Press release date: 12th January 2022

Nichols plc, the diversified soft drinks Group, provides the following trading update for the 12 months to 31 December 2021 (“the period”).

The Vimto brand has continued to deliver a strong performance. In the UK, Vimto brand value has increased by 5.6% YTD, according to Nielsen as at 4 December 2021. In the International route to market the brand continued to see progress year-on-year, with strong double digit revenue growth versus the prior year.

The Group’s Out of Home (“OoH”) route to market continues to recover from the impact of the pandemic and has seen growth of 77%1 year-on-year. However versus FY19, OoH revenues remain significantly down (31%1).

In line with the Board’s expectations, total Group revenue during the period increased by 22%1 to £144.3m1, broadly in line with FY19 levels.

The Group expects to report Adjusted Profit Before Tax (“Adjusted PBT”)2 for FY21 of between £21m-£22m which is in line with previous guidance.

Cash generation has remained strong through 2021 and cash and cash equivalents at the end of the period stood at £56.7m1 (31 December 2020: £47.3m).

Given the ongoing impact of the coronavirus pandemic on the OoH drinks market, and current profitability within this route to market, the Board is currently revisiting the estimates it uses to support the OoH balance sheet carrying value as part of preparing the Group’s audited annual results. It is expected that the Goodwill3, or part of it, reported on the balance sheet will be impaired. The full review is currently underway and the Group will report on the final outcome with its preliminary results. Any adjustment will be exceptional1 and non-cash.

Whilst recognising continued revenue momentum into 2022, the Group Adjusted PBT2 expectations for the year FY224 remain unchanged.

The Group will publish its 2021 preliminary results on 2 March 2022.

1 Unaudited

2 Excluding Exceptional items

3 As at 31 December 2020 Goodwill associated with OoH was stated as £36.2m

4 FY22 expectations refers to a Group compiled market consensus of adjusted PBT £25.2m