TIDM NMRP

 For immediate release

18 November 2019

NATIONAL MILK RECORDS PLC

("NMR", the "Company", or, together with its subsidiaries, the "Group")

QUARTERLY UPDATE FOR THE THREE MONTHS ENDED 30 SEPTEMBER 2019 AND APPOINTMENT OF CANACCORD GENUITY LIMITED AS NEW CORPORATE ADVISOR

NMR, the leading UK supplier of dairy and livestock services, announces its Q1 quarter update for the three months ended 30 September 2019 (unaudited).

Trading Update 

·    Turnover for the quarter was £5.248 million (September 2018: £6.083 million; 30 June 2019 £5.542 million)

o  Revenue has been impacted by the effect of the cyber-attack, announced on 25 September 2019. September 2018 comparator quarter also boosted by one-off projects.

o  NMR operational systems have now been restored and the Company is working to relieve a modest backlog in testing and reporting

o  The final cost of the cyber-attack is still being calculated but NMR anticipates that this cost will be in line with its previous estimates

o  NMR continues to work closely with its customers to reinforce its strong relationships

·    The number of cows on the NMR database has increased by 4.2% year on year to 725,160 (September 2018: 695,698)

·    The number of cows on the Herdwise service has risen by 9.1% to 444,787 (September 2018: 407,551)

·    Following approval at the AGM, the Company is set to pay a dividend of 1.25 pence dividend on 21st November 2019

·    The Company remains on track to deliver its stated growth and business development objectives in line with its Strategic Plan

Andy Warne, Managing Director, commented: 

"Despite an encouraging start to the quarter, the previously announced cyber-attack caused significant interruption to our business in the subsequent period and I would like to thank the hard work of the entire NMR team who have dedicated many hours to ensuring NMR overcame this challenge. I would also like to thank our customers for their patience and support. I believe the experience gained during this time will make NMR a stronger business and put us in a good position going forwards.

"Many of the activities carried out during the recovery from the cyber-attack were in line with, and therefore accelerated, our Strategic Plan, which focuses on investing in our core business, including IT capabilities, and strengthening relationships with core customers. We are in the process of simplifying our business model and driving efficiencies within the Group, which includes the adoption of new systems and technologies. Not only does this drive service development but also helps us achieve our goal of operational excellence and resilience.

"NMR remains committed to its Strategic Plan and is continuing to invest in the systems and equipment to deliver annualised single-figure growth in revenue and double-digit growth in EBITDA in the mid-term. The first quarter of this financial year has been a set-back in this plan, however the one-off nature of the cyber-attack means the impact on our strategic goals is limited in the medium-term. The two significant one-off projects (TB index genomics and heat detection systems) undertaken in the September 2018 quarter also made for demanding quarter-on-quarter comparisons.

"Although uncertainty, in all markets, continues in the build-up to the General Election, including what impact this may have on the Brexit process and the macro-economy, NMR believes that food supply and the UK dairy industry remains a resilient sector. Additionally, the increasing consumer demands for food safety and provenance will enable NMR to deploy ever more valuable services to meet these demands, which will believe will be a key driver for our services over the coming years."

Appointment of Corporate Advisor

We are pleased to announce the appointment of Canaccord Genuity Limited as NMR's corporate advisor with immediate effect and believe they will bring a fresh approach as NMR moves towards its next phase of development.

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014.

This announcement is available on the NMR website at www.nmr.co.uk

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

For further information please contact:

About NMR

NMR is the leading supplier of essential management information to the UK dairy supply chain. Through a team of self-employed milk-recorders, it collects and tests milk samples for approximately 50% of the UK's two million cows. In addition, its laboratories provide payment testing and disease testing services for Britain's milk processors. NMR has a joint-venture laboratory in the Republic of Ireland providing similar services to farmers and processors across the whole of Ireland. Another division of the Group is a livestock traceability business, Nordic Star, which services the UK dairy and beef sectors.