The 'Iffies', formerly known as the Perrier Awards, are Britain's most prestigious stand-up comedy awards. Nichol wins a prize of £8,000, but more importantly he now has a firm footing on the comedy map.

Previous winners include Steve Coogan, Frank Skinner, Lee Evans and the League of Gentlemen. Nichol has been performing at the Fringe since 1993, when he was nominated for the musical comedy trio Corky and the Juice Pigs. A hardened Fringe comic, Nichol was also nominated for the Perrier in 2002. However, he now looks set to make the big time.

Nichol, who is a founder of the Comedians' Theatre Company, has certainly worked hard for his success. As well as being a veteran of several festivals, the 39 year-old has produced and starred in two Fringe plays alongside his stand-up show this year - doing up to four shows a day.

The Naked Tourist, along with We Are Klang, has been the success story of the Fringe, picking up five star reviews in The Times and The Scotsman and selling out night after night. Critics described the show as "thermonuclear" and "pin-you-in-the-seats stuff".

The show relives a debauched, mushroom-fuelled, weekend in Amsterdam in an attempt to get over a relationship break-up. Nichol is full of energy as he relays his hilarious experiences with drug dealers, taxi drivers and racists. Awards producer Nica Burns said Nichol was a "flamboyant comedy character on the Fringe who blew everybody away with an outstanding show."

Nichol triumphed over a strong field in a successful year for the Fringe. The shortlist also included David O'Doherty, Russell Howard, Paul Sinha and We Are Klang, a three man sketch team of Greg Davies, Steve Hall and Marek Larwood.

The if.comeddies Best Newcomer award went to the awards' sole female nominee Josie Long, a 24-year-old Oxford University graduate. In an emotional speech, Long revealed her joy and exhaustion after her first Fringe. "I'm surprised, overwhelmed and very happy," she said. Her show, Kindness and Exuberance, was described as "off the wall" and "inspired". She wins £4,000.

Other shortlisted newcomers included Russell Kane, Andrew Lawrence, sketch troupe Fat Tongue and New York-based musical duo God's Pottery. It wasn't all doom and gloom for Kane. On Thursday he was offered a lucrative Channel 5 contract to be its on screen presence for Five US, one of its new digital channels being launched this October.

A final award, the Panal Prize, is given to the act that best captures the "spirit" of the festival. Mark Watson won the inaugural £4,000 prize with his 36 hour stand-up marathon and audience workshops.

The judging panel included Dominic Maxwell, chief comedy critic for The Times and Sunday Times reviewer Stephen Armstrong.

Nichol's gags

"They say being a hostage is difficult. But I could do that with my hands tied behind my back"

"I'm a dangerous comic. Sometimes I throw peanuts into the crowd to see if there are any fatal nut allergies out there"