Vimto-maker Nichols (NICL) has warned profits could be hit hard next year by a tax on sugary soft drinks in Saudi Arabia and the United Arab Emirates. The Middle East is an important market for Nichols because growing numbers of Muslims break their Ramadan fast with a glass of Vimto. The 50% tax on the retail price of non-carbonated sugary drinks was brought in at the start of December. Merseyside-based Nichols, which is also behind Levi Roots and Sunkist drinks, said it would not be able to determine how badly sales would be affected by the price increase until the end of the Ramadan trading period. However, it warned the impact could result in 2020 profits falling “materially below current expectations”.
The new US owner of the UK defence company Cobham (COB) has pledged to keep jobs and investment in Britain as the government faces increasing criticism for allowing the £4bn takeover to go ahead. The world-leading expert in air-to-air refuelling said its private-equity buyer, Advent International, had committed to maintaining a UK headquarters and to continue funding research and development at its Dorset offices. It has also vowed to keep using the company’s name, which references Sir Alan Cobham who founded the firm in 1934. The deal had been delayed for months after fears were raised that Advent International’s acquisition could undermine national security, because of Cobham’s sensitive military contracts. It has extensive deals with the British military and also manufactures electronic warfare and communications systems for military vehicles.
