National Milk Records plc

July 11, 2012 02:00 ET

Audited Final Results


                                   National Milk Records plc ('NMR' or 'the Company')

                                                  Audited Final Results

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 2012 and to give notice of its AGM to be held at Laches Close, Calibre
Business Park, Four Ashes, Wolverhampton, WV10 7DZ on 19th September 2012 at 11.30am.


--  Solid profits and increased annual dividend of 2.1 pence per share for
    the year whilst making substantial investments in new projects
--  Working with Marks and Spencer on a new saturated fat test via
    subsidiary National Milk Laboratories
--  Irish Joint Venture now operational with sample numbers increasing
--  Focussed efficiency drives, including consolidating testing facilities
    at Four Ashes, to increase operating margins in the year ahead - Four
    Ashes has been operational since 17thJune 2012
--  Positive backdrop for continued growth underpinned by global food demand
    and increased interest in food traceability

NMR Managing Director Andy Warne said, "We are delighted to report an increased dividend of 2.1 pence per share
following a highly active and profitable year for NMR. The global backdrop of increased demand for quality food combined
with the need for food traceability creates favourable market conditions in the medium term. In the short term the UK
milk price is creating challenging conditions for UK farmers but we remain confident that our expertise and solid
financial base, combined with our diverse product range, positions NMR for a sustained period of growth."

Chairman's Statement

It has been a year of progress for NMR during which we have laid strong operational and corporate foundations for future
growth whilst remaining profitable. It is crucial that we maintain our reputation for providing quality services and
product innovation. With this in mind, during the previous 12 months we have invested in a range of areas to improve our
services and streamline our business, the benefits of which I expect to see during 2013.

An example of our investment programme is the development of a new operational testing site at Four Ashes, Wolverhampton
which will consolidate the Company's current testing facilities and lead to improved service provision and reduced
operating costs. We acquired the facility for GBP475,000 and have invested a further GBP820,000 in refurbishment. The
site is now operational and the consolidation process will continue into 2012/13. Our investments have not been to the
detriment of our financial performance and we are pleased to report that our profits are ahead of the previous year.

NMR operates through three divisions, which combined create a wide reach across the various segments of the livestock
industry: National Milk Records, our core business, provides management information to farmers about individual cow
performance in terms of milk quality, yield and fertility; National Milk Laboratories is 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.

National Milk Records ('NMR')

Milk testing remains at the forefront of our business operations. In order to ensure we remain market leaders in our
field we are constantly seeking ways to further improve our service and satisfy consumer demand. The addition of our
Silent Herdsman(TM) last year, an intelligent, electronic monitoring collar designed to detect a cow's oestrus events,
highlights our desire to stay ahead of the market. Turnover has increased and we are confident that the demand we have
so far seen is set to increase. NMR has agreed a distribution agreement with Genus, the UK's largest bovine genetics
company, to complement the coverage of NMR's own direct sales resource.

Our disease testing capabilities are a key revenue driver in the business. 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 as well as working with
farmers to improve animal health. We are keen to expand our operations internationally and I look forward to providing
shareholders with updates on our activity in due course.

National Milk Laboratories ('NML')

NML continues to perform strongly, testing the quality of over 95% of milk in the UK before it is sold to consumers. We
have added value to this area of our business through the introduction of a new testing product to routinely
differentiate between saturated and unsaturated fat. This service is being used for the first time by Marks & Spencer in
order to pay their farmer suppliers based on the quantity of unsaturated fat in the milk. It also allows our customers
to stay ahead of potential changes in legislation as the introduction of a 'fat tax' in some EU countries could be
replicated in the UK. This form of testing will be essential for the UK dairy industry to manage this transition.

We expanded our services into southern Ireland in September 2010. Our proprietary payment testing business in Ireland is
marketed and delivered through Independent Milk Laboratories Limited ('iML'), a company that we have set up with Irish
farming cooperative Progressive Genetics Ireland Limited. During the period iML completed its operational set up phase
and continues to grow sample numbers.

National Livestock Records ('NLR')

NLR continues to be a growing source of revenue for the Group as we seek to increase traceability and efficiency in the
Welsh sheep industry through our work with the Welsh Assembly Government on The Technology, Agriculture and Greater
Efficiencies Project ('TAG'). This working partnership provides us with a base from which we plan to extend our services
to the wider UK sheep industry. Nordic Star, our ear tag distribution service, continues to perform well.


I am pleased to report a net profit before tax and FRS 17 interest of GBP440,000 (2011: GBP387,000) on a turnover of
GBP17,881,000 (2011: GBP16,801,000). Our net cash balance has increased by GBP222,000.

For the second year, the Board has decided to make the payment of a dividend, having taken into account existing cash
flow, capital expenditure commitments, and the Company's prospects. A dividend of 2.1 pence per share is recommended to
be paid on 30 September 2012 to shareholders on the register on 31 August 2012. The Ex Dividend date is 29 August 2012.
The total dividend amounts to GBP154,314.


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. A new recovery plan arising from a triennial valuation of the pension fund
at 31st March 2012 will be negotiated with the Milk Pension Fund trustee during 2012/13. The recovery payments for
2012/13 have already been agreed and are in line with the 2011/12 period.


The past year has been highly successful for NMR Group as we continue to make profits and deliver on our promises to
shareholders at a time when many companies are struggling due to the volatile global market. We continue to make strong
progress across our diverse portfolio of services and in doing so have further strengthened our international
positioning whilst securing profits. With this in mind, I believe that we have laid the right foundations for growth
during the forthcoming financial year. NMR is well positioned to increase its presence in domestic and international
markets, and I look forward to updating shareholders accordingly.

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

Philip Kirkham

10 July 2012

The Directors of NMR are responsible for the contents of this announcement.

For further information visit 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

                     FOR THE YEAR ENDED 31ST MARCH 2012


                                            2012                  2011
                                       GBP'000  GBP'000    GBP'000   GBP'000

SHARE OF JOINT VENTURE                           17,881               16,801
Less: share of joint venture turnover              (344)                   -
                                              ----------           ---------

GROUP TURNOVER                                   17,537               16,801

Cost of sales                                    12,602               12,795
                                              ----------           ---------

GROSS PROFIT                                      4,935                4,006

Administrative expenses                           4,428                3,543
                                              ----------           ---------

GROUP OPERATING PROFIT                              507                  463

Share of operating profit of joint
venture (4)                                           -
                                              ----------           ---------

Operating profit including joint
ventures                                            503                  463

Income from interest in associated
undertakings                                          -        (32)
Interest receivable and similar
 income                                      3                   5
Other finance income                       390                 319
                                     ---------           ----------
                                                    393                  292
                                              ----------           ---------

                                                    896                  755

Interest payable and similar charges                 66                   49
                                              ----------           ---------

BEFORE TAXATION                                     830                  706

Tax on profit on ordinary activities                238                  313
                                              ----------           ---------

PROFIT FOR THE FINANCIAL YEAR FOR THE GROUP         592                  393
                                              ----------           ---------
                                              ----------           ---------

Earnings per share expressed
in pence per share:
Basic                                              8.05                 5.65
Diluted                                            7.77                 5.44
                                              ----------           ---------
                                              ----------           ---------


None of the group's activities were acquired or discontinued during the current year or previous year.

                     FOR THE YEAR ENDED 31ST MARCH 2012

                                                         2012           2011
                                                      GBP'000        GBP'000

PROFIT FOR THE FINANCIAL YEAR                             592            393
Actuarial gain/(loss) on pension scheme                (3,911)          (124)
Deferred tax on pension scheme                            978             35
                                                    ---------      ---------

RELATING TO THE YEAR                                   (2,341)           304

                         CONSOLIDATED BALANCE SHEET
                               31ST MARCH 2012

                                      2012                   2011

Intangible assets                                 239                    448
Tangible assets                                 4,758                  3,910
Investments in joint ventures
Share of gross assets                  224                      -
Share of gross liabilities             (92)                     -
                                  ---------             ---------
                                                  132          -
Investments                                         5                    149
                                             ---------             ---------

                                                5,134                  4,507

Stocks                                 802                    320
Debtors                              1,576                  1,717
Cash at bank and in hand               136                     17
                                  ---------             ---------

                                     2,514                  2,054
Amounts falling due within one
 year                                2,963                  2,691
                                  ---------             ---------

NET CURRENT LIABILITIES                          (449)                  (637)

LIABILITIES                                     4,685                  3,870
Amounts falling due after more than one
year                                           (1,481)                  (474)

PROVISIONS FOR LIABILITIES                       (211)                  (233)

PENSION LIABILITY                              (4,044)                (1,740)
                                              --------                 ------

NET (LIABILITIES)/ASSETS                       (1,051)                 1,423

Called up share capital                          735                    735
Revaluation reserve                            1,096                  1,096
Share option reserve                              12                      5
Profit and loss account                       (2,894)                  (413)

SHAREHOLDERS' FUNDS                           (1,051)                  1,423

                           COMPANY BALANCE SHEET
                              31ST MARCH 2012

                                          2012                  2011
                                   GBP'000   GBP '000     GBP'000   GBP'000
Intangible assets                                   -                     -
Tangible assets                                 3,962                 2,918
Investments                                     2,419                 2,419
                                             ---------             ---------

                                                6,381                 5,337

Stocks                                 677                    226
Debtors                                764                    985
Cash at bank and in hand                18                     17
                                  ---------             ---------

                                     1,459                  1,228
Amounts falling due within one       2,749                  2,876
                                  ---------             ---------

NET CURRENT LIABILITIES                        (1,290)               (1,648)
                                             ---------             ---------

LIABILITIES                                     5,091                 3,689

Amounts falling due after more
than one year                                  (1,481)                 (474)

PROVISIONS FOR LIABILITIES                       (208)                 (209)

PENSION LIABILITY                              (4,044)               (1,740)

NET (LIABILITIES)/ASSETS                         (642)                 1,266
                                             ---------             ---------
                                             ---------             ---------

Called up share capital                           735                   735
Revaluation reserve                             1,096                 1,096
Share option reserve                               12                     5
Profit and loss account                        (2,485)                 (570)
                                             ---------             ---------

SHAREHOLDERS' FUNDS                              (642)                1,266
                                             ---------             ---------
                                             ---------             ---------

The statement and figures above are extracted from the Company's full audited accounts.

Contact Information

  • National Milk Records plc