Final Results

Nichols PLC
23 March 2006


Date:       Embargoed until 07.00hrs, Thursday 23 March 2006

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

                               PRELIMINARY RESULTS


Nichols plc, the soft drinks group, announces its Preliminary results for the
year to 31 December 2005.

The group has two principal operations:
     
1)   Soft Drinks (primarily involved in the sale of soft drinks, including
     Vimto, throughout the world and Panda & Sunkist in the UK) and

2)   Beverage Systems (Cabana, soft drinks on draught)

Highlights:
     
•    Sales from continuing operations up 29.4% to £51.5 million (2004: £39.8 
     million)
•    Profit before tax, exceptionals and FRS17 charges up 11.4% to £7.2 million 
     (2004:  £6.4 million)
•    Operating cash in-flow of £9.7 million (2004:  £6.9 million)
•    Soft Drinks:  sales up 32.6% and operating profits up 16.9%
•    Beverage Systems:  sales up 14%
•    Vimto sales now at record levels
•    UK Vimto brand sales up 6% (in a market that fell year on year)
•    Strong international sales - Vimto now available in over 65 countries
     worldwide
•    EPS basic (before exceptional items) up 11.1% to 12.83 pence (2004:
     11.55 pence)
•    Total dividend for the year up 5%
•    Two major acquisitions made in 2005
•    £12.6 million in cash received post year end from disposals

Commenting John Nichols, Chairman, said:

'I am delighted the re-shaping of the Group has produced substantial trading and
financial benefits.  We made excellent progress in 2005 and we are now much
stronger, more streamlined and focused as a result.  We are well placed for 2006
and beyond'
   
Chairman's Statement

I am delighted to report the re-shaping of the Group has produced substantial
trading and financial benefits, improved cash flows and a much strengthened
balance sheet.

I am also pleased to report that with the disposal of our hot beverage business,
Balmoral, in January 2006, the transformation of the Group into a profitable,
highly focused soft drinks and dispense business is now complete.  Most
importantly, it will enable us to concentrate all our future efforts and
investment in these two sectors.

Today, Nichols plc comprises two operations: Soft Drinks - the sale of the Vimto
brand throughout the world and the Panda and Sunkist brands in the UK; and
Beverage Systems - namely Cabana, soft drinks on draught ('dispense').

Results

In 2005 sales from continuing operations increased by 29.4% to £51.5 million
(2004: £39.8 million), with profit on continuing activities before tax,
exceptional items and FRS17 charges up 11.4% to £7.2 million (2004: £6.4
million).  Cash in-flow from operating activities increased to £9.7 million from
£6.9 million in 2004.

In overall terms, our Soft Drinks Operation increased its sales by 32.6% to
£39.3 million (2004: £29.6 million) and increased its operating profits by 16.9%
to £7.1 million (2004: £6.0 million).  At our Beverage Systems Operation, which
included Balmoral for the whole year, we continued to experience a very
competitive market in which we saw further consolidation taking place.  Despite
these factors, Beverage Systems increased its turnover by 13.8% to £24.1 million
(2004: £21.1 million), delivering an operating profit of £0.7 million (2004:
£0.9 million).

Earnings per share (before exceptional items) increased 11.1% to 12.83 pence
(2004: 11.55 pence).

Two major acquisitions were made during the year, namely Panda Soft Drinks in
January 2005 for £5.7 million in cash and in May 2005, Beacon Soft Drinks, a
Brighton based soft drinks dispense business.   As a result, the Group's net
debt increased from £0.35 million in 2004 to £6.31 million at the year end.
However, this is prior to receiving the £6.5 million disposal proceeds from
Balmoral in January 2006 and also the £6.1 million in proceeds from the sale of
our freehold property in Golborne near Wigan, Greater Manchester in March 2006
(see Post Balance Sheet Events below).  Since 31 December 2005, we have repaid
all our bank borrowings and now have cash deposits.

Given the significant progress made during 2005, the Board is pleased to
recommend an increase of 5% in the final dividend to 6.10 pence per share (2004:
5.80 pence), which together with the interim dividend brings the total dividend
for the year to 9.25 pence (2004: 8.80 pence), an increase of 5% on last year.
This will be paid on 16 May 2006 to shareholders registered on 18 April 2006,
subject to AGM approval.  The ex-dividend date is 12 April 2006.

Our Business

As a result of making substantial marketing investments in the core Vimto brand
in the UK during 2005, the domestic sales value of the Vimto brand grew by 6% in
a market that was down year on year.  Strong overseas sales growth was also
achieved in Senegal, Cameroon and our traditional markets in the Middle East,
along with new markets in Pakistan and Guinea.  Today, Vimto is available in
over 65 countries worldwide.

Panda Soft Drinks was an excellent addition to our branded portfolio of soft
drinks and added £8.3 million turnover to the Soft Drinks Operation during the
eleven months of our ownership.  The Panda brand has just been re-launched as a
natural flavoured, sugar free soft drink.

In our Beverage Systems Operation, Beacon Soft Drinks has now been fully
integrated and is performing in line with our expectations, while at Cabana we
continue to adapt the business, moving it more towards a franchise model.

Our People

In the face of much change, our people have continued to provide the real added
value behind our operational success and contributed significantly to our
sustained achievements.  I would therefore like to take this opportunity to
thank all our employees for their support, hard work and commitment during 2005,
ensuring the Group is well placed to meet our future growth expectations.

In September 2005, Simon Nichols resigned from the Board after 22 years with the
Group and he left the business at the end of 2005.  I would like to thank Simon
for his hard work and dedication over the years and we all wish him well in his
future plans.  Simon's responsibilities have been shared out between the Board
and management teams.

I am also pleased to report that as part of our commitment to the community,
during 2005 we provided a further three Vimto Variety Club Sunshine Coaches for
charitable use.  Since we began supporting the Variety Club of Great Britain in
1998, we have now raised sufficient funds to provide a total of 30 Sunshine
Coaches for disadvantaged children.

Post Balance Sheet Events

As mentioned above, on 12 January 2006 we completed the sale of Balmoral Trading
Limited to the Autobar Group for £6.5 million in cash.  Balmoral contributed
£0.5 million of operating profit in 2005 (2004: £0.7) but, as a small player in
the market, it was finding it difficult to compete.  We therefore believe the
future prospects for Balmoral are much better as part of a larger business.

I am also pleased to report that on 3 March 2006 we completed the sale of our
surplus freehold property at Golborne for £6.1 million in cash, slightly above
its book value.

Outlook

In summary, we are pleased with the further progress made during 2005.  As a
stronger, more streamlined and focused Group I believe we are now well placed to
continue to develop and grow our business, both organically and through
acquisition.


John Nichols
Chairman
Nichols plc

23 March 2006



Consolidated profit and loss account
year ended 31 December 2005
                                                                                                 Restated      Restated
                                              Before   Exceptional    FRS 17 P&L      Total        Before         After
                                         exceptional         items       charges              exceptional   exceptional
                                           items and                                            items and     items and
                                           FRS17 P&L                                            FRS17 P&L     FRS17 P&L
                                             charges                                              charges       charges
                                                2005          2005          2005       2005          2004          2004
                                               £'000         £'000         £'000      £'000         £'000         £'000
                                                                           
Turnover
-          continuing operations              51,521                                 51,521        39,803        39,803
-          discontinued operations            11,815                                 11,815        48,270        48,270

                                              63,336                                 63,336        88,073        88,073


Cost of sales                                 30,235                                 30,235        51,971        51,971


Gross profit                                  33,101                                 33,101        36,102        36,102

Net operating expenses                        25,345         1,002            51     26,398        28,949        31,276


Operating profit
-          continuing operations               7,219       (1,002)          (51)      6,166         6,191         3,864
-          discontinued operations               537                                    537           962           962

                                               7,756       (1,002)          (51)      6,703         7,153         4,826


Disposal of subsidiary undertakings                                                                     -        11,062
Net interest payable                             575             -           132        707           709           887


Profit/ (loss) on ordinary activities
before taxation                                7,181       (1,002)         (183)      5,996         6,444       (7,123)

Tax on profit/(loss) on ordinary               2,352         (300)          (53)      1,999         1,951         1,579
activities


Profit/ (loss) for the financial year          4,829         (702)         (130)      3,997         4,493       (8,702)


Earnings/(loss) per share (basic)                                                    10.91p                    (23.84p)

Earnings/(loss) per share (diluted)                                                  10.88p                    (23.84p)

Dividends per share                                                                   9.25p                       8.80p







Balance sheets
at 31 December 2005
                                                                     Group                        Parent
                                                              2005          2004            2005          2004
                                                             £'000         £'000           £'000         £'000
                                                                        Restated                      Restated
Fixed assets
Intangible assets                                            9,504         1,587           5,355             -
Tangible assets                                             13,563        13,231           6,653         6,771
Investments: shares in group undertakings                        -             -           7,460         5,272

                                                            23,067        14,818          19,468        12,043

Current assets
Stocks                                                       3,972         3,987           1,157           725
Debtors                                                     14,592        13,203          34,327        24,563
Current asset investments                                        -         2,750               -         2,750
Cash at bank and in hand                                         -         2,988               -         2,905

                                                            18,564        22,928          35,484        30,943
Creditors
Amounts falling due within one year                         17,532        11,981          35,631        21,365


Net current assets/(liabilities)                             1,032        10,947           (147)         9,578


Total assets less current liabilities                       24,099        25,765          19,321        21,621

Creditors
Amounts falling due after one year                             750         2,592             750         2,592

                                                            23,349        23,173          18,571        19,029

Provisions for liabilities                                   1,452         1,393             680           717


Net assets excluding pension liabilities                    21,897        21,780          17,891        18,312


Pension Liability                                            4,906         3,723           4,906         3,723

Net assets including pension liabilities                    16,991        18,057          12,985        14,589


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
Other reserves                                               (698)         (698)           (698)         (698)
Profit and loss account                                      9,528        10,594           4,747         6,351


Equity shareholders' funds                                  16,991        18,057          12,985        14,589




Consolidated cash flow statement
year ended 31 December 2005
                                                                          2005                      2004
                                                                   £'000       £'000         £'000     £'000

Cash inflow from operating activities                                          9,704                   6,904

Returns on investments and servicing of finance
Interest received                                                     51                        25
Interest paid                                                      (626)                     (734)


Net cash outflow from returns on investments and
servicing of finance                                                           (575)                   (709)

Taxation                                                                     (2,004)                 (1,279)

Capital expenditure and financial investment
Purchase of tangible fixed assets                                (1,653)                   (2,070)
Purchase of intangible assets                                       (44)                      (62)
Proceeds of sales of tangible fixed assets                           141                     2,004


Net cash outflow from capital expenditure
and financial investment                                                     (1,556)                   (128)

Acquisitions and disposals
Disposal of subsidiary undertakings                                    -                    11,482

Purchase of subsidiary undertakings                              (7,608)                         -

Net overdrafts acquired with subsidiary                            (607)                         -


Net cash (outflow)/inflow from acquisitions and disposals                    (8,215)                  11,482


Equity dividends paid                                                        (3,309)                 (3,253)


Cash (outflow)/inflow before use of liquid resources and
financing                                                                    (5,955)                  13,017


Management of liquid resources
Increase/(decrease) in short term deposits with bank                           2,750                 (2,750)

Financing
Increase/(decrease) in borrowings                                    217                   (8,806)
Proceeds of sale of own shares                                         -                       161


Net cash inflow/(outflow) from financing                                         217                 (8,645)


(Decrease)/increase in cash in the year                                      (2,988)                   1,622





Statement of Total Recognised Gains & Losses
Year ended 31 December 2005
                                                                                      2005             Restated
                                                                                                           2004
                                                                                     £'000                £'000

Profit/(loss) for the period                                                         3,997              (8,072)

Actual return less expected return on pension scheme assets                          1,004                  188
Experience gains and losses arising on the scheme liabilities                      (1,194)                (215)
Changes in the assumptions underlying the present value of the scheme              (2,316)                (514)
liabilities
Movement on deferred taxation relating to pension liability                            752                  162


Total recognised gains and losses for the period                                     2,243              (9,081)

Prior year adjustments                                                             (1,579)                    0


Total recognised gains and losses since last financial statements                      664              (9,081)




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 2005 or 2004, but is derived
from those accounts.  Statutory accounts for 2004 have been delivered to the
Registrar of Companies and those for 2005 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.

Comparative figures have been restated to reflect the adoption of FRS 17 
'Retirement Benefits' by including the pension scheme liability in the financial
statements and FRS 21 'Events After the Balance Sheet Date' by removing the 2004
proposed dividend from the profit and loss account and the balance sheet.


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.

Earnings per share (basic) before exceptional items is 12.83 pence (2004: 11.55
pence)


Dividends

The proposed final dividend of 6.10 pence per share (2004: 5.80 pence), if
approved, will be paid on 16th May 2006 to shareholders registered on 18th April
2006. In addition, an interim dividend of 3.15 pence was paid on 14 October
2005.


Annual Report

The annual report will be mailed to shareholders on or around 7 April 2006.
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 Tuesday 16 May 2006
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 -


                      This information is provided by RNS
            The company news service from the London Stock Exchange