The company behind the soft drink Vimto saw shares rise 10 per cent in early trading after it announced impressive results for 2011.

Shares in Nichols, which also makes the soft drinks Panda and Sunkist, were up over 55p to £5.93 at 11.38am.

The group reported that sales for the year ending 31 December 2011 increased 18 per cent compared to 2010.

It marks the second consecutive year of strong rises, after last year's 16 per cent increase on 2009.

Non-executive chairman John Nichols said the results were 'ahead of internal expectations' and were achieved despite the continued downturn in the UK economy.

'Once again our brands have outperformed the soft drinks market in the UK and our strong and well established international business continues to deliver significant year-on-year growth,' he commented.

Nichols, which manufactures a 'Levi Roots range' of drinks named after the entrepreneur, confirmed that gross margins remained under pressure due to the cost of raw materials, inflation and advertising last year.

However, it said tighter control of costs and underlying cash generation ahead of expectations would see profit 'significantly' higher than last year.

The group are launching a new range of low calorie Weight Watchers-branded soft drinks this month, which it hopes will provide 'further growth opportunities'.