Huntingdon Announces First Quarter Results.Business Editors HUNTINGDON
Huntingdon Life Sciences Group plc ("Huntingdon" or 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 quarter ended March 31, 2000 were (pound)15.5 million ($24.7 million) an increase of 16% from revenues for the equivalent period last year of (pound)13.4 million ($21.8 million). Under UK GAAP UK GAAP United Kingdom Generally Accepted Accounting Principles 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. of (pound)0.2 million ($0.4 million), down from (pound)1.2 million ($2.0 million) last year. Net loss after taxation for the first quarter was (pound)1.4 million ($2.3 million) compared to (pound)2.8 million ($4.6 million) for the equivalent period last year. Net loss per ordinary share was 0.5 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 1.0 pence last year. Net loss per ADR ADR - Astra Digital Radio was 4.0 cents compared to 7.8 cents last year. Under US GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). 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. of (pound)0.1 million ($0.1 million) compared to an operating loss of (pound)1.6 million ($2.5 million) for the equivalent period last year. Net loss after taxation for the first quarter was (pound)1.0 million ($1.6 million) compared to (pound)1.9 million ($3.1 million) last year. Net loss per ordinary share was 0.3 pence compared to 0.7 pence last year. Net loss per ADR was 3 cents compared to 5 cents last year. The principal differences between the UK and US reported results are non-cash charges Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. associated with pension accounting and deferred taxation. Andrew Baker, Huntingdon's Executive Chairman said: "The strong year over year revenue growth and meaningful margin improvement is testament to our increasing success in strengthening Huntingdon's position as one of the world's leaders in non-clinical safety testing. Growth in backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. , new clients, and returning clients builds our confidence that high standards of scientific excellence and customer service are the right focus for us". 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: "New orders for the first quarter were 16% up on the first quarter of last year, and 10% ahead of the fourth quarter, helping to build our backlog to its highest level in almost three years. Revenues, showing some seasonal softness in some areas, were still level with the fourth quarter. We are also encouraged by the 16% year over year growth and the (pound)1 million reduction in operating losses, which represents an incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. margin of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 50%". 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 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. (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 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. for the year ended December December: see month. 31, 1999, 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
3 Months ended March 31 2000 1999
----------------------- (pound)000's (pound)000's
As restated
------------ -----------
Revenues 15,463 13,383
Cost of sales (13,331) (12,366)
----------- -----------
Gross profit 2,132 1,017
Selling and administration (2,367) (2,267)
----------- -----------
Loss on ordinary activities
before interest (235) (1,250)
Interest receivable and similar income 207 372
Interest payable and similar charges (1,421) (1,915)
----------- -----------
Loss on ordinary
activities before taxation (1,449) (2,793)
Taxation - -
----------- -----------
Loss after taxation (1,449) (2,793)
----------- -----------
Loss per share - (pence)
- basic 0.5 1.0
- diluted 0.5 1.0
----------- -----------
Loss per ADR - (cents)
- basic 4.0 7.8
- diluted 4.2 8.2
----------- -----------
Consolidated Statement of Total Recognised Gains and Losses
For the 3 months ended March 31
2000 1999
(pound)000's (pound)000's
---------- ------------
Loss for the period (1,449) (2,793)
------- --------
Total losses recognised
since last report and accounts (1,449) (2,793)
------- --------
SUMMARY OF UNAUDITED CONSOLIDATED BALANCE SHEETS
As at March 31 2000 1999
-------------- (pound)000's (pound)000's
As restated
------------ ------------
Fixed Assets 68,433 75,266
------------ ------------
Stock 839 1,123
Debtors 16,422 14,074
Cash and short term investments 3,575 8,017
------------ ------------
Current assets 20,836 23,214
Bank loans and overdrafts (22,586) -
Creditors and taxation (17,210) (19,676)
------------ ------------
Net current (liabilities)/assets (18,960) 3,538
------------ ------------
Total assets less current liabilities 49,473 78,804
Convertible capital bonds (30,677) (30,064)
Long term loans - (24,500)
Provisions for liabilities and charges (2,642) (2,818)
----------- ------------
Shareholder funds - all equity 16,154 21,422
----------- -----------
SUMMARY OF UNAUDITED CONSOLIDATED CASH FLOWS
3 Months ended March 31 2000 1999
(pound)000's (pound)000's
As restated
------------ ------------
Operating loss (235) (1,250)
Depreciation 1,459 1,485
Movement in provisions (112) (1,234)
Movement in other working capital (474) (1,306)
----------- ------------
Net cash inflow/(outflow)
from operating activities 638 (2,305)
Net interest paid (1,601) (1,517)
Purchase of fixed assets (net of disposals) (720) (1,017)
----------- ------------
Net cash outflow before
use of liquid resources and financing (1,683) (4,839)
Management of liquid resources
Movement in short term investments 2,200 4,000
Financing:
Repayments of amounts borrowed - (500)
----------- ------------
Net cash outflow from financing - (500)
----------- ------------
Increase/(decrease) in
cash and cash equivalents 517 (1,339)
----------- ------------
Notes:
(1) 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) These results have been prepared in accordance with UK GAAP but do
not constitute Statutory Accounts as defined by the UK Companies
Act 1985 and have not been audited.
(3) Certain figures in the accounts for the three months ended March
31, 1999 have been reclassified so that their presentation mirrors
that in the accounts for the three months ended March 31, 2000.
These are the provision for pension costs, exchange differences on
the Convertible Capital Bonds, short term investments and IT
costs.
(4) Loss per share is based on an average of 291,010,294 (1999,
291,010,294) Ordinary Shares outstanding during the 3 month period
ended March 31, 2000.
(5) Diluted loss per share is based on an average 273,747,301 (1999,
277,665,772) Ordinary shares outstanding during the 3 month period
ended March 31, 2000.
(6) Loss per ADR is calculated using an exchange rate of $1.60 =
(pound)1.00 (1999, $1.63 = (pound)1.00). Each ADR represents five
Ordinary Shares.
(7) For the purposes of consolidation an average exchange rate of
$1.60 = (pound)1.00 has been used in the 3 month period ended
March 31, 2000 (1999, $1.63 = (pound)1.00).
(8) A printed copy of this quarterly report is being posted to
shareholders and is available on request from the Registered
Office at Woolley Road, Alconbury, Huntingdon Cambs PE28 4HS.
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