Belfast Telegraph

Company Snapshot: Norbrook Holdings Ltd

Successful group still expanding

By John Simpson

Norbrook Holdings is the parent company for a large group of companies linked to Norbrook Laboratories - it is based in Newry and controlled by Lord Ballyedmond.

The holding company consolidates the trading and financial performance of 20 companies, seven registered in the United Kingdom, two in the Republic and 11 others in different countries round the globe.

The Norbrook group continues to trade very successfully. The most recent accounts reflect an expanding business and improving profitability.

In the last decade Norbrook has enjoyed a continuing year by year increase in turnover which has more than doubled in the last seven years.

In the three most recent years, the results have improved dramatically in terms of turnover and profits earned.

Operating profits in 2011 rose to the equivalent of over 21% of turnover which seems to have been the best result of recent years.

Pre-tax profits each year have been lower than operating profits - this is mainly to allow for the deduction of net interest payments (£2.1m in 2011) on borrowed funds.

Each year the group spends significant sums on research and development. In 2010, this amounted to £6.5m and in 2011 increased to £8.1m.

Capital spending on additional fixed assets rose from £4.8m in 2010 to £7.7m in 2011. In addition, £8.4m was spent on acquisitions.

Employment in the group averaged 1,636 people in 2011. This was 9% higher than a year earlier.

Within the group, Norbrook Laboratories recorded an average of 1,424 employees last year. The majority of the difference of 212 people is thought to be the impact of the other related businesses.

Post-tax profits were retained in the business and in 2011 the value of shareholders' funds, at July 29, was estimated to be £81.6m, over £14m higher than a year earlier.

Operating profit, expressed as a percentage of net assets, rose from 19% in 2010 to 26% in 2011.