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Interim results for the six month ended 31 December 2019

NMR, the leading UK supplier of dairy and livestock services, announces its unaudited results for the six months ended 31 December 2019.
 
Highlights
  • Turnover for the period of £10.7 million (“m”) (2018: £11.7m)
    • Previously disclosed one-off and seasonal activity in 2018 accounted for 59% turnover disparity
  • The cyber-attack reported on 13 September interrupted services in the first half
  • Profit on ordinary activities, before taxation, of £0.4m (2018: £1.1m)
  • EBITDA for the period of £0.6m (2018: £1.3m)
  • Net Debt up slightly at £2.4m (2018: £2.1m) after paying a dividend of £0.3m
  • Investment in tangible and intangible assets up significantly at £0.7m (2018: £0.3m)
  • Net assets increased to £4.1m (2018: £2.8m)andywa@nmrp.com
Managing Director, Andy Warne, commented:

“We are pleased to report that despite an interruption to our services following the previously reported cyber-attack, NMR has emerged stronger having protected our revenue streams and substantially reinforced our cyber protection and restoration capability. We are particularly pleased to note that revenues from our Disease Testing services have grown by 4% year on year as we pursue our strategy of focusing on our core customers and greater penetration of our milk testing services.
 
We are also pleased that we have continued our accelerated investment programme having invested significantly in the first half of the year in both laboratory equipment and digital transformation. We also paid another dividend in the first half of the 2020 financial year.
 
The financial impact of the cyber-attack has been via additional credit to customers for interrupted services, the over-provision of testing in the labs to protect revenue streams, and additional costs for system protection and cyber-consultancy services. Whilst the quantum has been greater than previously envisaged, the direct financial impact is fully contained in the first half of the year. During the second half of FY20 we expect to trade broadly in line with our prevailing growth expectations for this period, albeit some initiatives having been delayed by the cyber-attack. Taken together, this updates our previous guidance.
 
“We continue to focus on the delivery of our strategic objectives, and I am confident that our earnings exit rate for the year ended June 2020 will be broadly in line with our expectations pre-cyber-attack. That being said, we’re not the company we were; at every turn NMR is seeking to achieve a more robust IT infrastructure and greater resilience of our service platforms to ensure we are always improving our customer experience and therefore supporting our growth objectives in our core markets.
 
“With regards to the British Dairy industry, calendar year 2019 saw the highest level of milk produced in Great Britain for 27 years. There is some consequent downward pressure on milk prices which may reduce milk volumes to a small extent, however we remain positive that the UK dairy market offers strong opportunities and look forward to a successful second half of the year and beyond.”
 
 
For further information please contact:
 
NMR plc
Andy Warne, Managing Director                                                          andywa@nmrp.com
Mark Frankcom, Finance Director                                                        markfr@nmrp.com
 
Canaccord Genuity Limited
Adam James                                                                                               +44-20-7523 8000
Georgina McCooke                                                                                  
 
Blytheweigh (Financial PR)
Megan Ray
Rachael Brooks                                                                                          +44-20-7138-3204
 
This announcement is available on the NMR website at www.nmr.co.uk
 
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014.
 
The Directors of the Company are responsible for the contents of this announcement.

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