Final Results

Nichols PLC
24 March 2004


Date:               Embargoed until 07.00 am, Wednesday 24 March 2004

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

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


                                   Nichols plc

                              PRELIMINARY RESULTS


Nichols plc, the soft drinks, food and foodservice group, announces its
preliminary results for the year to 31 December 2003.

The group has two principal operations:

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

2)   Food Products and Beverage Systems (including Nichols Foods, the
     manufacturer and supplier to the vending, foodservice and retail markets;
     Cabana, soft drinks on draught and Balmoral, supplier of hot beverage 
     systems).

The key points are:

  • Pre-tax profits (before exceptionals) up 17% to £6.6m (2002 : £5.6m)
  • EPS (before exceptionals) up 23% to 12.47p (2002 : 10.15p)
  • Summer weather benefited UK Soft Drinks Operation
  • A move to AIM is planned

Commenting John Nichols, Chairman, said:

'Despite highly competitive market conditions we saw a marked improvement in
overall profitability.'

'As we move into the new financial year I believe the group has never been
better positioned to respond to market opportunities or more focused on sales
and marketing.'

'We expect to make further progress this year.'


Chairman's Statement


As expected, 2003 was a year of transition and challenge for the Nichols group,
yet despite highly competitive market conditions we saw a marked improvement in
overall profitability.

In terms of trading, pre-tax profits (before exceptional items) in the year to
31 December 2003 increased by 17% to £6.6 million (2002: £5.6 million) on group
turnover that increased only 1% to £97.1 million (2002: £96.2 million).

Underlying cash flow also improved during the year and despite 'one off'
exceptional cash costs of £4.0 million (mentioned in my report of last year),
the group achieved an overall positive cash inflow before financing of £1.4
million (2002: inflow £3.8 million) and reduced its net borrowings to £13.5
million (2002  £14.9 million).

The group's year end cash position does not take into account the proceeds to be
realised from the group's freehold properties still held at Stockport and
Golborne, which are currently being marketed for sale and have a market value of
around £8.0 million, broadly in line with book value.

Earnings per share (before exceptional items) increased to 12.47 pence (2002:
10.15 pence). The directors recommend a final dividend of 5.80 pence per share
(2002: 5.80 pence), maintaining the total dividend for the year at 8.80 pence.
This will be paid on 14 May 2004 to shareholders registered on 23 April 2004.
The ex-dividend date is 21 April 2004.

At the divisional level the favourable summer weather had a positive impact on
sales in our UK Soft Drinks Operation, despite the initial challenges presented
by our decision early in the year to outsource manufacturing.

The outsourcing arrangements, which took effect from August and resulted in a
headcount reduction of 86, have worked very well especially given the extra
demands placed upon our supplier, created by the hot weather.  I am pleased to
report the ongoing level of savings that we anticipated from making the move
have been achieved.  Vimto Soft Drinks continues to retain direct control of the
sales, marketing and distribution activities relating to all of its soft drinks
brands.

International sales of soft drinks also continued to grow during 2003, with the
Vimto brand now available in India and Sri Lanka, in addition to our existing
Middle Eastern and African markets.

In our Food Products and Beverage Systems Operation, the Cabana (soft drinks on
draught) business continues to grow sales by expanding its range of brands and
the number of outlets serviced, particularly with new national account
customers.  Cabana now services over 5,000 sites in the UK.  The fine weather,
however, depressed sales of hot beverages through Balmoral (our hot beverage
systems business) in the summer, but these improved towards the end of the year.

In order to integrate and leverage sales, marketing and operational
capabilities, the Balmoral and Cabana operations are being brought closer
together.  This will improve efficiencies and reduce the cost base of these
businesses still further.  This process is expected to be largely complete by
September 2004, when the combined operation will function out of Cabana's new
office at Newton-le-Willows, with a joint warehousing operation in the Midlands.

Also within our Food Products and Beverage Systems Operation, Nichols Foods is
seeing the benefits of recent investments with continued sales growth, but
pressure on margins in this sector continues to be a concern and the complexity
and performance of this business remains under review.

As announced in March 2003, Stockpack, our contract packing operation previously
based in Stockport, relocated on schedule to the Nichols Foods' site at Haydock,
resulting in a net reduction in headcount of 130 people and significant cost
savings.

The Strategic Review we also announced in March 2003 has resulted in a
considerable transformation of the group and we made significant progress during
the year towards completing our restructuring in line with the objectives set.

Given the high proportion of private investors in our company, the board
believes that it is in the best interests of shareholders to seek a listing on
the Alternative Investment Market (AIM) in 2004. The directors also believe the
AIM market and environment are more suited to a company of our size.  It is
therefore our intention to affect this transfer as soon as practical following
the Annual General Meeting on the 12 May 2004.

In anticipation of the proposed transfer to the AIM market we have appointed
Brewin Dolphin Securities as the company's broker with effect from 1 April 2004.
  NM Rothschild & Sons Limited will continue to act as the group's Financial
Adviser.

Our employees will continue to face new challenges as we look to extend our
capabilities and knowledge into new markets.  Their continued hard work and
commitment is very much appreciated and I would like to thank them on your
behalf.

As we move into the new financial year, I believe the Nichols group has never
been better positioned to respond to market opportunities or more focused on
sales and marketing. Trading conditions are expected to remain highly
competitive in 2004, however, despite this we expect to make further progress
this year.

John Nichols
Chairman
24 March 2004


Consolidated profit and loss account
year ended 31 December 2003

                                                     Before     Exceptional         Total         Before          After
                                                exceptional           items                  exceptional    exceptional
                                                      items                                        items          items
                                                       2003            2003          2003           2002           2002
                                                      £'000           £'000         £'000          £'000          £'000

Turnover - continuing activities                     97,110               -        97,110         96,229         96,229

Cost of sales                                        60,511               -        60,511         61,403         61,403


Gross profit                                         36,599               -        36,599         34,826         34,826

Net operating expenses                               29,257           3,994        33,251        28, 250         39,430


Operating profit/(loss) - continuing                  7,342         (3,994)         3,348          6,576        (4,604)
activities                                            

Net interest payable                                    790               -           790            940            940


Profit/(loss) on ordinary activities before           6,552         (3,994)         2,558          5,636        (5,544)
taxation                                              

Tax on profit/(loss) on ordinary activities           2,018         (1,198)           820          1,948            118


Profit/(loss) for the financial year                  4,534         (2,796)         1,738          3,688        (5,662)

Equity dividends                                      3,253               -         3,253          3,253          3,253


Retained profit/(loss) for the year                   1,281         (2,796)       (1,515)            435        (8,915)


Earnings/(loss) per share (basic)                                                   4.78p                      (15.57p)

Earnings per share (diluted)                                                        4.77p                             -

Earnings per share (basic) before                                                  12.47p                        10.15p
exceptional items
Earnings per share (diluted) before                                                12.44p                        10.12p
exceptional items
Dividends per share                                                                 8.80p                         8.80p


There were no recognised gains or losses in 2003 or 2002 other than the profit/
(loss) for the year.



Balance sheets
at 31 December 2003
                                                                          Group                            Parent
                                                                   2003            2002              2003           2002
                                                                  £'000           £'000             £'000          £'000

Fixed assets
Intangible assets                                                 1,623           1,721                 -              -
Tangible assets                                                  27,467          28,083            13,070         13,357
Investments: shares in group undertakings                             -               -            11,453         11,453
Investments: own shares                                             547             643               547            643


                                                                 29,637          30,447            25,070         25,453


Current assets
Stocks                                                            7,667           9,068               510          1,064
Debtors                                                          21,088          20,372            18,422          8,747
Cash at bank and in hand                                          1,366           1,743                 -          7,418

                                                                 30,121          31,183            18,932         17,229

Creditors
Amounts falling due within one year                              26,051          24,758            18,110         15,041


Net current assets                                                4,070           6,425               822          2,188

Total assets less current liabilities                            33,707          36,872            25,892         27,641

Creditors
Amounts falling due after one year                                6,173           8,939             6,173          8,939

                                                                 27,534          27,933            19,719         18,702

Provisions for liabilities and charges                            1,979             863             1,184            141

                                                                 25,555          27,070            18,535         18,561

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                                          17,394          18,909             9,599          9,625


Equity Shareholders' funds                                       25,555          27,070            18,535         18,561



Consolidated cash flow statement
year ended 31 December 2003
                                                                               2003                        2002
                                                                       £'000         £'000          £'000       £'000

Cash inflow from operating activities                                                7,953                     12,753

Returns on investments and servicing of finance
Interest receivable                                                       16                           12
Interest payable                                                       (806)                        (952)


Net cash outflow from returns on investments and servicing of                               (790)               (940)
finance                                                                                     

Taxation                                                                           (1,540)                    (1,604)

Capital expenditure and financial investment
Purchase of tangible fixed assets                                    (2,487)                      (3,760)
Proceeds of sales of tangible fixed assets                             1,456                          573
Proceeds of sale of own shares                                            68                            2


Net cash outflow from capital expenditure                                            (963)                    (3,185)
and financial investment                                                             

Acquisitions and disposals
Acquisition of subsidiary undertakings                                     -                            -
Net borrowings acquired with subsidiaries                                  -                            -


Net cash flow from acquisitions and disposals                                            -                          -

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

Cash inflow before financing                                                         1,407                      3,771

Financing
(Decrease) in borrowings                                             (1,784)                      (2,663)

Net cash outflow from financing                                                    (1,784)                    (2,663)

(Decrease)/increase in cash in the year                                              (377)                      1,108


Nichols plc


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 2003 or 2002, but is derived
from those accounts.  Statutory accounts for 2002 have been delivered to the
Registrar of Companies and those for 2003 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.


Dividends

The proposed final dividend of 5.80 pence per share (2002 : 5.80 pence), if
approved, will be paid on 14 May 2004 to shareholders registered on 23 April
2004. In addition, an interim dividend of 3.00 pence was paid on 20 October
2003.


Annual Report

The annual report will be mailed to shareholders on or around 12 April 2004.
Copies will be available after that date from:  The Secretary, Nichols plc,
Laurel House, 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,
Woodlands Park, Ashton Road, Newton-le-Willows, WA12 0HH on Wednesday 12 May
2004 at 11.00 a.m.

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


                                    - ENDS -




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