Preliminary Results

Norish PLC 03 March 2005 Norish plc Preliminary Statement of Annual Results I am pleased to present the Annual Report of Norish Plc for 2004. This was a difficult year for the business following the earlier than expected loss of our last major cocoa contract which was announced in last year's report. This loss adversely affected the results of our Felixstowe and Belvedere operations. Action has been taken to improve these sites' contribution with a combination of new business, better mix and reduced warehouse capacity. We announced on 6 September that we had received an approach to acquire the entire ordinary share capital of the Group. We terminated discussions on 23 November as the Board were not satisfied that the other party were in a position to complete the transaction on the terms proposed. Such unsuccessful approaches result in both increased costs and disruption of management time. Results The Group announces pre-tax profits of £0.3m. This compares with pre-tax losses of £0.4m (after exceptional items of £0.6m) for last year. Turnover fell by £0.2m to £12.2m. The profit per share is 2.7p compared with a loss of 3.6p last year. Net debt at the year-end reduced by £0.7m, to £2m. Operations Our cold stores performed slightly better than last year in a market still suffering from overcapacity and pressure on rates. Earlier in the year we suffered a reduction in throughput and occupancy at a number of sites due to the outbreak of Asian bird flu which affected one of our major poultry customers. Results improved in the second half year as a result of business wins combined with seasonal uplift, growth in blast freezing and higher stock throughputs. We are encouraged by positive developments in our Wrexham and Braintree stores and continuing strong performance in Bury St Edmunds. Our ambient store at York performed well. We are in the process of increasing the storage capacity by altering the racking configuration at a cost of £0.2m. At Belvedere the loss of the cocoa bean cleaning operation has hit the store badly. Our coffee storage operation there has grown in the last 12 months and we are endeavouring to increase the rates to more economical levels. Felixstowe is a difficult location for the company. We have surplus warehouse facilities resulting from the loss of the cocoa storage associated with the loss already mentioned above. Every effort has been made to attract new business and at the same time we have successfully sub-let a significant amount of our available space, effective from January 2005. This site still needs attention but the signs in early 2005 are encouraging. Dividend We announced in the interim report in September that as a consequence of the approach mentioned above that an interim dividend was not being paid. The directors are recommending a final dividend of €2.0c, subject to shareholders approval. This compares with a total dividend last year of €2.54c. Personnel The Board again would like to thank the staff for their contribution in a difficult trading environment in 2004. Trading Outlook We have started the year with higher than expected occupancy levels. However, as is being experienced throughout industry, we are expecting a substantial increase in our power costs in April when we renew contracts. Power is a significant operating cost in our cold stores. Over the last 3 years we have substantially reduced our cost base in order to accommodate the various changes and challenges to our business. With this reduced cost base and business wins during 2004 we look forward to 2005 with more confidence than 12 months ago. However it should be remembered that our business can change very quickly based on customer supply chain decisions. Replacing lost business takes time and substantial effort. Group Structure After careful consideration the Board has decided that the Alternative Investment Market of the London Stock Exchange (AIM) is the most appropriate market for the Company's shares. The Board intends to take advantage of the new fast track admission procedures available in the United Kingdom to move from the Official List of the United Kingdom Listing Authority (UKLA) to AIM. These admission procedures allow eligible companies gain admission to AIM by giving 20 business days notice but without the need to publish an Admission Document. We are in the process of cancelling the listing of the issued ordinary capital of the Company on the Official Lists of the Irish Stock Exchange (ISE) and the UKLA. It is expected that the listings will be cancelled and the admission to AIM will become effective by the end of March. Overall the regulatory regime attaching to AIM companies is better suited to companies of our size giving us the ability to undertake transactions, subject to the AIM Rules, more quickly and cost effectively than being on the Official Lists of the ISE and UKLA. AIM companies enjoy wide investor support. AIM is gradually attracting an increasing number of international companies and is, the Board believes, well placed to become the European market of choice for successful growth companies. The inclusion of Norish on the FTSE AIM index may of itself encourage significant additional interest in the Company. We are also reviewing the corporate and tax structure of the Group and we hope to simplify these during 2005. Ted O'Neill Executive Chairman 3 March 2005 The results herein do not represent full accounts. Full accounts for the year ended 31 December 2004, upon which the Auditors have given an unqualified audit report, have not yet been filed with the Registrar of Companies. Full accounts for the year ended 31 December 2003 containing an unqualified audit report from the Auditors have been delivered to the Registrar of Companies. The audited profit and loss account, balance sheet and cash flow statement in sterling currency, with comparatives, are attached. For information purposes these are also expressed in Euro (€) at the rate of €1 = £0.71, the conversion rate applicable on 31 December 2004. The Euro (€) figures are not audited. Norish plc Consolidated profit and loss account for the year ended 31 December 2004 2004 2004 2003 €'000 £'000 £'000 Group turnover - continuing operations 17,244 12,243 12,428 Cost of sales (15,907) (11,294) (11,450) ---------- ---------- ---------- Gross profit 1,337 949 978 Administrative expenses (787) (559) (576) Goodwill amortisation (21) (15) (15) Exceptional item - reorganisation costs - - (617) ----------- ------------- ------------- Group operating profit/(loss) - continuing 529 375 (230) operations Interest receivable and other income 34 24 2 Interest payable and similar charges (190) (135) (167) ------- ------- ------- Profit/(loss) on ordinary activities before 373 264 (395) taxation Tax (charge)/credit on profit/(loss) on ordinary activities (49) (35) 90 ------ ------ ---- Profit/(loss) for the financial year 324 229 (305) Equity dividends - paid - - (76) - proposed (170) (119) (76) ------- ------- ------ Retained profit/(loss) for the financial 154 110 (457) year Profit and loss account at beginning of 654 464 921 year ----- ----- ----- Profit and loss account at end of year 808 574 464 ===== ===== ===== Basic earnings/(loss) per ordinary share 2.7p (3.6)p ====== ======== Diluted earnings/(loss) per ordinary 2.7p (3.6)p share ====== ======== Adjusted earnings per ordinary share 2.9p 2.1p ====== ====== Norish plc Consolidated balance sheet at 31 December 2004 2004 2004 2003 €'000 £'000 £'000 Fixed assets Intangible assets - goodwill 325 231 246 Tangible assets 10,425 7,402 7,827 -------- ------- ------- 10,750 7,633 8,073 Current assets Debtors 3,944 2,800 2,959 Cash at bank and in hand 69 49 47 -------- ------- ------- 4,013 2,849 3,006 Creditors: amounts falling due within one year (5,244) (3,723) (3,708) --------- --------- --------- Net current liabilities (1,231) (874) (702) --------- ------- ------- Total assets less current liabilities 9,519 6,759 7,371 Creditors: amounts falling due after more than one year (1,210) (859) (1,517) Provisions for liabilities and charges (921) (654) (718) -------- ------- ------- Net assets 7,388 5,246 5,136 ======== ======= ======= Capital and reserves Called up share capital 2,103 1,493 1,493 Share premium account 4,445 3,156 3,156 Capital conversion reserve fund 32 23 23 Profit and loss account 808 574 464 -------- ------- ------- Shareholders' funds - equity 7,388 5,246 5,136 ======== ======= ======= Norish plc Consolidated statement of cash flows for the year ended 31 December 2004 2004 2004 2003 €'000 £'000 £'000 Net cash inflow from operating activities 1,934 1,373 1,808 Returns on investments and servicing of finance (156) (111) (164) Taxation 27 19 (371) Capital expenditure and financial investment (665) (472) (117) Equity dividends paid (107) (76) (296) ------- ------ ------- Cash inflow before financing activities 1,033 733 860 Financing activities (920) (653) (852) ------- ------- ------- Increase in cash in the year 113 80 8 ======= ======= ======= Reconciliation of net cash flow to movement in net debt 2004 2004 2003 €'000 £'000 £'000 Increase in cash in the year 113 80 8 Decrease in debt 845 600 800 Decrease in finance leases 75 53 52 --------- --------- --------- Change in net debt resulting from cash flows 1,033 733 860 Non-cash movements - - - --------- --------- --------- Decrease in net debt in the year 1,033 733 860 Net debt at 1 January (3,803) (2,700) (3,560) --------- --------- --------- Net debt at 31 December (2,770) (1,967) (2,700) ========= ========= ========= Norish plc Adjusted Earnings Per Share Statement for the year ended 31 December 2004 (Loss)/ Earnings earnings 2004 per share 2003 per share £'000 - pence £'000 - pence Profit/(loss) attributable to 229 2.7 (305) (3.6) shareholders Goodwill amortisation 15 0.2 15 0.2 Exceptional item - Reorganisation costs (after effective - - 470 5.5 tax rate of 24%) --- --- ----- ----- Adjusted earnings 244 2.9 180 2.1 ===== ===== ===== ===== Weighted average number of 8,466,230 8,466,230 ordinary shares Adjusted earnings per share 2.9p 2.1p ====== ====== This information is provided by RNS The company news service from the London Stock Exchange

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