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Quarterly Market 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 unaudited market update for the three months ended 30 September 2019.
 
Trading Update 

Turnover for the quarter was GBP 5.248million (September 2018: GBP 6.083 million). Revenue has been impacted by the effect of the cyber-attack on the 13th September which has been previously announced. NMR operational systems have now been restored and the company is working to relieve a modest backlog in testing and reporting. Working on customer confidence and trust is now a key activity. The final cost of the cyber-attack is still being calculated but we anticipate this cost will be in line with our previous estimate.
  • The number of cows on the NMR database is 725,160 (September 2018: 695,698)
  • The number of cows on the Herdwise service is 444,787 (September 2018: 407,551)
  • Following approval at the AGM, the Company is set to pay a 1.25p dividend on 21st November 2019; holders of 590,656 ordinary shares have elected to reinvest dividends totalling GBP £7,383 under the Company’s Dividend Reinvestment Programme
  • The Company is on still track to deliver business development in line with our 3-year plan  
Andy Warne, Managing Director, commented: 

"The first quarter of this financial year has been tough, and I would like to thank the hard work of everyone in my team who has dedicated many hours to ensuring NMR overcame a significant challenge to the business. The support and patience of our customer base has been humbling. I now believe the business community and business leaders split directly into two groups; those how have experienced this type of cyber-attack and those who haven’t. NMR is now in the former group and the experience we have gained I believe makes us a stronger and more valuable business. For those who follow NMR in detail will remember that in the first quarter of the Financial Year ending June 2019 there were two significant one-off projects that boosted revenue in the quarter. The year on year comparison is therefore less stark than it first looks when forecasting full year results.”
 
"Many of the activities of recovery from the cyber-attack are actually in line with our new strategic plan in which we are focusing on core business and developing relationships with our core customers. We are in the process of simplifying our business model and driving efficiency with the adoption of new systems and technology. Not only does this drive service development but also drives the goal of operational excellence and resilience” 

"NMR remains committed to development by following the same Strategic Plan and is continuing to invest in the systems and equipment to deliver single figure annual growth in revenue and double-digit growth in EBITDA. The first quarter of this financial year puts a dent in this development plan, but the one-off nature of the cyber-attack means the issue is one of timing rather than the eventual outcome.

We are pleased to announce the appointment of Canaccord Genuity Limited as NMR’s corporate advisor and believe they will bring a fresh approach to our corporate advice and investor relations as NMR begins to plan a new phase of development”

"Uncertainty continues in all markets in the build-up to the 12th December election and the affect this might have on the Brexit process as well as the macro-economy. NMR believes food supply and the UK dairy industry remains a resilient sector amongst this uncertainty. We believe the continued increased demands by consumers on food safety and provenance will enable NMR to deploy ever more valuable services to meet these demands and this is the driver our three-year strategic plan.  
 
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:
 
National Milk Records plc
Andy Warne, Managing Director                             +44-7970-009141                                                     
Mark Frankcom, Finance Director                           +44-7458-002444                                                     
 
Canaccord Genuity Limited                                       +44-20-7523-4500                      
Adam James / Georgina McCooke
 
Blytheweigh (Financial PR)                                        +44-20-7138-3204
Megan Ray / Rachael Brooks