Norish H1 profits drop, still recovering from horse meat scandal

12th Sep 2014 15:34

Norish, the AIM-listed Irish warehousing and logistics company, saw its turnover and profits decline in the first-half as its Town View Foods subsidiary is still suffering from the horse meat scandal last year.Thus, the company’s revenues decreased to £11.1m compared to £11.4m last year, while profit before tax also went down to £0.16m from the previous year’s £0.3m.During the period in question, the company began a restructuring of its assets, raising £3.1m in fresh financing to purchase its Birmingham site for £2.4m and to increase its blast freezing facilities.In the process it has eliminated £564,000 in rental costs per year, progressed on the disposal of its York site and placed its Leeds site on sale. Norish believes it is well positioned to take advantage of the opportunities in the Chinese pork export market in the second half of the year.Earnings per share were cut by half, to 1.1p from 2.2p. However, cash and equivalents rose to £0.1m from £42,000.The company said it remains confident in its ability to meet expectations for its full-year results.The board has recommended that no interim dividend be paid.Shares rose 7.89% to 41p on Friday at 11:03.