National Milk Records plc

August 27, 2009 02:00 ET

Final Results for the year ended 31 March 2009

                                                                                       27 August 2009
                       National Milk Records plc / Index: PLUS / Epic: NMR.P
                         National Milk Records plc ('NMR' or 'the Group')
                                           Final Results

National  Milk Records plc, the PLUS-quoted leading supplier of milk services, is pleased to  announce
its audited results for the year ended 31 March 2009.


*       Revenue for the year increased 8.2% to £15.4 million (2008: £ 14.2 million)
*       Profit before tax for the period is  £345,000 (2008: loss £90,000)
*       Strong cash inflow of £629,000
*        Retained position as the industry acknowledged market leader in the provision and support
    of dairy services in the UK
*       Progressive business plan to build on profit through vertical and horizontal growth and
continue significant cash generation
*        Milk  testing divisions continue to maintain strong defensive positions due to the demand
    from buyers for tested dairy products
*        Strong  growth  potential for National Livestock Records on the back  of  EU  legislation
    governing the distribution of ear tags for sheep

NMR  Managing  Director  Andy  Warne said, "I am pleased with the  progress  the  Group  has  made
throughout  the  financial  year.   Our milk testing divisions have  performed  well  despite  the
challenges  experienced  by many of those operating within the dairy sector  throughout  the  past
year,  due  to the continued relevance of quality and disease testing for both dairy  farmers  and
milk  buyers.   Furthermore, we have worked hard to maintain our position as leading providers  of
milk  services  in the UK by enhancing our technological offerings to customers, thus  positioning
ourselves to maximise the full potential of the Group in the future."

Chairman's Statement

NMR  has  continued to make substantial progress in strengthening its position as the UK's leading
milk  recorder  and  in  line  with  this, I am pleased to report  that  we  have  maintained  our
profitability during the year ended 31 March 2009.  Although this year has been difficult for many
operating  within  the UK dairy sector, the Board believes the Group is well placed,  being  in  a
strong  defensive  position.  Good quality milk and herd management information  continues  to  be
essential and our role as disease testers and herd managers remains crucial within the sector.

However, the challenges of the past year have not bypassed us with consolidation at both the  farm
and  processor  levels.   Herd sizes are increasing to compensate for the number  of  dairy  farms
closing  down  and with this in mind, we are continuing to evolve our technological  offering  and
look for new ways to help farmers and milk buyers adapt to this changing environment.

National Milk Records

National  Milk  Records is our core business, providing farmers with information on milk  quality,
yield  and  fertility within their herds.  This division's performance remained consistent  during
the  period  under  review.   This was supported by increased recognition  from  farmers  who  are
concerned  about disease traceability who see the benefits of detecting diseases early within  the
herd.   Furthermore, the increasing size of herds raises the significance of effective  management
tools to farmers as personal knowledge of individual animals becomes more difficult to maintain.

Technological developments have been integral in adding value to this business by reinforcing  our
reputation  amongst  farmers for quality and accuracy.  For the past  three  years  we  have  been
developing  THOR,  a  new  £1  million software system designed to optimise  our  data  collection
capabilities and provide a more time-efficient and extensive service.  THOR will go  live  in  the
coming  financial year.  Our sustained investment in our products and ability to offer  additional
testing  services  to  farmers has enabled us to retain our position as the industry  acknowledged
market leader in the provision and support of dairy services in the UK.

National Milk Laboratories ('NML')

NML,  which  provides testing to all of the major UK milk buyers, has performed well, capitalising
on  current legislation governing food production and hygiene by testing bulk milk samples in  two
quality accredited laboratories in Wolverhampton and Glasgow.

NML enjoys long-term corporate contracts with many UK blue-chip milk buyers.  During the year,  it
also  expanded its reach into Ireland, having signed an agreement with two leading Irish  farmers'
COOPs.   NML  now  provides disease testing services and interpretation which complement  existing
milk recording services.  We expect to have tested 30,000 cows in Ireland by October 2009.

National Livestock Records ('NLR')

NLR  is  a relatively fledgling part of the Group's portfolio and focuses on the red meat  sector.
The  company is well placed to take advantage of the EU's agricultural legislation, which will  be
implemented from 1 January 2010.  From this date, all sheep must be electronically tagged, in  the
same  way that cows are currently, for monitoring purposes.  With the capacity to distribute  such
electronic  tags to farmers to enable them to comply with EU demands, we look forward  to  growing
this side of our business in the future.


Improved  longevity  and  depressed financial markets have led to a substantial  increase  in  the
funding  deficit in the Milk Pension Fund, and along with many companies with final salary pension
schemes,  this  has  had  a major impact on our balance sheet.  We closed our  scheme  for  future
accrual in May 2007 which has gone someway to reducing our risk, although we are still faced  with
a  large liability for the pensions accrued up to that date.  The unusual nature of the fund means
that we have been allocated liability for former employees of the Milk Marketing Board.

We  take  our commitments to our pensioners and deferred pensioners seriously and we believe  that
our  business  plan  will generate sufficient cash to allow us to invest  in  the  growth  of  our
business  whilst agreeing with the Trustee a phased payment plan to meet the deficit in the  fund.
This should allow us to substantially reduce the inherent risk within a five year period.


Although  the  2008-2009 financial year has been made more difficult by the  underlying  financial
context  and tensions within the industry, we performed strongly over the period and I am  pleased
to  report  a  net  profit of £345,000 (2008: loss £90,000) on a turnover  of  £15,366,000  (2008:
£14,156,000).  The Group has a cash position of £127,000 (2008: overdraft £502,000).


The two to three year forecast for the agricultural sector is relatively buoyant, with the rise in
value of food inherently increasing the value of services designed to maximise production such  as
milk  recording.  Looking forward, through utilising our significant position in  the  market,  we
believe  our main growth will come from adding to the range of services we can offer to the  dairy
industry  and expanding geographically.  Having entered the Irish market, we also hope to increase
our  presence in the Scottish market and believe that we are well placed to support our  customers
as EU legislation impacts on testing and identification.

The Directors will not be recommending the payment of a dividend for this period.

Finally,  I'd  like  to thank all those involved with the Group for their hard  work  and  I  look
forward to the future with confidence.

Philip Kirkham

27 August 2009

Consolidated Income Statement
For the year ended 31 March 2009

                                                                                   2009          2008
                                                                                  £'000         £'000

Turnover                                                                         15,366        14,156
Cost of sales                                                                   (11,452)      (10,815)
Gross profit                                                                      3,914         3,341

Administrative expenses		                                                 (3,415)       (3,247)	
Exceptional administrative expenses		                                    -	         (108)	
Total administrative expenses                                                    (3,415)       (3,355)
Operating profit/(loss)                                                             499          (14)
Interest receivable                                                                   -           266
Interest payable                                                                   (154)         (342)
Profit/(loss) on ordinary activities before taxation                                345          (90)
Tax on profit/(loss) on ordinary activities                                        (110)          24
Profit/(loss) for the year                                                          235          (66)
Minority interest                                                                     -           (6)
Profit/(loss) for the financial year attributed to members of the
parent company                                                                      235          (72)
Retained profit/(loss) for the year                                                 235          (72)

Earning per ordinary share (pence)
- Basic                                                                              3.4         (1.3)
- Diluted                                                                            3.2         (1.2)

The above has been generated from continuing activities.

Group statement of total recognised gains and losses
For the year ended 31 March 2009

                                                                                   2009          2008
                                                                                  £'000         £'000

Profit/(loss) for the financial year                                                235          (72)
Actuarial (loss)/gain recognised in the pension scheme                          (2,241)         1,684
Deferred tax relating to pension liability                                          602         (555)
Revaluation of land and buildings                                                     -           398
Total recognised gains and losses                                               (1,404)         1,455
                                                                                 ------        ------
Group balance sheet
At 31 March 2009

                                                                                   2009          2008
                                                                                  £'000         £'000
Fixed assets
Tangible assets                                                                   4,653         4,676
                                                                                  4,653         4,676

Goodwill                                                                            866         1,058
Intangibles                                                                           -             9
Investments                                                                           5             5
                                                                                    871         1,072
                                                                                  5,524         5,748
Current assets
Stock                                                                               147           115
Debtors                                                                           1,474         1,448
Cash at bank and in hand                                                            127             -
                                                                                  1,748         1,563

Creditors: amounts falling due within one year                                   (2,080)       (2,232)
Net current liabilities                                                            (332)         (669)
Total assets less current liabilities                                             5,192         5,079

Creditors: amounts falling due after more than one year                          (1,529)       (1,512)

Provision for liabilities and charges                                              (219)         (290)

Defined benefit pension liability                                                (2,543)         (977)
                                                                                    901         2,300

Capital and Reserves
Called up share capital                                                             735           735
Capital reserve account                                                               -         3,098
Profit and loss account                                                          (1,197)       (2,891)
Revaluation reserve                                                               1,286         1,286
Equity shareholders' funds                                                          824         2,228
Minority interest                                                                    77            72
                                                                                    901         2,300

The above is an extract from the full financial statements.
The full financial statements can be found on the PLUS website.
The directors of the Group accept responsibility for this announcement.
For further information visit or contact:
Chris Hughes                         NMR plc                                Tel: +44 (0) 1249 467 220
Duncan Vasey / Mark Anwyl            St Helen's Capital                     Tel: +44 (0) 20 7628 5582
Hugo de Salis                        St Brides Media & Finance Ltd          Tel: +44 (0) 20 7236 1177
Elisabeth Cowell                     St Brides Media & Finance Ltd          Tel: +44 (0) 20 7236 1177

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