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Milking it?
National Milk Records plc, the ISDX-quoted leading supplier of dairy and livestock services, has issued results for the year ended 31 March 2014.
Highlights:
* Profit before taxation of GBP 1.2 million (2013 GBP 0.8 million)
* 28% increase in operating profit to GBP 893,000 – driven by operational savings resulting from the
previous investment in Four Ashes site
* Positive year-end cash position and no borrowings
* Strengthened Board through appointment of operational personnel
* Continued focused on growth through the provision of significant products and services to existing
markets and to expand into new areas that build on competencies and customer interests
NMR Managing Director Andy Warne said, “These results highlight the enhanced financial position of the Company and
underline the solid nature of our business model. Consolidating our facilities has improved the efficiency of the
business and allowed us to repay our debt. We have a strong market presence and are well-placed to continue our
growth and deliver further value for shareholders.”
Chairman’s Statement
The financial year ended 31 March 2014 has been a year in which NMR has delivered the promised operational savings
resulting from the previous investment in our new site at Four Ashes. During the year our operating profit
increased by 28% to GBP 893,000 (2013: GBP 698,000) and we have used our improved cash position to pay off the
debt of GBP 1,201,000 incurred in building the Four Ashes site and set up costs for Independent Milk Laboratories
in Ireland. On 31 March 2014 the Group had GBP 1,443,000 (2013: GBP 1,303,000) of cash at the bank and no further
borrowings. The Group’s Diluted Earnings per Share for the year ending 31 March 2014 has increased to 9.61 pence
per share from 4.65 pence per share for the year ended 31 March 2013.
This strong operating performance is tempered by the worsening position of the defined benefit pension scheme
deficit before deferred tax asset which increases to GBP 8,252,000 (2013: GBP 6,774,000). The difference is caused
by incorporating the detail of our actual individual pensioner experience rather than estimates based on the
previous triennial valuation and strengthening the longevity provisions. The NMR Board is acutely aware of the
impact the pension obligations have on the business and is working to mitigate the impact whilst recognising the
Group’s commitments to pensions and deferred pensioners.
In August 2013 our Vice Chairman, Mr Ian Smith, died following a short illness which kept him from the Board room.
I would like to acknowledge the contribution Ian made during his time on the Board. Trevor Lloyd, who is an
existing Non-Executive director, has been elected by the Board as the new Vice Chairman. During the period we have
improved the balance of Executive to Non-Executive Directors and have welcomed both Mr Ben Bartlett and Mr
Jonathan Davies to the Board. Both Ben and Jonathan join the Board from the current NMR organisation where they
have been senior managers for a number of years. We also welcome Mr Mark Butcher, who joins the Board as an
Independent Non-Executive Director with a wealth of commercial experience. Mark has taken on the role of Chairman
of the Audit Committee previously held by Ian. We would like to thank Mrs Janina Marshall and Mrs Sandra Pope for
their contribution to the NMR Board during their tenure as Non-Executive Directors. Biographies of each of the
current NMR Directors can be found on the NMR website at www.nmr.co.uk. Whilst the reported year on year
comparison of Board costs appears to have increased as a result of the replacement of two Non-Executive Directors
with two Executive Directors, the new Directors were already members of the Senior Management team so the
incremental impact of their directorships is not as significant as it may appear.
