Directors’ Report

The Board of Directors present their annual report, together with the financial statements for the financial year ended 31 December 2019.

COMPANIES ACT 2014

Under the Companies Act 2014, the company is deemed to be a Company Limited by Guarantee (CLG).

PRINCIPAL ACTIVITIES

The principal activity of The National Dairy Council (“NDC”) is to support Irish dairy farmers by driving the positive position and consumption of milk and dairy products through integrated marketing and communications programmes, based on informed scientific evidence.

RESULTS

The results for the financial year and the state of affairs of the company are set out on pages 23 and 24 respectively.

REVIEW OF BUSINESS

The NDC has a vital role in supporting the dairy sector in driving the consumption and positioning of milk and dairy products. The NDC’s vision is to be the authoritative and trusted voice in advancing the consumer perception and consumption of Irish milk and dairy products.

As part of the NDC’s Strategy, it is anticipated the level of funding from Europe will increase significantly over the coming years. In order to best leverage the EU opportunity, the NDC has had to build up its reserves to facilitate the cash flow requirements associated with running more EU Programmes and to demonstrate the necessary financial capacity to obtain the additional funding.

RISKS AND UNCERTAINTIES

The main risk facing the company during the financial year and anticipated in future years is the receipt of levy contributions and maintaining sufficient reserves to allow the entity operate efficiently and effectively.

The potential impact of the novel coronavirus (Covid-19) outbreak on the company’s trading performance remains uncertain. Up to the date of this report, the outbreak has not had a material impact on the trading results of the company. However, we continue to monitor the situation closely, including the potential impacts on trading results, our supply continuity and our employees.

GOING CONCERN

The directors have a reasonable expectation, taking the Covid-19 crisis into consideration, that the company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis in preparing the annual financial statements.

Further details regarding the adoption of the going concern basis can be found in note 1 to the financial statements.

DIRECTORS AND SECRETARY

The directors and secretary, who served at any time during the financial year except as noted, were as follows:

Directors:

Secretary:

Mr. E. Carroll (Chairman) Mr. J. Murphy (Vice Chairman) Mr. P. Sheahan Mr. T. Maher Mr. C. Ryan Mr. M. McArdle Mr. P. O’Donoghue Mr. J. Finn Mr. S. Blewitt Mrs. A. Keohane Mr. T. Phelan (Appointed 13/2/2019) Mr. L. Hannon (Appointed 25/4/2019) Mr. P. Duffy (Appointed 28/8/2019) Mr. G. Quain (Appointed 28/8/2019) Mr. T. Cashman (Resigned 13/2/2019) Mr. P. McCormack (Resigned 5/6/2019 Mr. J. O’Donnell (Resigned 5/6/2019) Zoë Kavanagh

ACCOUNTING RECORDS

The measures that the directors have taken to secure compliance with the requirements of sections 281 to 285 of the Companies Act 2014 with regard to the keeping of accounting records, are the engagement of appropriately qualified accounting personnel and the maintenance of computerised accounting systems. The company’s accounting records are maintained at the company’s registered office at The Studio, 55c Maple Avenue, Stillorgan Industrial Park, Co. Dublin.

EVENTS AFTER THE BALANCE SHEET DATE

On 13 January 2020 the Revenue Commissioners wrote to the company stating that they have refused the VAT repayment claims submitted by the company to the value of €815,176. The company appealed this decision to the Tax Appeals Commission on 12 February 2020.

The existence of novel coronavirus was confirmed in early 2020 and has spread across the world causing disruptions to businesses and economic activity. The company considers this outbreak to be a non-adjusting post balance sheet event. As the situation is fluid and rapidly evolving, we do not consider it practicable to provide a quantitative estimate of the potential impact of this outbreak on the company, however we do not expect that the crisis will impact on the ability of the company to continue as a going concern.

PUBLICATION

The directors are responsible for the maintenance and integrity of the website. Legislation in the Republic of Ireland concerning the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

DISCLOSURE OF INFORMATION TO AUDITOR

So far as each of the directors in office at the date of approval of the financial statements is aware:

There is no relevant audit information of which the company’s auditor is unaware; and

The directors have taken all the steps that they ought to have taken as directors in order to make themselves aware of any relevant audit information and to establish that the company’s auditor is aware of that information.

AUDITOR

The auditor, Deloitte Ireland LLP, Chartered Accountants and Statutory Audit Firm, continues in office in accordance with Section 383(2) of the Companies Act 2014. Approved by the Board and signed on its behalf by:

Eamonn Carroll

Director

John Murphy

Director 23 April 2020