National Milk Records plc

November 22, 2010 05:15 ET

Interim Results for the 6 months ended 30 September 2010

                                                                                  22 November 2010
                       National Milk Records plc / Index: PLUS / Epic: NMR.P

                         National Milk Records plc ('NMR' or 'the Group')
                     Interim Results for the 6 months ended 30 September 2010

National  Milk  Records  plc, the PLUS-quoted leading supplier of milk  services,  is  pleased  to
announce its unaudited interim results for the six months ended 30 September 2010.


    *   Highly  productive  period  with growth achieved both organically  and  through  strategic
        alliances with synergistic companies
    *   Profit before tax has increased significantly to £457,000 (2009: £82,000) on a turnover of
        £6,347,000 (2009: £6,192,000)
    *   Joint  Venture which will advance payment testing services into southern Ireland alongside
        recognised regional leaders in the dairy sector
    *   Diversified  revenue  stream  through expansion of current  product  offering  to  include
        fertility aid Silent HerdsmanTM - proven highly popular within dairy industry
    *   Share reorganisation due to be completed post period end in order to reduce the number  of
        shareholders on the Company's register to a level more consistent with a company of  NMR's
        size and allow significant cost savings for the Company
Chairman's Statement

We  have made excellent progress over the period having bolstered our product offering through our
distribution  agreement  with Embedded Technology Solutions ('ETS') and  gained  further  traction
through  our milk testing divisions National Milk Records and National Milk Laboratories  ('NML'),
all  of  which  has had a very positive effect on trading.  Our revenues are ahead of expectations
and we look forward to extending upon this over the coming months.

Post period end, the Group signed a Joint Venture with Progressive Genetics, a farming cooperative
in  the  Republic of Ireland, to form a 50-50 Joint Venture ('JV'), Independent Milk  Laboratories
Ltd,  to  provide independent payment testing in the Irish dairy industry.  We have  been  working
hard  to  increase our position in Ireland and we view this as an exciting opportunity to enter  a
new geographic market in line with our strategy to expand our reach into other farming regions.  I
look forward to updating shareholders on this agreement going forward.

We  have reached many milestones over the period, having signed a significant deal in Ireland  and
achieving  revenue  growth through increased product offering.  With this in  mind,  we  are  also
focussed upon ensuring that shareholder value is maximised.  As announced on 5 November 2010,  the
Group is currently conducting a reorganisation ('the 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.  The Reorganisation will seek approval at a General Meeting on 24 November
2010.   The Reorganisation is aimed at stimulating trading in our shares and to reduce the  number
of  shareholders  who are no longer engaged with the Company so that there is  an  opportunity  to
generate  value  for  those  shareholders who are and we hope that  this  will  be  beneficial  in
solidifying the value of the Group.

National Milk Records

At  the  core of our business, National Milk Records provides milk recording services  to  50  per
cent.  of  UK  farmers.   Our  services  are  endorsed by  farmers,  milk  buyers  and  veterinary
professionals alike, partly due to the increasing importance of detecting and controlling disease,
particularly as herd sizes continue to increase.

We  are  committed to bolting on to our already extensive offering to help farmers  add  value  to
their  produce,  and increasing farm efficiency is an integral part of this.  In  April  2010,  we
signed  a  distribution  agreement  with ETS to distribute the  Silent  HerdsmanTM,  which  is  an
intelligent,  electronic monitoring collar designed to detect a cow's oestrus  events.   This  has
been very popular with both our existing customers and others operating in the dairy sector due to
its  ability  to significantly improve the efficiency of reproductive operations within  the  herd
during  the  insemination process.  Looking ahead, we believe that this could become a substantial
revenue and profit earner for the business as we are not only targeting our existing customers but
others  operating  within  the  dairy sector and I look forward to updating  shareholders  on  the
progress of sales.

National Milk Laboratories ('NML')

NML  provides a highly important service for milk buyers, 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.  The introduction of
polymerase chain reaction ('PCR') testing has greatly improved our testing abilities and the speed
in which we carry them out which has had a positive effect on NML's revenue.

Additionally, as outlined above, the Group has signed a JV agreement with Progressive Genetics  to
drive  this  payment testing side of our business into southern Ireland, a region we've  expressed
much  interest  in  due to the size of its dairy industry.  Working with a recognised  name,  with
which we have been associated now for over a year, will help bolster our reputation.

National Livestock Records ('NLR')

We  continue our work on The Technology, Agriculture and Greater Efficiencies Project ('TAG') with
the  Welsh  Assembly Government which is aimed at increasing traceability and  efficiency  in  the
Welsh  sheep industry.  This is an important revenue source for NLR and also provides the division
with prospects for developing services to the wider UK sheep industry.


We have apportioned known costs for the year ended 31 March 2010 in these interim accounts. We are
expecting the figure for interest on our final salary pension fund (closed for future accrual)  to
be £330,000 credit hence the reserve for £165,000 in these half.

For  the  period under review, the Group is reporting an increased profit before tax  of  £457,000
(2009: £82,000) on a turnover of £6,347,000 (2009: £6,192,000).


We  have  experienced  a  highly  productive period which has seen  us  advance  our  growth  both
organically  and  through strategic alliances with synergistic companies.  As the  dairy  industry
consolidates,  dairy  herds  are  increasing  in size,  which  makes  our  products  and  offering
increasingly relevant to modern farmers looking to increase the efficiency of their  farm  and  we
believe that we are well placed to capitalise upon this further, particularly as we drive sales of
the  Silent  Herdsman forward to both new and existing customers.  Additionally,  we  now  have  a
strong  foothold  in  Ireland alongside a regional company and we look forward  to  expanding  our
presence  here and proving the functionality and the benefits of our disease testing  services  so
that we may transfer many of our core services and offerings to this market.

On  a  corporate level, we are actively addressing the large scale of our shareholder base and  we
hope  that  further  to  the share consolidation reducing the register  from  the  current  24,500
Shareholders  to  around  7,000, we will be able to engage with our  remaining  Shareholders  more
regularly and more effectively so that the real value of the Group is recognised.

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
19 November 2010
                                                   Summary profit and loss account                       
                                                      Unaudited figures for the                          
                                                            Six months ended                              Year ended
                                                              30-Sep-10                   30-Sep-09          31-Mar-10
Turnover                                                       GBP '000                    GBP '000            GBP'000
NMR                                                               6,347                       6,192             12,402
Intercompany                                                      (274)                       (276)              (662)
NML                                                               2,047                       1,874              3,786
NLR                                                                 197                         152                370
                                                                  8,317                       7,942             15,896
Operating profit /(loss) before exceptional items, interest                                              
and goodwill amortisation                                                                                
NMR                                                                 252                         291                577
NML                                                                 184                         107                234
NLR                                                                  60                         (3)               (12)
                                                                    496                         395                752
Exceptional administration                                         (90)                        (47)               (47)
FRS 17 interest                                                     165                       (137)              (274)
Goodwill amortisation                                              (97)                        (94)              (204)
Other interest                                                     (17)                        (35)               (44)
Profit/(loss) on ordinary                                           457                          82                230
activities before tax
Tax on profit on ordinary                                          (50)                        (57)              (121)
Profit/loss) for the year                                           407                          25                109
Group statement of total recognised gains and losses                                                     
Profit for the financial year                                       407                          25                109
Actuarial gain recognised in the                                                                                   144
pension scheme
Deferred tax on pension scheme                                                                                    (40)
Total recognised gains and                                          407                          25                213

Notes to the Interims Statement

1. Financial Information
The  interim  results for the six months to 30 September 2010 and 2009 are unaudited  and  do  not
constitute  accounts  within the meaning of section 396 of the Companies  Act  2006.  The  interim
results  have  been  drawn  up using accounting policies and presentation  consistent  with  those
applied in the audited accounts for the year ended 31 March 2010. The figures shown for this  year
are taken from the financial statements.

2. Exceptional administrative items

We  are  seeking  a resolution to allow us to undertake a share consolidation and re-division  the
purpose  of  which  is  to  reduce  our share register from the current  24,500  to  a  much  more
appropriate number of around 7,000. The cost of this is likely to be around £60,000 of which  half
has been accrued in these accounts.  We are also expecting an invoice of £120,000 for our share of
the  compulsory  levy from the Pension protection Fund.  This is significantly  higher  than  last
year's  figure  and  will return to around £30,000 next year.  It is under  appeal  and  has  been
disclosed under exceptional charges in these figures.

3. Dividends

The directors do not recommend payment of an interim dividend.

4. Copies of unaudited interim accounts
Copies  of  this  report are available from the registered office at Fox Talbot  House,  Bellinger
Close, Greenways Business Park Chippenham, Wiltshire, SN15 1BN.

5. Responsibility

The  directors of the company accept responsibility for the information contained in the  document
and  to the best of their knowledge and belief (having taken care to ensure that such is the case)
the  information  contained in this document is in accordance with the facts  and  does  not  omit
anything likely to affect the import of such information.
The Directors of the Company are responsible for the contents of this announcement

For further information visit or contact:

Chris Hughes             NMR plc                           Tel: +44 (0) 1249 467 220

Duncan Vasey             St Helens Capital Partners LLP    Tel: +44 (0) 20 7368 6959
Mark Anwyl               St Helens Capital Partners LLP    Tel: +44 (0) 20 7368 6959

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

Contact Information

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