29/11/2012
GB00B5TWCQ18/GBP/PLUS-exn
National Milk Records plc / Index: ISDX/ Epic: NMR.P
National Milk Records plc ('NMR' or 'the Group')
Interim Results
National Milk Records plc, the ISDX Growth Market leading supplier of milk services, is pleased
to announce its unaudited interim results for the six months ended 30 September 2012.
Overview
* 6% increase in turnover GBP9,173,000 in comparison to 2011 interim results
* 11% increase in operating profit to GBP423,000
* Expanded disease testing capabilities enabling participation in industry led national
schemes
* Increased profit and turnover within NML
* Consolidation of testing facilities at Four Ashes to increase operating margins -
exceptional restructuring cost incurred in the period
Chairman's Statement
During challenging market conditions in the past six months we have still benefited from our
investment in additional services and quality testing capabilities. Turnover and profit before tax
have increased. This has provided us with a good foundation for our full year financials which I
anticipate will enhance our returns to shareholders in the future.
National Milk Records
Milk recording is at the heart of the NMR business. By testing samples monthly from individual
cows within a herd, we provide farmers with vital management information and disease detection
which can be used to increase the productivity and profitability of a farm.
Over recent years we have reported the expansion of our disease testing capabilities and we can
now test for a range of conditions including mastitis, Bovine Viral Diarrhoea ('BVD') and Johnes
disease. Early detection is crucial, enabling farmers to take action before the rest of the herd
is affected and preventing the escalation of costs. Having proved the effectiveness of these
tests, we are now working to develop industry led national schemes for the control of BVD and
Johnes, providing us with a solid pipeline for future growth.
National Milk Laboratories ('NML')
NML tests the quality of over 95% of the milk in the UK before it is sold to consumers in the UK
and Scotland.
Again, expansion of our testing services has broadened our growth opportunities as evidenced by
the introduction of a new testing product to routinely differentiate between saturated and
unsaturated fat. This is used by Marks & Spencer to enable it to set the price paid to farmers
based on the quantity of unsaturated fat in the milk, and NML is participating in the OptiMIR
project which is funded by the European Union to develop this technology further. Our increased
profit and turnover at NML is expected to continue in the second period.
Our Irish Joint Venture, iML, which provides quality testing services to the Republic of Ireland
market, continues to represent a significant growth opportunity.
National Livestock Records ('NLR')
This part of our business, centred on providing services to the red meat industry, has performed
well during the interim period. Sales of ear tags have increased and we expect this to continue
over the coming months.
Our work with the Technology, Agriculture and Greater Efficiencies Project ('TAG') with the Welsh
Assembly Government is on-going, aimed at increasing traceability and efficiency in the Welsh
sheep industry
Financials
For the period under review, the Group is reporting a profit before tax of GBP411,000 (2011:
GBP386,000) on a turnover of GBP9,173,000 (2009: GBP8,641,000).
We consolidated our testing facilities at the Four Ashes site in July 2012. The exceptional costs
incurred in this period relate to our re-structuring plan to consolidate two laboratories and a
transport depot to the single site which should deliver increased operating margins in the future.
DRIP Scheme
In September 2012, NMR approved a dividend payment for the year of 2.1p per share compared to 2.0p
per share the previous year. Due to the large number of relatively small shareholdings in the
Company, this resulted in over 5,000 dividend payments of less than GBP6, a considerable
administrative burden for the Company. The Board would therefore like to encourage shareholders to
consider joining the NMR Dividend ReInvestment Programme ('DRIP'), by which shareholders' dividend
payments are used to buy further NMR shares. Over 650 shareholders have so far joined the scheme.
Shareholders can join the scheme with a single form available at www.nmr.co.uk/share-trading.
Outlook
The first six months of the year have been positive for the Company and we are well positioned to
benefit from recent investment which has broadened the scope of our business and increased the
value of our services across all three divisions by addressing concerns and requirements within
the dairy sector. This is underpinned by our financial results announced today.
Looking ahead, we have a diverse range of growth prospects, both at home and abroad. Our
recognised expertise has enabled the Company to build and progress its presence in Ireland and
beyond, where we continue to offer advice and consultation services to countries looking to build
their dairy markets. This has the potential to translate into material growth for the Company.
I would like to take this opportunity to thank shareholders for their support and look forward to
updating them over the next six months.
Philip Kirkham
Chairman
Summary Profit and Loss Account
Unaudited Figures for the
Six Months Ended Six Months Ended Year To
30th September 2012 30th September 2011 31st March
2012
GBP '000 GBP '000 GBP '000
Turnover
NMR 7589 6685 13437
Less Share of Joint Venture turnover -187 -175 -344
Less Intra Group turnover -1311 -255 -599
NML 2841 2177 4591
NLR 241 209 452
9173 8641 17537
Operating profit/(Loss) before exceptional items, Interest
and goodwill amortization
NMR 131 157 193
Share of operating profit of Joint Ventures -12 3 -4
NML 262 165 413
NLR 30 57 113
411 382 715
Exceptional Administration Expenses -252 -28 -57
FRS 17 Interest 72 160 390
Goodwill Amortization -76 -76 -152
Other Interest -42 -31 -66
Profit on Ordinary Activities 113 408 830
Tax on Profit on Ordinary Activities -30 -61 -238
Profit for the year 83 347 592
Consolidated Balance Sheet
Unaudited Figures for the periods ended
30th September 2012 30th September 2011 31st March
2012
GBP '000 GBP '000 GBP '000
Fixed Assets
Intangible Assets 136 372 239
Tangible Assets 4,935 4,295 4,758
Investments 125 152 137
5,196 4,819 5,134
Current Assets
Stock 718 916 802
Debtors 1,756 1,461 1,576
Cash at Bank 61 (36) 136
2,535 2,341 2,514
Creditors
Amounts falling due within 1 year (3,242) (2,694) (2,963)
Net Current Liabilities (707) (353) (449)
Total Assets Less Current Liabilities 4,489 4,466 4,685
Creditors
Amounts falling due after more than 1 year (1,356) (1,033) (1,481)
Provisions for liabilities (211) (233) (211)
Pension Liability (4,044) (1,580) (4,044)
Net (Liabilities)/Assets (1,122) 1,620 (1,051)
Capital And Reserves
Called Up share Capital 735 735 735
Revaluation Reserve 1,096 1,096 1,096
Share Option Reserve 12 5 12
Profit and loss account (2,965) (216) (2,894)
(1,122) 1,620 (1,051)
The Directors of the Company are responsible for the contents of this announcement.
For further information visit www.nmr.co.uk or contact:
NMR plc
Andy Warne Tel: +44 (0) 1249 467 220
St Helens Capital Partners LLP
Duncan Vasey/ Mark Anwyl Tel: +44 (0) 20 7368 6959
St Brides Media & Finance Ltd
Elisabeth Cowell/ Hugo de Salis Tel: +44 (0) 20 7236 1177