Strong growth | Dividend delight | Stonking Small Caps
Results and updates covered here highlight some of the amazing value on offer among a rich variety of UK small caps, many of which also come with appealing dividends. It’s no surprise to us that private equity and sector peers are taking a keen interest in the UK’s unloved small caps given their strong market position and cash flows.
Nichols: big dividend increase and cracking value? Nichols (AIM:NICL), the diversified soft drinks Group (notably Vimto), announced in-line half year results, demonstrating steady growth. On many counts this business and its well-loved international brand looks ludicrously undervalued. For its half year to 30 June 2026 revenue climbed 4.7% to £89.5m with adjusted profit up 3.7% to £14.1m and statutory pre-tax profit up 31.6% to £15.0m, as it benefited from interest income on its sizeable cash balance. Basic earnings per share rose 29.9% to 30.3 pence. Vimto in Africa once again delivered an excellent performance, growing revenue 17% to £16.1m, driven…