Interim Results

Nichols PLC
11 August 2004


Date:                Embargoed until 09.00am, Wednesday 11 August 2004

Contacts:            John Nichols, Chairman
                     Brendan Hynes, Finance Director
                     Nichols plc
                     Telephone:     [phone]

                     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 & BOARD CHANGE

Nichols plc, the soft drinks, food and foodservice group, announces its interim
results for the half year to 30 June 2004.

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:

•         Profit before tax up 10.4% (before exceptionals)
•         Earnings per share up 9% to 3.67p
•         Interim dividend maintained at 3p per share
•         Strategic Review - positive impact on bottom line, cash flow and
          balance sheet
•         Borrowings down 8%
•         Successful disposal of freehold property in Stockport, in line with
          book value
•         Administration of operating companies successfully brought together
          into a new centralised office facility

Commenting John Nichols, Chairman, said:

'We have continued to make solid progress in the first half of the year.
Underlying profits have increased 10.4% over the same period last year and we
have also continued to move forward with the Strategic Review, which is
beginning to have a positive impact on the bottom line, cash flow and the
balance sheet'.

'Market conditions remain extremely competitive but trading is currently In line
with our expectations'.



Chairman's Statement

I am delighted to report that we have continued to make further solid progress
in the first half year with pre-exceptional profit before tax up by 10.4% on the
same period last year.

The strategic review announced last year has already seen a considerable
transformation of the group, and it is pleasing to report that we are now seeing
the positive impact on our bottom line, cash flow and balance sheet.

To date, in 2004, we have successfully disposed of our freehold property in
Stockport for £1.7 million (in line with book value) and we are on track to
integrate our Cabana and Balmoral dispense businesses with a target completion
date of December 2004. The integration will provide more sales opportunities,
improve efficiencies and reduce costs still further.

We have now also successfully relocated the administration aspects of our
operating companies under one roof in a new centralised office facility. This
facility incorporates shared back office processing functions, which will
deliver further efficiencies, reduce costs and improve customer service across
the group.

As mentioned in my AGM statement, we have also completed the transfer of our
listing onto the AIM market, which we believe is more appropriate and cost
effective for a company of our size.

For some time now the Board has been concerned about the strategic fit of
Nichols Foods within the group and in particular how Nichols Foods could most
successfully grow its markets in the future.  In response to these concerns, we
appointed our financial advisors, Rothschild, to evaluate the options for the
Nichols Foods business.

Having conducted the review we were advised to consider the option of disposing
of Nichols Foods and having been through a thorough valuation process the Board
has received a conditional offer for Nichols Foods from a newly formed company
('Newco').

Newco has been set up specifically for the purpose of acquiring Nichols Foods
and is headed by Gary Unsworth, Group Managing Director of Nichols plc, who was
one of the original founders of the Nichols Foods business. In order to pursue
this offer, Gary will be stepping down from the Board of Nichols plc with
immediate effect, and in the short term, I will be assuming his responsibilities
within the Group, with a view to making a new appointment in due course.

Results

Group turnover in the half year to 30 June 2004 was £46.90m (2003: £47.80m) with
pre-exceptional profit before tax up 10.4% on last year at £2.01 million  (2003:
£1.82m).

The reduction in sales was principally due to the annualised effect of exiting
unprofitable business in our co-packing operation. Elsewhere we saw stronger
sales performances in both our core Soft Drinks Operation and Dispense
businesses.

Cash flow from operating activities of £2.2 million, together with the sale of
the Stockport freehold property for £1.7 million, has enabled the group to
reduce its net borrowings down to £12.4 million at the end of June from £13.5
million at the end of Dec 2003, with the benefit of the Stone Cross freehold
asset disposal still to be realised.

Earnings per share (before exceptional items) increased to 3.67 pence (2003:
3.36 pence). Given the progress we have made we intend to maintain the interim
dividend at 3.00p. The dividend will be paid on the 15 October 2004 to
shareholders registered on 17 September 2004. The ex-dividend date will be 15
September 2004

Outlook

The intended disposal of the Nichols Foods business represents the final stage
of the strategic review process. The board is confident the Nichols group will
emerge as a more focused business, with solid cash flows, a stronger balance
sheet and will be much better positioned to take advantage of future growth
opportunities.

Market conditions remain extremely competitive, but trading is currently in line
with expectations.

John Nichols
Chairman
11 August 2004


CONSOLIDATED PROFIT AND LOSS

                                                  Unaudited                                      Audited

                               Half year       Before   Exceptional    Half year         Before  Exceptional      Year
                                ended 30  exceptional          item     ended 30    exceptional        items  ended 31
                               June 2004        items                  June 2003          items               Dec 2003
                                   £'000        £'000         £'000        £'000          £'000        £'000     £'000

Turnover                          46,862       47,800            -       47,800          97,110           -    97,110

Operating profit/(loss)            2,380        2,206       (3,994)      (1,788)          7,342      (3,994)    3,348
Net interest payable                 370          384            -          384             790           -       790

Profit/(loss) before               2,010        1,822       (3,994)      (2,172)          6,552      (3,994)    2,558
taxation
Taxation                             663          601       (1,198)        (597)          2,018      (1,198)      820

Profit/(loss) after                1,347        1,221       (2,796)      (1,575)          4,534      (2,796)    1,738
taxation
Equity dividends                   1,109        1,109            -        1,109           3,253           -     3,253

Retained profit/(loss)               238          112       (2,796)      (2,684)          1,281      (2,796)   (1,515)

Earnings/(loss) per share          3.67p                                 (4.33p)                                 4.78p
(basic)
Earnings/(loss) per share          3.65p                                      -                                  4.77p
(diluted)

Earnings per share                 3.67p                                   3.36p                                12.47p
(basic) before
exceptional items
Earnings per share                 3.65p                                   3.35p                                12.44p
(diluted) before
exceptional items

Dividends per share                3.00p                                   3.00p                                 8.80p

Notes

Earnings per share are based on the weighted average number of shares in issue in the six months to 30 June 2004 of
36,719,583. (Six months to 30 June 2003 of 36,350,197 and 12 months to 31 December 2003 of 36,370,150).

The interim dividend of 3.00p (2003 : 3.00p) will be paid on 15 October 2004 to shareholders registered on 17
September 2004. The ex-dividend date is 15 September 2004.

The figures for 31 December 2003 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 2003 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.


                                              CONSOLIDATED BALANCE SHEET


                                                      Half year                   Half year               Year ended 31
                                                  ended 30 June               ended 30 June                    Dec 2003
                                                           2004                        2003
                                                          £'000                       £'000                       £'000
Fixed assets
Intangible assets                                         1,574                       1,669                       1,623
Tangible assets                                          24,957                      26,751                      27,467
Own shares                                                  547                         643                         547
                                                         27,078                      29,063                      29,637

Current assets
Stocks                                                    7,821                      10,321                       7,667
Debtors                                                  22,547                      24,118                      21,088
Cash at bank and in band                                      0                         311                       1,366
                                                         30,368                      34,750                      30,121

Creditors
Amounts falling due within one year                      27,516                      31,049                      26,051

Net current assets                                        2,852                       3,701                       4,070

Total assets less current liabilities                    29,930                      32,764                      33,707

Creditors
Amounts falling due after one year                        3,184                       7,515                       6,173

                                                         26,746                      25,249                      27,534

Provisions for liabilities and charges                      953                         863                       1,979

                                                         25,793                      24,386                      25,555

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
Profit and loss account                                  17,632                      16,225                      17,394

Equity shareholders' funds                               25,793                      24,386                      25,555




CONSOLIDATED CASH FLOW


                                                                  Unaudited                               Audited
                                              Half year ended 30 June         Half year ended 30      Year ended 31 Dec
                                                                 2004                  June 2003                   2003
                                                                £'000                      £'000                  £'000

Cash flow from operating activities                            2,203                      3,723                  7,953

Returns on investments and
servicing of finance                                            (370)                      (384)                  (790)

Taxation                                                        (416)                      (787)                (1,540)

Capital expenditure and
financial investment                                             805                       (416)                  (963)

Acquistions and disposals                                          -                          -                      -

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

Financing                                                     (1,444)                    (1,424)                (1,784)

Decrease in Cash                                              (1,366)                    (1,432)                  (377)





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