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Norish plc announces pre-tax profits of £0.2m for the six months ended 30 June 2004. This compares with pre-tax losses of £0.8m (after exceptional items of £1.0m) for the same period last year. Turnover remained unchanged at £6m. The profit per share is 1.2p compared with a loss of 7.0p for the same period last year.
The cold storage division performed well in a market still suffering from overcapacity and pressure on rates as well as increasing electricity costs. In addition a number of our sites suffered as a result of the outbreak of Asian flu. This business has recently returned to a more stable basis. Despite these difficult trading conditions our cold storage division results are marginally ahead on the same period last year. As a result of increased marketing activity we have been successful in attracting a significant contract for our Braintree store.
Our commodity stores have started to feel the earlier than expected loss of our major cocoa contract reported in our last annual report. This business is spread across our Belvedere and Felixstowe operations and will finish by the end of the third quarter. Trading has been extremely difficult at Felixstowe where currently we have excess capacity. A number of actions have been taken to reduce losses at this location. At Belvedere we have a coffee storage business that we hope to expand during the second half of the year. Our York facility continues to perform well, and is experiencing increased demand.
As reported previously the company has reduced its central and operational costs through the closure of the Reigate head office. The benefit of this is reflected in the results with administrative expenses reducing from £0.4m to £0.3m.
Trading in both our commodity and ambient businesses continues to be difficult, particularly due to the decline of our cocoa storage business. The cold storage division historically performs well in the second half of the year and at this stage we have no reason to believe that this will not be the case.
Shareholders funds at 30 June 2004 were £5.2m compared with £5.1m at 31 December 2003. Net debt at 30 June 2004 was £2.6m, giving a debt equity ratio of 50% (31 December 2003: £2.7m, 53%).
The Board announced on 6 September 2004 that it has received an approach, which may or may not lead to an offer being made for the company. Discussions regarding this approach are still at a preliminary stage. As a consequence of these discussions the Board has decided that an interim dividend will not be paid.
Ted O´Neill
Executive Chairman
10th September 2004