Today’s business landscape in the North West sees some companies celebrating and others making notable strategic moves. Shareholders of Nichols, the maker of Vimto, are enjoying the results of a stellar performance during the first half of 2024. Meanwhile, Norcros, a key player in the bathroom and kitchen supplies sector, shows resilience in a challenging market.
LBG Media reports a significant surge in revenue, driven by successful campaigns and innovative business models. In the property sector, Manchester sees notable transactions involving Grainger and Palace Capital. The strategic decisions made by these companies highlight their focus on long-term growth and market positioning. Read on for detailed insights into the latest developments from these companies.
Nichols Toasts Strong Performance
Shareholders of Nichols, the company behind Vimto, are celebrating after the group announced a special dividend due to its strong business performance. The CEO, Andrew Milne, shared that the business’s adjusted profit before tax and earnings per share saw significant increases in the first half of 2024. As a result, the board decided on a special dividend of 54.8p per share plus an 18% rise in the interim dividend to 14.9p per share.
Over the six months ending June 30, 2024, sales were slightly down to £84 million from £85.5 million the previous year. However, pre-tax profits rose by 5.8% to £11.8 million. The company’s cash reserves increased by 25.25% to £70.3 million. The Vimto brand achieved an all-time high retail sales value in the UK of £109 million, thanks to increased marketing investment and distribution gains. Additionally, Nichols made strides in the Middle East market during Ramadan and started phased can production in Senegal to better serve the West African market.
Positive Outlook for Nichols
The company is optimistic about the future, partly due to its diversified business model. Nichols began Q3 2024 positively, meeting management expectations and focusing on margin improvement. The board now expects adjusted profit before tax for the full year to surpass current market predictions of £28.8 million.
Andrew Milne remarked that Nichols is on track to achieve its strategic goals despite consumer spending pressures. He credited the company’s robust UK promotional campaign, market share gains, and the enduring strength of the Vimto brand for this positive outlook. Analysts from Singer Capital highlighted the 18% increase in pre-tax profits for H1 2024 and raised their target price for Nichols stock, emphasising a promising future for the company.
Norcros Remains Resilient
Norcros, a Wilmslow-based bathroom and kitchen supplies group, reported steady trading in the first quarter of 2024. The company noted that overall trading performance remained ‘resilient,’ and revenue on a constant currency like-for-like basis was consistent with the prior year.
CEO Thomas Willcocks credited the company’s favourable market positioning and growth strategy execution for its robust performance. Despite reported revenue being 5.9% lower than the same period last year due to the disposal of Johnson Tiles UK and Norcros Adhesives, the company’s new product development and excellent customer service in the UK and Ireland drove market share gains. Similar performance was noted in South Africa, supported by a recovering energy supply.
Focus on Long-Term Strategy for Norcros
Thomas Willcocks stated that Norcros’s targets for the full year remain unchanged and highlighted their medium-term growth strategy. The company operates under seven brands, including Triton, Merlyn, and Multipanel, and employs approximately 2,400 people.
Norcros’s South African business reported satisfactory performance, aligning with the company’s broader strategic goals. The company’s resilience and strategic focus have positioned them strongly in their market, despite economic challenges.
LBG Media Reports Revenue Surge
LBG Media, known for its Lad Bible Group, posted a substantial increase in revenue for the first half of 2024. Revenues grew by 55%, reaching £42.3 million, up from £27.2 million in the first half of the previous year. The company’s robust performance was bolstered by highly successful campaigns around the UEFA Euro 2024 tournament.
CEO Solly Solomou pointed out that adaptation to new commercial models from major platforms like Facebook also contributed to revenue growth. Solomou highlighted the operational changes in Australia and New Zealand, as well as the integration of US commercial teams, as pivotal to the company’s ongoing success.
Future Plans for LBG Media
Solly Solomou expressed optimism about LBG Media’s trajectory towards achieving £200 million in revenue. He emphasised the importance of their diverse revenue model and strong momentum. The company’s focus on expanding partnerships within the Asia Pacific region and integrating commercial teams across regions was key to their future plans.
LBG Media aims to leverage early customer wins and present a ‘one-stop shop’ for brands targeting a young adult audience. The company’s ability to innovate and adapt to new commercial landscapes has been crucial to its continued growth and success.
Property Deals in Manchester
Two significant property transactions were announced on the stock exchange involving Manchester assets. Grainger acquired The Astley for £31 million, while Palace Capital sold Boulton House for £8.8 million. Grainger, the UK’s largest listed residential landlord, now owns The Astley, a 135-home build-to-rent scheme in the Northern Quarter.
Grainger’s CEO, Helen Gordon, described The Astley as a high-quality acquisition that fits well within their existing Manchester cluster. The acquisition was enabled by disposing of an older asset in London, worth £27 million, as part of their Asset Recycling Programme.
Grainger’s Strategic Moves
Helen Gordon emphasised that The Astley acquisition is expected to be earnings accretive, reflecting the increasing opportunities in the market for high-quality rental properties. The company’s ongoing strategy to recycle assets and invest in high-yielding properties underscores its focus on long-term growth and sustainability.
Meanwhile, Steven Owen of Palace Capital mentioned their continued progress in asset management and disposal strategies. The company has returned over £43 million in cash to shareholders since July 2022 and plans to announce another tender offer later in the year, showcasing their strong financial position and strategic flexibility.
The business climate in the North West is showing strong resilience and notable achievements in multiple sectors. Nichols’ strategic market moves and dividend announcements underline its robust financial health and growth potential. Similarly, Norcros demonstrates resilience amid challenging market conditions, while LBG Media’s innovative campaigns fuel significant revenue growth. Property market activity in Manchester, involving Grainger and Palace Capital, highlights strategic investments and asset management efforts.
The positive outlooks and strategic moves by these companies indicate a dynamic and opportunistic business environment. They are setting a course for sustained growth and success despite economic uncertainties.