth of 13% and increasing its cash reserves.

Although we anticipate the UK retail environment will be just as challenging in 2013, we are confidentthat the Group will again outperform the market with continued investment behind our brands,launching innovative new products and further growth in our international markets.

In summary, the Board is confident that the Group is in a strong position to deliver further profitablegrowth in 2013 and beyond.


Nichols plcCompany View

LOCATIONS AND SUBSIDIARIESHead Office

Nichols plcLaurel HouseWoodlands ParkAshton RoadNewton Le WillowsMerseyside WA12 0HHGBRP:44 1925 222 222F:44 1925 222 233http://www.nicholsplc.co.uk

Other Locations and Subsidiaries

Beacon Drinks LimitedBeacon Holdings LimitedGBRGBR

Cabana Soft Drinks LimitedCabana (Holdings) LimitedGBRGBR

Ben Shaws Dispense Drinks LimitedDayla Liquid Packing LimitedGBRGBR


Nichols plcLocations and Subsidiaries

company profile nichols plc - wordpress.com

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