National Milk Records plc

LSE : NMRP


November 28, 2012 02:00 ET

Interim Results

                                                                                    29/11/2012
                                                                     GB00B5TWCQ18/GBP/PLUS-exn
                                                 
                       National Milk Records plc / Index: ISDX/ Epic: NMR.P

                         National Milk Records plc ('NMR' or 'the Group')
                                          Interim Results

National  Milk  Records plc, the ISDX Growth Market leading supplier of milk services, is  pleased                           
to announce its unaudited interim results for the six months ended 30 September 2012.

Overview

    *       6% increase in turnover GBP9,173,000 in comparison to 2011 interim results
    *       11% increase in operating profit to GBP423,000
    *       Expanded disease testing capabilities enabling participation in industry led national
            schemes
    *       Increased profit and turnover within NML
    *       Consolidation  of  testing facilities at Four Ashes to increase operating  margins  -
            exceptional restructuring cost incurred in the period

Chairman's Statement

During  challenging  market conditions in the past six months we have  still  benefited  from  our
investment in additional services and quality testing capabilities. Turnover and profit before tax
have increased.  This has provided us with a good foundation for our full year financials which  I
anticipate will enhance our returns to shareholders in the future.

National Milk Records

Milk  recording  is at the heart of the NMR business.  By testing samples monthly from  individual
cows  within  a  herd, we provide farmers with vital management information and disease  detection
which can be used to increase the productivity and profitability of a farm.

Over  recent years we have reported the expansion of our disease testing capabilities and  we  can
now  test for a range of conditions including mastitis, Bovine Viral Diarrhoea ('BVD') and  Johnes
disease.  Early detection is crucial, enabling farmers to take action before the rest of the  herd
is  affected  and  preventing the escalation of costs.  Having proved the effectiveness  of  these
tests,  we  are now working to develop industry led national schemes for the control  of  BVD  and
Johnes, providing us with a solid pipeline for future growth.

National Milk Laboratories ('NML')

NML  tests the quality of over 95% of the milk in the UK before it is sold to consumers in the  UK
and Scotland.

Again,  expansion of our testing services has broadened our growth opportunities as  evidenced  by
the  introduction  of  a  new  testing product to routinely differentiate  between  saturated  and
unsaturated fat.   This is used by Marks & Spencer to enable it to set the price paid  to  farmers
based  on  the  quantity of unsaturated fat in the milk, and NML is participating in  the  OptiMIR
project  which is funded by the European Union to develop this technology further.  Our  increased
profit and turnover at NML is expected to continue in the second period.

Our  Irish Joint Venture, iML, which provides quality testing services to the Republic of  Ireland
market, continues to represent a significant growth opportunity.

National Livestock Records ('NLR')

This  part  of our business, centred on providing services to the red meat industry, has performed
well  during the interim period.  Sales of ear tags have increased and we expect this to  continue
over the coming months.

Our  work with the Technology, Agriculture and Greater Efficiencies Project ('TAG') with the Welsh
Assembly  Government  is on-going, aimed at increasing traceability and efficiency  in  the  Welsh
sheep industry

Financials

For  the  period  under  review, the Group is reporting a profit before tax of  GBP411,000  (2011:
GBP386,000) on a turnover of GBP9,173,000 (2009: GBP8,641,000).

We consolidated our testing facilities at the Four Ashes site in July 2012.  The exceptional costs
incurred  in this period relate to our re-structuring plan to consolidate two laboratories  and  a
transport depot to the single site which should deliver increased operating margins in the future.

DRIP Scheme

In September 2012, NMR approved a dividend payment for the year of 2.1p per share compared to 2.0p
per  share  the previous year.  Due to the large number of relatively small shareholdings  in  the
Company,  this  resulted  in  over  5,000 dividend payments of  less  than  GBP6,  a  considerable
administrative burden for the Company. The Board would therefore like to encourage shareholders to
consider joining the NMR Dividend ReInvestment Programme ('DRIP'), by which shareholders' dividend
payments are used to buy further NMR shares. Over 650 shareholders have so far joined the  scheme.
Shareholders can join the scheme with a single form available at www.nmr.co.uk/share-trading.

Outlook

The first six months of the year have been positive for the Company and we are well positioned  to
benefit  from  recent investment which has broadened the scope of our business and  increased  the
value  of  our services across all three divisions by addressing concerns and requirements  within
the dairy sector.  This is underpinned by our financial results announced today.

Looking  ahead,  we  have  a diverse range of growth prospects, both  at  home  and  abroad.   Our
recognised  expertise has enabled the Company to build and progress its presence  in  Ireland  and
beyond, where we continue to offer advice and consultation services to countries looking to  build
their dairy markets.  This has the potential to translate into material growth for the Company.

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
Chairman

                                                                                                                  
                                                            Summary Profit and Loss Account                       
                                                               Unaudited Figures for the                          
                                                                                                                  
                                                        Six Months Ended      Six Months Ended          Year To
                                                        30th September 2012   30th September 2011     31st March
                                                                                                         2012
                                                                                                           
                                                            GBP '000              GBP '000             GBP '000
Turnover                                                                                                          
                                                                                                                  
NMR                                                                  7589                  6685              13437
Less Share of Joint Venture turnover                                 -187                  -175               -344
Less Intra Group turnover                                           -1311                  -255               -599
NML                                                                  2841                  2177               4591
NLR                                                                   241                   209                452
                                                                     9173                  8641              17537
                                                                                                                  
Operating profit/(Loss) before exceptional items, Interest                                                        
and goodwill amortization                                                                                         
                                                                                                                  
NMR                                                                   131                   157                193
Share of operating profit of Joint Ventures                           -12                     3                 -4
NML                                                                   262                   165                413
NLR                                                                    30                    57                113
                                                                                                                  
                                                                      411                   382                715
                                                                                                                  
Exceptional Administration Expenses                                  -252                   -28                -57
FRS 17 Interest                                                        72                   160                390
Goodwill Amortization                                                 -76                   -76               -152
Other Interest                                                        -42                   -31                -66
                                                                                                                  
Profit on Ordinary Activities                                         113                   408                830
                                                                                                                  
Tax on Profit on Ordinary Activities                                  -30                   -61               -238
                                                                                                                  
Profit for the year                                                    83                   347                592

                                                                                                                 
                                                                 Consolidated Balance Sheet                      
                                                                Unaudited Figures for the periods ended
                                                                                                                 
                                                                                                          
                                                       30th September 2012   30th September 2011     31st March
                                                                                                        2012
                                                                                                          
                                                           GBP '000              GBP '000             GBP '000
Fixed Assets                                                                                                     
                                                                                                                 
Intangible Assets                                                    136                   372                239
Tangible Assets                                                    4,935                 4,295              4,758
Investments                                                          125                   152                137
                                                                   5,196                 4,819              5,134
Current Assets                                                                                                   
                                                                                                                 
Stock                                                                718                   916                802
Debtors                                                            1,756                 1,461              1,576
Cash at Bank                                                          61                  (36)                136
                                                                   2,535                 2,341              2,514
                                                                                                                 
Creditors                                                                                                        
Amounts falling due within 1 year                                (3,242)               (2,694)            (2,963)
                                                                                                                 
Net Current Liabilities                                            (707)                 (353)              (449)
                                                                                                                 
Total Assets Less Current Liabilities                              4,489                 4,466              4,685
                                                                                                                 
Creditors                                                                                                        
                                                                                                                 
Amounts falling due after more than 1 year                       (1,356)               (1,033)            (1,481)
                                                                                                                 
Provisions for liabilities                                         (211)                 (233)              (211)
                                                                                                                 
Pension Liability                                                (4,044)               (1,580)            (4,044)
                                                                                                                 
Net (Liabilities)/Assets                                         (1,122)                 1,620            (1,051)
                                                                                                                 
                                                                                                                 
Capital And Reserves                                                                                             
                                                                                                                 
Called Up share Capital                                              735                   735                735
Revaluation Reserve                                                1,096                 1,096              1,096
Share Option Reserve                                                  12                     5                 12
Profit and loss account                                          (2,965)                 (216)            (2,894)
                                                                                                                 
                                                                 (1,122)                 1,620            (1,051)


The Directors of the Company are responsible for the contents of this announcement.
                                                 
For further information visit www.nmr.co.uk  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

Contact Information

  • National Milk Records plc