Nichols posts profit after tough year

Soft drinks maker Nichols, which owns the Vimto brand, has posted a profit for 2011 despite the fact that 'the UK trading environment in 2011 turned out to be every bit as challenging as anticipated'.

Pre-tax profit rose from £14.8m to £18.1m, on revenues of £98.9m (2010: £83.9m). Basic earnings per share grew from 29.63p to 36.28p, while the dividend was increased from 12.55p to 14.10p.

In a statement the firm said: "In summary, the UK trading environment in 2011 turned out to be every bit as challenging as anticipated with consumer spending down and input costs up. However our strong brands, healthy balance sheet and thriving international business have enabled the group to perform very strongly and deliver significant sales and profit growth.

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"We would agree with the general consensus that 2012 will be just as challenging; the UK soft drinks market will see continued high level of promotions, further cost inflation and relatively low volume growth. Despite this backdrop, we again expect to outperform the market by continuing to invest in our brands, launching new products such as the recently announced Weight Watchers brand and delivering further growth in our international markets."

Cash at the end of the period rose to £20.1m compared to £15m at the same date of the previous year, ahead of expectations.

NR