Section Items

Clarification
The comments on this page are some of the thoughts that I had when considering this company and not a recommendation to take an action or to refrain from taking an action.

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Is This Just Pump And Dump?
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Financials
As companies often report numbers in slightly different ways there are a number of entries to cover this and as these are rough notes there will usually be empty items.

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Commentary On Nichols plc

Title: Nichols plc – Trading Update
Company: NICL - Nichols plc
Share Price Then: 1444p
Author: Ian Smith
Date: Mon 23 Dec 2019
Comments: Today’s trading update has put Nichols back to its start of year share price and at roughly the average for the last three years.

Okay, but who are Nichols?

They make Vimto, Sunkist, Feel Good Drinks and a Levi Roots branded drink.

Unlike others such as AG Barr the makers of Iron Bru, Nichols have not had be affected by the sugar tax in the UK as they had already reformulated their own brands to be below the threshold well before the levy introduction date.

However the Vimto market in Saudi and UAE markets is worth around £7m pa and this market has introduced a 50% duty on sweetened drinks, as this is applied to be both natural and artificial sweeteners it can’t be bypassed by repformulating the drinks .

Look at the half year numbers; the £71m sales were £57m in the UK and £14m overseas, of the overseas sales nearly £5m were in the Middle East.

Note that the 2018 full year profits were £25m on a 6 month profit of £10.6m, despite there being a 15% daily drop the current price of 1,444p is around the around the last 4 years average with a couple of peaks at about 20% up on this at 1,800p

So is it a safe 10%?
Financials:
ItemCurrent PeriodPrevious Period
Year20192018
Period6 Months6 Months
Revenue£72m£65m
Earnings
Adjusted Earnings
EBITDA
Adjusted EBITDA
Statutory Profit£11m£11m
Adjusted Profit
Total Debt
Net Debt
Read Count: 305

Commentary History

Date Ticker Title
Mon 23 Dec 2019NICLNichols plc – Trading Update