(“NMR”, the “Company”, or, together with its subsidiaries, the “Group”)
INTERIM RESULTS FOR THE SIX MONTHS ENDED
NMR, the leading
-- Turnover for continuing operations substantially increased to £10.5 million (“M”) (2016: £9.4M) -- Profit on ordinary activities, before taxation, of £957,000 (2016: £442,000) -- Adjusted EBITDA increased by £342,000 to £1.187M (adjusted to remove Inimex from comparator) -- Adjusted EBITDA percentage increased from 9.0 per cent to 11.3 per cent -- Net assets just over £1.0M, recovering from £270,000 at
30 June 2017-- Cash generation from operations of £1.1M -- Net Debt decreased to £3.3M, or 1.4 times EBITDA
“This is the first set of results following our exit from the
“Our focus in the second half of the year is to continue to provide exceptional service to our core milk recording customers whilst driving the market for improved testing for health and provenance and we expect continued growth in testing for Johne’s disease and BVD.
“NMR must also work to promote the research and development for longer term growth projects and we continue to work with our customers and partners in areas including heat detection, genomics and anti-microbial resistance.
“We recognise that milk prices are beginning to reduce as we enter 2018, but, despite this, we are well positioned to carry our performance into the second half of the financial year.”
For further information please contact:
NMR plc Andy Warne, Managing Director +44-7970-009141 firstname.lastname@example.org Mark Frankcom, Finance Director +44-7458-002444 email@example.com Peterhouse Corporate Finance Limited Duncan Vaseyor Mark Anwyl+44-20-7220-9796 Blytheweigh (Financial PR) Megan Ray Rachael Brooks+44-20-7138-3204
This announcement is available on the NMR website at www.nmr.co.uk
NMR is the leading supplier of management information to
The Group reported a turnover of £10.5M, an increase of £0.7M compared to the same period last year.
The recovery in milk prices in the second half of 2016 continued throughout 2017 and gave NMR the opportunity to recover cost pressures through an inflationary price increase in
The principal driver for revenue growth year on year is in Herdwise, NMRs screening service for the management of Johne’s disease. This wasting disease is increasingly being monitored by forward looking farmers and processors and NMR now has 1,660 farms regularly testing their milk for Johne’s disease, compared to 1,450 a year ago, an increase of 14.5 per cent.
Revenue development, year on year, has also been boosted by innovation in new testing and services. Three new areas in particular are beginning to have a bearing on the Group’s numbers; testing for thermoduric bacteria, which helps processors and retailers improve shelf-life; the sale of automatic heat detection systems, to improve fertility and also health; and the internal development of NMR’s Fusion software, which matches sample payment testing results to tanker volumes, and therefore facilitates milk payment parameters and more regular testing.
Complementing NMR’s core service with new innovation is central to its strategic development in the near term, and the Company continues to work with its partners, up and down the supply chain, to focus these efforts on the most relevant developments.
Overhead costs for continuing operations increased slightly in the period. Inflationary pressure, notably in people costs, has been mitigated by careful cost management including travel and expenses, and, in particular, keeping more of NMR’s recruitment costs in house. Encouragingly, NMR’s ability to convert revenues into cash profit is improving, with the Company’s EBITDA percentage improving to 11.3 per cent in the period.
NMR has seen modest capital investment in the first half of the year. It continues to progress with its rejuvenation programme for its laboratory equipment at the blue-riband site at Four Ashes. The Group’s second new sample-analyser arrived before Christmas, which will be commissioned in the spring, and another analyser is scheduled to arrive later this calendar year. The comparator period included the upfront investment in NMR’s core laboratory systems; this project is in final testing and will go live in May this year. In addition, the replacement of the Group’s finance systems with Epicor ERP v10 is in progress and is set to go live at the start of the Company’s new financial year.
NMR is also focussing on revenue investment to support its growth ambitions. This is highlighted by the appointment of a new marketing manager, announced in January. Additionally, NMR is actively investing in genomics testing and genetic management, and the Company is seeking to drive the market for this breakthrough technology in the
Cash flow and Debt
NMR’s cash position at the end of
Net Assets, at
It is NMR’s intention to implement a capital reduction in due course and, therefore, accelerate the Company’s ability to hold distributable reserves. Meanwhile, with no distributable reserves and, whilst in the early stages of the Company’s development post MPF exit, the Directors are proposing no dividend at this time (2016: nil).
The general outlook for
6 months ended 6 months ended 15 months ended 31-Dec-17 31-Dec-16 30-Jun-17 GBP'
000 GBP' 000 GBP'000 Turnover Farm services including milk 7,730 6,792 17,585 recording Payment testing services 1,959 1,962 5,056 Traceability services 524 454 1,265 Reproduction services 319 668 1,418 10,532 9,875 25,324 less discontinued operations - (480) (993) Turnover - Continuing operations 10,532 9,396 24,331 Costs of sales (3,766) (3,143) (10,639) Administrative Expenses (5,839) (5,690) (12,297) Loss on Milk Pension Fund Exit - - (12,460) 927 563 (11,065) Share of operating profit in 91 74 266 joint ventures Operating Profit - Continuing 1,019 637 (10,799) operations Discontinued Operations - (197) (948) Operating Profit 1,019 440 (11,747) Loss on Disposal of Fixed Asset - - (58) Investments Net Finance Cost (61) 1 (140) Profit on Ordinary Activities 957 441 (11,945) Before Tax Tax on Ordinary Activities (180) (69) 1,413 Profit on Ordinary Activities 777 372 (10,532) After Tax Earnings Per Share Basic EPS (pence) 3.7 4.9 (140.9) Diluted EPS (pence) 3.6 4.8 (137.5) Other Comprehensive Income Actuarial gains/(loss) on pension 150 scheme Movement on deferred tax relating to pension (29) scheme Exchange Rate difference 107 Total comprehensive income for the 777 372 (10,304) year
as at as at as at 31-Dec-17 31-Dec-16 30-Jun-17 GBP'
000 GBP' 000 GBP'000 Fixed Assets Intangible fixed assets - 601 - Tangible fixed assets 2,703 2,318 2,760 Investments 714 713 623 Other Investments 44 54 44 3,461 3,686 3,427 Current Assets Stock 125 248 184 Debtors 2,563 2,386 2,618 Debtors > 1 year 1,920 714 2,120 Cash at bank and in hand 764 2,383 459 5,372 5,731 5,381 Creditors: less than one year (4,219) (3,497) (4,934) Net current assets 1,152 2,234 447 Total assets less current 4,614 5,920 3,874 liabilities Creditors: more than one year (3,364) (315) (3,397) Milk Pension Fund Liability 0 (2,840) - Provision for liabilities (207) (207) (207) Net assets 1,043 2,558 270 Capital and Reserves Called-up Share capital 2,124 754 2,124 Share Premium 7,426 76 7,426 Share option reserve (195) - 22 Own Shares reserve 22 22 (195) Profit and loss account (8,334) 1,706 (9,107) Shareholders' funds 1,043 2,558 270
6 months ended 6 months ended 15 months ended 31-Dec-17 31-Dec-16 30-Jun-17 GBP'
000 GBP' 000 GBP'000 Cash flows from operating activities Operating Profit (before share of 927 366 (12,013) JV operations) add back Depreciation and 260 332 1,025 Amortisation Profits on disposal of tangible (16) (7) (46) assets Release of warranty provision (20) (Increase)/decrease in trade and 79 377 (100) other debtors (Increase)/decrease in stocks 59 56 112 Increase/(decrease) in creditors (224) (421) 930 Loss on disposal of Inimex 682 Milk Pension Fund payments / - (457) (3,500) settlements 157 (120) (917) Income taxes paid - (103) (151) Cash from operations 1,085 143 (13,081) Cash flows from investing activities Dividends received 281 Purchase of tangible assets (198) (308) (1,265) Proceeds from sale of tangible - 13 73 assets & investments Acquisition of subsidiary (65) (198) (295) (977) Cash flows from financing activities Share Capital Issued 8,709 Share issue costs (185) New bank loans raised 252 - 4,019 Transaction costs in respect of (87) the bank loan Repayments of borrowings (696) - Repayments of obligations under (93) (110) (297) finance leases Interest paid (44) - (48) (582) (110) 12,112 Net increase in cash and cash 305 (263) (1,946) equivalents Cash and cash equivalents at 459 2,645 2,405 beginning of period Cash and cash equivalents at end 764 2,383 459 of period