An exceptional charge of €5 million prevented cold-storage and warehousing group, Norish, from recording a profit last year, despite signs that recovery is taking root at the company.

Norish yesterday reported a pre-tax loss of €3.8 million for 2002, down from a modest €192,000 profit in the previous year. When the write-down and other charges are excluded, however, the company's full-year figures show a €1.2 million pre-tax profit, a 60 per cent rise on 2001.

Norish chairman, Mr John Paterson, described the performance as "a very positive turnaround" adding that he expected it to continue into 2003.

He said shareholders could expect to receive a final dividend of four cents per share.

Norish has been engaged in radical restructuring and cost-cutting over the past few years as it seeks to extract itself from a period of repeated losses.

The €5 million charge recorded for 2002, €4.9 million of which reflects goodwill, has its basis in trading difficulties at cocoa and coffee storage subsidiary, BWA. Norish acquired BWA for €10.5 million in 1999.

"Due to changes in the supply chain, the business has declined significantly," Mr Paterson said.

"We reached the position where the board reviewed our assets and the values placed on those assets."

Mr Paterson said the company would "remain pretty lean and hungry" going forward as it attempted to further rationalise its cost base.

Norish is looking for new opportunities in both ambient warehousing and cold storage, Mr Paterson said.

He refuted suggestions that the company's recovery status could leave it ripe for a takeover bid.

"We have no plans or intentions to break up the company or seek a trade sale in any shape or form."

It was rumoured last year that the management at Norish could be braced for a buyout.