On National Milk Records (OFEX:NMRP) ....
I read up on this company for first time today as seems a little odd and interesting. Does anyone know it a bit?
Underlying profit improvement this year despite falling revenue is driven by an even bigger cut in Admin expense. From the data given its hard to understand why. There's a hint the 2018 report that it could be through a cut in R&D...if so that would be hefty and perhaps as much as £3m suggesting projects shelved.
Any light from anyone that knows a bit more?
According to Stockopedia, aggregate profits over the last 6 years are negative.
The market cap seems quite high, even if we pick the best individual year for that period & use it to calculate a PE.
Having seen it in operation from the cowshed end of things over 30 years ago, the traditional business was recording milk production on a per cow basis. When pedigree cattle are expensive, independent monitoring of production is essential. So they used to send someone along once a month to record output and take samples of the milk for lab tests.
Milk consumption in the UK has declined dramatically in the last few decades. The herd size has fallen. Output per cow has doubled since 1975 & that was not exactly year zero, as it was preceded by decades of selective breeding.
NMR seem to have made a loss on what was a monopoly business & in a declining market.
At this point, some unexpected upside is required for me to research any further.
