The Nichols plc Board is to recommend an increased final dividend of 15.6p per share (2022: 15.3p) to give a proposed total dividend in respect of the year of 28.2p per share (2022: 27.7p). If approved, the final dividend will be payable to shareholders on the Register of Members at 22 March 2024. The ex-dividend date will be 21 March 2024. The Board is committed to operating a progressive and sustainable dividend policy, offering a good return to investors while meeting the needs of the business and its growth plans.
Other financial highlights include:
Revenue +3.5% at £170.7m (2022: £164.9m)
o Overall Packaged business revenue increased by +6.1%
International Packaged revenue increased by +16.8% with double digit growth in all geographic segments
UK Packaged revenue increased by +1.3%
o Out of Home ("OoH") business revenue decreased by -3.4% in line with revised strategy post restructuring
As anticipated following exit from unprofitable accounts
Gross Margin of 42.3% (2022: 43.1%)
o UK Packaged gross margin maintained despite inflationary pressures
o Market mix resulted in lower percentage margin
Adjusted Operating Profit increased by +£0.6m (+2.4%)
o Investment made across the Group to prepare for further growth, including distribution channels within the International Packaged business, additional marketing and enhanced operational capabilities
o Savings in overheads associated with restructured OoH business
Adjusted Operating Margin maintained at 14.8% (2022: 14.9%)
Adjusted Profit before Tax +8.7% to £27.2m
Exceptional items: Net charge of £2.9m (2022: £11.1m)
o Costs associated with restructuring OoH and Business Change Programme and Systems Development
Strong FCF of £20.9m (2022: £14.6m) resulting in cash and cash equivalents of £67.0m (2022: £56.3m)
o Assessment of forward cash and investment requirements
o Identification of surplus cash in order to return to shareholders during 2024
