Nichols interims have come in ahead of expectations and, as a sign of ongoing confidence, the DPS has been lifted by 11.9%. We are impressed by double digit UK sales growth, with an excellent 9% LFL from the core Vimto brand. International sales were broadly in line with guidance. Whilst we make no forecast changes, the risk remains on the upside. We see intrinsic value towards 1950p on DCF criteria and stay positive on BS strength/optionality, a progressive DPS and growth prospects.
