The mainstream record labels did very well (before the internet came along) selling CDs to people who already had the LPs. There's now a new generation of folk enthusiasts who've never heard these classics, unless their parents have a copy. I'm sure there's a demand. They wouldn't sell millions, and probably the majority of the catalogue is pretty worthless, but they'd probably sell more than many CDs brought out today by young hopefuls.

You can get 1000 CDs manufactured, printed and wrapped for around £650. Of course there are other costs, in particular remastering and MCPS, but say £1500 total cost - that's £1.50 each. Sell them all for a tenner and that's £850 profit. If you went for a larger run (and I'd wager Nic's albums would sell more than that) the unit costs are lower and the profit higher. Not worthwhile? and that's without digital sales, which cost virtually nothing to distribute.