Norish - Cold Storage Specialists

I am pleased to present the Annual Report of Norish Plc for 2006.

During 2006 the Group had to cope with increased energy costs and continuing over-capacity in the cold storage market. As a result of increased energy costs we have invested capital in various projects aimed at reducing energy consumption.

We are continually reviewing our structure and cost base and as part of this review we have decided to close our administration office at Dartford. This closure will have no negative effect on the management of the business.

Results
The Group announces pre-tax profits of £0.4m. This compares with pre-tax profits of £1.0m (after net exceptional gains of £0.8m and operating losses from discontinued operations of £0.4m) for last year. The profit per share from continuing operations is 3.0p compared to 3.3p for last year.  Net debt at the year-end decreased from £7.2m to £6.4m.

Operations

Our cold stores did not perform as well as last year in a market still suffering from overcapacity and increased energy costs. However, as a result of sales and marketing activities our stores finished the year with high occupancy levels.

Due to the closure of a customer’s factory, the contribution of the Bury St Edmunds site fell short of expectations. We successfully replaced this business in the final quarter of the year.

The Wrexham and West Midlands sites struggled with low occupancy during the year whilst increased activity at the Braintree, East Kent and York sites produced an improvement on last year.

Dividend

At the interim stage we declared a dividend of €1.25c per share.  The board does not recommend the payment of a final dividend for the year.  This will bring the total dividend for the year to €1.25c per share (€2.5c last year).

Board

I am very pleased to report that Norman Hatcliff has been appointed Managing Director. He was appointed to the board as Operations Director in July 2005 and has made a very significant contribution since he joined the company in 2000.

I am also pleased to report that Aidan Hughes was appointed to the board on the 7 September 2006 as Finance Director. He joined the company in 1996 and has been responsible for the Company’s finance function over the past year. He will also continue in the role as Company Secretary.

Personnel

The Board would like to thank the staff for their contribution in a difficult trading environment in 2006.

Trading Outlook

We have started 2007 with high occupancy levels. This level of occupancy together with the reduced cost base should help to combat the ongoing challenges in the market place during the current year. 

Ted O’Neill
Executive Chairman

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