Final Results

Nichols PLC
20 March 2002

Date:               Embargoed until 07.00am, Wednesday 20 March 2002

Contacts:           John Nichols, Chairman
                    Gary Unsworth, Chief Executive
                    Simon Nichols, Finance Director
                    Nichols plc
                    Telephone:      [phone]

                    Alistair Mackinnon-Musson
                    Philip Dennis
                    Hudson Sandler
                    Telephone:      [phone]
                    Email:  [e-mail]


                                     Nichols plc
                                 Preliminary Results
                        Appointment of New Company Broker

Nichols plc, the soft drinks, food and foodservice group, announces its
preliminary results for the year to 31 December 2001.

The group has three principal operations: Soft Drinks (primarily involved in the
manufacture and sale of soft drinks, including Vimto, throughout the world and
Sunkist in the UK), Food Products and Beverage Systems (including Nichols Foods,
the manufacturer and supplier to the vending, foodservice and retail markets;
Balmoral, supplier of hot beverage systems and Cabana, soft drinks on draught)
and Co-packing (which includes Stockpack, the group's contract food packing
operation).

The key points are:

  • Turnover up 4% to £94.1 million
  • Operating profit £7.1 million
  • Senior management strengthened - 3 new operational heads
  • Continued international expansion of Vimto brand
  • Appointment of Investec Henderson Crosthwaite as new company broker

John Nichols, Chairman, commented:

'The past year has been exceptionally challenging.  While domestic trading
conditions have been extremely tough we have made headway internationally and
set in place a much strengthened management team to support future growth.  We
are confident of an improved performance in 2002.'

Please find attached:

Chairman's Statement
Tables of figures
Notes to Editors

CHAIRMAN'S STATEMENT

This past year has been exceptionally challenging and one of mixed fortunes for
the group, as indicated at the interim stage.

In our Food Products and Beverage Systems Operation a particularly strong and
improved performance at Cabana, our soft drinks on draught business, was more
than offset by market consolidation in the vending industry which adversely
affected Nichols Foods, where margins came under considerable pressure.  Despite
the Vimto brand leading the market as the fastest-growing cordial in its '
black-red' sector, our Soft Drinks Operation in the UK suffered from intense
competition and, in addition, costs were higher from increased marketing,
promotional and manufacturing spend.  The Operation also suffered from two
contracts, now discontinued, that were undertaken for third parties at reduced
margins.  Both sales and operating profits at our Contract Packing Operation,
Stockpack, were well down on the previous year as a result of customer sales
volatility, in what by nature has always been a very cyclical business.
Stockpack is, however, expected to perform better this year.

Due to the above combination of factors, in December 2001 the Board announced
that it did not expect profits for the year to 31 December 2001 to be ahead of
the previous year, but that profits would not be below £6.0 million at the
pre-tax level.  This target was achieved.  Group turnover for the year to 31
December 2001 was up 4% to £ 94.1 million (2000: £90.4 million).  Operating
profit, as a result of the difficulties outlined above, declined to £ 7.1
million (2000: £8.5 million) and profit before tax was £ 6.03 million (2000:
£7.56 million).  Earnings per share were 11.19 pence (2000: 14.35 pence).

The directors have recommended a final dividend of 5.8 pence per share,
maintaining the total dividend for the year at 8.80 pence per share.  This will
be paid on 20 May 2002, to shareholders registered on 2 April 2002.

Markets and Products

The group continued its international strategy to expand the Vimto product range
in existing overseas markets, while simultaneously launching into carefully
targeted new markets, including Kenya, Mozambique and Vietnam.  These were also
provided with significant marketing support, necessary during this crucial stage
of their development.  The Middle East and Africa continue to remain strong
areas of growth for the Vimto brand.

In the UK, market sales of the Sunkist brand via vending and draught dispense
were strongly ahead of last year and a new Lemon and Lime variant has been added
in the dispense market.  Our strategic partnership with F. Duerr & Sons was also
extended to launch a Vimto jam preserve in the UK, called Vimto Jelly.  This
product has already been well received with numerous listings in major multiple
stores.

Management

In order to best face the difficult trading environment, we continued to focus
on strengthening our management teams within key areas of the group.  As a
result, three new Managing Directors were appointed during the year to head our
Soft Drinks Operation, Nichols Foods and Stockpack.  These appointments
complement the new management team that was put in place during 2000 at Cabana
and which led to the successful turnaround of that business in 2001.

On a personal note, I would like to thank all our employees for their hard work
and effort this year.  It has been one of our most challenging yet and one in
which we have had to reduce the headcount considerably in a number of our
operations.

I would also like to wish our former senior non-executive director, Tom Booth,
all the very best in his retirement and to use this opportunity to welcome John
Bee to the Board as a new non-executive director.  After the year end, the Board
also announced the resignation of David Garth as Group Human Resources Director
and we wish him well in his new career.

New Company Broker

The Board is delighted to announce the appointment of Investec Henderson
Crosthwaite as the company's new corporate stockbroker, with immediate effect.

Outlook

Resulting from the disappointing financial results for last year and the
continuing challenging market place in which we operate, the Board is currently
reviewing each of the group's operations.

With new senior management now in place in virtually all of our operations and
with continued growth of the Vimto brand expected in our overseas markets, the
Board is confident of an improved performance in 2002.

John Nichols
Chairman
20th March 2002

CONSOLIDATED PROFIT & LOSS ACCOUNT
year ended 31 December 2001






                                                                                2001                   2000
                                                                               £'000                  £'000
Turnover - continuing activities                                              94,139                 90,416

Cost of sales                                                                 75,231                 70,599

Gross profit                                                                  18,908                 19,817

Net operating expenses                                                        11,761                 11,292

Operating profit - continuing activities                                       7,147                  8,525

Net interest payable                                                           1,116                    966

Profit on ordinary activities before taxation                                  6,031                  7,559

Tax on profit on ordinary activities                                           1,962                  2,311

Profit for the financial year                                                  4,069                  5,248

Equity dividends                                                               3,253                  3,253

Retained profit for the year                                                     816                  1,995

Earnings per share (basic)                                                    11.19p                 14.35p
Earnings per share (diluted)                                                  11.17p                 14.34p
Dividends per share                                                            8.80p                  8.80p


There were no recognised gains or losses in 2001 or 2000 other than the profit
for the year.


BALANCE SHEETS
at 31 December 2001

                                                                        Group                   Parent
                                                                  2001        2000        2001        2000
                                                                 £'000       £'000       £'000       £'000
Fixed assets
Intangible assets                                                6,999       7,303           -           -
Tangible assets                                                 36,573      35,078      19,080      18,454
Investments: shares in group undertakings                            -           -      17,460      17,460
Investments: own shares                                            670         687         670         687

                                                                44,242      43,068      37,210      36,601
Current assets
Stocks                                                           8,441       8,368       1,163       1,378
Debtors                                                         21,145      19,290       9,778      12,255
Cash at bank and in hand                                           635         572       9,182          19

                                                                30,221      28,230      20,123      13,652
Creditors
Amounts falling due within one year                             24,591      21,348      15,653       6,967

Net current assets                                               5,630       6,882       4,470       6,685

Total assets less current liabilities                           49,872      49,950      41,680      43,286

Creditors
Amounts falling due after one year                              11,065      12,200      11,065      12,200

                                                                38,807      37,750      30,615      31,086

Provisions for liabilities and charges                           2,822       2,581       1,444       1,259

                                                                35,985      35,169      29,171      29,827

Share capital and reserves
Called up share capital                                          3,697       3,697       3,697       3,697
Share premium account                                            3,255       3,255       3,255       3,255
Capital redemption reserve                                       1,209       1,209       1,209       1,209
Merger reserve                                                       -           -         775         775
Profit and loss account                                         27,824      27,008      20,235      20,891

Equity shareholders' funds                                      35,985      35,169      29,171      29,827


CONSOLIDATED CASH FLOW STATEMENT
year ended 31 December 2001

                                                                       2001                     2000
                                                                 £'000       £'000      £'000         £'000

Cash inflow from operating activities                                       10,880                   10,268

Returns on investments and servicing of finance
Interest receivable                                                  6                     18
Interest payable                                               (1,122)                  (984)

Net cash outflow from returns on investments and servicing                 (1,116)                    (966)
of finance

Taxation                                                                   (2,059)                  (1,995)

Capital expenditure and financial investment
Purchase of tangible fixed assets                              (6,370)                (7,463)
Proceeds of sales of tangible fixed assets                          54                    297
Purchase of own shares                                             (7)                      -

Net cash outflow from capital expenditure and financial                    (6,323)                  (7,166)
investment

Acquisitions and disposals:
Acquisition of subsidiary undertakings                            (78)                (2,130)
Net (overdraft)/ cash acquired with subsidiaries                  (77)                    109

Net cash outflow from acquisitions and disposals                             (155)                  (2,021)

Equity dividends paid                                                      (3,253)                  (3,179)

Cash outflow before financing                                              (2,026)                  (5,059)

Financing
Increase in borrowings                                           7,144                  4,200
Capital element of hire purchase contracts                           -                    (9)

Net cash inflow from financing                                               7,144                    4,191

Increase/(decrease) in cash in the year                                      5,118                    (868)


NOTES TO THE PRELIMINARY FINANCIAL INFORMATION

Basis of Preparation

The financial information set out above does not constitute the company's
statutory accounts for the years ended 31 December 2001 or 2000, but is derived
from those accounts.  Statutory accounts for 2000 have been delivered to the
Registrar of Companies and those for 2001 will be delivered following the
company's Annual General Meeting.  The Auditors have reported on these accounts;
their reports were unqualified and did not contain statements under s.237(2) or
(3) of the Companies Act 1985.

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.

Dividend

The proposed final dividend of 5.8p per share, if approved, will be paid on 20
May 2002 to shareholders registered on 2 April 2002.

Annual Report

The annual report will be mailed to shareholders on or around 5 April 2002.
Copies will be available after that date from:  The Secretary, Nichols plc,
Laurel House, 3 Woodlands Park, Ashton Road, Newton-le-Willows, WA12 0HH

Annual General Meeting

The Annual General Meeting will be held at the registered office, Laurel House,
3 Woodlands Park, Ashton Road, Newton-le-Willows, WA12 0HH on Wednesday 15 May
2002 at 11.00am.

Copies of the announcement can be found on the Investors Relations section of
the company's website: www.nicholsplc.co.uk

NOTES TO EDITORS

The group has three principal operations:

Soft Drinks

Primarily involved in the manufacture and sales of soft drinks, including Vimto
(throughout the world), Indigo and the Sunkist brands.  It now operates out of
one site at Stone Cross, near Haydock. This operation supplies product to all
major retail, wholesale and cash and carry outlets in the UK as well as
exporting to over 60 countries worldwide.

Food Products and Beverage Systems

Food Products:

Nichols Foods is a major supplier of ingredients to the vending market and
following recent expansion has seen significant growth come from the foodservice
sector.

Beverage Systems:

Cabana supplies over 6000 outlets in the licensed trade, leisure and catering
markets, with soft drinks on draught, through a nationwide network and providing
first class technical support, service is their hallmark of success.

Balmoral has managed its expertise in the coffee supply business to develop
first class hot beverage systems and now has considerable presence in leading
catering and leisure outlets throughout the country.

Co-Packing

Stockpack:

Stockpack is a leading contract packing operation whose co-packing and
co-manufacturing facilities are used by many well-known 'blue chip' food and
confectionery companies. They act as a one stop solution provider and offer
total supply chain management.

                                    - ENDS -



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