Printer Friendly


 MIDDLEPORT, N.Y., Aug. 10 /PRNewswire/ -- Bennie C. Wooley, chairman of Huntingdon International Holdings plc today released the following statement:
 The company's results for the quarter and nine months ended June 30, 1993 are reported herein.
 I am pleased to report that in the quarter, revenue (net of subcontracts) increased 5.7 percent and net income increased 10.9 percent compared with the same quarter in 1992. Results in the nine months to June 30, 1992 include only six months of Travers Morgan and, an exceptional item of 3 million pounds was charged against income in the nine months to June 30, 1993.
 Both the pre-clinical and clinical businesses of the Life Sciences group continue to do well and the improvement in new assignments year- to-date as compared to the same period last year now exceeds 20 percent. Enquiries and requests for quotations indicate that this group should continue to do well. We have, however, recently experienced some deferral of projects, through delays initiated by clients, resulting in a slower conversion of backlog into revenue.
 With little real improvement in general business conditions in the U.S., our engineering/environmental services group's revenues (net of subcontract costs) and operating income in the quarter are slightly below the same period last year. However, on consolidation into sterling pounds, both revenues and operating income are higher in this quarter than last year due to the U.S. dollar strengthening from an average of $1.81 to $1.53 (15 percent) to the sterling pound. In recent months, this group has benefited from stronger than anticipated demand for construction related services, generally good weather for field services, and resumption of samples flow into the analytical chemistry laboratories, particularly samples from federally funded environmental projects. The record rains and flooding of the Mississippi River and its tributaries have had some impact on performance in late June, and are expected to have a more serious impact on our mid-west offices, from St. Paul to St. Louis in July. However, we anticipate that this impact may be offset by clean-up and rebuilding activities as the flood waters recede. Such activities could include inspection, repair and rebuilding of rail lines, roads and bridges, environmental assessment of contaminated land and water sources and rebuilding of breached levees and water front structures. We have created a task force to coordinate the efforts of our offices in the affected area and we are bringing in technical expertise from other geographic areas because the clean-up and rebuilding efforts will offer opportunities. Indeed, we began to receive contract awards even before the flood waters peaked and this unfortunate disaster may be a stimulus for our U.S. business.
 Travers Morgan is yet to benefit from the early signs of economic improvement in the U.K. an signals are somewhat confusing; for example, it has been announced that the Crossrail project for London will proceed but the East River Crossing Project has been canceled. Also, the lack of obvious regulatory action to enforce compliance with environmental protection legislation continues to constrain business growth. Further, in its overseas markets Travers Morgan continues to experience delays in several major projects while also acquiring new contracts in various locations, including the Middle East. The re-organization referred to in my previous report is proceeding with responsibilities having been allocated. Despite the difficult trading environment, revenues (net of subcontract costs) have increased but margins have declined as compared with the same period last year.
 On July 7, 1993 we executed a definitive agreement to acquire the 66.2 percent of the share capital of Travers Morgan Pty Ltd which we did not already own. Operating from four offices in Australia and one in New Zealand as part of the Travers Morgan group, Travers Morgan Pty has an international reputation in transportation systems and will enhance our strategic thrust to provide engineering services in the growth economies of the Pacific Rim. It is anticipated that this acquisition will be finalized on Aug. 23, 1993. We are please to welcome to the group all employees of Travers Morgan Pty in both Australia and New Zealand.
 Summary of Consolidated Earnings
 (In thousands of pounds)
 Periods ended Quarter Nine Months
 June 30 1993 1992 1993 1992
 Revenues 42,671 39,170 127,187 109,076
 Subcontract costs 3,954 2,538 11,635 6,619
 Revenues-net of
 subcontracts 38,717 36,632 115,552 102,457
 Cost of sales 30,228 28,836 93,134 79,703
 Gross profit 8,489 7,796 22,418 21,754
 Selling, G&A (4,169) (3,900) (12,297) (10,889)
 Operating income 4,320 3,896 10,121 11,865
 Exceptional item -- -- (3,012) --
 restructuring costs
 Other income/(expense) (965) (676) (2,770) (1,698)
 Income before tax 3,355 3,320 4,339 10,167
 Taxes 582 719 704 2,269
 Net income 2,773 2,501 3,635 7,898
 Dividend -- -- 861 859
 Earnings per share-pounds 0.028 0.026 0.037 0.081
 Earnings per ADR-dollars 0.216 0.197 0.283 0.624
 Summary of Consolidated Balance Sheet
 (In thousands of pounds)
 June 30, 1993 June 30, 1992
 Fixed assets 77,842 68,549
 Current assets 61,986 53,287
 Creditors (due within 1 yr) (26,701) (27,981)
 Net current assets 35,285 25,306
 Creditors (due after 1 yr) (17,742) (14,082)
 Convertible capital bond (33,478) (26,261)
 Total assets less
 liabilities 61,907 53,512
 Capital and reserves 61,907 53,512
 1. Earnings per share based on an average of 98,391,338 (1992: 97,155,872) shares, outstanding during the period.
 2. Earnings per ADR calculated using the exchange rate of $1.5341 equals 1 pound for convenience. Each ADR represents five ordinary shares.
 3. The convertible capital bond has been reclassified as debt in accordance with the U.K. exposure draft-"Accounting for Capital Instruments."
 4. The financial disclosure has been updated to comply with the requirements of FRS 3-Reporting Financial Performance. All of the above results relate to continuing operations.
 5. These results have been prepared in accordance with U.K. GAAP and are unaudited. The company has also prepared a quarterly report on Form 10-Q in which the results have been prepared in accordance with U.S. GAAP, which has been filed with the Securities and Exchange Commission (SEC). Copies of this report are available from the SEC, the New York Stock Exchange, and the company's registered office.
 -0- 8/10/93
 /CONTACT: Dr. B.C. Wooley of HIH USA Management, 716-735-3400, or Christopher Cliffe of Huntingdon International Holdings, in England, 480-433-466/

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

SM-LG -- NY016 -- 1100 08/10/93 10:03 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Aug 10, 1993

Terms of use | Copyright © 2018 Farlex, Inc. | Feedback | For webmasters