12th Sep 2014 08:35
LONDON (Alliance News) - Warehousing and logistics group Norish PLC said its pretax profit dipped on the back of a fall in revenue in the first-half, hit by a drop in turnover at Town View Foods as it continues to recover from the horse meat scandal in 2013.
The company said pretax profit in the six months to June 30 dropped to GBP164,000 from GBP299,000 last year, reflecting the fall in revenue in the period to GBP11.1 million from GBP11.4 million last year.
The revenue drop was attributed to an 8% fall in turnover at Town View Foods, the UK-based meat importer it acquired in 2012, to GBP5.4 million. Norish said the business is still continuing to recover from the horse meat scandal in February 2013.
In the half-year, the group raised GBP2.1 million through a placing and open offer and secured a GBP1.5 million term loan. The new financing was used to acquire its Birmingham site for GBP2.4 million and to back a GBP663,000 investment in its blast freezing facilities. Norish said the acquisition of the Birmingham site will eliminate GBP400,000 per year in rental and landlord costs.
The company also said it entered into a new three-year deal with its largest customer in April and said, post the period end, it had established a new Ireland-based commodity trading arm in July.
The company said it remains confident for full-year results to be in line with expectations and said it is well positioned to take advantage of opportunities in the Chinese pork export market in the coming year.
Norish shares were untraded on Friday, quoted at 38 pence per share.
By Sam Unsted; [email protected]; @SamUAtAlliance
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