Nichols bought VITHIT for growth.
Here’s how it succeeds

Nichols has bought growth. Now it needs to compound it. But at a cost of €75m for VITHIT.

The five-year opportunity with VITHIT is revenue growth c.8% to 9% CAGR, 8 to 10% CAGR profit growth, VITHIT revenue growth at 10 to 12% CAGR and an energy intensity reduction of 15 to 20%.

That could take Nichols from around £175m of revenue and £32m of adjusted operating profit today to £250m+ of revenue and £45m+ of profit within five years, with margins of c.18%.

Get it right and a 40–60% share-price gain over five years looks plausible.

Get it wrong, and a 15–25% downside is conceivable!

Read the full paper to find out what it needs to do to succeed