National Milk Recrds - Interim Results
Announcement provided by
National Milk Records plc · NMRP21/02/2023 07:00

For immediate release 21 February 2023
National Milk Records plc
("NMR", the "Company", or together with its subsidiaries, the "Group")
INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2022
National Milk Records plc (AQSE: NMRP), the established agri-tech information services provider in the UK dairy sector, is pleased to announce its unaudited results for the six months ended 31 December 2022.
Highlights
· Turnover for the period increased by 5.0% to
· Like for Like EBITDA(*) for the period increased by 17.0% to
· Underlying EBITDA(**) for the period decreased 8.8% to
· 5.3% increase in Profit Before Tax to
· Basic and diluted earnings per share increased 34% to 4.3p (2021: 3.2p)
· Investment in tangible and intangible assets up 83.3% to
· Net Debt down 14.2% to
· Dividend of
· Net assets increased 30% to
(*)Like for Like EBITDA excludes the investment in US GenoCells, reorganisation costs for consolidating milk testing, and differing accounting treatment for vehicles not under finance leases
(**)Underlying EBITDA excludes a charge for share-based payments included in 2022 for the Executive Incentive Plan announced on 29 December 2021.
Mark Frankcom, Finance Director, commented:
"The results for the first half of the financial year show a solid performance year on year, albeit with EBITDA held back by the differing accounting treatment for vehicles not under finance leases, reorganisation costs for consolidating milk testing at our Four Ashes laboratory, and our investment in the opportunity for GenoCells in the US. On a like-for-like basis, EBITDA was approximately
"Our revenue growth demonstrates the validity of our strategy to focus on our core services whilst concurrently pursuing opportunities for innovation. It's really pleasing to see continued growth of Johne's disease testing revenues, but also for our oldest revenue categories of milk recording and payment testing. The number of cows on the database has held up well in the first half of the year, and we are determined to grow this Key Performance Indicator.
"Genomics revenues are also worth comment, nearly doubling to
"The first half of the financial year has seen significant capital investment, putting the Company in a strong position for the second half of the year and beyond, as we continue to pursue our strategic plan. We are installing the IT infrastructure to deliver GenoCells in the UK and US markets, and intangible investment also includes
"We recognise the talent and commitment of the whole NMR team right across our operations, including our self-employed milk recorders and samplers, working hard to deliver the data and robust insights which support our customers to achieve their business objectives."
For further information please contact:
National Milk Records plc
Mark Frankcom, Finance Director markfr@nmrp.com
Canaccord Genuity Limited
Adam James +44 20 7523 8000
Harry Rees
BlytheRay (Financial PR)
Megan Ray
Rachael Brooks +44 20 7138 3204
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.
Group Results
The Company's strategy continues to focus on its core business and its associated adjacent revenue opportunities which is demonstrated in continued growth in revenues during this period. EBITDA performance compared to the same period last year was held back by costs arising from three factors: vehicle rentals; US GenoCells; and laboratory reorganisation. The widely understood lack of availability of new motor vehicles has led to a higher volume of rentals where an additional
The Core Business segment was the key driver behind revenue growth, with particular note on the revenues from Johne's testing, which grew by
Revenue from Genomic testing almost doubled to
NMR's share of Joint Venture profit in Ireland grew by 10% to
Dividend
A final dividend of
Investment
The Company's investment in fixed assets continues with
Investment in intangible assets of
Cash flow and Debt
Overall net debt has decreased to
A further
Key Personnel
NMR's managing director, Andy Warne, is currently undergoing a period of cancer treatment. Finance Director Mark Frankcom has assumed operational control of NMR on an interim basis with the full support of the rest of the Board and Executive Leadership Team.
Outlook
Trading for the first half the financial year has been positive with many sectors of the business continuing to perform well. Significant input inflation has affected costs and NMR has increased prices for its services, across the board, to maintain margins. The employment market is also creating pressure on wages and NMR remains determined to secure the talent it requires in a competitive market. Cash generation remains strong and the Company will continue to invest in its key strategic priorities alongside revenue investments such as marketing campaigns for GenoCells.
Across the UK dairy industry, milk prices have declined from their peak, although remain c.50% above the average over recent years, with many reductions already announced for deliveries in the first quarter of 2023. Inflation has led to a scenario where marginal decision making for farmers carries more risk: higher costs for investment and higher input costs are making the need for robust data insights becoming ever more important. Furthermore, maximising the efficiency of a herd is the single most direct route for the dairy industry supply chain to achieve its sustainability objectives.
About NMR
NMR is the leading agri-tech supplier of 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 1.8 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.
NMR plc - Consolidated Statement of Comprehensive Income
|
|
6 months ended |
6 months ended |
|
12 months ended |
|
|
31-Dec-22 |
31-Dec-21 |
|
30-Jun-22 |
|
|
£'000 |
£'000 |
|
£'000 |
Turnover |
|
|
|
|
|
|
Core Services |
9,785 |
9,324 |
|
18,819 |
|
Testing adjacencies |
905 |
916 |
|
1,883 |
|
Surveillance adjacencies |
292 |
277 |
|
503 |
|
Other adjacencies |
696 |
749 |
|
1,465 |
|
Genomics |
336 |
173 |
|
488 |
|
Total Revenue |
12,014 |
11,438 |
|
23,158 |
Costs of sales |
(6,878) |
(6,505) |
|
(13,241) |
|
Administrative expenses |
(4,608) |
(4,424) |
|
(8,312) |
|
Other Operating Income |
- |
7 |
|
7 |
|
Operating Profit |
604 |
516 |
|
1,612 |
|
Share of operating profit in joint ventures |
308 |
280 |
|
701 |
|
|
|
912 |
796 |
|
2,313 |
Other gains and losses |
- |
6 |
|
6 |
|
Net finance cost |
(51) |
(52) |
|
(98) |
|
Profit on Ordinary Activities Before Tax |
785 |
750 |
|
2,221 |
|
Tax on ordinary activities |
130 |
(61) |
|
222 |
|
Profit on Ordinary Activities After Tax |
915 |
689 |
|
2,443 |
|
|
|
|
|
|
|
Earnings Per Share |
|
|
|
|
|
|
Basic EPS (pence) |
4.3 |
3.2 |
|
11.5 |
|
Diluted EPS (pence) |
4.3 |
3.2 |
|
11.5 |
|
|
|
|
|
|
Other Comprehensive Income |
|
|
|
|
|
|
Exchange Rate difference |
- |
- |
|
14 |
Total comprehensive income for the year |
915 |
689 |
|
2,457 |
NMR plc - Consolidated Balance Sheet
|
|
as at |
as at |
|
as at |
|
|
31-Dec-22 |
31-Dec-21 |
|
30-Jun-22 |
|
|
£'000 |
£'000 |
|
£'000 |
Fixed Assets |
|
|
|
|
|
|
Intangible fixed assets |
3,206 |
2,057 |
|
2,690 |
|
Tangible fixed assets |
3,554 |
3,404 |
|
3,445 |
|
Investments |
2,189 |
1,583 |
|
1,881 |
|
Other Investments |
- |
- |
|
- |
|
|
8,949 |
7,043 |
|
8,016 |
Current Assets |
|
|
|
|
|
|
Stock |
456 |
602 |
|
432 |
|
Debtors |
3,210 |
3,738 |
|
3,264 |
|
Debtors > 1 year |
788 |
- |
|
788 |
|
Cash at bank and in hand |
1,396 |
1,725 |
|
2,075 |
|
|
5,850 |
6,065 |
|
6,559 |
|
|
|
|
|
|
Creditors: less than one year |
(4,143) |
(3,881) |
|
(3,889) |
|
|
|
|
|
|
|
Net current assets |
1,707 |
2,184 |
|
2,670 |
|
|
|
|
|
|
|
Total assets less current liabilities |
10,656 |
9,227 |
|
10,686 |
|
|
|
|
|
|
|
|
Creditors: more than one year |
(1,311) |
(2,032) |
|
(1,840) |
|
Provision for liabilities |
(21) |
(27) |
|
(21) |
Net assets |
9,324 |
7,168 |
|
8,825 |
|
|
|
|
|
|
|
Capital and Reserves |
|
|
|
|
|
|
Called-up Share capital |
53 |
53 |
|
53 |
|
Own Shares reserve |
- |
(33) |
|
- |
|
Profit and loss account |
9,271 |
7,148 |
|
8,772 |
Shareholders' funds |
9,324 |
7,168 |
|
8,825 |
NMR plc - Group Statement of Cash Flows
|
|
6 months ended |
6 months ended |
|
12 months ended |
|
|
31-Dec-22 |
31-Dec-21 |
|
30-Jun-22 |
|
|
£'000 |
£'000 |
|
£'000 |
Cash flows from operating activities |
|
|
|
|
|
|
Profit for the financial year |
915 |
689 |
|
2,443 |
|
Amortisation of intangible assets |
115 |
127 |
|
265 |
|
Amortisation of loan expenses |
6 |
6 |
|
12 |
|
Depreciation of tangible assets |
327 |
320 |
|
641 |
|
(Profit)/Loss on disposal of tangible assets |
- |
- |
|
(20) |
|
Share of operating profit in joint venture |
(308) |
(280) |
|
(701) |
|
Dividend income from fixed asset investment |
- |
(6) |
|
(6) |
|
Net interest payable |
37 |
41 |
|
91 |
|
Taxation credit |
(130) |
61 |
|
(222) |
|
Share based payment charges |
76 |
187 |
|
152 |
|
Decrease/(Increase) in trade and other debtors |
185 |
196 |
|
(134) |
|
(Increase)/Decrease in stocks |
(24) |
(96) |
|
74 |
|
(Decrease)/Increase in creditors |
(150) |
(239) |
|
(132) |
|
|
|
|
|
|
|
|
134 |
317 |
|
20 |
|
Income taxes refunded |
- |
- |
|
278 |
|
Cash from operations |
1,049 |
1,006 |
|
2,741 |
|
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
|
|
Dividend received from Joint Venture |
- |
- |
|
136 |
|
Dividends received |
- |
6 |
|
6 |
|
Purchase of tangible fixed assets |
(134) |
(247) |
|
(457) |
|
Purchase of intangible fixed assets |
(631) |
(396) |
|
(1,167) |
|
Proceeds from sale of tangible assets & investments |
- |
3 |
|
20 |
|
|
(765) |
(634) |
|
(1,462) |
Cash flows from financing activities |
|
|
|
|
|
|
Dividends paid |
(417) |
(314) |
|
(314) |
|
Capital element of lease repaid |
(174) |
(135) |
|
(266) |
|
Interest paid |
(37) |
(41) |
|
(91) |
|
Loan repayments |
(320) |
(262) |
|
(578) |
|
Cash proceeds from loans |
- |
- |
|
- |
|
Purchase of shares for share option plans |
(15) |
- |
|
(60) |
|
|
|
|
|
|
|
|
(963) |
(753) |
|
(1,309) |
Net increase in cash and cash equivalents |
(679) |
(380) |
|
(30) |
|
|
Cash and cash equivalents at beginning of period |
2,075 |
2,105 |
|
2,105 |
Cash and cash equivalents at end of period |
1,396 |
1,725 |
|
2,075 |
**ENDS**
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