Norse reports losses of £2m and director payout of £336,000, but remains ‘confident’
- Credit: Norse Commercial Services
Norse has revealed it has lost in excess of £2m in the last financial year, having suffered a 'very difficult' twelve months.
Despite making near £280m for the financial year to March 2018, the group lost £2.08m according to recently filed company accounts, driven predominantly by a downturn in its environmental waste sector, as well as a dispute over an overrun project with Haringey Council.
The group saw staffing costs soar having paid compensation to a director for 'loss of office' totalling £161,000, as well as paying off the individual's final pension sum of £179,000 – both before tax.
The group's strategic report reveals it has seen a 'major downturn in the market for recycled paper', and has processed an increased amount of tonnage despite turnover remaining the same as the year before.
As a result, revenue for its Environmental Waste Services arm dropped from £61m in 2017 to £56m in 2018.
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The business added that its 'outlook remains uncertain' on the trade.
MORE: How manager's suspension led to fall-out between Norwich City Council and NorseThe transport services arm of the company also faltered from £17m to £16.7m, which the group say was a 'direct impact' of snowy weather conditions and schools and travel being disrupted.
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Despite this, the group's day-to-day activities still brought in a tidy £4.9m, despite it having sat at £6.6m the year before.
Both Norse Commercial Services (NPS) and its property consultant group delivered good results.
Of its Norfolk-based activities, Norse saw its best growth in security and facilities management, up 29% and 15% respectively.
On its future projects, Norse said it was already in discussions with councils about new partnership agreements, similar to the one it has with Norfolk County Council.
Dean Wetteland, managing director of the Norse Group, said: 'Our optimism for the future is borne out by the positive trading results achieved so far during 2018-19. With a number of new income streams coming to fruition shortly, we are looking forward to the future with confidence.
MORE: Norfolk County Council rich list: Which firms got the most money in 2018? 'The group, year to date, has added over £14m of new business across its operating divisions and local authority partnerships. Across our commercial divisions and in our long-term local authority partnerships we are continuing to perform well, providing stability for our workforce, suppliers, clients and partners alike.'