National Milk Records plc

November 06, 2013 02:01 ET

Interim Results

                                                  6 November 2013
                                             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 interim results for the six months ended 30 September 2013.


*   60% increase in operating profit to GBP657,000 resulting from consolidation of testing facilities
*   Increased turnover from expanded testing capabilities such as milk pregnancy testing
*   Increased profit and turnover within National Milk Laboratories
*   Irish milk testing joint venture iML is now profitable with a 37% increase in turnover
*   Balance sheet deficit has more than halved since March 2013 due to profitable trading and improved macro
    economic conditions for pension funds generally as demonstrated by a FRS17 calculation updated for 30 September
*   Reduced interest payments due to repayment of loans during the period

Chairman's Statement

Once  again,  we  are  reporting an increase in our turnover and profits for the first  six  months  of  our  2013
financial  year,  which provides us with a solid foundation for our full year financials.  These positive  results
are  testament  to  improving  macro  conditions in the dairy sector, and also endorse  our  on-going  operational
efficiency following our re-structure which was reported in our final results for the year to 31 March 2013.

The  Group  operates across three divisions: National Milk Records ('NMR'), which is at the heart of our offering,
supporting the dairy industry by taking monthly samples from each cow in our customers' herd to provide management
information;  National Milk Laboratories ('NML') which provides quality testing for milk processors; and  National
Livestock Records ('NLR') which works to provide management services for the red meat sector.

National Milk Records (NMR)

NMR  analyses  samples from each cow across 50% of UK dairy farms, the data from which enables  its  customers  to
manage  their  herd and farms efficiently.  We have a strong industry reputation and offer tests 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.  This provides us with a solid pipeline for future growth and cements our position
as pioneers of quality and disease control in the industry.

We  are also focussed on expanding our suite of products to facilitate growth.  The latest innovation to be  added
to  our  testing  capabilities is the testing of milk recording samples for pregnancy. This  has  been  very  well
received and we look forward to rolling this out further across our customer base in the coming months.

National Milk Laboratories ('NML')

NML  tests the quality of over 95% of the milk in the UK before it is sold to consumers.  Similarly to NMR, we are
focussed  on providing our customers with the best and most effective service possible.  We have a broad range  of
testing  services  including our product which can 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.

Additionally, we have a Joint Venture in Ireland called iML, which provides quality testing services to the  Irish
dairy  industry.   I am pleased to report that it has enjoyed its first profitable period over the last six months
and that its revenues have grown by 37%.

National Livestock Records ('NLR')

NLR  centres on providing services to the red meat industry and has performed well during the first six months  of
the year.  Food providence is a very important issue across the farming sector, and with our proven experience  in
reliably  and rapidly identifying points of weakness in the dairy food chain, both for the benefit of farmers  and
retailers, this is a natural point of growth for the Company.  Sales of ear tags have increased and we expect this
to continue over the coming months.


For  the  period under review, the Group is reporting a 60% increase in its operating profit to GBP657,000  (2012:
GBP411,000) on an increased turnover of GBP9,308,000 (2012: GBP9,173,000).


The previous restructuring of our laboratory facilities has improved our balance sheet, increased our margins, and
in  turn,  our growth prospects.  Our product suite has been enhanced across all three divisions, which  increases
the value of our service to UK farmers milk processors and retailers alike.

Looking  ahead, we have a diverse range of growth prospects as we focus on maintaining our position as leaders  in
the  milk recording industry.  Our recognised expertise has enabled the Company to build and progress its presence
in Ireland which 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
 Summary Profit and Loss Account                                                                             
 Unaudited Figures for the                                                                                   
                                               Six Months Ended          Six Months Ended              Year To
                                                 30th September            30th September           31st March
                                                           2013                      2012                 2013
                                                       GBP '000                  GBP '000             GBP '000
 NMR                                                      7,596                    7,589                15,193
 Less Share of Joint Venture turnover                     (257)                    (187)                 (415)
 Less Intra Group turnover                              (1,914)                  (1,311)               (3,021)
 NML                                                      3,614                    2,841                 6,121
 NLR                                                        268                      241                   535
                                                          9,308                    9,173                18,413
 Operating profit/(Loss) before exceptional                                                   
 Interest and goodwill amortization                                                           
 NMR                                                        150                      131                   347
 Share of operating profit of Joint Ventures                 54                     (12)                  (11)
 NML                                                        413                      262                   450
 NLR                                                         40                       30                   109
                                                            657                      411                   895
 Exceptional Administration Expenses                      (122)                    (252)                   (3)
 FRS 17 Interest                                             75                       72                   215
 Goodwill Amortization                                        0                     (76)                 (208)
 Other Interest                                             (7)                     (42)                  (78)
 Profit on Ordinary Activities                              603                      113                   821
 Tax on Profit on Ordinary Activities                     (139)                     (30)                 (486)
 Profit for the year                                        464                       83                   335

 Consolidated Balance Sheet
 Unaudited Figures for the periods ended                                                     
                                                   30th September          30th September          31st March
                                                             2013                    2012                2013
                                                         GBP '000                GBP '000            GBP '000
 Fixed Assets                                                                                                
 Intangible Assets                                             30                     136                  31
 Tangible Assets                                            3,536                   4,935               3,669
 Investments                                                  181                     125                 126
                                                            3,747                   5,196               3,826
 Current Assets                                                                                              
 Stock                                                        521                     718                 554
 Debtors                                                    1,629                   1,756               1,821
 Cash at Bank                                                 763                      61               1,303
                                                            2,913                   2,535               3,678
 Amounts falling due within 1 year                        (2,747)                 (3,242)             (2,967)
 Net Current Liabilities                                      166                   (707)                 711
 Total Assets Less Current Liabilities                      3,913                   4,489               4,537
 Amounts falling due after more than 1 year                 (625)                 (1,356)             (1,606)
 Provisions for liabilities                                 (182)                   (211)               (185)
 Pension Liability                                        (4,193)                 (4,044)             (5,216)
 Net (Liabilities)/Assets                                 (1,087)                 (1,122)             (2,470)
 Capital And Reserves                                                                                        
 Called Up share Capital                                      735                     735                 735
 Revaluation Reserve                                                                1,096                    
 Share Option Reserve                                          20                      12                  20
 Profit and loss account                                  (1,842)                 (2,965)             (3,225)
                                                          (1,087)                 (1,122)             (2,470)
The interim results have been reviewed by the Company's auditor.

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

* * ENDS * *

For further information on NMR, please visit

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

Contact Information

  • National Milk Records plc