Freezer arm chills Russell results

Published on Monday 9 February 2009 20:57

HAULAGE and distribution firm John G Russell has reported a steady rise in turnover but losses at the group's freezer manufacturing arm brought a chill to its annual results.

The Glasgow-based company has operated the Icetech freezer business since 2005 when it bought the Caithness firm Norfrost out of administration.

Reporting a near-7 per cent hike in group-wide turnover to 47.1 million, Russell said losses before tax in the year to 31 March 2008 had widened to 759,000 from just 12,000 a year earlier.

Writing in the annual accounts, newly-filed at Companies House, Russell's directors said the overall operating margin had been "significantly affected" by Icetech's results.

A number of factors were blamed for the weak performance, including rising commodity prices, the "rapid fall" in the value of sterling and cheap imports from China.

Russell said it remained "committed to providing support" to Icetech in the hope that the business would "achieve financial stability within an acceptable period".

It added that no government support was currently being received by the "sole remaining UK domestic freezer manufacturer".

Fleet upgrading meant that capital expenditure across the group, which employs about 600 staff, totalled 11.2m, against 4.1m in 2006/07.

Russell's highest-paid director received 98,302, up from 96,838.