Huntington Life Sciences to go BUST?
FINANCIAL REPORTS SHOW BLEAK FUTURE FOR HLS!
HLS normally generates 1/3 of its orders from non-pharmaceuticals (such
as agrochemical, industrial chemical, and veterinary and food testing).
2003 Saw this drop to 25%.
25 clients placed over a $1 million worth of orders, and the 10 largest
clients accounted for 45% of the orders placed at HLS. So in essence 12
companies funded half of HLS's workload.
The aggregate backlog (expected net revenues earned under contract but
not yet billed) has gone down since 2002 by two million dollars.
HLS buys the Japanese sales office (HLS KK) from CBC: The purchase price
was one million dollars for the remaining 50% of the sales office.This
was when Huntingdon were forced to buy out CBC as they wanted to get
away from the pressure of the campaign.
As of March 24th, HLS had 2024 shareholders.
Again the Foreign Exchange gain on the convertible bonds helped HLS to
the tune of 4.7 million for the year. This is not work-related growth or
income, and taken out of the equation leaves HLS with a net loss for
2003 of $1.032 million.
Long Term debt rose by $3.4 million and is back at minus $87 million
dollars.The shareholder deficit continues to rise, growing by a million.
Capital Expenditures jumped from a typical 4 million range to
8.7million.
Cash generated in the year fell from 12 million to the current 2
million.
HLS recorded the animal rights costs at $575,000.
Orders for 2003 at constant exchange rates were 8% below the previous
year.
Cost of sales increased by 12% . Selling and admin expenses increased by
15%
The Operating expenses for the year were 3.5 million which comprises the
600 grand in AR lawsuits and 3.5million in restructuring.
Huntingdon benefited in 2003 from a tax code passed in the UK in 2002.
HLS received a benefit of 1.1 million as a result, compared to the 300
grand loss made in 2002. This is from the Research and Development Tax
Credit for large companies.
Essence of year-end: HLS posts an overall 3.7 million dollar net income,
while increasing debt by 3.4 million, issuing 100,000 shares instead of
paying 200 grand bill, received (did not earn) a 4.7 million foreign
conversion benefit, and caught a ride off of a crooked new UK tax code.
No matter how they paint it, the picture is still not looking good.
2003 v 2002 UK: Revenues increased 15%, orders dropped 9.8%.
Costs increased 14% - THE MAIN COST INCREASE was due to labour where
staff numbers were built up in response to the order growth of 2002.
With softness in orders in 2003 steps were taken to reduce staffing
levels. Huntingdon are still looking to lay off another 28 people.
The UK lawsuits have cost HLS $400,000 grand so far. This means that
taking at the injunctions so far has cost Huntingdon $400,000.
The operating income for the UK fell from 4 million in 2002 to 2.1 in
2003.
The bank loan from NatWest, refinanced by Stephens, stands at $40.1
million and is due June 30th, 2006. The Capital Bonds stand at $46.2
million and are due September 2006.
Hire of plant and equipment dropped in 2003 to 451 from 904 in 2002.
(reflection of lost suppliers and/or restructuring.)
New business signings totalled 123.7 million for 2003, a decrease of
8.5% respectively from the prior year.
2002 saw a rapid growth in business from the Pharmaceutical industry
and this business was maintained in 2003.
However there was a decline in the amount of work outsourced from the
Agrochemical industry.
Please note that all figures are in dollars.
This information was taken from Huntingdon's filing of the annual 10k
form with the Securities and Exchange Commision (SEC) in the U.S.
http://www.sec.gov
DID YOU KNOW?
If you had invested =A34,500-00 in Huntingdon in 1992 today that same
investment would be worth just =A31-50 that's right just one pound and
fifty pence!
So far Huntingdon's share price has gone through a 25 and 50 reverse
split
which is basically where Huntingdon have been forced to turn round to
shareholders and say 25 of your shares are now being merged into one
share with the same value as the one share and not the share times 25 as
it should be,
effectively devaluing the share by times 25 and 50. So in real terms
Huntingdon's share price is really just under one and a half pence!
In 1992 Huntingdon was valued at $500 million dollars and today they are
valued at about $22 million.
Today Huntingdon are $87 million in debt which is about 4 times their
total worth!
Huntingdon are the only commercial company in existence that has been
forced off the New York stock exchange and The London Stock Exchange.
No commercial insurance company or bank in the world will touch them and
they have had to be rescued by the government from immediate closure.
QUOTES
"No group is more dangerous or determined to end animal testing than the
Europe based Stop Huntingdon Animal Cruelty." Journal of Life Sciences
Dec 2003
"Groups like SHAC could decimate US and European drug research." Time
magazine 26/8/02
"If it was my money I wouldn't touch those two (Huntingdon and Elan) if
my life depended on it"
Merril Lynch Vice President
"The number of activists isn't huge, but their impact has been
incredible."
The managing director of Huntingdon speaking at a business conference in
London May 2003
"A tiny group of activists is succeeding where Karl Marx, the
Baader-Meinhof gang and the Red Brigades failed." Financial Times
"We don't have a bank, we don't have a listing and everybody views us as
a pariah."
Chairman of HLS
"Long-term there is a body of opinion that believes Huntingdon is
unlikely to survive."
City comment, Evening Standard News
"The company's business plan was not accepted."
New York Stock Exchange
"Huntingdon have shown the rest of UK plc how not to do it."
Investors' Chronicle
--
Animal Defense League
PO Box 1587
Huntington, NY 11743
ADL@riseup.net
http://www.AnimalDefense.info
http://www.InsideHLS.com
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