City round-up: Nichols; Anexo; Supreme; Renold

Nichols, the Newton-le-Willows-based soft drinks group, including the iconic Vimto brand, said its exposure to US tariffs is limited, in a first quarter trading update, ahead of its AGM later today.

Group revenue in the three months to March 31, 2025, increased by 1.2% year-on-year to £39.3m (2024: £38.8m), in line with the board’s expectations.

UK Packaged revenues increased by four per cent to £21.3m (2024: £20.4m) driven by continued distribution gains and underlying volume increases for the Vimto brand.

As anticipated, International Packaged revenue reduced by 7.6% to £9m (2024: £9.8m). This reflects the phasing of shipments to the Middle East due to the timing of Ramadan as well as the strategic shift towards the higher margin concentrate sales model in West Africa, as outlined last year. The board said it remains confident of making continued strategic progress and delivering further profitable growth in the International business for the full year.

Out of Home (OoH) increased revenues by 4.6% to £9m (2024: £8.6m) with the performance benefiting from the increased focus on targeted business development and profitable growth following the OoH strategic review, which completed in 2023.

The group said it retains a strong balance sheet with net cash and cash equivalents at the end of the period of £60m (December 31, 2024: £53.7m).

Looking ahead, it said its revenue and adjusted profit before tax expectations for FY25. of £178.9m and £33.1m, respectively, are unchanged.

It said the overall economic impact of recent volatility in global markets arising from tariff changes being implemented by the US government remains unclear, adding: “We have reviewed the potential implications and our initial assessment is that given the group’s diverse geographic revenues, our direct exposure to the most affected markets is limited, representing less than two per cent of group revenue.

“Furthermore, we expect to benefit from medium term contractual security in relation to potential cost inflation. We will continue to review our position and manage our approach to business accordingly.”

Underpinned by the strength of the Vimto brand, its diversified business model and clear growth strategy, the group said it is well positioned to deliver continued profitable growth and make further progress towards its medium term financial and strategic ambitions.

CEO, Andrew Milne, said: “We are pleased to have delivered further strategic progress in Q1.

“Our UK Packaged business delivered continued growth as a result of increased volumes and distribution gains, reflecting progress against the strategic priorities outlined at our 2024 CMD.

“In the International business, we are making good progress with the shift towards a higher margin concentrate model in several of our West African markets. Whilst the move away from shipping finished product impacts revenue, the concentrate model delivers a step change in margins and positions us well to achieve long-term, profitable growth in these markets.”

He added: “We continue to expect further growth in FY25 in line with market expectations as we continue to execute our strategy and make progress towards our medium term financial and strategic ambitions.”

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Alan Sellers

Anexo, the specialist integrated credit hire and legal services provider, with offices in Liverpool, Bolton and Leeds, is in an ‘offer period’ after responding to media speculation over a possible takeover approach.

Isle of Man-based investment group, DBAY Advisors, published a statement on the stock exchange late yesterday afternoon referring to the reports of its involvement in a possible offer.

It said itself, and Anexo major shareholders, executive chairman Alan Sellers and Samantha Moss, were considering a possible offer for the entire issued and to be issued ordinary shares of Anexo, save for those already owned by DBAY, Alan Sellers and Samantha Moss.

The statement said all three parties confirm they currently expect any offer to comprise entirely loan notes issued by a newly incorporated entity jointly controlled by funds managed or advised by DBAY, and Alan Sellers and Samantha Moss, or ordinary shares with an underlying economic interest in the newly incorporated entity making the proposal.

Under stock exchange rules, all three are required, by no later than 5pm on May 20, 2025, to either announce a firm intention to make an offer for Anexo or announce that they do not intend to make an offer.

This morning (April 23), Anexo said it has not received any proposal in respect of the possible offer from the potential offerors and advised that shareholders take no action at this time.

Anexo’s legal arm, Bond Turner, represents clients in motor cases, such as injuries, as well as ongoing class-action emissions claims against a range of motor manufacturers.

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Stretford consumer goods distributor, Supreme, is on course to report record results for the year to March 31, 2025, it said in a trading update this morning, ahead of publishing its final audited figures on July 1.

The company is a key player in the vape sector and during the reporting period moved into the soft drinks and hot beverages market following the acquisition of Clearly Drinks and Typhoo Tea.

Supreme said it traded strongly across FY25, delivering a record financial performance which was supported by the positive impact of strategic acquisitions and continued management of the company’s cost base.

It expects to report revenue of around £235m, compared with £221.2m in 2024, and adjusted EBITDA of at least £40m, up from £38.1m the previous year, in line with current market expectations, which were revenue of approximately £240m and adjusted EBITDA of £40m.

In addition, the company expects to trade in line with market expectations for fiscal year 2026, which are revenues of around £231m and adjusted EBITDA of around £36.6m.

After investing £25m on strategic acquisitions during the period, the business remained net cash positive at year end.

Following the complementary acquisitions of Clearly Drinks and Typhoo Tea, sales traction remains strong with management exploring a number of new commercial opportunities with both potential and existing customers, alongside an increased focus on new product development.

The trading update said vape sales remain in line with internal estimates ahead of the imminent UK disposable vape ban scheduled for June 1, 2025. The company’s established UK vaping profile and its longstanding, trusted partner status across a diverse UK retail footprint, combined with proactive investment in rechargeable pod system vaping devices, ensures Supreme remains well positioned within the UK market, it said.

It added that the board remains confident of the group’s future prospects.

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Renold

Industrial chain maker Renold has refinanced its core banking facilities that were due to mature in May 2026. The existing facilities have been amended and extended by a period of two years, and will be in place until May 2028. 

The existing multi-currency revolving credit facility has been increased to £105m from the previous level of £85m. Additionally, the lenders have agreed to provide an increased uncommitted £25m “accordion” which will allow the Renold to access additional funding, if required, in support of its acquisition programme. 

The new facilities will be provided by the Company’s existing banks HSBC, Allied Irish Bank (GB) and Citibank. The principle facility terms continue, with the Net Debt / EBITDA covenant at 3.0 times EBITDA, and the EBITDA / Interest Cover at 4.0 times, and with other key terms remaining unchanged.

Commenting, Robert Purcell, Chief Executive of Renold, said: “We are delighted to announce we have reached agreement to extend our banking facilities, which will provide a stable financing platform to support the continued strategic development of the Group over the next few years.”