Norish, the cold store business which is also involved in protein trading, has recently dipped a toe in the dairy sector in Ireland, setting up a dairy farm in Kilkenny. The company recently announced it had a solid start to 2017 where revenues were up 31% to £20.5m and operating profits increased 55% to £0.76m in the first six months of 2017. Profit before tax increased 85% to £0.65m. Net debt increased £2.1m to £5.4m on 30 June. Its protein trading business, Town View Foods, saw sales increase 33% to £11.5m. It contributed £0.32m for the period. This business trades beef, pork, lamb and chicken Sales from pork and chicken increased by £1.9m during the period, while sales from beef and lamb increased by £1m.
During the period Norish invested £1m in a leased dairy farm, Cantwellscourt Farm in Kilkenny. The start-up businesses, which includes the dairy farm, recorded a loss of £0.2m in the first half. The group expects these losses to be significantly reduced by year end and that these businesses will be profitable in 2018. This is a low-cost grass-based system based on seasonal block calving and, as such, costs are heavily weighted toward the first half of the year. This affects first half/second half profitability split, with revenues more evenly spread throughout the year.
It also incurred once-off start-up costs during the commissioning phase. The group said its asset utilisation and operational efficiency will continue to improve as it builds the dairy herd, through 2018.
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