('NMR', or 'the Company' or ‘the Group’)
Audited Final Results
-- Turnover from continuing operations has increased to £21.4 million compared with the equivalent twelve month period in 2017 of £19.5 million (15 month period £25.3 million) -- Operating profit before MPF exit from continuing operations has increased to £1.9 million compared with the equivalent twelve month period in 2017 of £1.1 million -- Unadjusted operating profit has increased to £1.9 million (2017: loss of £11.9 million) -- Adjusted EBITDA has seen considerable growth of 24% to £2.4 million (2017: £1.9 million) -- The Board is recommending a dividend of
2.5 penceper share -- Net debt decreased by £1.8 million to £2.1million or 0.9 times EBITDA
-- NMR’s screening service for managing Johne’s disease has seen a substantial growth with 2,055 herds regularly undergoing screening compared to 1,600 in 2017 -- Continuing investment in NMR’s people and infrastructure, including an investment of £0.8 million in
IT and Laboratoryequipment -- The Company is also examining how it supports milk processors in achieving their desire for greater transparency in the management of anti-microbial resistance (‘AMR’). -- Significant increase in revenues from the Reproduction Services division of the Company o NMR was successful in a tender to support the Agricultural and Horticultural Development Board(‘AHDB’) with genomic testing -- Positive market outlook o Dairy farmers are becoming more professional and data-driven o Increasing consumer demand for food safety and traceability o Milk buyers are continuing to invest in UKprocessing capacity o Impact of Brexit mildly positive to NMR’s prospects
-- Appointment of a new Non-Executive Director,
Mike Gallacher-- Reduction of the Company’s capital approved by the High Courtwhich, together with a hive-up of the trading activities of subsidiary companies into National Milk Records plc, marks a significant simplification in the structure of the business and its balance sheet -- Launch of a new “Mission Statement”, enabling greater cultural alignment and clarity of management information
“It is with great pleasure that we can report this strong set of results for NMR. Over the last 12 months there have been improvements in turnover, operating profit and EBITDA, and the Board is excited to recommend a dividend of
“NMR continues to grow as a business, and to support this it is investing in its people and its infrastructure. Currently, this investment programme is focusing on information technology systems and laboratory equipment. Additionally, as part of this process, NMR has launched a new “Mission Statement” to define the Company’s role in the industry.
“Our efforts are now firmly set on maintaining, and improving on, the success we have experienced over the last 12 months, and therefore our primary focus will remain on the core business, a strategy which we believe will serve us well into the future. However, the Company is also ambitious and is assessing new growth strategies and opportunities, whilst continuing to provide the best possible service to our customers.
“I look forward to updating shareholders on the Company’s progress in due course.”
For further information please contact:
National Milk Records plc Andy Warne, Managing Director +44-7970-009141 firstname.lastname@example.org Mark Frankcom, Finance Director +44-7458-002444 email@example.com Peterhouse Capital Limited+44-20-7220-9796 Duncan Vasey Mark AnwylBlytheweigh (Financial PR) +44-20-7138-3204 Megan Ray Rachael Brooks
These Financial Statements relate to a 12 month period, and compare to a prior period covering 15 months. This anomaly is caused by the extension of the prior financial period to include the exit of the
We are also reintroducing our Dividend Re-Investment Plan (DRIP). This will give shareholders the option to reinvest their dividend payments to buy more shares in the company.
Growing and progressive companies require good governance. The NMR Board is focused on building accountability within its committee structure with clear terms of reference, active chairing from Non-Executive Directors (‘NED’) and a membership balance of NED and executive managers. This enables the Managing Director and Executive Leadership Team (‘ELT’) to focus on the day to day management of NMR. A highlight of the year has been the appointment of a new NED,
Growing and progressive companies also require investment. NMR is investing in both our people and our infrastructure. NMR is a services business and our staff are the key to delivering excellent service. During the year we have commissioned an external consultancy to carry out an engagement survey to establish the overall cultural health of the organisation, and the ELT is engaged in acting on the results. Additionally, we launched a new “Mission Statement” which defines what we do and who we do it for. A short video to introduce this mission statement is available on the NMR website at www.nmr.co.uk. In terms of infrastructure, NMR has started an investment programme, focusing particularly in the areas of information technology systems and laboratory equipment. These investments will deliver efficiency, enable development of new services and improve the resilience of our service.
NMR remains very much a key service provider in the
NMR has also considered the likely risk of BREXIT to the
This is my first statement as Chairman of NMR and I am proud of our achievements. I would like to thank all the NMR employed staff and self-employed milk recorders for their hard work during the year. I would also like to thank all of our shareholders and stakeholders for their continued support.
To the members of
The Directors, in preparing this Strategic Report, have complied with s414C of the Companies Act 2006.
The Business Model
-- Farm services. including milk recording and disease testing -- Processor services, including payment testing -- Traceability services, predominantly ear tags -- Reproduction services, including heat detection and genomics
The Company organises itself around these revenue streams with one of the senior team leading each of these areas. NMR also has a Joint Venture in the
Trading Report and KPIs
As outlined in the Chairman’s report, the financial statements are prepared for the first time for the 12 months ended 30 June. Under the Company’s Act NMR must report against its last published accounts which are the 15 months ended
The general market and trading conditions for the
There has been no diminution of consumer demand for food safety and traceability, and NMR has seen a noticeable uplift in revenues for the newer services which supports this, particularly those associated with Health and Animal welfare. Herdwise, NMR’s screening service for managing Johne’s disease, a pervasive and wasting infection of cattle, has seen substantial growth. In
The demands of retailers are increasing and NMR is a partnering processor under the
The last few months of the year also saw a step change in revenues for Reproduction Services. Sales of Sensetime™, the new and innovative web-based heat detection service from NMR’s partners at Antelliq, has seen progressive sales, supported by grant activity. Additionally, the Company was successful in a tender to support the
Group turnover for the 12 months ended
Operating Profit before pension re-measurement has risen from £1.2 million for the 15 months ended
Investment in infrastructure is also a key pillar of NMR’s strategic plan, and the Company is pleased to report capital investment of £0.8 million in the year. This investment is focused in
It was stated in last year’s Report and Accounts that NMR was focused on three areas:
-- Retaining and building its portfolio of market leading testing services -- Continuing its careful management of costs -- Investing in its business infrastructure.
The Company is ambitious, of course, and the Board will continue to develop new opportunities for growth. Meanwhile, the focus on the core customers and core business has served NMR well this year and it remains determined in its mission to deliver Essential insight for the
Key performance indicators
In addition to the Company’s Key Financial Indicators, Laboratory Processing Time (‘LPT is a Key Performance Indicator for the Group as it differentiates it from its main competitor. In the 12 month period to
This report was approved by the Board of Directors on
Mr A J Warne
CONSOLIDATED PROFIT AND LOSS ACCOUNT
12months ended 30 15months ended 30 June 2017 June 2018 restated TOTAL Continuing Discontinued TOTAL operations operations £'000 £'000 £'000 £'000 Revenue 21,405 24,331 993 25,324 Cost of Sales (10,125) (10,639) (559) (11,198) Gross Profit 11,280 13,692 434 14,126 Administrative (9,387) (12,225) (700) (12,925) Expenses Operating profit / 1,893 1,467 (266) 1,201 (loss) before pension remeasurement/exit Loss on Milk Pension - (12,460) - (12,460) Fund exit Loss on disposal of - - (682) (682) operations Operating Profit/ 1,893 (10,993) (948) (11,941) (Loss) Share of operating 243 266 - 266 profit in joint ventures 2,136 (10,727) (948) (11,675) Net finance cost (145) (179) 58 (121) Loss on Disposal of - (58) - (58) Fixed Asset Investments Other Gains and 3 - - - losses Profit/(Loss) Before 1,994 (10,964) (890) (11,854) Tax Tax (167) 1,375 38 1,413 Profit/(Loss) for 1,827 (9,589) (852) (10,441) the Period Earnings per share (pence) Basic 8.7 (128.3) (139.7) Diluted 8.6 (128.3) (139.7)
15 months ended
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
12 MONTHS ENDED 30 JUNE 2018 12 months ended Restated 15 months ended 30 June 18 30 June 17 £'000 £'000 Profit/(Loss) for the Period 1,827 (10,441) Actuarial gains on pension scheme - 150 Movement on deferred tax relating to pension - (29) scheme Exchange Rate difference 4 107 Total comprehensive income/(expense) for the 1,831 (10,213) period
CONSOLIDATED BALANCE SHEET
as at 30 June as at 30 June 2018 2017 Restated £'000 £'000 FIXED ASSETS Intangible assets 358 - Tangible assets 2,524 2,790 Investments 862 623 Other Investments - 44 3,744 3,457 CURRENT ASSETS Stock 222 184 Debtors - due within one year 2,896 2,617 Debtors - due after one year 1,761 2,120 Cash at bank and in hand 1,551 459 6,430 5,381 CREDITORS AMOUNTS FALLING DUE WITHIN (4,507) (4,815) ONE YEAR NET CURRENT ASSETS 1,923 566 TOTAL ASSETS LESS CURRENT LIABILITIES 5,667 4,023 CREDITORS AMOUNTS FALLING DUE AFTER (2,968) (3,269) ONE YEAR PROVISIONS FOR LIABILITIES (256) (207) NET ASSETS 2,443 547 CAPITAL AND RESERVES Called-up share capital 53 2,124 Share premium - 7,426 Share option reserve - 22 Own Shares (195) (195) Profit and loss account 2,585 (8,830) SHAREHOLDERS’ FUNDS 2,443 547
CONSOLIDATED STATEMENT OF CASH FLOWS
12 MONTHS ENDED 30 JUNE 2018 12 months 15 months ended ended 30 June 18 30 June 2017 Restated £'000 £'000 £'000 £'000 Cash flows from operating activities: Operating Profit/(Loss) 1,893 (11,941) Amortisation of intangible assets 8 266 Write off intangible assets 126 - Share option vesting expense 13 - Amortisation of loan expenses 12 - Investment written off - 5 Depreciation of tangible assets 507 682 Profits on disposal of tangible assets (23) (46) Increase/(decrease) of warranty provision 45 (20) Increase in trade and other debtors (140) (100) (Increase)/decrease in stocks (38) 112 Increase in creditors 392 930 Loss on disposal of Inimex - 682 Settlement to Exit Milk Pension Fund - (2,372) Difference between pension credit and cash paid - (1,128) 902 (989) Income taxes paid - (151) Cash from operations 2,795 (13,081) Cash flows from investing activities: Dividend received from Associate 52 175 Overseas dividend - 106 Purchase of tangible assets (801) (1,265) Proceeds from sale of tangible assets 47 69 Proceeds on exercise of share options 52 - Acquisition of subsidiary - (96) Cash acquired with subsidiary - 31 Proceeds of disposal of investment - 4 (650) (976) Cash flows from financing activities Share Capital Issued - 8,709 Share issue costs - (185) New bank loans raised 251 4,019 Transaction costs in respect of the bank loan - (87) Lease finance paid down (173) (297) Interest paid (145) (48) Loan repayments (986) - (1,053) 12,111 Net increase/(decrease) in cash and cash 1,092 (1,946) equivalents Cash and cash equivalents at beginning of period 459 2,405 Cash and cash equivalents at end of period 1,551 459
1. General Information
The basis of preparation of this preliminary announcement is set out below.
The financial information in this announcement, which was approved by the Board of Directors on
Statutory accounts for the period ended
Whilst the financial information included in this preliminary announcement has been completed in accordance with United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice ‘UKGAAP’), this announcement itself does not contain sufficient information to comply with UKGAAP.
The financial information has been prepared on the historical cost basis.
Copies of the announcement can be obtained from the Company’s registered office at Fox Talbot House,
It is intended that the full financial statements, which comply with UKGAAP, will be posted to shareholders in due course and will be available to members of the public at the registered office of the Company from that date and available on the Company’s website: www.nmr.co.uk
2. Going concern
The Group’s business activities together with the factors likely to affect its future development, cash flows, liquidity, performance and position are set out in the Strategic report.
After making enquiries, the Directors have a reasonable expectation that the Group has adequate resources to continue its operational existence for the foreseeable future and for a period of at least 12 months from the date of this report.
The Directors recommend the payment of a dividend of 2.5p per ordinary share in relation to the period ended
4. Earnings Per Share
Basic earnings per share is calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period.
Diluted earnings per share is calculated using the weighted average number of shares adjusted to assume the conversion of all dilutive potential ordinary shares.
The shares held by the Employee Share Option Plan are deducted from total shares in arriving at the weighted average number of ordinary shares used in the earnings per share calculation.
Reconciliations are set out below.
2018 TOTAL P&L Earnings Shares EPS £’000 pence Basic 1,827 20,939,702 8.7 Dilution 300,000 Diluted EPS 1,827 21,239,702 8.6 2017 TOTAL P&L Earnings Shares EPS £’000 pence Basic (10,441) 7,473,355 (139.7)
There have been no transactions involving ordinary shares or potential ordinary shares between the reporting date and the date of completion of these financial statements.
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement via a