The claim by Gul was for lost profits over the duration of a (10-year) contract to produce/distribute Vimto in Pakistan. The damages awarded against Nichols total £8m, which is higher than the group expected.
While this is a disappointing outcome for Nichols, the strength of the balance sheet means this will not impact on current investment plans or the company’s acquisition search.
Nichols says trading remains on-track to meet expectations and interims are due 24 July 2014.
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