Merseyside-based soft drinks maker Nichols plc said it expects full-year profit slightly ahead of investor estimates as sales of Vimto hit an all-time high in the UK for the first half of the year. 

“Whilst mindful of continued pressure on consumer spending, despite levels of inflation stabilising, our diversified business model and the enduring strength of the Vimto brand have enabled us to deliver a strong performance,” the company said. “As a result, we now expect full-year profitability to be slightly ahead of current market expectations and we remain confident that Nichols is well placed to deliver its strategic growth ambitions.”

The market consensus for adjusted full-year profit before tax is currently £28.8 million. 

For the first half, the company reported a 1.8% dip in revenue to £84 million, due to tightened consumer spending, and adjusted profit before tax up 18% to £14.5 million, helped by contained costs and better margins.

“The Vimto brand achieved its highest ever UK annual retail sales value of £109 million,” in the latest six-month period, the company said, “reflecting increased marketing investment and growth from innovation and distribution gains.”

The company announced a special dividend of 54.8p per share – equating to a total of £20 million – alongside an 18% increase in the interim dividend to 14.9p per share.

“Positive trading momentum in our UK Packaged business reflected further market share gains in squash and carbonates, driven by increased marketing investment, growth from innovation, and distribution gains. Our biggest ever UK promotional campaign was launched towards the end of the Period, and we are confident this will support the continued growth of the Vimto brand over the summer,” the company said.