Today’s results from Vimto maker Nichols (LON: NICL) are in stark contrast to yesterday’s trading statement from IRN-BRU maker AG Barr (LON: BAG) (see https://ukinvestormagazine.co.uk/irn-bru-maker-ag-barr-goes-flat/).
AIM-quoted Nichols grew revenues by 10% to £71.6m in the six months to June 2019. However operating margins declined from 20.1% to 18.6%, so pre-tax profit edged up from £13.1m to £13.3m.
The interim dividend is being increased from 11.3p a share to 12.4p a share. There is £29.5m in the bank. This figure has fallen through a combination of acquisition spending and higher working capital, but this is a strong position for the company.
The Vimto brand continues to grow although the rate has declined. Even so, the 4% growth in the first half was similar to the soft d...