Shares in drinks maker Nichols plc (LON:NICL) jumped in early deals on Wednesday after it hiked its final dividend by 15% as earnings jumped on the 110th anniversary of its flagship Vimto brand.
The AIM 100 group reported pre-tax profits for the year ended 31 December 2018 of £31.8mln, up 4% on the prior year, while revenues jumped 7% to an all-time high of £142mln.
READ: Nichols shares fizz as Vimto resurgence leads to record annual sales
As a result of what non-executive chairman John Nichols said was “another strong performance” in the year, the firm had raised its final dividend by around 15% to 26.8p per share, taking the full dividend for the year to 38.1p, up from 33.5p the year before.
Looking forward, Nichols said the group remained “highly profitable” and that it was “taking all possible actions” to reduce any risks arising from Brexit, although the business was expected to “maintain its positive performance” into 2019.
The group’s earnings were bolstered by its UK arm, which reported sales growth of 12% to £114.6mln and offset a decline in its international to £27.4mln from £31mln in 2017.
Growth in the UK was driven by a resurgence in the popularity of fruit cordial Vimto, which was first marketed in 1908.
Internationally meanwhile, the ongoing conflict in Yemen had been highlighted in a January trading update as putting pressure on the company’s Middle Eastern markets.
Nichols shares were up 3.7% at 1,591p.