Storage and distribution group Norish cut its losses from £2.5 million sterling (€3.7 million) to £395,000 last year and is expecting to return to profit in 2004 as a period of restructuring reaches conclusion. Una McCaffrey reports.
Results issued yesterday show that Norish continued to operate against a difficult market backdrop in 2003, with its ambient and commodity divisions under particular pressure. While turnover across the group fell by 3 per cent to £12.7 million, sales in ambient and commodity operations were 12 per cent lower.
Norish executive chairman Mr Ted O'Neill blamed the decline on a continued fall in cocoa storage volumes.
Mr O'Neill, who took over as chairman last May, said the ambient warehousing market was "fragmented" but that the company hoped to win new business in the area over coming months.
Turnover within Norish's temperature-controlled division grew by 1 per cent last year, as contracts at Wrexham and East Kent worked to offset declining business elsewhere.
Mr O'Neill said the division had been "a strong performer in a difficult market", which he believes is on the cusp of consolidation.
His prediction that Norish will be "part of this change" is likely to see the firm considering acquisitions, although Mr O'Neill emphasised yesterday that it will not be putting its balance sheet "in jeopardy".
He said he was "reasonably encouraged" by trade so far this year, adding that the company was poised to return to profit as it emerges from a financial shake-up.
Last year's results include an exceptional restructuring charge of £600,000, as well as £300,000 in storage revenue, which has been charged in advance in accordance with common industry practice. Norish is paying a final dividend of 1.27 cents, bringing the total dividend for 2003 to 2.54 cents.
Mr O'Neill acknowledged that this represented a reduction on the previous year's award of 5.27 cents, but he said the company needed to "preserve its resources to both strengthen and reposition itself in the marketplace".
Shares in Norish gained two cents to close at 80 cents in Dublin last night.
