Interim Report to Shareholders

for the six months to 30 June 2001

Norish plc announces pre-tax losses of £0.2 million for the six months ended June 30th, 2001. This compares with pre-tax profits of £1.1m for the same period last year. Turnover fell by 4 per cent from £6.8m to £6.5m. The loss per share is (Stg2.1p) compared with earnings per share of Stg10.1p. The results include an exceptional reorganisation cost of £0.2m.

The Board has decided to pay a same-again interim dividend of €1.27 cent per share (IR1.0p). The dividend will be paid on 19 October 2001 to shareholders on the register at 21 September 2001.

The company's cold storage operations which are largely focussed on food producers were severely impacted by the foot and mouth crisis in the United Kingdom. Stocks of poultry declined dramatically and trade in the remainder of the meat sector was also affected.

In addition, one major customer ceased to trade and one other ceased production of frozen foods. While Norish successfully recovered monies due, the loss of continuing revenues from these sources had a negative impact. Implementation problems relating to the servicing of a major new contract were also a contributory factor.

The company has engaged in a concerted sales drive which has shown some success in attracting new business to its cold stores and trading has improved in the second half of the year.

Norish continued to build its presence in the general warehousing market and its warehouses in Felixstowe, Belvedere and York achieved good occupancy levels towards the end of the period. An investment programme both increased capacity and upgraded our systems capabilities.

The outlook remains positive for the general warehousing activities which are well located in areas of strong demand. The company is continuing to expand its customer base in this sector and by the end of the period under review had doubled its general product storage.

In response to reduced demand for cocoa storage, the company has also converted some cocoa storage facilities to general warehousing. Some major cocoa users changed their supply and storage practices, resulting in loss of business for the Group. These revenues are gradually being replaced by general warehousing business. During the first half of the year these changes impacted negatively on profits.

Shareholders funds at 30 June 2001 were £8.8 million compared with £9.1 million at 31 December 2000. Net debt was £5.7 million giving a debt equity ratio of 65 per cent (31 December 2000: £5.0 million, 55 per cent).

Trading in the second half of the year, while still challenging, is showing signs of improvement in all parts of the business. This is augmented by administrative and management improvements which will reduce costs. The Group offers a flexible, responsive and competitive service to customers which positions it well in a distinctive niche of the supply chain market. This presents future development opportunities for the Group's operations.

For reference:

Norish plc:

Paul Byrne, Chief Executive Tel: +44 1737 221 133

Murray Consultants:

Joe Murray / Grainne O'Brien Tel: +353 1 632 6400

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