Nichols has reported a strong set of finals, growing PBT by 9% y/y to £27.2m £0.2m ahead of our forecast. The results show: (i) good execution against the strategic plan to grow the higher margin Packaged business; (ii) continued momentum in International (+17% revenue); (iii) very good progress in implementing the OoH restructuring; and (iv) mitigation of significant inflation headwinds. The business is now well set-up for the future with a clear strategy set out with these results to accelerate growth and potentially return some of the surplus cash. Current trading is in line with expectations, and we make minimal changes to our forecasts. Our recommendation remains a Buy with a 1320p TP.
