Norish is to pay its first dividend for several years, following major rationalisation of its cold storage business in the Republic. The company hopes that the 1p per share interim dividend will boost confidence. The cold storage group has also posted strong pre-tax profits of £1.57 million for the six months to June 30th last, up from £688,000 in 1996, but this includes a £600,000 surplus on winding up the group's Irish pension fund.

Profits, excluding the surplus, were £971,000 compared with first half profits in 1996, excluding exceptional items, of £408,000.

Chairman Mr Brian Joyce said the company should perform strongly in the second half of the year. He said the share price has been very low for a long time and Norish had not been able to do a share issue which would be of any value to the company.

He hoped the shares would be re-rated following these results and then a share issue could take place and the monies be used for other acquisitions in the same or a related business.

Mr Joyce said Norish wants extra capacity in another part of Britain, but the deal could take some time. The recovery in the company begun in 1996 was coming through strongly this year, he added.

All four UK-based cold storage facilities have performed well and enjoy firm storage rates and high occupancy levels. Its distribution business, which Norish says is growing, also traded profitably. "The improved results compared with recent years reflect not only favourable market conditions, but also a solid performance from our highly-focused management team," it said.

The company also said that its joint venture company in Ireland continues to make progress and it will make a satisfactory contribution to group profits for the year.