SOFT drinks firm Nichols saw shares rise 10% after it yesterday published a strong trading update for its current financial year.

On the back of that update, stockbroker Brewin Dolphin raised its 2010 profit forecast for Nichols by £1.2m to £14.7m.

The Newton-le-Willows- based maker of the iconic Vimto drink reported that its “excellent” first-half trading had continued into the second six months of the year.

In a pre-close trading statement, the company said full year 2010 revenues were once again well ahead of its internal plans, while its operating margins were expected to be in line with company forecasts.

The group’s balance sheet has been strengthened and underlying cash generation will also exceed expectations.

Nichols’ latest trading update said: “In overall terms, we expect the group’s profitability for the year to December 31, 2010, to be significantly ahead of last year and ahead of current market expectations.”

Nichols specialises in soft drinks production – its Vimto brand is now available in more than 65 countries – as are Nichols Panda and Sunkist brands.

It also operates a soft drinks dispensing business through its Cabana, Beacon, Cariel, Ben Shaws and Dayla lines.