Interim Results

Nichols PLC
10 August 2005


Date:           Embargoed until 07.00hrs, Wednesday 10 August 2005

Contacts:       John Nichols, Executive Chairman
                Brendan Hynes, Group Finance Director
                Nichols plc
                Telephone:     [phone]
                Website:       www.nicholsplc.co.uk

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

                Photographs available:  On request from Hudson Sandler, as above


                                  Nichols plc

                                INTERIM RESULTS


Nichols plc, the soft drinks group, announces its Interim results for the six
months to 30 June 2005.

The group has two principal operations:

Soft Drinks (primarily involved in the sale of soft drinks, including Vimto,
throughout the world and Panda & Sunkist in the UK) and

Beverage Systems (Cabana, soft drinks on draught and Balmoral, supplier of hot
beverage systems)

Highlights:

•    Profit before tax up 12%

•    Turnover up 24% (from continuing operations)

•    Earnings per share up 17%

•    Dividend per share up 5%

•    Core Vimto brand continues to grow market share

•    International markets for Vimto continue to perform well

•    Integration of the recently acquired Panda and Beacon businesses are
     trading in line with expectations


Commenting John Nichols, Chairman, said:

'I am pleased to report we have made very good progress in the first half, in
what continues to be a challenging market.  This is the third consecutive year
of improved Interim profits following the Strategic Review in 2002 and the group
is now a much stronger and focused business.  We expect the market to remain
extremely challenging - but expect our full year results to reflect the progress
made so far'.


                              Chairman's Statement


As anticipated and despite the market remaining difficult throughout the first
half year, particularly in carbonated soft drinks, I am pleased to report we
have continued to make very good progress, with pre-tax profits 12% ahead of
last year at £2.25 million (2004: £2.01 million) on turnover on continuing
operations (including acquisitions) up 24.1% at £30.54 million (2004: £24.60
million).

The main features of the first half were our acquisition in January of the Panda
soft drinks brand and in May, Brighton based Beacon Soft Drinks Limited, a soft
drinks on draught business.

The integration of Panda into our Soft Drinks Operation is largely complete and
progressing well. Beacon is also trading in line with our expectations and when
fully combined with our existing soft drinks dispense operation, Cabana, will
strengthen our strong position in the UK's draught soft drinks market.

Soft Drinks Operation

I am also pleased to report that our core Vimto brand has continued to grow its
share of what remains a highly competitive market, particularly as we have
achieved this with a relatively low level of promotional activity, compared to
the market as a whole. This has also helped us maintain our margins in this
division.

Elsewhere, our international business has performed well in the first half year
with our long-term markets in the Middle East and Africa both showing increased
sales on last year. We continue to work on developing new export markets,
although these will take some considerable time to produce meaningful returns.

Beverage Systems Operation

The combination of tough market conditions and relatively poor early summer
weather adversely impacted our Cabana operation, with a small decline in sales
(excluding Beacon) evident in the first half year. This unfavourable effect was,
however, largely offset by an improved performance at Balmoral, our hot drinks
dispense business.

The better weather in June boosted the markets in which Cabana operates and the
acquisition of Beacon Soft Drinks will help to secure its place as a major
player in this sector of the market.

Results

Turnover on continuing operations in the six months to 30 June 2005 was up 24.1%
to £30.54 million (2004: £24.60 million), including turnover relating to the
acquisitions of Panda from January 2005 and Beacon from May 2005. Profit before
tax increased by 12% to £2.25 million (2004: £2.01 million).

Cash flow from operating activities improved to £3.51 million (2004: £2.20
million) with net borrowings increasing to £9.02 million from £0.35 million at
the year end, principally due to the two acquisitions in the first half, for a
combined consideration of £7.61 million. Earnings per share increased 17.2% to
4.30 pence (2004: 3.67 pence).

I am delighted to report this is the third consecutive year of improved Interim
profits following the Strategic Review that commenced in 2002.  Given the
consistent progress we have demonstrated, the Board has approved a 5% increase
in the Interim dividend to 3.15pence per share (2004: 3.0 pence).

The dividend will be paid on the 14 October 2005 to shareholders registered on
the 16 September 2005. The ex-dividend date will be 14 September 2005.

Outlook

The group is now a much stronger and more focused business with its core brands,
particularly Vimto, continuing to perform well in extremely competitive market
conditions.

We expect the market to remain extremely challenging for the rest of the
financial year, particularly in the carbonated soft drinks sector, however, we
anticipate that our full year results will reflect the progress made in the
first half year.

John Nichols
Chairman

10 August 2005



                                          CONSOLIDATED PROFIT AND LOSS ACCOUNT

                                           Unaudited                                Audited

                                Half year     Half year                 Before      Exceptional        Full year
                                    ended         ended            exceptional            items            ended
                                  30 June  30 June 2004                  items      31 Dec 2004
                                     2005                          31 Dec 2004                       31 Dec 2004
                                                                    (Restated)                        (Restated)
                                    £'000         £'000                  £'000            £'000            £'000
Turnover
     Continuing operations         30,536        24,597                 50,741                0           50,741
     Discontinued operations            0        22,265                 37,332                0           37,332
                                   30,536        46,862                 88,073                0           88,073
Operating profit / (loss)
     Continuing operations          2,531         2,246                  7,311          (2,291)            5,020
     Discontinued operations            0           134                    233                0              233
Loss on disposal of
      subsidiary undertaking            0             0                      0           11,062           11,062
Net interest payable                  280           370                    887                0              887

Profit/(loss) before taxation       2,251         2,010                  6,657         (13,353)          (6,696)
Taxation                              675           663                  2,015            (436)            1,579

Profit/(loss) after taxation        1,576         1,347                  4,642         (12,917)          (8,275)
Equity dividends                    1,166         1,109                  3,253                0            3,253

Retained profit / (loss)              410           238                  1,389         (12,917)         (11,528)

Earnings / (loss) per share         4.30p         3.67p                                                 (22.68p)
(basic)
Earnings / (loss) per share         4.28p         3.65p                                                 (22.68p)
(diluted)

Earnings per share (basic)          4.30p         3.67p                                                   12.72p
before exceptional items
Earnings per share (diluted)        4.28p         3.65p                                                   12.69p
before exceptional items

Dividends per share                 3.15p         3.00p                                                    8.80p




                                      CONSOLIDATED BALANCE SHEET


                                                Unaudited              Unaudited                Audited
                                             30 June 2005           30 June 2004            31 Dec 2004
                                                                      (Restated)             (Restated)
                                                    £'000                  £'000                  £'000
Fixed assets
Intangible assets                                   9,718                  1,574                  1,587
Tangible assets                                    13,564                 24,957                 13,231
Own shares                                              0                    547                      0
                                                   23,282                 27,078                 14,818

Current assets
Stocks                                              4,799                  7,821                  3,987
Debtors                                            16,892                 22,547                 13,203
Current asset investment                                0                      0                  2,750
Cash at bank and in hand                                0                      0                  2,988
                                                   21,691                 30,368                 22,928

Creditors
Amounts falling due within one year                22,974                 27,516                 14,125

Net current (liabilities) / assets                (1,283)                  2,852                  8,803

Total assets less current liabilities              21,999                 29,930                 23,621

Creditors
Amounts falling due after one year                  1,271                  3,184                  2,592

                                                   20,728                 26,746                 21,029

Provisions for liabilities and charges              1,182                    953                  1,393

Net assets excluding pension liability             19,546                 25,793                 19,636

Pension liability                                   3,223                  3,494                  3,723

Net assets including pension liability             16,323                 22,299                 15,913

Share capital & reserves
Called up share capital                             3,697                  3,697                  3,697
Share premium account                               3,255                  3,255                  3,255
Capital redemption reserve                          1,209                  1,209                  1,209
Other reserves                                      (698)                      0                  (698)
Profit and loss account                             8,860                 14,138                  8,450

Equity shareholders' funds                         16,323                 22,299                 15,913



                                         CONSOLIDATED CASH FLOW


                                                       Unaudited                                 Audited

                                          Half year ended        Half year ended         Full Year ended
                                             30 June 2005           30 June 2004             31 Dec 2004
                                                    £'000                  £'000                   £'000

Cash flow from operating activities -               4,358                  3,179                  11,172
before exceptional items

Exceptional cash costs                              (346)                  (976)                 (4,268)

Pension scheme contributions                        (500)                      0                       0

Cash flow from operating activities                 3,512                  2,203                   6,904
after exceptional items

Returns on investments and
servicing of finance                                (280)                  (370)                   (709)

Taxation                                            (778)                  (416)                 (1,279)

Capital expenditure and
financial investment                                (744)                   805                    (128)

Acquisitions and disposals                        (7,609)                      0                  11,482

Equity dividends paid                             (2,144)                (2,144)                 (3,253)

Financing - increase / (decrease) in                2,750                      0                 (2,750)
short term deposits

Financing - decrease in borrowings                (2,725)                (1,444)                 (8,645)

(Decrease) / increase in cash                     (8,018)                (1,366)                   1,622



STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES


                                                            Unaudited                                   Audited

                                               Half year ended       Half year ended 30         Full year ended
                                                  30 June 2005                June 2004             31 Dec 2004
                                                         £'000                    £'000                   £'000

Profit / (loss) for the period                             410                      238                (11,528)

Actual return less expected return on                        0                        0                     188
pension scheme assets
Experience gains and losses arising on                       0                        0                   (215)
the scheme liabilities
Changes in the assumptions underlying the                    0                        0                   (514)
present value of the scheme liabilities
Movement on deferred taxation relating to                    0                        0                     162
pension liability

Total recognised gains and losses for the                  410                      238                (11,907)
period

Prior year adjustment (see note 4)                     (3,723)

Total recognised gains and losses since                (3,313)
last financial statements



Notes :


1. Basis of preparation

The figures for 31 December 2004 are extracted from the financial statements for that year which received an
unqualified auditors' report and have been filed with the Registrar of Companies.  The interim results which
are unaudited have been prepared in accordance with accounting policies adopted for the year ended 31 December
2004 and have been approved by the board. The information set out in this interim report does not constitute
statutory accounts within the meaning of the Companies Act.


2. Dividends

The interim dividend of 3.15p (2004 : 3.00p) will be paid on 14 October 2005 to shareholders registered on 16
September 2005.


3. Earnings per share

Earnings per share are based on the weighted average number of shares in issue in the six months to 30 June
2005 of 36,656,419 (Six months to 30 June 2004 of 36,719,583 and 12 months to 31 December 2004 of 36,492,387).


4. Change in accounting policy

The company has adopted FRS 17, 'Retirement benefits' in the interim report.  The adoption of this new standard
in full represents a change in accounting policy and the comparative balance sheet figures have been restated to
reflect a pension liability of £3,723,000 at 31 December 2004 (£3,494,000 at 30 June 2004).  The change to the
profit and loss account is shown below.

No interim revaluation of the assets and liabilities of the scheme has been carried out and, accordingly, there
is no actuarial gain or loss shown in the Statement of Recognised Gains or Losses in respect of the interim
period to 30 June 2005 and 30 June 2004.


                                            Year ended                  Prior year                     Year ended
                                        31 Dec 2004 as                                                31 Dec 2004
                                     previously stated                  adjustment                    as restated
                                                 £'000                       £'000                          £'000
Profit and loss
Loss before taxation                           (6,909)                         213                        (6,696)
Taxation                                         1,515                          64                          1,579
Loss after taxation                            (8,424)                         149                        (8,275)


5.  This statement will be mailed to shareholders on or about 24 August 2005 and copies will be available from
The Secretary, Nichols plc, Laurel House, 3 Woodlands Park, Ashton Road, Newton-le-Willows, WA12 0HH after that
date. Copies of this statement are now available on the Investor Relations section of the company's website:
www.nicholsplc.co.uk.



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