VIMTO maker Nichols revealed a leap in profits during the first half of its centenary year.

The company, founded in Manchester, but now based in Newton-le-Willows, said so far 2008 has been a `very good year', as it benefited from wider exposure of the Vimto brand.

Profits in the six months to June 30 jumped 15.5 per cent to £3.2m, and sales five per cent to £29.2m.

The Nichols business is focused across two main areas: soft drinks - mainly sales and marketing of the Vimto brand internationally - and dispense systems, which supplies more than 5,000 outlets in the licensed trade, leisure and catering markets with soft drinks on draught.

Chairman John Nichols, grandson of founder John Noel Nichols, said he was sure his grandfather would be `chuffed' with the company's success and the knowledge that Vimto is sold in more than 60 countries.

Health tonic

Originally based on Granby Row, near Piccadilly, Vimto was developed as a health tonic and became popular during the temperance movement.

Mr Nichols said: "We're really pleased with the figures, it's nice to have something positive to say amid all the doom and gloom.

"All in all, it's not a bad start to what is a milestone year for the business.

"I'm sure my grandfather, who liked travelling and was keen on taking the product out of the UK, would be really chuffed."

The successful first half - the sixth year in a row that Nichols' interim profits have risen - led to a seven per cent hike in dividend to 3.75p.

Publicity

Mr Nichols said he was sure Vimto's sales had been boosted by the increased publicity generated by the centenary celebrations.

The company has produced a centenary bottle to mark the celebrations and is holding a party in September for its staff at the Imperial War Museum North.

The company said it had raised prices this year to compensate for higher raw material costs, but prices would not move again until early next year.

While Vimto sales were strong, bad weather and `challenging market conditions' hit the group's Panda brand. Nichols said major retailers were moving away from single bottle sales and into multi-packs, meaning that less space was being allocated to Panda.

Turning to prospects for the full year, Mr Nichols said he expected `further solid progress'.

"We believe our core brand of Vimto will continue to perform well despite difficult market conditions, and we anticipate both organic and new market growth internationally."

Nichols employs more than 130 people, 80 of them in the north west.