Storage company Norish has announced interim pre-tax profits of £0.4 million sterling compared to a pre-tax loss of £0.2 million the same time last year. But the company warned that its markets remain difficult.
Turnover for the six months to the end of June was up marginally to £6.6 million from £6.5 million after what the company called 'determined action' to reduce costs and generate replacement sales. 'Ongoing investment to enhance efficiencies also contributed to better profits,' the company added.
Adjusted earnings per share increased to 2.2 pence from 0.3 pence and an unchanged interim dividend of €1.27 has been declared. Norish said that its gross profits increased by 34% to £0.7 million compared with £0.5 million following a 2.5% reduction in the cost of sales.
The company said that an exceptional gain from rate rebates of £0.2 million was reduced somewhat by an exceptional item from the sale of land at Bury St Edmonds. The proceeds of this sale was used to reduce borrowings. This and stronger cash flow saw the company's net debt fall to £4.2 million from £5.7 million.
Norish Chairman Brian Joyce said that while current trading conditions are better than last year, the company's markets still remain difficult.
'The business has gone through a period of consolidation and we are in a better position that 12 months ago with a reduced cost base, increased capacity and lower borrowings,' he said. 'We are meeting our immediate objective of steadily improving the company's operations,' he concluded.
