Haughey firm feels economic chill

Published on Thursday 2 September 2010 23:21

The supermarket refrigeration supplier owned by former Celtic director Willie Haughey saw pre-tax profits tumble last year to £3.3 million, down from £4.2m in 2008, due to challenging market conditions.

However the 2009 accounts for City Refrigeration Holdings, which employs more than 8,000 in Scotland and Northern Ireland, show an increase in group operating profits from 2.6m to 3.2m, while turnover was up from 243.1m in 2008 to 264.7m last year. Directors of the Glasgow-based group received a total 583,398 in salary and bonuses, compared with 549,500 in 2008, with the highest paid, believed to be Haughey, receiving 195,898.

The firm supplies large-scale fridge equipment to companies including Asda and Scotmid and has two main divisions, project services and facilities management and cleaning. Turnover from the latter grew from 155.8m in 2008 to 179.1m last year after an increase in new business both in the UK and overseas. It said it expects further growth in the facilities management division over 2010. However, turnover in the project services division, which includes construction services and the installation of refrigeration, security and other equipment, fell from 82.2m in 2008 to 81.1m last year. The board claimed the division was well-placed in the current economic climate despite marketplace pressure to cut costs.

City Refrigeration was set up in 1985 and Haughey was a director at Celtic between 1994 and 1997.

His two-year sponsorship of the Scottish FA Cup, worth more than 1m a season, came to an end in May.

The directors' report said: "The board is confident that the group's strategy and investment will continue to deliver positive growth in 2010."