Vimto-maker Nichols reveals jobs at-risk as pandemic hits revenues

Vimto-maker Nichols has announced it is proposing job cuts after the pandemic hit revenues.

The AIM-listed company said in a trading update on Thursday that despite Vimto seeing "strong" UK sales growth as people consumed at home, this was offset by a plunge in global hospitality or "out of home" sales in the nine months to September 30.

The company said group revenues were down 16.5% compared to the prior year in the period, to £91.7 million.

Third quarter "out of home" revenues were 45.2% lower than those seen in the same period in 2019.

The soft drinks group, which sells Vimto in 85 countries worldwide and also owns the Sunkist and Levi Roots drinks brands, said that it has reduced spending and carried out a review of its business.

It has now put around 30 roles in its UK-wide "out of home" division under review, and is to begin a consultation. Roles affected would made redundant by early 2021.  

Non-executive chairman, John Nichols, said: "As part of our ongoing focus on ensuring the Group has the right structures in place to deliver its long- term strategy, the Group has taken the difficult decision to propose, subject to consultation, that a number of roles are removed from our structure. 

"These difficult decisions have not been taken lightly and I thank all Nichols colleagues for their continued hard work and commitment."