Norish plc, the UK-based cold and dry storage group, has reported a 23 per cent increase in pre-tax profits from £922,000 sterling (€1.5 million) to £1.13 million for the six months to June 30th, 2000. Commenting on the results, chairman Mr Brian Joyce said excess capacity continued to be a feature of the cold storage business, making trading conditions more competitive.

"The reduction in current year imports of cocoa will have a short-term impact on the ambient warehousing division, although we expect that this will be partly offset by growth which we are generating in general warehousing," he said.

The acquisition, in May 1999 of Belvedere Warehousing (BWA), which imports and stores cocoa and coffee and is the first expansion since it sold its Irish cold storage operations, was a major contributor to sales.

Turnover increased by 41 per cent to £6.8 million over the six months. Earnings per share were up 31 per cent to 10.1p.

Adjusted earnings per share, which excludes the effect of goodwill amortisation and exceptional items, increased by 4 per cent to 8.2p.

The company has declared an interim dividend of 1p per share.

Mr Joyce said that normal trading patterns indicated that stocks of cocoa would need replenishment in due course.

"A strong performance from BWA's growing general ware housing business and from coffee storage has helped to offset the reduction in cocoa activity," he added.

The share of profit from the group's interest in its associated undertaking in cold storage in Co Monaghan, which was disposed of during the first half of the year, declined to £20,000 from £131,000 and had a negative effect on earnings per share. At the end of June shareholders funds were £8.63 million compared with £7.84 million in December 1999.

Net debt was £4.85 million, giving a debt to equity ratio of 56 per cent compared with 64 per cent in the previous December.