Good full year results, as previously flagged, with PBT at the top-end of guidance and another year of strong execution. UK Packaged sales advanced by 8.5% and International growth was a stellar 21% - blended a strong 11% LFL. As flagged back in January, OoH goodwill has been impaired - the full £36.2m on the BS. Ultimately, post a strategic review we expect a leaner and fit-for-purpose OoH business to emerge. Investors should welcome no change to FY22 expectations and high single-digit PBT growth guidance for FY23, despite the inflationary headwind. This is in line with our unchanged forecasts. Overall, on a 3 year view we are attracted to: (i) the prospects of a positive strategic outcome for OoH; (ii) PBT CAGR of 10%; and (iii) the possibility of new CEO switching M&A focus from OoH to the core soft drinks area. Nichols remains a quality growth company and we reinforce our Buy and 1625p TP.
