National Milk Records plc
LSE : NMRP

September 02, 2013 02:00 ET

Statement Regarding 2012 and 2013 Dividends

                                                                                           2 September 2013
                                                                                               GB00B5TWCQ18
                                                                                                           
                                         National Milk Records PLC
                                         ('NMR' or the 'Company')
                                                     
                                Statement regarding 2012 and 2013 Dividends
                                                     
NMR has been notified by its auditors that the dividend paid by the Company in respect of the year ended 31
March 2012 (the "2012 Dividend") and the dividend proposed in respect of the year ended 31 March 2013  (the
"2013 Dividend", together with the 2012 Dividend, the "Dividends") may not be legal.

In  accordance  with  the terms of an Undertaking given by NMR to the Court and the  Trustee  of  the  Milk
Pension Fund (the "Trustee") in 2003, NMR is required to obtain the Trustee's consent before declaring  any
dividend.  As  part  of the process for determining whether or not to grant consent, the  Trustee,  amongst
other things, requests confirmation from NMR's auditors that any such dividend could be "properly paid".

Written  confirmation was duly obtained from the Company's auditors that each of the 2012 Dividend and  the
2013  Dividend  could  be "properly paid"; the Trustees subsequently consented to the  declaration  of  the
Dividends.

On  28  August  2013, however, NMR was notified by the Company's auditors that the Dividends  "may  not  be
legal", due to there being insufficient distributable reserves available in NMR.

The  Directors  of the Company have commissioned an urgent investigation to determine the validity  of  the
Dividends in the light of the doubts now raised by the Company's auditors and will announce the outcome  of
that investigation as soon as it is available.

In  the meantime, however, the Directors believe that it would not be prudent at this stage to proceed with
the  approval  of  the  2013 Dividend at the Company's Annual General Meeting which is  being  held  on  25
September  2013.  Accordingly, the Chairman of the Annual General Meeting will seek confirmation  from  the
members then present that Resolution 6 will not be put forward at the Annual General Meeting.

The  Directors do not expect the legal status of the Dividends to have any material impact on the Company's
current trading position.

In  his  statement accompanying NMR's Report and Accounts for the year ended 31 March 2013, Philip Kirkham,
Chairman of the Company, commented as follows:

"The  past year has been highly successful for NMR Group as we continue to make profits and deliver on  our
promises to shareholders at a time when many companies are struggling due to the volatile global market. We
continue  to  make strong progress across our diverse portfolio of services and in doing  so  have  further
strengthened  our international positioning whilst securing profits. With this in mind, I believe  that  we
have laid the right foundations for growth during the forthcoming financial year. NMR is well positioned to
increase  its  presence in domestic and international markets, and I look forward to updating  shareholders
accordingly."

The Directors continue to have confidence in the Company's financial position and prospects.

A further announcement will be issued when appropriate.

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

Enquiries:

National Milk Records PLC
Andy Warne                                                               Tel: +44 (0) 7970 009 141

Peterhouse Corporate Finance Limited
Duncan Vasey and Mark Anwyl                                               Tel: +44 (0) 20 7469 0930

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



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