Nichols delivered a strong FY25 with adjusted PBT of £33.6m (+7% y/y), a 2% beat to consensus, and a 100bps uplift in PBT margin to 19.2% already running ahead of the CMD trajectory toward the ~20% mid-term target. UK Packaged continues to outperform its categories while Africa delivered c.9.5% LFL growth as the higher-margin concentrate model scales. The Board has reset dividend cover to 1.5x (from 2x) signalling confidence in earnings durability and supporting a more progressive ordinary payout. We leave forecasts unchanged. Despite this delivery, the shares trade on just ~13x FY26 P/E (c.11x ex-cash), a ~9.5% FCF yield and ~5% dividend yield. Maintain Conviction Buy.