Nichols has reported a good set of interims, successfully managing sector headwinds. This was led by further UK market share gains and significantly, OoH revenue back above pre-covid levels. Timing and shipment challenges hindered International progress but momentum exiting Q2 has been good. The OoH strategic review is progressing well. A keen focus on value over volume and mitigating actions means no change to current year expectations. However, prudence around industry challenges influence us to trim 8%/6% off our FY23/FY24 PBT numbers. The mid-long term thesis around UK market share gains, prospects of a value accretive OoH business post the strategic review and attractive international prospects remain firmly intact. The shares trade on a FY23 EV/EBITDA of 14x vs a 5 year average of 16.5x. We stay at Buy with a reduced 12m TP of 1540p (vs 1625p).
