National Milk Records plc
LSE : NMRP

July 13, 2011 07:43 ET

Audited Final Results For The Year Ended 31 March 2011

          
          
          
          
                                                                                                        13/07/2011
                                                                                         GB00B5TWCQ18/GBP/PLUS-exn
                                                                                                                  
                                                         
                                                         
                                             National Milk Records plc
                                             ('NMR' or the 'Company')
                                                         
                              Audited Final Results For The Year Ended 31 March 2011

National  Milk  Records  plc,  the PLUS-quoted leading supplier of dairy and livestock  services,  is  pleased  to
announce its audited results for the year ended 31 March 2011 and to give notice of its AGM to be held at  Stanton
Manor Hotel, Stanton St Quinton, Chippenham, Wiltshire SN14 6DQ on 21 September 2011at 11.00am.


Overview

*       Increased revenues and dividend of 2 pence per share
*       Expanded  geographic  presence through Joint Venture to provide payment testing services  to  Irish  dairy
        market
*       Successful diversification of current product offering to include fertility aid Silent HerdsmanTM - highly
        encouraging uptake in the UK
*       Post  year  end  acquisition  of a new property to consolidate testing facilities,  providing  savings  of
        £150,000 per annum
*       Defined  growth  strategy to take advantage of strong market conditions bolstered  by  concerns  regarding
        global food shortages and food traceability
*       Share Reorganisation implemented to reduce number of legacy shareholders to a more appropriate size

NMR Managing Director Andy Warne said, "We are delighted to report a dividend of 2 pence per share on the back  of
what  has  been  a  highly  active  year for NMR.  Over the last 12 months we have successfully  consolidated  our
shareholder base, strengthened our product offering and raised our profile both in the UK and further afield.

"The market conditions within the dairy industry are highly conducive for growth and we are confident that we  are
positioned  to capitalise upon this.  Worldwide demands for increased food production, and stipulations  from  all
major  retailers  for milk traceability has made milk recording a near necessity for all dairy  farmers.   NMR  is
already  recording  50  per  cent.  of  the cows in the UK and with only one other  major  recording  organisation
operating  in  market,  we are rapidly gaining more business from non-recording farmers.   Importantly,  with  the
infrastructure in place to accommodate further customers, growth can be achieved with marginal investment."

Chairman's Statement

It  has  been a successful year for NMR both on an operational and corporate level.  We have established a  formal
presence  in  Ireland,  trading has strengthened across our divisions and importantly, having  conducted  a  share
consolidation to dramatically decrease our shareholder register and reduced associated costs over the period, I am
pleased to announce that we are now ideally placed to award a dividend of 2 pence per share for the year.

NMR operates through three divisions, which expand the Company's reach across various areas of the dairy industry:
National  Milk  Records, which provides management information to farmers regarding individual cow performance  in
terms  of milk quality, yield and fertility; National Milk Laboratories, an independent milk testing division  for
milk  buyers,  and  National Livestock Records, which provides support to the red meat industry, facilitating  the
growing requirement for traceability in this sector.

As the leading provider of milk recording services in the UK, NMR's offering is increasingly attractive to farming
professionals, retailers and policy-makers alike as concerns about a potential global food shortage  between  2020
and  2040  rise.  As the global population and household incomes continue to increase, so too does the  number  of
consumers  for  which  to  provide.  As this development continues, the demand for higher  quality  food  is  also
predicted  to  increase,  presenting NMR with a strong environment for expansion.   We  have  already  experienced
increased trading on the back of this over recent years and we are confident that this will play a key role in our
future growth.

National Milk Records

Milk recording continues to be at the core of the business and we are consistently looking for new ways to improve
our services.  Our disease testing capabilities are a key revenue driver in the business, particularly as concerns
regarding  food  providence increase, and we continue to test herds on behalf of the majority of  major  UK  dairy
industry bodies to ensure that the quality of the milk is maintained.

During  the  period  we  were  pleased to increase our product offering through our  distribution  agreement  with
Embedded  Technology  Solutions  ('ETS') to distribute Silent HerdsmanTM, an  intelligent,  electronic  monitoring
collar  designed to detect a cow's oestrus events, to the UK dairy industry.  As reported in our interims,  uptake
amongst  new  and  existing  customers has been excellent due to the product's superior ability  to  significantly
improve the efficiency of reproductive operations within the herd during the insemination process.  Going forward,
we hope to strengthen this relationship further and will update shareholders accordingly.



National Milk Laboratories ('NML')

NML  has made strong progress over the year.  Already testing the quality of over 95 per cent. of the milk in  the
UK  before it is sold to consumers in the UK and Scotland, we were pleased to announce a formal move into southern
Ireland  in  September  2010.  Our proprietary payment testing business in Ireland is now marketed  and  delivered
through Independent Milk Laboratories Limited ('iML') a company that we have set up with Irish farming cooperative
Progressive  Genetics Ireland Limited.  We have focussed on moving into this highly attractive dairy  market  over
recent  years  and  iML  has  received  a positive reception since it was established,  particularly  due  to  our
association with a local leader in dairy services, which strengthens our credibility in the country.

We  have  a  strong  team on the board of iML, including Riona Sayers as CEO, a leading researcher  of  infectious
diseases  in dairy herds, and Professor Paddy Wall, one of Europe's most pre-eminent authorities on food  quality,
as  Chairman.  With this in mind, I am confident that our operations in Ireland will continue to add value to  NMR
and I look forward to updating shareholders over the coming months.

Additionally,  we  were pleased to announce in June 2011 the purchase of a freehold building in Wolverhampton  for
£475,000  to  be  used as the Company's only laboratory in England and Wales, consolidating the Company's  current
testing facilities.  This will provide savings of up to £150,000 per year and will be funded by a 15 year mortgage
rolling  every three years. The purchase provides immediate cash flow advantage to the Company.  It will  also  be
used  as  a  central  transport  depot  for  NMR's vehicles currently operating  from  a  leased  site  in  Stone,
Staffordshire. Refurbishment work, which is anticipated to cost circa £325,000, is expected to begin in August and
the laboratory is expected to be operational in Q1 2012.

National Livestock Records ('NLR')

Work with the Welsh Assembly Government on The Technology, Agriculture and Greater Efficiencies Project ('TAG') is
ongoing,  aimed  at increasing traceability and efficiency in the Welsh sheep industry.  This continues  to  be  a
significant source of revenue and provides us with a foothold from which to develop services to the wider UK sheep
industry. We are also seeing growth in our ear tag distribution service, Nordic Star.

Financials

NMR  continues to be highly cash generative and trading across all three divisions has been strong.  I am  pleased
to  report  a  net profit before tax and FRS 17 interest of £387,000 (2010: £504,000) on an increased turnover  of
£16,801,000 (2010: £15,896,000).  The costs for the year include £93,000 relating to the share consolidation,  and
an  increase of over £100,000 in the compulsory levy to the pension protection fund.  Both costs can be considered
as  non-recurring and thus the underlying trend in profit is satisfactory.  Our cash position at the year  end  is
affected by working capital of some £300,000 tied up in Silent HerdsmanTM which is expected to generate cash  this
year.   Thus the net overdraft of £86,000 at the year end (2010 credit £297,000) belies the fact that our  trading
is cash generative.

In  November 2010, NMR undertook a reorganisation of the NMR share capital to reduce the number of shareholders on
the  Company's register to a level more consistent with a company of NMR's size.  We are confident that  this  has
stimulated  trading in our shares and has reduced the number of shareholders who are no longer  engaged  with  the
Company.  This has provided us with the opportunity to generate value for our reduced shareholder base and we look
forward to benefitting from this going forward.

In  view  of  the  consistent  profitability of the Company over recent years, and the  recently  decreased  share
register,  the  Board  considers it appropriate to initiate a dividend policy commencing with  the  payment  of  a
dividend,  having  taken  into  account existing cash flow, capex commitments, and  the  Company's  prospects.   A
dividend  of  2 pence per share will be paid on 30 September 2011 to shareholders on the register on  2  September
2011.  The Ex Dividend date is 31 August 2011. The total dividend amounts to £146,967.

Pension

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.

Outlook

Over  the  past year, we have successfully reached key milestones which have added considerable value to  the  NMR
offering  and I am confident that the year ahead will be one of growth.  Having made strong progress in  expanding
our geographic presence through our payment testing venture in Ireland, we are now well positioned to increase our
presence in these markets and look forward to updating shareholders accordingly.

Market  sentiment and concerns regarding food security and quality control provide our milk recording and  payment
testing  divisions with an exciting market in which to operate.  Going forward, we will be focussed on maintaining
our  position at the forefront of our sector, and working with dairy industry bodies to service the growing demand
for good quality dairy products.

Finally, I'd like to thank all NMR employees for their hard work over the year and shareholders for their  support
over the past 12 months.

Philip Kirkham
Chairman

7 July 2011

                                                         
The Directors of NMR are responsible for the contents of this announcement.
                                                         
For further information visit www.nmr.co.uk or contact:

NMR plc
Chris Hughes                             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










                              NATIONAL MILK RECORDS PLC (REGISTERED NUMBER: 03331929)
                                                         
                                       CONSOLIDATED PROFIT AND LOSS ACCOUNT
                                        FOR THE YEAR ENDED 31ST MARCH 2011


                                                                2011                          2010
                                                    £'000             £'000          £'000           £'000

GROUP TURNOVER                                                       16,801                                15,896

Cost of sales                                                        12,795                                12,081
                                                                                                        
GROSS PROFIT                                                          4,006                                 3,815

Administrative expenses                                               3,543                                 3,267
                                                                                                        
GROUP OPERATING PROFIT                                                  463                                   548

Income from interest in associated                           
undertakings                                           (32)                              -
Interest receivable and similar income                   5                               -
Other finance income                                   319                               -
                                                                        292                                    -
                                                                                                        
                                                                        755                                   548

Interest payable and similar charges                    49                              44
Other finance costs                                      -                             274
                                                                         49                                   318
                                                                                                         
PROFIT ON ORDINARY ACTIVITIES
BEFORE TAXATION                                                         706                                   230

Tax on profit on ordinary activities                                    313                                   121

PROFIT FOR THE FINANCIAL YEAR FOR THE                                   393                                   109
GROUP

Earnings per share expressed
in pence per share:
Basic                                                                  5.65                                  1.56
Diluted                                                                5.44                                  1.56
                                                                                                         

CONTINUING OPERATIONS
None of the group's activities were acquired or discontinued during the current year or previous year.
                                        
                               NATIONAL MILK RECORDS PLC (REGISTERED NUMBER: 03331929)

                             CONSOLIDATED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
                                        FOR THE YEAR ENDED 31ST MARCH 2011

                                                                  
                                                                                 2011                  2010
                                                                                £'000                 £'000

PROFIT FOR THE FINANCIAL YEAR                                                     393                   109
Actuarial gain/(loss) on pension scheme                                          (124)                  144
Deferred tax on pension scheme                                                     35                   (40)
                                                                                                    
TOTAL RECOGNISED GAINS AND LOSSES
RELATING TO THE YEAR                                                              304                   213
                                                                                                    
          
                                 NATIONAL MILK RECORDS PLC (REGISTERED NUMBER: 03331929)
          
                                                CONSOLIDATED BALANCE SHEET
                                                      31ST MARCH 2011
          
          
                                                               2011                            2010
                                                    £'000             £'000           £'000           £'000
FIXED ASSETS
Intangible assets                                                       448                             657
Tangible assets                                                       3,910                           4,179
Investments                                                             149                               5
                                                                                                                    
                                                                      4,507                           4,841
          
CURRENT ASSETS
Stocks                                                320                                127
Debtors                                             1,717                              1,345
Cash at bank                                           17                                297
                                                                                                     
                                                    2,054                              1,769
          
CREDITORS
Amounts falling due within one year                 2,691                              2,280
                                                                                                     
NET CURRENT LIABILITIES                                                (637)                           (511)
                                                                                                                    
TOTAL ASSETS LESS CURRENT
LIABILITIES                                                           3,870                           4,330
          
CREDITORS
Amounts falling due after more than one                                                                            
year                                                                   (474)                           (779)
          
PROVISIONS FOR LIABILITIES                                             (233)                           (258)
          
PENSION LIABILITY                                                    (1,740)                         (2,179)
                                                                                                                    
NET ASSETS                                                            1,423                           1,114
                                                                                                                    
          
CAPITAL AND RESERVES
Called up share capital                                                 735                             735
Revaluation reserve                                                   1,096                           1,096
Share option reserve                                                      5                               -
Profit and loss account                                                (413)                           (717)
                                                                                                                    
SHAREHOLDERS' FUNDS                                                   1,423                           1,114
                                                                                                                    
          
          
                                 NATIONAL MILK RECORDS PLC (REGISTERED NUMBER: 03331929)

                                               COMPANY BALANCE SHEET
                                                 31ST MARCH 2011

                                                                                    
                                                                2011                        2010
                                                    £'000             £'000          £'000           £'000
FIXED ASSETS
Intangible assets                                                         -                               -
Tangible assets                                                       2,918                           2,920
Investments                                                           2,419                           2,242
                                                                                                     
                                                                      5,337                           5,162

CURRENT ASSETS
Stocks                                                226                                 25
Debtors                                               985                              1,050
Cash at bank                                           17                                117
                                                                                       
                                                    1,228                              1,192
CREDITORS
Amounts falling due within one year                 2,876                              2,034

NET CURRENT LIABILITIES                                              (1,648)                           (842)
                                                                                                     
TOTAL ASSETS LESS CURRENT
LIABILITIES                                                           3,689                           4,320

CREDITORS
Amounts falling due after more than one year                           (474)                           (779)

PROVISIONS FOR LIABILITIES                                             (209)                           (203)

PENSION LIABILITY                                                    (1,740)                         (2,179)

NET ASSETS                                                            1,266                           1,159
                                                                                                      

CAPITAL AND RESERVES
Called up share capital                                                 735                             735
Revaluation reserve                                                   1,096                           1,096
Share option reserve                                                      5                               -
Profit and loss account                                                (570)                           (672)
                                                                                                      
SHAREHOLDERS' FUNDS                                                   1,266                           1,159
                                                                                                      

The  statement  and  figures  above are extracted from the Company's full audited  accounts.  The  complete
accounts can be found on the PLUS markets website under the Report and Accounts section of NMR.

Contact Information

  • National Milk Records plc