National Milk Records plc
LSE : NMRP

November 12, 2015 02:00 ET

Interim Results

2

                                                                                            12 November 2015
                                                                                                GB00B5TWCQ18
                                          National Milk Records plc
                                          ('NMR' or the 'Company')
                                               Interim Results

National  Milk Records plc, the ISDX-quoted leading supplier of dairy and livestock services, is pleased  to
announce its unaudited interim results for the six months ended 30 September 2015.

Overview
*   3.6%  increase in turnover to GBP10,073,000 bolstered by the addition of Inimex, which operates  as
    www.bullsemen.com and was acquired on 1 October 2014
*   Strong cash generation and profits despite difficult market conditions, demonstrating NMR's
    resilient business model
*   Launch of a new genomic testing programme for the UK dairy industry

NMR's  Managing Director Andy Warne said, "Our interim results demonstrate the resilience of NMR's  business
model.   Our  core  businesses of milk recording and payment testing are trading ahead of the  corresponding
period last year.

"As  a  leading  service provider in the dairy industry it is important to continue to  launch  new  product
offerings,  such as Silent Herdsman and genetics products from www.bullsemen.com.  However,  these  products
have  been  trading below expectations due to the cash squeeze currently being experienced in the  UK  dairy
sector  and  although  this  has adversely affected our overall profitability, we  are  confident  that  our
diversification strategy is the right one and believe we are taking the steps to ensure future  profits  are
in line with our increasing turnover.

"We continue to seek efficiencies in our operations and have recently approved a number of investments which
will improve our long term sustainability."

Chairman's Statement

NMR's  results  for the six months ended 30 September 2015 show a 3.6% increase in turnover to GBP10,073,000
compared to the same period last year.

Between  1  April  2015  and 30 September 2015, the UK and Irish dairy sectors showed extremely  challenging
macro-economic  conditions with negative cash flow on many dairy farms and dairy processors alike.   However
the  management  information  and health testing services that we provide are largely  viewed  as  essential
services  and as such demand does not fluctuate wildly based on the overall dairy market economic  dynamics.
We are pleased to attribute our performance to the resilience of our business model.

The  short term outlook for dairy farming economics is still extremely tight.  The upturn will be driven  by
increasing demand and/or shortening in supply, neither of which are immediately evident.  The NMR  Board  is
showing a degree of caution in planning the next 12 months of operations.

National Milk Records (NMR)

This  part  of our business provides farmers with important management information regarding the  efficiency
and  health  status  of  their herd.  In line with our organic growth strategy, turnover  in  the  recording
business remains strong based on a strategy of providing additional services to add value to farmers such as
pregnancy  and  disease  testing.  We believe there is still upside in our core  business,  considering  the
instigation  of  a National Johnes control strategy by an industry-led consortium including  Dairy  UK,  the
continued  BVD  control programmes in Northern Ireland and Scotland, as well as the need for individual  cow
cell count results as part of strategies for selective dry cow therapy.

National Milk Laboratories (NML)
Our  testing  division,  National  Milk Laboratories ('NML'), continues  to  drive  economies  of  scale  in
laboratory  services  by  testing 100% of all liquid milk sold in the UK.   NML  delivers  methodical  daily
revenue and margin as well as exciting new opportunities for growth.

National Livestock Records (NLR)
Growth  in  NLR,  a  division focussed on transferring our core capabilities to  the  red  meat  sector,  is
principally based on tissue tags for the BVD control programmes in Scotland and Northern Ireland.  Statutory
identification tags in the dairy sector remain a growth opportunity for us due to our wide market reach.

Independent Milk Laboratories (iML)
iML  is based in Ireland and has continued to grow over the period.  We expect continued revenue development
in line with the growth of our cornerstone client, Lakeland Dairies, and believe there is an opportunity for
growth with other clients driven by the market consolidation evident in the Irish dairy sector.

Inimex
Inimex  has traded below our expectation in this reported period.  To some extent there is a seasonal effect
but  poor performance at Inimex has also resulted from a number of reasons including the strength of  the  $
versus the GBP / €, some issues with product supply and the adverse market conditions.  We are confident  in
the original acquisition plan and the positive impact that Inimex will have on the Group in the future.

During  the  period, we launched our genomic testing programme which is the latest expansion  in  our  dairy
support services.  Genomic testing, involving the sampling and analysis of DNA, has the potential to  change
the  process  of dairy cattle breeding.  Through the use of genomic testing the future productivity  of  new
born  calves can be tested which aids culling and breeding decision making.  Genomics programmes are already
in  commercial use in the US.  In the US, females from early genomics programmes are now entering production
and  the  increasing  number of US cows tested per month highlights the success of  these  programmes.   NMR
expects that the use of its genomics testing service in the UK will expand once the milk pricing environment
has returned to normal levels.

This  is  an exciting opportunity for us to pioneer advancements to the UK's dairy market.  We are confident
that  this  new venture will present continued opportunities for growth and I look forward to  reporting  on
future developments in due course.

Financials
For  the  period  under review the Group is reporting a 30% decrease in its operating profit  to  GBP599,000
(2014: GBP850,000) on an increased turnover of GBP10,073,000 (2014: GBP9,719,000).  On a like for like basis
the  six month trading profit of NMR's core businesses was 8% higher at GBP922,000 (2014: GBP850,000) before
goodwill and Inimex trading results.

Pension
The  pension  statement  in this Interim Statement is an estimate based on a roll  forward  of  the  actuary
calculated position as of 31 March 2015.  The Board estimates that based on the latest information on  asset
levels, liabilities and discount rates, the funding level has worsened  by 1.8% since 31 March 2015  and  we
have  also  reduced  our  tax credit from 20% to 18% based on the announcement made  by  the  Chancellor  to
Parliament in the additional Summer Budget on 8 July 2015.  A full calculation will be carried out  for  the
year ending 31 March 2016.

Outlook
Due  to  lower global commodity prices the milk price received by our customer's remains low and a continued
squeeze  on margins is forecast for UK dairy farmers and processors alike.  Most UK farmers can look through
this  lean  period,  as  the overall medium term forecast for dairying is more positive.   This  short  term
squeeze  will demand efficiency of milk production and processing for which NMR believes it has the services
required  to  help  deliver these efficiencies. The essential nature of our core services  and  the  general
sector  focus  on  improved  animal welfare and increased provenance of food  products  means  that  we  are
confident in our business model going forward, despite the fact that we expect general trading conditions in
the dairy sector to be challenging in the next months.

I  would  like to take this opportunity to thank our shareholders and the NMR team for their support  during
this difficult period.


Philip Kirkham
Chairman



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

For further information on NMR, please visit www.nmr.co.uk
Enquiries to:

National Milk Records Plc
Andy Warne                                               Tel: +44 (0) 7970 009141

Peterhouse Corporate Finance Limited
Duncan Vasey or Mark Anwyl                               Tel: +44 (0) 20 7220 9796

St Brides Media & Finance Ltd
Elisabeth Cowell/ Hugo de Salis                          Tel: +44 (0) 20 7236 1177





                            Summary Profit       Summary Profit and       Summary Profit and Loss        
                          and Loss Account                     Loss             Account Unaudited
                         Unaudited Figures                  Account       Figures for the Year To
                               for the Six        Unaudited Figures               31st March 2015
                              Months Ended      for  the Six Months
                            30th September                    Ended
                                      2015      30th September 2014
                                                                                                         
                                                                                                         
                                                                                                         
                                                                                                         
                                                                                                         
                                  GBP '000                 GBP '000                      GBP '000        
Turnover                                                                                                 
                                                                                                         
NMR                                  7,794                    7,973                        15,991        
Less Share of                        (347)                    (333)                         (721)        
Joint Venture
turnover
Less Intra Group                   (2,260)                  (2,052)                       (4,215)        
turnover
NML                                  4,075                    3,747                         7,599        
NLR                                    438                      384                           843        
Inimex Genetics                        373                                                    662        
                                    10,073                    9,719                        20,159        
                                                                                                         
Operating                                                                                                
profit/(Loss)
before exceptional
items,
Interest and                                                                                             
goodwill
amortization
                                                                                                         
NMR                                     47                      209                           620        
Share of operating                     117                       78                           117        
profit of Joint
Ventures
NML                                    664                      508                         1,064        
NLR                                     94                       55                           178        
Inimex Genetics                      (113)                                                    156        
                                                                                                         
                                       809                      850                         2,135        
Exceptional                                                                                              
Administration                           -                        -
Expenses
FRS 17 Interest                                                                               200        
                                         -                        -
                                     (210)                                                  (208)        
Goodwill                                                          -
Amortization
                                                                                              183        
Other Interest and                       -                        -
Finance Income
                                                                                                         
Profit on Ordinary                     599                      850                         2,310        
Activities
                                                                                                         
Tax on Profit on                     (120)                    (179)                         (588)        
Ordinary
Activities
                                                                                                         
Profit for the                         479                      672                         1,722        
year



                                                                                           
                                                             Consolidated Balance             Consolidated
                        Consolidated Balance Sheet         Sheet Unaudited Figures           Balance Sheet
                        Unaudited Figures for the           for the periods ended                Unaudited
                              periods ended                  30th September 2014           Figures for the
                           30th September 2015                                               periods ended
                                                                                           31st March 2015
                                                                                                  
                                                                                                  
                                                                                                  
                                                                                                  
                                                                                                  
                                           GBP '000                        GBP '000               GBP '000
Fixed Assets                                                                                              
                                                                                                          
Intangible                                                                                                
Assets                                        1,671                               -                  1,882
Tangible                                      2,465                           2,981                  2,599
Assets
Investments                                     548                             292                    433
                                              4,684                           3,273                  4,914
Current                                                                                                   
Assets
                                                                                                          
Stock                                           411                             281                    497
Debtors                                       2,114                           1,759                  2,142
Cash at Bank                                  2,083                           2,471                  1,974
                                              4,608                           4,511                  4,613
                                                                                                          
Creditors                                                                                                 
Amounts                                     (3,079)                         (3,157)                (3,873)
falling due
within 1
year
                                                                                                          
Net Current                                   1,529                           1,354                    740
Liabilities
                                                                                                          
Total Assets                                  6,213                           4,627                  5,654
Less Current
Liabilities
                                                                                                          
Creditors                                                                                                 
                                                                                                          
Amounts                                     (1,025)                           (536)                  (957)
falling due
after more
than 1 year
                                                                                                          
Provisions                                    (309)                           (286)                  (309)
for
liabilities
                                                                                                          
Pension                                     (8,400)                         (6,307)                (7,760)
Liability
                                                                                                          
Net                                         (3,521)                         (2,502)                (3,372)
(Liabilities
)/Assets
                                                                                                          
                                                                                                          
Capital And                                                                                               
Reserves
                                                                                                          
Called Up                                       754                             752                    752
share
Capital
Share                                            76                              66                     66
Premium
Share Option                                     22                              22                     22
Reserve
Profit and                                  (4,373)                         (3,342)                (4,212)
loss account
                                                                                                          
                                            (3,521)                         (2,502)                (3,372)
END

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