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HUNTINGDON INTERNATIONAL HOLDINGS REPORTS RESULTS

 HUNTINGDON, England, Dec. 1 ~PRNewswire~ -- Huntingdon International Holdings plc today reported its financial results for the quarter and year ended Sept. 30, 1992.
 Financial results for the quarter and year ended Sept. 30, 1992 are reported herein. Revenues net of subcontract costs for each of the periods increased 17 percent and 21 percent respectively, as compared to the same periods last year. A decline in revenues from construction- related services in the United States Engineering~Environmental Services group was offset by a small gain from the Life Sciences group and the acquisition of Travers Morgan (TM) in December 1991. Operating income for the same periods declined 5 percent and 3 percent, in comparison to the last year as a result of highly competitive pricing and restructuring expenses. As explained in our last two reports, net income continues to reflect lower interest income and higher effective tax rates.
 The severely depressed economies in both the U.S. and the U.K. have continued to create very difficult trading conditions. The then pending U.S. election with an unpredictable outcome and the U.K. monetary crises in September, made trading conditions even more difficult in this last quarter. However, the Life Sciences group experienced a meaningful increase in enquiries and new project awards in August and September and project postponements and cancellations declined. We cannot determine if this is a short lived improvement or a return to a more stable market growth, but it is certainly encouraging. The Life Sciences group's operating margins for the fourth quarter returned to more characteristic levels of 25 percent.
 TM's operating margin declined in the quarter to 8 percent as a result of lower than expected revenues. Revenues were impacted by project delays in its international operations, poor economic conditions in the U.K. regions, and delays and project cancellations related to the U.K. monetary crisis. However, TM continues to be awarded "blue ribbon" projects such as the design of the Hong Kong rail tunnel; the value of its backlog is the highest in the company's history; and it continues to submit record levels of proposals for future work, especially in the Pacific Rim. The British prime minister has implied that government spending on construction will be used to stimulate the start of recovery from recession and, if this occurs, TM should benefit especially from infrastructure expansion and rehabilitation.
 In the U.S. Engineering~Environmental Services group, construction related services continue to be depressed while most environmental services continue to grow. For both the quarter and year, environmental services accounted for some 50 percent of total U.S. revenues. All sectors of our environmental business grew during the year except for drilling. As new construction starts declined, geotechnical and water well drillers moved into the environmental market precipitating a collapse in the pricing structure. Many of the competitors are small operators, without the proper equipment or experience to service a highly contaminated site, who operate at very low margins. By year end, approximately 25 percent of our drilling fleet was inactive as market prices were below our costs in some geographic markets, primarily on the East Coast. We continued to move our rigs to geographic markets which support more reasonable prices and there is evidence of clients returning after bad experiences with inexperienced drillers. However, despite the problems with construction and drilling services, operating profits for the group climbed back to over 10 percent of revenues in the quarter.
 Looking ahead we are optimistic for our business. We remain confident that the slowdown in the Life Sciences' market is temporary, as the pharmaceutical industry restructures its product portfolio for the 1990s, but we cannot predict when it will end. If the upsurge in activity over the past several months represents a trend, a positive impact on our performance could occur rapidly. Our costs continue to be rigidly controlled and we have the capacity to service increased demand. Following the election of a Democratic executive in the U.S. and the return of a Democratic Congress, on a platform of stimulating the economy through accelerated infrastructure spending, and a commitment to more stringent environmental regulations; your company is ideally positioned to benefit if these policies are implemented. Although we have downsized our construction service capabilities, we have retained our ability to service infrastructure projects across the U.S. and we have continued to invest in, and expand, our scope of service related to the environment.
 We believe the British government will attempt to stimulate the economy by increased spending in construction, especially in infrastructure projects. TM remains a market leader both in technical expertise and quality and will benefit if increased funding, for roads, rail lines, tunnels, and bridges, occurs. Internationally, TM has been successful in winning major feasibility studies, planning studies and project designs from international funding agencies such as the World Bank, the Asian Development Bank, and the United Nations, and we believe this will continue. By fiscal year end environmental services had grown to contribute some 25 percent of TM total revenues and we believe this growth will accelerate.
 It is proposed to pay a final dividend of 1.9 pence per share (9.5 pence per ADR) to shareholders or record as at Jan. 4, 1993. This together with the interim dividend of 0.875 pence per share (4.375 pence per ADR) will give a total dividend for the year of 2.775 pence per share (13.875 pence per ADR). Accordingly 2,789,000 pounds sterling has been provided out of income for the year.
 HUNTINGDON INTERNATIONAL HOLDINGS PLC
 Summary of Consolidated Earnings
 (In thousands of pounds sterling)
 Periods ended Quarter Year
 Sept. 30: 1992 1991 1992 1991
 Revenues 40,573 34,579 149,649 123,051
 Subcontract costs 3,185 2,629 9,804 7,694
 Revenues - net of
 subcontracts 37,388 31,950 139,845 115,357
 Cost of sales 28,570 23,508 108,273 85,207
 Gross profit 8,818 8,442 31,572 30,150
 SG&A (3,990) (3,369) (14,879) (12,859)
 Other income~(expense) (609) (287) (2,307) (383)
 Income before tax 4,219 4,786 14,386 16,908
 Taxes 945 748 3,214 3,130
 Net income 3,274 4,038 11,172 13,778
 Dividend 1,865 1,808 2,789 2,636
 Earnings per share - pounds 0.034 0.043 0.115 0.146
 Earnings per ADR -US$ 0.305 0.387 1.041 1.321
 HUNTINGDON INTERNATIONAL HOLDINGS PLC
 Summary of Consolidated Balance Sheet
 (In thousands of British pounds sterling)
 9~30~92 9~30~91
 Fixed assets 72,231 68,026
 Current assets 57,367 54,089
 Creditors (due within 1 year) (30,162) (22,962)
 Net current assets 27,205 31,127
 Creditors (due after 1 year) (15,279) (10,477)
 Total assets less liabilities 84,157 88,676
 Capital and reserves 56,157 60,137
 Convertible capital bond 28,106 28,539
 Total equity and bond 84,157 88,676
 NOTES:
 A. Earnings per share is based on an average of 97,413,477 (1991; 94,650,768) shares outstanding during the year.
 B. Earnings per ADR is calculated in the exchange rate of $1.815 equals one pound sterling for convenience. Each ADR represents five ordinary shares.
 C. Cost of sales has been adjusted to reflect the disclosure of subcontract work.
 D. These results have been prepared in accordance with UK GAAP and are unaudited.
 A copy of this report will be mailed to shareholders and is available on request from the registered office. The payment date for the final dividend will be Feb. 8, 1883 for ordinary shareholders and Feb. 24, 1993, via Morgan Guaranty Trust company of New York, for ADR holders
 -0- 12~1~92
 ~CONTACT: Dr. B.C. Wooley of HIH USA Management Inc, 716-735-3400, or Jamie Carnwath of Huntingdon International Holdings plc, in Huntingdon, England, 480-433-466~


CO: Huntingdon International Holdings plc ST: IN: SU: ERN

SM-TS -- NY012 -- 2299 12~01~92 09:52 EST
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Date:Nov 24, 1992
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