Huntingdon Announces 1999 Results.Business Editors HUNTINGDON
Huntingdon Life Sciences Group plc ("The Company") (NYSE NYSE See: New York Stock Exchange :HTD HTD Heated HTD Heat Transfer Division HTD Haste the Day (band) HTD High Torque Drive (synchronous belt drives) HTD HEDS Technology Demonstration (NASA) HTD Hit The Deck ) announced today that net revenues for the year ended December December: see month. 31, 1999 were (pound)58.2 million ($94.3 million) an increase of 10% from prior year revenues of (pound)52.6 million ($87.3 million). The Company reported an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. for the year of (pound)3.8 million ($6.1 million) a reduction of 78% on operating losses of (pound)17.3 million ($28.8 million) in the prior year. Net losses after taxation and interest for the year were (pound)6.6 million ($10.7 million) compared to (pound)24.9 million ($41.3 million) in the prior year. Included in the results for the year were exceptional net gains of (pound)0.5 million ($0.8 million), compared to exceptional losses of (pound)7.6 million ($12.6 million) in the prior year. Net loss per ordinary share was 2.3 pence pence n. Chiefly British A plural of penny. pence Noun a plural of penny USAGE: Since the decimalization of British currency and the introduction of the abbreviation p, , compared to 14.4 pence in the prior year. Net loss per ADR ADR - Astra Digital Radio was 18.4 cents compared to 119.5 cents in the prior year. Net revenues for the quarter ended December 31, 1999 were (pound)15.5 million ($25.1 million) compared to (pound)13.1 million ($21.9 million) in the same period last year. The Company reported an operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. for the quarter of (pound)5 thousand ($8 thousand) compared to an operating loss of (pound)8.3 million ($13.7 million) in the same period last year. Net losses after taxation and interest for the quarter were (pound)1.4 million ($2.3 million) compared to (pound)12.8 million ($21.4 million) in the same period last year. Included in the results for the prior year were exceptional losses of (pound)7.6 million ($12.6 million). Net loss per ordinary share was 0.5 pence, compared to 4.4 pence in the same period last year. Net loss per ADR was 4.0 cents compared with 36.7 cents loss in the same period last year. The net loss after taxation and interest for the year which will be reported under US GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). in the Company's Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. filing with the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. Securities and Exchange Commission is (pound)4.1 million ($6.6 million) compared to (pound)24.4 million ($40.6 million) in the prior year. The net loss after taxation and interest for the quarter ended December 31, 1999 under US GAAP is (pound)1.4 million ($2.2 million) compared to (pound)16.7 million ($27.8 million) in the same period last year. Andrew Baker, Huntingdon's Executive Chairman said: "The fourth quarter's results continued the steady improvement shown in each quarter of 1999. The growth in revenues, coupled with effective expense management, meant that the Company made a small operating profit in the quarter, the first since 1997. Excluding exceptional gains and losses operating losses for the year were (pound)2.5 million, a reduction of (pound)10.1 million over 1998. Cash flow from operating activities in the quarter also strengthened and resulted in an increase of (pound)0.6 million in the Company's overall cash balances". Brian Cass Brian Cass is the managing director of Huntingdon Life Sciences (HLS), a company that provides animal testing services. Before moving to HLS, Cass was a director of Covance. He was awarded a CBE in 2002. , Huntingdon's Managing Director added: "1999 has seen a tremendous turnaround Turnaround A situation where a company that has had poor performance for an extended period of time experiences a positive reversal. Notes: A speculator may profit from a turnaround if he or she accurately anticipates the improvement of a poorly performing company. in the Company's performance. The cost reduction programme announced at the end of 1998 was successfully completed during 1999 and met its target of reducing the cost base by (pound)6 million. We have also made substantial progress in attracting new business by re-establishing our reputation and relationships with clients and the results of these efforts are reflected in growing revenues and an increasing order book. Orders for the year were 17% ahead of last year. Revenues for the year at (pound)58.2 million were 10% up on last year, while the fourth quarter was 19% ahead of the same period last year". Huntingdon Life Sciences Group plc is one of the world's leading CROs providing product development services to the pharmaceutical, agrochemical agrochemical Any chemical used in agriculture, including chemical fertilizers, herbicides, and insecticides. Most are mixtures of two or more chemicals; active ingredients provide the desired effects, and inert ingredients stabilize or preserve the active ingredients or aid and biotechnology biotechnology, the use of biological processes, as through the exploitation and manipulation of living organisms or biological systems, in the development or manufacture of a product or in the technological solution to a problem. industries. Huntingdon brings leading technology and capability to support its clients in non-clinical safety testing of new compounds in early stage development and assessment. Huntingdon operates research facilities in the United Kingdom (Huntingdon and Eye, England England, the largest and most populous portion of the United Kingdom of Great Britain and Northern Ireland (1991 pop. 46,382,050), 50,334 sq mi (130,365 sq km). It is bounded by Wales and the Irish Sea on the west and Scotland on the north. ) and the United States (The Princeton Princeton, borough (1990 pop. 12,016) and surrounding township (1990 pop. 13,198), Mercer co., W central N.J.; settled late 1600s, borough inc. 1813, township est. 1838. A leading education center, it is the seat of Princeton Univ. Research Centre, New Jersey). This announcement contains statements that may be forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. as defined by the USA's Private Litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. Reform Act of 1995. These statements are based largely on Huntingdon's expectations and are subject to a number of risks and uncertainties, certain of which are beyond Huntingdon's control, as more fully described in Huntingdon's Form 20-F for the year ended December 31, 1998 as filed with the US Securities and Exchange Commission.
HUNTINGDON LIFE SCIENCES GROUP plc
("HUNTINGDON")
(NYSE/SEAQ - HTD)
SUMMARY OF UNAUDITED CONSOLIDATED PROFIT & LOSS ACCOUNTS
Year ended December 31, 1999 -(pound)000's 1999 1998
(As restated)
Revenues 58,215 52,616
Cost of sales (51,717) (56,063)
Gross profit/(loss) 6,498 (3,447)
------------------------------------------ --------- -------- --------
Exceptional loss (1,250) (4,682)
------------------------------------------ --------- -------- --------
Other selling and administrative
expenses (9,026) (9,200)
------------------------------------------ --------- -------- --------
Total selling and administrative
expenses (10,276) (13,882)
------------------------------------------ --------- -------- --------
Operating loss (3,778) (17,329)
------------------------------------------ --------- -------- --------
Exceptional items - write down of
fixed assets - (2,887)
------------------------------------------ --------- -------- --------
Exceptional items - sale of
fixed assets 1,757 -
------------------------------------------ --------- -------- --------
Loss on ordinary activities before
interest (2,021) (20,216)
------------------------------------------ --------- -------- --------
Interest receivable and similar
income 637 696
------------------------------------------ --------- -------- --------
Interest payable and
similar charges (5,254) (5,882)
------------------------------------------ --------- -------- --------
Loss on ordinary activities
before taxation (6,638) (25,402)
------------------------------------------ --------- -------- --------
Taxation 28 539
------------------------------------------ --------- -------- --------
Loss after taxation (6,610) (24,863)
------------------------------------------ --------- -------- --------
Loss per share (pence) - basic (2.3) (14.4)
------------------------------------------ --------- -------- --------
- diluted (2.4) (15.1)
------------------------------------------ --------- -------- --------
Loss per ADR (cents) - basic (18.4) (119.5)
------------------------------------------ --------- -------- --------
- diluted (19.1) (125.0)
------------------------------------------ --------- -------- --------
----------------------------------------------------------------------
Consolidated Statement of Total Recognised Gains and Losses
For the 12 months ended December 31, 1999 -(pound)000's
1999 1998
--------------------------------------------------- ---------------
Loss for the financial year (6,610) (24,863)
--------------------------------------------------- ---------------
Release of revaluation reserve - (16,600)
--------------------------------------------------- ---------------
Total losses recognised since last
report and accounts (6,610) (41,463)
--------------------------------------------------- ---------------
SUMMARY OF UNAUDITED CONSOLIDATED PROFIT & LOSS ACCOUNTS (CONTD.)
----------------------------------------- --------- -------- ---------
3 Months ended December 31
-(pound)000's 1999 1998
(As restated)
----------------------------------------- --------- -------- ---------
Revenues 15,514 13,074
----------------------------------------- --------- -------- ---------
Cost of sales (13,276) (13,837)
----------------------------------------- --------- -------- ---------
Gross profit/(loss) 2,238 (763)
----------------------------------------- --------- -------- ---------
Exceptional loss - (4,682)
----------------------------------------- --------- -------- ---------
Other selling and administrative
expenses (2,233) (2,828)
----------------------------------------- --------- -------- ---------
Total selling and administrative
expenses (2,233) (7,510)
----------------------------------------- --------- -------- ---------
Operating profit/(loss) 5 (8,273)
----------------------------------------- --------- -------- ---------
Exceptional items - write down of
fixed assets - (2,887)
----------------------------------------- --------- -------- ---------
Exceptional items - sale of
fixed assets (15) -
----------------------------------------- --------- -------- ---------
Loss on ordinary activities before
interest (10) (11,160)
----------------------------------------- --------- -------- ---------
Interest receivable and similar
income 209 176
----------------------------------------- --------- -------- ---------
Interest payable and similar
charges (1,635) (1,837)
----------------------------------------- --------- -------- ---------
Loss on ordinary activities
before taxation (1,436) (12,821)
----------------------------------------- --------- -------- ---------
Taxation - 39
----------------------------------------- --------- -------- ---------
Loss after taxation (1,436) (12,782)
----------------------------------------- --------- -------- ---------
Loss per share (pence) - basic (0.5) (4.4)
----------------------------------------- --------- -------- ---------
- diluted (0.5) (4.7)
----------------------------------------- --------- -------- ---------
Loss per ADR (cents) - basic (4.0) (36.7)
----------------------------------------- --------- -------- ---------
- diluted (4.2) (39.2)
----------------------------------------- --------- -------- ---------
SUMMARY OF UNAUDITED CONSOLIDATED BALANCE SHEETS
--------------------------------------------- ----------
As at December 31-(pound)000's 1999 1998
(As restated)
--------------------------------------------- ----------
--------------------------------------------- ----------
Fixed Assets 69,048 75,570
--------------------------------------------- ----------
Stock 803 1,137
--------------------------------------------- ----------
Debtors 16,517 13,292
--------------------------------------------- ----------
Cash and short term investments 5,258 14,080
--------------------------------------------- ----------
Current assets 22,578 28,509
--------------------------------------------- ----------
Bank loans and overdrafts (22,586) (747)
--------------------------------------------- ----------
Creditors and Taxation (18,349) (21,260)
--------------------------------------------- ----------
Net current (liabilities)/assets (18,357) 6,502
--------------------------------------------- ----------
Total assets less current
liabilities 50,691 82,072
--------------------------------------------- ----------
Convertible Capital Bonds (30,331) (29,252)
--------------------------------------------- ----------
Long term loans - (24,554)
--------------------------------------------- ----------
Provisions for liabilities
and charges (2,756) (4,052)
--------------------------------------------- ----------
Shareholder funds - all equity 17,604 24,214
--------------------------------------------- ----------
Bank debt of (pound)22,586,000 is due for repayment on August 31, 2000
and hence is now included under current liabilities.
SUMMARY OF UNAUDITED CONSOLIDATED CASH FLOWS
---------------------------------------------- ----------
Year ended December 31 -(pound)000's 1999 1998
(As restated)
--------------------------------------------- -----------
Operating loss (3,778) (17,329)
--------------------------------------------- -----------
Depreciation 5,979 7,762
--------------------------------------------- -----------
Movement in provisions (46) 2,698
--------------------------------------------- -----------
Exceptional items - 2,192
--------------------------------------------- -----------
Movement in other working capital (2,318) 362
--------------------------------------------- -----------
Net cash outflow from operating
activities (163) (4,315)
Net interest paid (3,781) (5,382)
--------------------------------------------- -----------
Tax received 28 974
--------------------------------------------- -----------
Sale of fixed assets 4,214 5
--------------------------------------------- -----------
Purchase of fixed assets (3,024) (3,216)
--------------------------------------------- -----------
Net cash outflow before financing (2,726) (11,934)
--------------------------------------------- -----------
Management of liquid resources
Movement in short term investments 8,800 (11,000)
Financing:
--------------------------------------------- -----------
Issue of share capital - 20,386
--------------------------------------------- -----------
Loans received - 24,500
--------------------------------------------- -----------
Repayments of amounts
borrowed (5,349) (20,051)
--------------------------------------------- -----------
Net cash (outflow)/inflow
from financing (5,349) 24,835
--------------------------------------------- -----------
Increase in cash and cash
equivalents 725 1,901
--------------------------------------------- -----------
SUMMARY OF UNAUDITED CONSOLIDATED CASH FLOWS
-------------------------------------------------- ----------
3 Months ended December 31
-(pound)000's 1999 1998
(As restated)
-------------------------------------------------- ----------
Operating profit/(loss) 5 (8,273)
-------------------------------------------------- ----------
Depreciation 1,492 2,913
-------------------------------------------------- ----------
Movement in provisions 167 2,459
-------------------------------------------------- ----------
Exceptional items - 20
-------------------------------------------------- ----------
Movement in other working capital 267 183
-------------------------------------------------- ----------
Net cash inflow/(outflow) from
operating activities 1,931 (2,698)
-------------------------------------------------- ----------
Net interest paid (295) (520)
-------------------------------------------------- ----------
Purchase of fixed assets (873) (387)
-------------------------------------------------- ----------
Net cash inflow/(outflow)
before financing 763 (3,605)
-------------------------------------------------- ----------
Management of liquid resources
Movement in short term deposits (2,200) 4,000
Financing:
-------------------------------------------------- ----------
Issue of share capital - 252
-------------------------------------------------- ----------
Repayments of amounts borrowed (135) (301)
-------------------------------------------------- ----------
Net cash outflow from financing (135) (49)
-------------------------------------------------- ----------
Decrease in cash and
cash equivalents (1,572) (346)
-------------------------------------------------- ----------
Notes:
(1) As stated above bank loans totalling (pound)22,586,000 are
repayable on August 31, 2000. The directors are currently involved
in negotiations to provide adequate financing following the expiry
of these loans. This finance could be asset backed or supported by
projected cash flows. The negotiations are at an early stage and
although the directors are confident that they will be able to
achieve the financing prior to August 31, 2000 it is as yet too
early to predict the outcome as there are uncertainties involved
in either approach.
In the light of the above the directors have formed a judgement
that it is appropriate to adopt the going concern basis in
preparing the accounts. The financial statements do not include
any adjustments that would result from an inability to secure
adequate finance.
(2) The financial information set out in the announcement does not
constitute the company's statutory accounts for the years ended
December 31, 1999 or 1998. The financial information for the year
ended December 31, 1998 is derived from the statutory accounts for
that year which have been delivered to the Registrar of Companies.
The auditors reported on those accounts; their report was
unqualified and did not contain a statement under s237(2) or (3)
Companies Act 1985. The statutory accounts for the year ended
December 31, 1999 will be finalised on the basis of the financial
information presented by the directors in this preliminary
announcement and will be delivered to the Registrar of Companies
following the company's annual general meeting. The quarterly
information for the periods ended December 31, 1999 and December
31, 1998 has been neither audited nor reviewed.
(3) Certain figures in the accounts for the year ended December 31,
1998 have been reclassified so that their presentation mirrors
that in the accounts for the year ended December 31, 1999. These
are the provision for pension costs, exchange differences on the
Convertible Capital Bonds and short term investments.
(4) The Directors do not recommend payment of a dividend.
(5) Earnings per share is based on an average of 291,010,294 (1998,
172,199,772) Ordinary Shares outstanding during the year ended
December 31, 1999 and on an average of 291,010,294 (1998,
291,010,294) Ordinary Shares outstanding during the 3 month period
ended December 31, 1999.
(6) Diluted loss per share is based on an average of 279,827,855
(1998: 165,082,320) Ordinary Shares outstanding during the year
ended December 31, 1999 and on an average 274,724,821 (1998:
270,879,989) Ordinary Shares outstanding during the 3 month period
ended December 31, 1999.
(7) Earnings per ADR is calculated using an exchange rate of $1.62
=(pound)1.00 (1998, $1.66 =(pound)1.00). Each ADR represents five
Ordinary Shares.
(8) For the purposes of consolidation an average exchange rate of
$1.62 = (pound)1.00 has been used in the year ended December 31,
1999 (1998, $1.66 = (pound)1.00) and $1.63 = (pound)1.00 (1998,
$1.67 = (pound)1.00) in the 3 month period ended December 31,
1999.
(9) A printed copy of this quarterly report is available on request
from the Registered Office at Woolley Road, Alconbury, Huntingdon,
Cambs PE17 5HS.
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