Norish announces return to profits

COLD storage and warehousing group Norish has abandoned paying its dividend as its talks to a potential buyer of the company.

Earlier this week Norish announced it was in takeover talks with a so-far unnamed company and said it was suspending the interim dividend while talks progressed.

Yesterday Norish reported a return to profits for the six months to end June. The company said pre-tax profits came in at £200,000 (€292,000) compared with a loss of £800,000 a year ago. Turnover was flat at £6 million (€8.8 million).

Chairman Ted O’Neill said 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.”

Brokers were disappointed with the results. Goodbody Stockbrokers said that it had been expecting a better performance from the company this year.

The broker has recommended investors to sell out of the stock.

Shares in the company ended the day unchanged at 85 cents.