Norbrook Laboratories gets €8.5m pay-out over CEO’s death

Newry-based veterinary pharmaceutical group, Norbrook Laboratories received an insurance pay-out of £6.12m (€8.55m) arising from the death of its founder and CEO, the late Co Louth native, Edward Haughey.

The former Seanad Éireann member and chairman of the group, Lord Ballyedmond died in March of last year in a helicopter crash in thick fog in Norfolk along with three others. At the time of the crash, Lord Ballyedmond (70) was the North’s richest man with his personal wealth estimated to be around £650m.

Now, new accounts filed by Norbrook Holdings Ltd to Companies House in the UK disclose that the group received the exceptional gain of £6.12m through its ‘keyman insurance policy’.

Businesses take out ‘keyman’ insurance policies to compensate for any financial losses that may arise from the death of a key member of business.

The £6.12m gain contributed to profits increasing at the group last year by 7% to £22m.

The group — which employs 2,045 people — recorded the increase in profits in spite of revenues decreasing by 2% from £202.49m to £198.7m in the 12 months to the end of August 1, 2014. The accounts show that Mr Haughey last year received emoluments from Norbrook Laboratories totalling £2.7m. Lord Ballyedmond was born in Kilcurry, north of Dundalk in Co Louth and educated by the Christian Brothers in Dundalk.

According to the directors’ report since Lord Ballyedmond’s death, the company has taken steps to strength its board and management team and has appointed to the board, Lady Ballyedmond, Prof James Haughey and Edward Haughey.

Liam Nagle — who previously served as CEO of the Sisk group — was appointed Norbrook Laboratories’ chief executive in February of this year.

The group also operates a subsidiary in Co Monaghan, Norbrook Laboratories Ltd (Ireland) Ltd where it markets and distributes veterinary pharmaceutical products. Lord Ballyedmond established his veterinary pharmaceutical business in 1968 and today it sells to 120 countries with manufacturing plants in four continents.

According to the directors’ report “the group saw solid performance across all of its business activities, although turnover was adversely affected by exchange rate movement, which contributed to turnover decreasing”.

The directors state that it is their intention that Norbrook will remain under the control of the Haughey family as an independent firm and that the group’s HQ will continued to be located at Newry.