Norish profits grow despite revenue slip

Cold storage business Norish grew profits by a fifth in the first half of the year despite a dip in revenues.

For the six months to 30 June, revenues fell 10% to £18.45m but the firm still managed to carve out a 21% improvement in pre-tax profits to £860,000 due to operating margins expanding from 14.3% to 17.7%. Adjusted earnings per share moved ahead 16%, year-on-year to 2.2p.

The cold storage wing, which accounts for roughly 86% of its non-current assets, grew operating profits 17% to £1.2m, however, sales at a headline level were down 4% to £6.7m. Sales at Norish's sourcing division fell 13% to £9.7m.

Norish said: "Over the past number of years, the group's decision to invest significantly in both cold storage assets, and protein sourcing businesses, has proved to be the correct strategy."

"This strategy, combined with the investment in a highly motivated executive management team, which has brought a new energy and dynamic to the business, leaves the group very well placed, for further growth and development, in the years ahead."

Norish did not recommend the payment of an interim dividend.

As of 0820 BST, Norish shares had slipped 2.86% to 68p.