National Milk Records plc

December 12, 2011 02:00 ET

Interim Results

                       National Milk Records plc / Index: PLUS / Epic: NMR.P
                         National Milk Records plc ('NMR' or 'the Group')

                                          Interim Results

National  Milk  Records  plc,  the PLUS-quoted leading supplier  of  milk  and  livestock  related
services,  is  pleased  to  announce its unaudited interim results for the  six  months  ended  30
September 2011.


    *   Turnover  has  increased by 3.9% to £8,641,000 during the period  with  a  number  of  new
        revenue streams beginning to deliver results
    *   During the period the new joint venture in Ireland completed its operational set  up phase 
        and traded profitably over the summer
    *   Turnover  of  Silent Herdsman has increased although growth has been  slower than hoped. A 
        new  distribution  agreement  signed  with  a  national genetics company should facilitate 
        improved growth
    *   Launch  of  new testing service, currently provided to Marks and Spencer, to differentiate 
        between saturated and unsaturated fat through National Milk Laboratories
    *   Profitability for the year ended 31 March 2012 will be affected by significant  investment 
        in new projects and re-organisation cost  associated with  our  new laboratory being built
        at Four Ashes in Staffordshire.  These costs will deliver additional revenue and increased 
        operating margin in the future
    *   The dividend  of  2 pence per ordinary  share for the year ended 31 March 2011 was paid to 
        shareholders on 30 September 2011

Chairman's Statement

I  am  pleased to report a successful increase in turnover of 3.9 per cent. for the period despite
the  challenges  which  remain in the overall UK dairy market place.   Although  the  medium  term
forecast  for the milk price paid to farmers is favourable, in the short term production  cost  on
dairy  farms  has  led  to  a squeeze on cash flow. Selling new products in  this  environment  is
challenging but I have been pleased with our success to date and optimistic for future growth.

NMR  is  investing  in a new operational testing site at Four Ashes which will  lead  to  improved
service provision and reduced operating costs.  This significant change in our business model will
have a short term affect on our profitability but will result in a significant gain in the future.
We  hope  to  open  the  new  site by early summer 2012. The overall global  economic  climate  is
extremely  challenging which does have an effect on the investments in the Milk Pension  Fund  and
managing our obligations to the fund remains a key consideration for the NMR Board.

National Milk Records

At  the core of the business, National Milk Records provides milk recording services to 50% of  UK
dairy farmers. The inherent value of milk recording increases in tandem with the growing price  of
milk paid to farmers.

The  Company  continues  to distribute the Silent Herdsman, an intelligent, electronic  monitoring
collar designed to detect a cow's oestrus events.  Turnover from sales has increased, although the
extent of this growth has not met management's expectations.  However, the Company believes that a
recent distribution agreement with a national genetics company will bolster growth.

The  Company  has  also  experienced increasing turnover from its disease testing  offering,  heat
detection services, identification tag sales and farm software sales.  The forecasts going forward
are also improving.

National Milk Laboratories (NML)

NML provides a highly important service for milk buyers, testing the quality for almost all of the
milk  in  the  UK  before it is sold to consumers.  Having improved lab efficiencies  through  the
introduction  of new services including Polymerase Chain Reaction for disease testing  last  year,
the  Company  has  launched  an  entirely  new product  area  based  on  the  routine  testing  to
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. The introduction of a 'fat tax' in some  EU  countries  could  be
replicated  in  the  UK and this form of testing will be essential for the UK  dairy  industry  to
manage this transition.

Additionally,  our  payment  testing business in Ireland, Independent  Milk  Laboratories  Limited
('iML'),  set  up  with  Irish farming cooperative Progressive Genetics Ireland  Limited,  is  now
operational, and  we have received a positive reception over the period.

National Livestock Records (NLR)

NLR is a development business and its strategy is replicating the core competences of NMR in other
livestock  sectors such as beef and sheep.  Work has continued on the Technology, Agriculture  and
Greater  Efficiencies  Project  ('TAG') with the Welsh Assembly  Government  aimed  at  increasing
efficiency in the Welsh sheep industry.


The outlook for NMR remains positive for future revenue and margin growth.  NMR remains profitable
and  we  continue to achieve increased turnover year on year, although we look forward to building
upon this in the future.

Philip Kirkham
8 December 2011

                                                         Summary Profit and Loss Account
                                                            Unaudited Figures for the
                                               Six Months Ended       Six Months Ended       Year To
                                              30th September 2011   30th September 2010    31st March
                                                    GBP '000            GBP '000            GBP '000
NMR                                                     6510                6347               12803
Intercompany                                            -255                -274                -532
NML                                                     2177                2047                4164
NLR                                                      209                 197                 366
                                                        8641                8317               16801
Operating profit/(Loss) before exceptional items, 
Interest and goodwill amortization                                        
NMR                                                      157                 252                 362
NML                                                      165                 184                 341
NLR                                                       57                  60                  93
                                                         379                 496                 796
Exceptional Administration Expenses                      -28                 -90                -181
FRS 17 Interest                                          160                 165                 319
Income from Interest in IML                                3                                     -32
Goodwill Amortization                                    -76                 -97                -152
Other Interest                                           -31                 -17                 -44
Profit and loss on Ordinary Activities                   408                 457                 706
Tax on Profit on Ordinary Activities                     -61                 -50                -313
Profit for the year                                      347                 407                 393

                                                              Consolidated Balance Sheet
                                                       Unaudited Figures for the periods ended
                                               30th September          31st March       30th September
                                                     2011                 2011                2010
                                                    GBP '000            GBP '000            GBP '000
Fixed Assets                                                                                           
Intangible Assets                                        372                 448                 503
Tangible Assets                                        4,295               3,910               4,086
Investments                                              152                 149                 204
                                                       4,819               4,507               4,793
Current Assets                                                                                         
Stock                                                    916                 320                 418
Debtors                                                1,461               1,717               1,313
Cash at Bank                                             (36)                 17                 428
                                                       2,341               2,054               2,159
Amounts falling due within 1 year                     (2,694)             (2,691)             (2,331)
Net current Assets                                      (353)               (637)               (172)
Total Assets Less Current Liabilities                  4,466               3,870               4,621
Amounts falling due after more than 1 year            (1,033)               (474)               (912)
Provisions for liabilities                              (233)               (233)               (258)
Pension Liability                                     (1,580)             (1,740)             (2,014)
Net Assets                                             1,620               1,423               1,437
Capital And Reserves                                                                                   
Called Up share Capital                                  735                 735                 735
Revaluation Reserve                                    1,096               1,096               1,096
Share Option Reserve                                       5                   5                   0
Profit and loss account                                 (216)               (413)               (394)
                                                       1,620               1,423               1,437

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

                                           * * ENDS * *
For further information on NMR, please visit

Andy Warne                NMR plc                                    Tel: +44 (0) 7970 009 141
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
Elisabeth Cowell          St Brides Media & Finance Ltd              Tel: +44 (0) 20 7236 1177

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