Norbrook receives £6.12m payment over Haughey death
Published 21/05/2015 | 02:30
The Northern Ireland-based veterinary pharmaceutical group Norbrook Laboratories received an insurance pay-out of £6.12m (€8.55m) arising from the death of its founder and CEO Edward Haughey.
The former Seanad Eireann member and chairman of the group, Lord Ballyedmond died in March of last year in a helicopter crash in thick fog in Norfolk along with three others.
At the time of the crash, Co Louth native Lord Ballyedmond (70) was the North's richest man with his personal wealth estimated to be around £650m.
Now, new accounts filed by Norbrook Holdings Ltd to Companies House in the UK disclose that the group received the exceptional gain of £6.12m through its 'keyman insurance policy'.
Businesses take out 'keyman' insurance policies to compensate for any financial losses that may arise from the death of a key member of business.
The £6.12m gain contributed to profits increasing at the group last year by 7pc to £22m.
The group - which employs 2,045 people - recorded the increase in profits in spite of revenues decreasing by 2pc from £202.49m to £198.7m in the 12 months to the end of August 1, 2014.
The accounts show that Mr Haughey last year received emoluments from Norbrook Laboratories totalling £2.7m.
Lord Ballyedmond was born in Kilcurry, north of Dundalk in Co Louth, and he was educated by the Christian Brothers in Dundalk.
According to the directors' report since Lord Ballyedmond's death, the company has taken steps to strengthen its board and management team and has appointed to the board Lady Ballyedmond, Prof James Haughey and Edward Haughey.
Liam Nagle - who previously served as CEO of the Sisk group - was appointed Norbrook Laboratories chief executive in February of this year.
The report states that the directors consider that Norbrook is well positioned to capitalise on a number of exciting commercial opportunities within the animal health industry and are confident that the strategy being implemented will support the continued growth in both revenue and earnings that has been demonstrated over the past five years.
The group's accumulated profits increased stood at £121.9m. The group's cash increased sharply to £11.74m.
Payroll costs increased by 7pc from £56m to £60.29m.
The profit takes account of non-cash depreciation costs of £6.5m.