Nichols’s FY18 finals demonstrate another excellent period of sales growth and the virtues of being geographically diversified. The UK had a stellar year while International matched lower guidance. Profitability came in line with expectations and there is good news on the dividend front, a bolt-on deal and contract win. We make no change to our FY19 PBT but upgrade FY20 by 3%. We view Nichols as a core holding and see fair value at c1700p.
