/raid1/www/Hosts/bankrupt/TCREUR_Public/030519.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
E U R O P E
Monday, May 19, 2003, Vol. 4, No. 97
Headlines
* C Y P R U S *
LARAZONE LIMITED: Notice to Creditors to Identify Claims
MATO INSURANCE: Notice to Creditors to Identify Claims
PUYVAST NAVIGATION: Notice to Creditors to Identify Claims
* F I N L A N D *
BENEFON OYJ: Asks to Extend Deadline for Submission of Report
* F R A N C E *
RHODIA S.A.: Proposed EUR700 M Notes Assigned 'BB-' Rating
SCOR GROUP: Shareholders Appoint New Set of Board of Directors
VIVENDI UNIVERSAL: Corrects Statements Made Regarding AGM
VIVENDI UNIVERSAL: Allowed to Consolidate Liberty's Complaint
VIVENDI UNIVERSAL: Announces Revenues for First Quarter 2003
VIVENDI UNIVERSAL: Liberty Interested in U.S. Assets
* G E R M A N Y *
ALLIANZ AG: Head Expected to Unload Investment-Banking Unit
COMTRADE AG: Increases Net Value of Tangible Assets in 2002
DEUTSCHE TELEKOM: Records Net Income in First Quarter of 2003
DEUTSCHE TELEKOM: Outlook Remains Unchanged by Q1 Results
MOLOGEN HOLDING: Interim Report Shows Losses Reduced by Half
* I T A L Y *
CAPITALIA: Abandons Loss, Rebounds With Net Income of EUR11 MM
* N E T H E R L A N D S *
HEAD N.V.: Increases Operating Loss to US$8.9 Million in Q1
ING GROEP: Net Profit Down 85% to EUR 167 MM in First Quarter
ING GROEP: Ratings Unchanged Despite 85% Fall in Net Profit
STORTEBOOM GROUP: Declared Bankrupt After Outbreak of Avian Flu
* S L O V A K R E P U B L I C *
EUROTEL BRATISLAVA: Ratings Raised to 'BB-', Outlook Positive
* S W I T Z E R L A N D *
ABB LTD.: Court Delays Asbestos Package Ruling by a Few Weeks
SWISS AIR: Parent Issues Notice of Initial Pro Rate Distribution
ZURICH FINANCIAL: Appoints New CEO for Zurich Group Germany
* U N I T E D K I N G D O M *
AQUILA INC.: Reports Net Loss of $51.9 Million in First Quarter
BRITISH ENERGY: Appoints New Non-Executive Directors to Board
CHRISTIAN SALVESEN: Confirms Receipt of Interest From Buyer
CORUS GROUP: Russian Shareholder Interested in Raising Stake
CORUS GROUP: Chairman Reveals Plans, Outlook for Teeside Plant
FINSBURY SMALLER: Notice to Creditors to Identify Claims
HIGH PEAK: Administrators Offer Business Up for Sale
INDIGOVISION GROUP: Update on Return of Cash to Shareholders
KWELM: Administrators to Distribute Latest Returns to Creditors
LASTMINUTE.COM PLC: Announces Quarter 2 and Interim Results
LION BRUSH: Administrators Offer Business for Sale
MARCONI PLC: Obtains Permanent Court Injunctions and Orders
WESTON MEDICAL: Sells Intraject and Other Assets to Aradigm
===========
C Y P R U S
===========
LARAZONE LIMITED: Notice to Creditors to Identify Claims
--------------------------------------------------------
In the matter of Larazone Limited
And
In the matter of the Cyprus Companies Law cap 113
Notice is hereby given that the creditors of the above-mentioned
company which is being voluntarily wound up are required on or
before the 12th of June 2003 to send in their full names, their
addresses and descriptions, full particulars of their debts or
claims and the names and addresses of their solicitors (if any)
to the undersigned Michael C. Georghiou, of Abacus Financial
Services, City House, P.O. Box 25549, CY-1310 Nicosia, Cyprus,
the liquidator of the said company, and if so required by notice
in writing from the said liquidator, to come in and prove their
said debts or claims at such time and place as shall be specified
in such notice, or in default thereof they will be excluded from
the benefit of any distribution made before such debts are
proved. Dated 13th of May 2003.
CONTACT: Michael C. Georghiou
Abacus Financial Services
Liquidator
MATO INSURANCE: Notice to Creditors to Identify Claims
------------------------------------------------------
In the matter of Mato Insurance Services
Middle East Limited
And
In the matter of the Cyprus Companies Law cap 113
Notice is hereby given that the creditors of the above-mentioned
company which is being voluntarily wound up are required on or
before the 12th of June 2003 to send in their full names, their
addresses and descriptions, full particulars of their debts or
claims and the names and addresses of their solicitors (if any)
to the undersigned George Foradaris, of PricewaterhouseCoopers,
Julia House, 3 The Dervis Street, P O Box 21612, CY-1591 Nicosia,
Cyprus, the liquidator of the said company, and if so required by
notice in writing from the said liquidator, to come in and prove
their said debts or claims at such time and place as shall be
specified in such notice, or in default thereof they will be
excluded from the benefit of any distribution made before such
debts are proved. Dated 13th of May 2003.
CONTACT: George Fordaris
PricewaterhouseCoopers
Liquidator
PUYVAST NAVIGATION: Notice to Creditors to Identify Claims
----------------------------------------------------------
In the matter of Puyvast Navigation (Cyprus) Limited
And
In the matter of the Cyprus Companies Law cap 113
Notice is hereby given that the creditors of the above-mentioned
company which is being voluntarily wound up are required on or
before the 12th of June 2003 to send in their full names, their
addresses and descriptions, full particulars of their debts or
claims and the names and addresses of their solicitors (if any)
to the undersigned George Foradaris, of PricewaterhouseCoopers,
Julia House, 3 Th Dervis Street, P O Box 21612, CY-1591 Nicosia,
Cyprus, the liquidator of the said company, and if so required by
notice in writing from the said liquidator, to come in and prove
their said debts or claims at such time and place as shall be
specified in such notice, or in default thereof they will be
excluded from the benefit of any distribution made before such
debts are proved. Dated 13th of May 2003.
CONTACT: PRICEWATERHOUSECOOPERS
George Fordaris
Liquidator
=============
F I N L A N D
=============
BENEFON OYJ: Asks to Extend Deadline for Submission of Report
-------------------------------------------------------------
The company has requested an extended deadline for the Interim
Report
In the bulletin of April 24, 2003, informing about the
application for statutory corporate re-organization, the company
announced that, due to the perpetuated delays with the sought
financing arrangements necessitated by the financial situation of
the company, the going concern-status of the company on which the
result report from FY 2002 was based is no more justified.
Therefore, the Board of Directors has implemented measures for
correcting the situation and restoring the financial health of
the company to secure continuing operations. Because of the
situation, the auditors of the company in their audit report,
attached in whole to the said bulletin, maintain that the going
concern-principle on which the result report is based is no more
justified raising a need to reset the assets at their liquidation
value after which the amount of shareholders' equity would not
fulfil the requirement of the Companies' Act and the liquidation
provisions would become applicable. Therefore, they cannot
recommend the approval of the result report.
Regarding the processing schedule of the re-organization
application, it is obvious that the decision about the
application will not be available prior to the annual
shareholders' meeting to be held on May 21, 2003, and the
company, for the time being, does not know the solution or its
schedule. For this reason, the company has decided to request an
extension for the proper interim report 1-3/2003 to be given
after the solution to the re-organization application has been
received. Instead, the company is giving this bulletin about the
first quarter operating result and finance position of the
company.
In the annual meeting, the Board will elaborate on the result
report situation and will propose to the meeting that the
handling of the FY 2002 result report would be transferred to an
extraordinary shareholders' meeting to be held soonest possible
after the solution regarding the re-organization application is
at hand.
Related with the above, also the completion of the annual report
of FY 2002, published only in electric form, will be postponed to
time just before the extraordinary shareholders' meeting.
The State of the Company
On April 24, 2003, the company filed in the application for
statutory corporate re-organization. The related plan includes
radical cost cutting measures dimensioned to turn first the cash
flow and then the result positive with the foreseen business
operations. Further, the proposed program includes debt re-
organization for re-constructing an appropriate equity position
within the constraints of the projected cash margin.
The cash situation of the company has stayed very tight which has
resulted in extreme cost cutting and which also has interfered
with the operations. The utilised cost cutting measures include
the implemented temporary forced leaves as a result of the
industrial co-operation procedure that has just ended. The
company has, however, succeeded in keeping crucial business
operations and customer service fuctions running. New products
have been developed and brought to market, through which the
company seeks to grow the sales and the value added of the sales.
Reduction of the material inventory is an essential part of the
cashflow plan.
The operating result account of period January to March/2003
(Meuros)
Net sales 1.6
Other operating income 1.5
Cost of operations -5.2
Depreciations -0.2
Operating result before extraordinary items -2.2
Financing items -0.1
Result before extraordinary items -2.3
(Extraordinary income 0.3)
Other operating income comprised received monthly payments from
the EDC-deal signed and reported in August 2002 and continuing
until summer 2003. Extraordinary income was generated from sale
of surplus production equipment.
This account includes no capitalization of R&D-expenditures nor
extraordinary write-offs of prior capitalizations of R&D-
expenditures nor devaluations of inventories. In the result
report for the proper interim report of period 1-3/2003, to be
made when the solution regarding the re-organization application
is at hand and the result report of FY 2002 has been approved,
the values of assets will quite probably be re-considered and
adjusted.
Cashflow account of period 1-3/2003
Operating result before extraordinary items -2.2
Depreciations 0.2
Reduction of current receivables 0.1
Reduction of inventories 0.5
Change of non-interest bearing debt 1.1
Paid interests -0.1
Investments 0.0
Paid share issue 0.1
Extraordinary income 0.3
Change of interest bearing debt 0.0
Change of cash at hand 0.0
Cash at hand on January 1, 2003 0.2
Cash at hand on March 31, 2003 0.2
Report on sufficient liquidity in period 04/2003-03/2004
The account on the sufficient cashflow provided hereinafter is
based on the prepared re-organization plan whereupon a standing
presumption is the approval of the re-organization arrangement
and the prepared plan.
The account does not assume new equity but is based on radical
cost-cutting measures through forced leaves, among others, and on
strict cost control by which means the company targets already in
June 2003 to reach about 50 % reduction in monthly fixed cost
level compared with the actual monthly fixed cost level of early
year and, further, on sharp focusing on business producing cash
flow and profit already in short term and, furthermore, on
continuing reduction of inventories.
The sales income making a central element of the operating
result, the starting point of the account, has been assessed
prudently in the account but the monthly sales are estimated to
gradually increase in the next 12 months according to the
objective described in the chapter The State of the company.
The account takes no standpoint regarding the change of loans or
non-interest bearing debt during the period as the company is in
negotiations with the creditors. However, no new non-interest
bearing debt is assumed.
Cashflow account of period April/2003-March/2004
Operating result before extraordinary items -1.6
Depreciations 0.6
Reduction of current receivables 0.6
Reduction of inventories 3.1
Change of non-interest bearing debt 0.0
Paid interests -0.5
Investments -0.2
Paid share issue 0.0
Extraordinary income 0.0
Change of interest bearing debt 0.0
Change of cash at hand 2.0
Benefon Oyj
Jukka Nieminen
President
CONTACT: BENEFON OYJ
Jukka Nieminen
Phone +358-2-77 400
E-mail: jukka.nieminen@benefon.fi
===========
F R A N C E
===========
RHODIA S.A.: Proposed EUR700 M Notes Assigned 'BB-' Rating
----------------------------------------------------------
Standard & Poor's Ratings Services said that it has assigned its
'BB-' long-term rating to France-based specialty-chemicals
company Rhodia S.A.'s proposed EUR700 million senior subordinated
notes, maturing in 2011.
At the same time, the 'BB+' long-term corporate credit rating and
'B' short-term ratings on Rhodia were affirmed. The outlook is
stable.
"Following Standard & Poor's notching methodology, the proposed
notes are rated two notches below the corporate credit rating on
Rhodia because they will be contractually subordinated to of the
group's senior debt," said Standard & Poor's credit analyst
Christine Hoarau. "Proceeds will be used for to refinance bank
debt due in 2003, thereby significantly lengthening the group's
debt maturity profile."
The rating on Rhodia reflects the company's rather weak financial
measures, as well Standard & Poor's expectation that these
measures are unlikely to improve significantly in the short term
given continued difficult market conditions. The ratings on the
group factor in its diversified business profile, underpinned by
its leading positions as one of the largest specialty-chemicals
concerns in the world. Rhodia has nevertheless shown much lower
resilience than expected to the chemical industry's
"Despite improvements in 2002, Rhodia's financial profile is
still quite weak," added Ms. Hoarau.
Standard & Poor's expects the group's financial measures to
continue improving, with a slight debt decrease in 2003 and more
significant steps toward deleveraging in 2004. The current
ratings reflect Standard & Poor's belief that most of Rhodia's
extraordinary outlays in 2002 will not recur, that capital
expenditures will be reduced to below EUR300 million, and that
additional divestitures will be implemented. The currently bleak
economic environment, however, is likely to challenge the
expected improvement in Rhodia's financial profile.
SCOR GROUP: Shareholders Appoint New Set of Board of Directors
-------------------------------------------------------------
The Combined General Meeting of Shareholders of SCOR took place
in Paris on May 15, 2003 chaired by Denis Kessler. It approved
all of the resolutions submitted to it, and in particular the
election of new directors and the authority given to the Board to
grant stock options to the senior executives and all other
employees of SCOR Group.
The Board considers 11 of the 15 members of SCOR's newly elected
Board of Directors to be independent, based on the criteria laid
down in the Bouton report and by the New York Stock Exchange.
These directors will contribute their international experience in
the fields of insurance, reinsurance, industry and finance.
The newly-elected Board of Directors of SCOR Group is as follows:
Denis Kessler, Chairman and Chief Executive Officer of SCOR,
Carlo Acutis*, Italian, Vice-Chairman, La Vittoria Assicurazioni,
former Chairman of the Comite Europeen des Assurances (European
Federation of National Insurance Associations)
Jean Baligand, Chairman, Groupama,
Antonio Borges*, Portuguese, Vice-Chairman and Managing Director,
Goldman Sachs International
Allan Chapin*, Partner, Compass Partners investment fund,
Daniel Havis*, Chairman and Chief Executive Officer, MATMUT,
Yvon Lamontagne*, Canadian, independent director of several
companies, including Hydro Quebec, etc., former Chairman, Boreal
Assurance,
Daniel Lebegue*, former Chief Executive, Caisse des Depots et
Consignations,
Andre Levy-Lang*, former Chairman, Paribas,
Herbert Schimetschek*, Austrian, Chairman of the Management
Board, Uniqa International, former President of the Comite
Europeen des Assurances,
Jean-Claude Seys, Chairman and Chief Executive Officer, MAAF, MMA
and COVEA,
Jean Simonnet*, Chairman, MACIF,
Claude Tendil*, Chairman and Chief Executive Officer, Generali
France,
Daniel Valot*, Chairman of the Management Board, Technip-
Coflexip,
An employee director will be elected shortly.
* : independent director
In addition, two non-voting directors have been elected for a 2-
year term:
Georges Chodron de Courcel, Member of the Executive Committee,
BNP-Paribas,
Helman le Pas de Secheval, Chief Financial Officer, Groupama
The new Board of Directors met this afternoon [Thursday]. It
confirmed Denis Kessler and Jean Baligand in their posts as
Chairman and Vice-Chairman of the Board respectively, and named
the following persons to the Board Committees:
Risks Committee
Carlo Acutis, Antonio Borges, Georges Chodron de Courcel, Daniel
Havis, Yvon Lamontagne, Daniel Lebegue, Helman le Pas de
Secheval, Herbert Schimetschek, Jean Simonnet and Claude Tendil.
The role of this Committee is to identify major technical and
financial risks confronting the Group.
Strategic Committee
Denis Kessler (Chairman), Jean Baligand, Allan Chapin, Daniel
Lebegue, Andre Levy-Lang, Jean-Claude Seys, Claude Tendil, and
Daniel Valot.
Accounts and Audit Committee
Antonio Borges, Daniel Lebegue, Helman le Pas de Secheval and
Andre Levy-Lang.
Compensation and Nominations Committee
Allan Chapin, Georges Chodron de Courcel and Andre Levy-Lang.
The last two Committees are comprised exclusively of independent
directors.
Moreover, the Board of Directors has authorized the establishment
of an innovative stock option plan for the benefit of all Group
employees (excluding senior executives) in France and elsewhere
in the world.
The proposed formula provides for granting to all employees
(excluding senior executives) on June 3rd, 2003 of the equivalent
of one month's salary in the form of stock options, augmented by
the equivalent of an additional half-month's salary in the form
of stock options if ROE in 2003 exceeds 10%, plus a further half-
month's salary in the form of stock options if ROE in 2004
exceeds 12%. These targets correspond to the ones laid down in
the November 2002 "Back on Track" plan.
*****
The group in April reported net loss of EUR - 455 million,
reflecting the impact of the stock market crisis and additions to
prior-year reserves.
VIVENDI UNIVERSAL: Corrects Statements Made Regarding AGM
---------------------------------------------------------
During the Annual Shareholders Meeting held on April 29, 2003,
people attending the meeting made several incorrect statements
about the number of offices held by some of the company's
directors.
Vivendi Universal (Paris Bourse: EX FP; NYSE: V) therefore wants
to confirm the information relating to the number of offices held
by its Board members, in particular Jean-Rene Fourtou and Claude
Bebear, as is given in the notice and information brochure for
the Annual Shareholders Meeting and the French annual report
provided to shareholders. This information complies strictly with
the legal measures in force.
In addition, the amount mentioned by people attending the same
meeting, relative to the remuneration received in 2002 by Edgar
Bronfman, Jr. was also incorrect. In regard to this point,
Vivendi Universal would like to draw attention to its French
annual report, which details the sums received in 2002 by its
executive directors.
Vivendi Universal's 2002 French annual report was registered by
the Commission des Operations de Bourse (COB) on May 7, 2003
under the number R03-072 and will shortly be available in a
downloadable version from the COB's Web site and from the Vivendi
Universal Web site at the following addresses: http://www.cob.fr
(heading Sophie) and
http://www.vivendiuniversal.com(heading "Who we are").
VIVENDI UNIVERSAL: Allowed to Consolidate Liberty's Complaint
-------------------------------------------------------------
Vivendi Universal (Paris Bourse: EX FP; NYSE: V) announced that
United States District Court for the Southern District of New
York has granted Vivendi Universal's request and consolidated for
all pretrial purposes the complaint filed on March 28, 2003 by
Liberty Media against Vivendi Universal with the consolidated
class action complaint filed earlier this year against Vivendi
Universal on behalf of certain Vivendi Universal shareholders.
The Court found that the questions of fact and law raised in
Liberty Media's action were similar to those raised in the
shareholders' class action and therefore, that it was in the
interest of justice to consolidate the two cases.
*****
John Malone's Liberty filed its claim alleging "fraud,
misrepresentation and concealment" against the group and former
chief executive Jean-Marie Messier.
The suit claims compensation for the drop in the value of VU
stock it accepted as payment for its stake in USA Networks in
December 2001.
VIVENDI UNIVERSAL: Announces Revenues for First Quarter 2003
------------------------------------------------------------
-- Note to readers: Vivendi Universal provided preliminary,
unaudited revenue information on a French GAAP basis for the
first quarter 2003 to 'Balo' an official French business
newspaper for publication in accordance with French regulatory
requirements.
Vivendi Universal's (Paris Bourse: EX FP; NYSE:V) consolidated
revenues for the first quarter of 2003 amounted to E6,232 million
compared with E14,649 million for first quarter of 2002.
Excluding Vivendi Environnement, the publishing businesses
divested in 2002 and 2003, and exchange rate fluctuations, pro
forma (1) first quarter 2003 revenues declined 3%.
Despite the 18% fall in the dollar against the euro since the
first quarter of 2002, given its business units' performance
improvements, Vivendi Universal can confirm its earnings targets
for full year 2003:
-- Strong improvement in operating income and cash flow from
operations on a like-for-like basis
-- Return to profit (excluding non-recurring items and goodwill).
Consolidated revenues
In Emillion 1Q 2003 1Q 2002 Change
----------------------------------------------------------------
Cegetel -SFR 1,781 1,713 +4%
----------------------------------------------------------------
Maroc Telecom 357 355 +1%
----------------------------------------------------------------
UMG 1,100 1,364 -19%
----------------------------------------------------------------
VUE 1,446 1,375 +5%
----------------------------------------------------------------
Canal+ Group 1,166 1,199 -3%
----------------------------------------------------------------
VU Games 106 125 -15%
----------------------------------------------------------------
Total for main businesses 5,956 6,131 -3%
----------------------------------------------------------------
Other 276 353 -22%
----------------------------------------------------------------
Total (excluding divestments) 6,232 6,484 -4%
----------------------------------------------------------------
Divestments 0 8,165 NA
----------------------------------------------------------------
Total 6,232 14,649 NA
----------------------------------------------------------------
Pro forma revenues (1) at constant exchange rates
In Emillion 1Q 2003 1Q 2002 Change
----------------------------------------------------------------
Cegetel - SFR 1,781 1,713 +4%
----------------------------------------------------------------
Maroc Telecom 374 355 +6%
----------------------------------------------------------------
UMG 1,236 1,364 -9%
----------------------------------------------------------------
VUE 1,764 1,851 -5%
----------------------------------------------------------------
Canal+ Group 1.171 1,174 0%
----------------------------------------------------------------
VU Games 124 125 -1%
----------------------------------------------------------------
Total for main businesses 6,450 6,582 -2%
----------------------------------------------------------------
Other 311 353 -12%
----------------------------------------------------------------
Total 6,761 6,935 -3%
----------------------------------------------------------------
Main changes for the six main businesses
Cegetel-SFR: Mobile telephony generated revenues of E1.6 billion,
up 6% despite the slowdown in market growth. SFR won 164,000 new
customers and increased its market share in France to 35.3%
compared with 34.2% for the same period in 2002. The monthly
churn rate fell to just below 2%, against 2.2% in 2002. At March
31, 2003, SFR had 13.7 million customers, of which 54.2% were
subscribers compared with 50.1% at the same date in 2002.
Maroc Telecom: First quarter 2003 revenues amounted to E374
million on a constant currency basis, a 6% increase. At the end
of March, Maroc Telecom had 4,725,000 customers in mobile
telephony (a 20% rise) and 1,116,000 customers in fixed-line
telephony (flat compared with first quarter 2002).
Universal Music Group: The ongoing weakness in the global music
market resulted in 9% revenue decline on a constant currency
basis (decline 19% taking into account exchange rate
fluctuations). However, UMG continued to outperform the market
with strong sales of the debut release by 50 Cent (5.5 million
units in the quarter and the best selling release by any company
so far this year) and strong carryover sales from 2002 releases
by T.A.T.U and the 8 Mile original soundtrack featuring Eminem.
In the U.S., the music market album unit sales declined 9.9%
against the prior year as measured by SoundScan, while UMG
increased current album market share 3.5% to 30.9%.
VUE: Published revenues for VUE rose 5%. Excluding exchange rate
fluctuations, the increase was 28%. The rise is due principally
to the acquisition of USA Networks on May 7, 2002. On a pro forma
basis, including the acquisition of USA Networks from January 1,
2002 and excluding exchange rate fluctuations, VUE's revenues
were down 5%. The television business recorded 12% growth in
dollars. As expected, film business revenues fell 8% in dollars
because there were fewer theatrical releases in the first
quarter.
Canal+ Group: Pro forma revenues for the Canal+ Group were flat.
Revenue growth in pay television in France benefited from a good
performance from CanalSatellite. Revenues from the film business
fell, due to fewer major releases in the first quarter.
Vivendi Universal Games: Revenues, excluding exchange rate
fluctuations, amounted to E124 million, down 0.6%. Including rate
fluctuations, revenues declined 15% year on year. VUG's top
selling games worldwide were Spyro IV (E9.6 million), Crash V
(E7.6 million) and Warcraft III (E7.6 million).
(1) The pro forma information illustrates the effect of the
acquisition of the entertainment assets of USA Networks, Inc.,
the disposal of VUP assets in 2002 & 2003, as if these
transactions had occurred at the beginning of 2002. It also
illustrates the accounting of Vivendi Environnement using the
equity method at January 1, 2002 instead of December 31, 2002.
The pro forma information is calculated as a simple sum of the
actual revenues of Vivendi Universal's businesses (excluding
businesses sold) with the actual revenues reported by each of the
acquired businesses in each period presented. Additionally, the
revenues of Universal Studios international television networks
are reported by Universal Television Group. This reclassification
has no impact on the total revenues of Vivendi Universal. The pro
forma revenues are not necessarily indicative of the combined
revenues that would have occurred had the transactions actually
occurred at the beginning of 2002
Important disclaimer:
This press release contains "forward-looking statements" as that
term is defined in the Private Securities Litigation Reform Act
of 1995. Such forward-looking statements are not guarantees of
future performance. Actual results may differ materially from the
forward-looking statements as a result of a number of risks and
uncertainties, many of which are outside our control, including
but not limited to the risk that : that the reduction of Vivendi
Universal's indebtedness expected to be reached as a result of
the debt-reduction plan, proposed disposals and/or restructurings
will not materialize in the timing or manner described above;
that Vivendi Universal will not be able to obtain the necessary
approvals to finalize certain transactions; Vivendi Universal
will be unable to further identify, develop and achieve success
for new products, services and technologies; Vivendi Universal
will face increased competition and that the effect on pricing,
spending, third-party relationships and revenues of such
competition will limit or reduce Vivendi Universal's revenue
and/or income; Vivendi Universal will be unable to establish and
maintain relationships with commerce, advertising, marketing,
technology, and content providers; and that Vivendi Universal
will not be able to obtain or retain, upon acceptable terms, the
licenses and permits necessary to operate and expand its
businesses; grade as well as the risks described in the documents
Vivendi Universal has filed with the U.S. Securities and Exchange
Commission and the French Commission des Operations de Bourse.
Investors and security holders are urged to read those documents
at the Commission's website at www.sec.gov. Those documents may
also be obtained free of charge from Vivendi Universal. Vivendi
Universal does not undertake nor does it have any obligation to
provide updates or to revise any forward-looking statements.
VIVENDI UNIVERSAL
REVENUES BY BUSINESS SEGMENT
(French GAAP, Unaudited)
Quarter Ended March 31
ACTUAL (1) PRO FORMA (5)
-------------------- -------------------------
2003 2002 % Change 2003 2002 % Change
------- -------- --------- ------- ------- ---------
(In millions of euros) (In millions of euros)
REVENUES
EUR EUR EUR EUR
Cegetel - SFR 1,781 1,71 4% 1,781 1,713 4%
Mobile 1,559 1,476 6% 1,559 1,476 6%
Fixed and Others 222 237 -6% 222 237 -6%
Maroc Telecom 357 355 1% 357 355 1%
Universal
Music Group 1,100 1,364 -19% 1,100 1,364 -19%
Vivendi
Universal
Entertainment 1,446 1,375 5% 1,446 1,851 -22%
Universal
Pictures Group 855 1,112 -23% 855 1,148 -26%
Universal
Television
Group 449 74 x 6.1 449 511 -12%
Universal Park &
Resorts and
other 142 189 -25% 142 192 -26%
Canal+ Group 1,166 1,19 -3% 1,166 1,174 -1%
Pay TV 672 656 2% 672 656 2%
Cinema 83 109 -24% 83 109 -24%
Others 411 434 -5% 411 409 0%
Vivendi
Universal
Games (2) 106 125 -15% 106 125 -15%
------ ------- -------- ------ ------ ---------
5,956 6,131 -3% 5,956 6,582 -10%
Others (3) 276 353 -22% 276 353 -22%
------ ------- -------- ------ ------ --------
TOTAL VIVENDI EUR EUR EUR EUR
UNIVERSAL 6,232 6,484 -4% 6,232 6,935 -10%
====== ====== ====== ======= ======= ======
(EXCLUDING BUSINESSES
SOLD IN 2002 & 2003)
TOTAL VIVENDI EUR EUR
UNIVERSAL 6,761 6,935 -3%
====== ======= =========
(EXCLUDING BUSINESSES
SOLD IN 2002 & 2003,
AND ON A CONSTANT
CURRENCY BASIS)
Vivendi
Environnement - 7,500 na
VUP assets sold
during 2002 and
2003 (4) - 665 na
------- -------- ---------
TOTAL VIVENDI EUR EUR
UNIVERSAL 6,232 14,649 -57%
======= ======== =========
(1) Totals represent actual revenues to be published in BALO. In
orderto present meaningful comparative earnings trends for our
major businesses, refer to pro forma revenues.
(2) Formerly part of Vivendi Universal Publishing (VUP). Includes
Kids Activities e.g. Adi/Adibou in France and JumpStart in the
United States.
(3) Principally comprised of Vivendi Telecom International,
Internet, Vivendi Valorisation (previously reported in non- core
businesses) and VUP assets not sold during 2002 & 2003 (Comareg
and publishing activities in Brazil).
(4) Comprised of the Consumer Press Division sold to the
Socpresse Group at the beginning of February 2003, VUP assets
sold to Investima 10, which is wholly owned by Natexis Banques
Populaires in December 2002, Houghton Mifflin sold in December
2002 and VUP's Business to Business and Health divisions sold in
June 2002.
(5) The pro forma information illustrates the effect of the
acquisition of the entertainment assets of USA Networks, Inc.,
the disposal of VUP assets in 2002 & 2003, as if these
transactions had occurred at the beginning of 2002. It also
illustrates the accounting of Vivendi Environnement using the
equity method at January 1, 2002 instead of December 31, 2002.
The pro forma information is calculated as a simple sum of the
actual revenues of Vivendi Universal's businesses (excluding
businesses sold) with the actual revenues reported by each of the
acquired businesses in each period presented. Additionally, the
revenues of Universal Studios international television networks
are reported by Universal Television Group. This reclassification
has no impact on the total revenues of Vivendi Universal. The pro
forma revenues are not necessarily indicative of the combined
revenues that would have occurred had the transactions actually
occurred at the beginning of 2002.
VIVENDI UNIVERSAL: Liberty Interested in U.S. Assets
----------------------------------------------------
Liberty Media, the firm suing Vivendi Universal and its executive
for fraud, said it is interested in acquiring the group's U.S.
entertainment assets.
However, Chairman John Malone, who said Vivendi's EAUG.PA V.N
cable assets and movie studio would make a good fit, did not say
whether he would make a bid.
Liberty Media sued Vivendi in late March, claiming the group hid
its financial crisis in 2001 and 2002 while negotiating to buy
Liberty's stake in USA Interactive.
The suit claims compensation for the drop in the value of VU
stock it accepted as payment for the acquisition.
Liberty Media stands to raise its profile in cable programming in
the possible transaction. Included in the properties for sale is
Vivendi's stake in USA Interactive, which could raise Liberty's
ownership of USA beyond its current 20% to about 27%.
But analysts do not predict a deal is imminent.
"It's not necessarily going to happen," said Guzman and Co.
analyst David Joyce. "I don't think he [Mr. Malone] confirmed he
was bidding."
=============
G E R M A N Y
=============
ALLIANZ AG: Head Expected to Unload Investment-Banking Unit
-----------------------------------------------------------
Investors are expecting the newly appointed chief executive of
Allianz AG, Michael Diekmann, to announce plans to unload the
insurer's investment-banking unit as he starts his term.
Allianz acquired Dresdner Kleinwort Wasserstein securities
business when it bought Dresdner Bank AG for US$20 billion as
part of a plan to sell more insurance products two years ago.
But as it turned out, Dresdner was a losing business.
Dresdner's corporates and markets unit, which includes Dresdner
Kleinwort Wasserstein, made a pretax loss of EUR2 billion in
2002. The figure adds up to what becomes Allianz's first annual
loss since World War II in 2002.
Reorganization costs at Dresdner and investment writedowns was
EUR800 million in the first quarter, the insurer said last month.
``Allianz's investment banking strategy can't work out and will
never work out,'' said Paul Vrouwes, who helps oversee about $6.9
billion at ING Investment Management including Allianz shares.
``I don't think they can succeed in restructuring it.''
Mr. Diekmann, an insurance industry expert with no experience in
banking had already promised to cut costs at Dresdner Bank by
EUR1.25 billion (US$1.4 bilion). He is also planning to seek
partners for Dresdner Kleinwort Wasserstein. But investors say
the measures may not be enough to steer the fortunes of the
company.
Dresdner Kleinwort Wasserstein was created from the merger of
Dresdner Bank's Kleinwort Benson unit and Bruce Wasserstein's New
York advisory firm Wasserstein, Perella & Co. in 2000.
COMTRADE AG: Increases Net Value of Tangible Assets in 2002
-----------------------------------------------------------
Lease contracts increased from EUR 114.7 million. to EUR 134.2
million.
According to IFRS, COMTRADE AG (WKN 550253) states for its
business year 2002 revenues of EUR 33.8% (previous year -
restated- EUR 56.0 million). EBITDA is EUR 8.5 million (previous
year -restated- EUR 13.9 million). EBIT is EUR -1.4 million.
(previous year -restated- EUR - 0.5 million). The group net loss
increased from - restated - EUR -3.0 million to EUR - 5.1
million. The reason is that basic mistakes had been determined
which were in the IAS financial statements drawn up for the
periods 2000 to 2001. Details are outlined in the group financial
statement as of 31 December 2002. In Q4 new business increased by
19.7% from EUR 25.9 million to EUR 30.7 million. compared to Q3.
As of the closing date cash is EUR 0.7 million (previous year EUR
0.2 million).
According to HGB (German Commercial Code), the COMTRADE group
states in the business year 2002 revenues of EUR 35.7 million
(previous year EUR 31.3 million), EBITDA of EUR 26.3 million
(previous year EUR 17.3 million) and EBIT of EUR -0.256 million.
(previous year EUR -4.935 million). The group net loss could be
reduced to EUR -3.9 million (previous year EUR -7.0 million).
Remarketing income resulting from the lease volume was increased
to EUR 21.2 million (previous year EUR 18.6 million). Cash flow I
(annual result + depreciation) increased to EUR 22.6 million
(previous year EUR 15.2 million). According to HGB, the equity in
the meaning of book value is reduced by more than half, however,
the hidden reserves of the company of EUR 8.4 million have not
been taken into account. COMTRADE AG possesses a substantial net
surplus value of tangible assets in it shareholdings. The lease
contracts at acquisition cost increased compared to the previous
year from EUR 114.7 million. to EUR 134.2 million (plus 17%).
Order backlog for the business year 2003 is already at EUR 69.2
million (previous year EUR 55 million). For the business year
2003 the group expects a substantial improvement of the asset,
financial and income situation. Other than in 2001, the auditors
furnished COMTRADE AG this time with an unrestricted audit
certificate for the financial statement 2002. The annual report
2002 is
available at http://www.comtrade.deas pdf
CONTACT: COMTRADE AG
Dr. Babette Sievers
Herrengraben 31, 20459 Hamburg
Phone: +49-40-374942-0
Fax: +49-40-374942-60
E-mail: investor-relations@comtrade.de
DEUTSCHE TELEKOM: Records Net Income in First Quarter of 2003
-------------------------------------------------------------
-- Group revenue increased by around 6.6 % to EUR 13.6 billion
-- Net income in the first quarter EUR 0.85 billion compared with
a loss of EUR 1.8 billion in the same period last year; net
income excluding special factors EUR 0.1 billion compared with a
loss of EUR 1.4 billion
-- Net debt at March 31 reduced to EUR 56.3 billion compared with
EUR 61.1 billion at the end of 2002
-- EBITDA increased by almost 30 % to EUR 4.9 billion, EBITDA
excluding special factors grew by 18 % to EUR 4.5 billion
-- Considerable increase in EBITDA margin (adjusted for special
factors) in all four divisions
-- Net cash provided by operating activities increased by 38% to
EUR 3.1 billion; free cash flow increased almost sixfold to
around EUR 2 billion
-- Target for EBITDA (adjusted for special factors) for full
financial year reset from previous range of EUR 16.7 to 17.7
billion to new range of EUR 17.2 to 17.7 billion.
Deutsche Telekom made considerable progress in the first quarter
of 2003 in increasing EBITDA and reducing debt.
Group revenue increased in the first quarter by 6.6 % compared
with the same period last year from EUR 12.8 billion to EUR 13.6
billion.
Group EBITDA increased disproportionately by 29.7 % from EUR 3.8
billion to EUR 4.9 billion. EBITDA adjusted for special factors
also increased considerably more than revenue, by 18.4 % from EUR
3.8 billion to EUR 4.5 billion.
Issuer's information/explanatory remarks concerning this ad-hoc-
announcement:
In the first quarter of 2003, the Deutsche Telekom Group recorded
net income of EUR 0.85 billion compared with a loss of EUR 1.8
billion in the same period last year. This increase is a result
of a considerable increase in EBITDA as well as positive tax
effects and the sale of shareholdings. Adjusted for these special
factors, Deutsche Telekom's net income amounted to approximately
EUR 0.1 billion compared with a loss of approximately EUR 1.4
billion.
All four Group divisions contributed to this increase in EBITDA.
With almost stable revenue of EUR 7.5 billion, T-Com increased
its EBITDA in the first quarter of 2003 by 15.4 % from EUR 2.5
billion to EUR 2.9 billion. Taking the special factors into
account; EBITDA increased by 7.2 % to EUR 2.7 billion. T-Systems
achieved a 2.8 % growth in revenue to almost EUR 2.6 compared
with EUR 2.5 billion and increased EBITDA by 42.6 % to EUR 368
million compared with EUR 258 million in the same period last
year. EBITDA (excluding special factors) increased by 10.9 % to
EUR 286 million. Revenue in the T-Mobile division increased by
18.9 % to EUR 5.3 billion compared with EUR 4.5 billion.
EBITDA increased by significantly more than one quarter to
EUR 1.5 billion compared with EUR 1.2 billion in the same period
last year. As was the case at T-Online, T-Mobile's EBITDA does
not include any special factors. T-Online's revenue increased by
21.6 % from EUR 366 million to EUR 445 million and EBITDA
increased from EUR -14 million to a positive figure of EUR 75
million.
This data reflects not only the increase in revenue but also
considerable progress in efficiency of approximately EUR 0.4
billion on a quarterly basis as part of Deutsche Telekom's
program to reduce debt and improve efficiency.
The Group's net debt was significantly reduced by approximately
EUR 4.8 billion or 7.9 % from EUR 61.1 billion at the end of 2002
to EUR 56.3 billion at March 31, 2003. This was a result of the
sale of non-strategic assets as well as the free cash flow of EUR
2.0 billion achieved in the first quarter of 2003 compared with
EUR 0.3 billion in the first quarter of 2002. Of the sale of
assets announced in November of last year as part of the 6+6
program, EUR 4.4 billion were generated or contractually agreed
by the end of the quarter. Including the reduction of Deutsche
Telekom's stake in MTS announced in April 2003 the proceeds from
asset sales already realized or agreed currently amount to around
EUR 4.9 billion.
Deutsche Telekom continues to be confident that it will achieve
the year-end goal of decreasing its net debt to three times the
Group EBITDA (excluding special factors) expected for the year
2003. In view of the progress made in improving Group efficiency,
the target announced for EBITDA (excluding special factors) has
been adjusted from the previous range of EUR 16.7 to 17.7 billion
to a new range of EUR 17.2 to 17.7 billion. However, this will
not change the targeted reduction of net debt.
Deutsche Telekom has changed its reporting from the total-cost
method previously used to the cost-of-sales method from the first
quarter of 2003. In addition, there have been some adjustments in
the allocation of revenue to the Group's four divisions. A
detailed explanation of the changes and the adjusted data for the
individual quarters of the past year and a reconciliation to pro
forma figures can be found on Deutsche
Telekom's website at http://www.telekom.deunder Investor
Relations. These adjustments have no influence on Group revenue
or net income.
DEUTSCHE TELEKOM: Outlook Remains Unchanged by Q1 Results
---------------------------------------------------------
Standard & Poor's Ratings Services said its ratings and outlook
on Germany-based telecommunications operator Deutsche Telekom AG
(BBB+/Stable/A-2) remain unchanged following the announcement of
the group's results for the three months to March 31, 2002.
The results reflect the continued success of Deutsche Telekom's
efforts to improve operating performance, sustain free cash flow,
and deleverage its balance sheet. Margins improved in each of
Deutsche Telekom's business units and net debt reduced by EUR5.0
billion ($5.7 billion), primarily as a result of EUR2.3 billion
of asset sales and EUR2.0 billion of free cash flow generation.
Deutsche Telekom is now targeting free cash flow of EUR5.3
billion-EUR5.8 billion for the full-year 2003 and EUR5.0 billion-
EUR6.0 billion per year thereafter.
"Standard & Poor's expects Deutsche Telekom to continue to meet
its challenging free cash flow targets and sustain its focus on
deleveraging," said Standard & Poor's credit analyst Peter
Kernan. "The ratings assume that the group will improve its ratio
of adjusted net debt to EBITDA to about 3x."
MOLOGEN HOLDING: Interim Report Shows Losses Reduced by Half
------------------------------------------------------------
In the first quarter of 2003 the Mologen group reduced its
deficit by 652 TEUR (thousand euros) to -555 TEUR compared with
the first quarter of 2002. The EBIT was likewise reduced from -
1,239 TEUR to -651 TEUR. The result per share improved by 52%
from 0.23 EUR to -0.11 EUR. The current quarterly financial
statement reflects the success of the cost-saving measures
introduced in 2002.
With respect to the comparison period, bcd GmbH is no longer
included in the consolidated financial statement. This unit had a
negative result of -155 TEUR in the first quarter of 2002.
Sales of 95 TEUR were somewhat higher than in the comparison
period (with the exclusion of the contribution of 25 TEUR from
bcd in the first quarter of 2002).
The outflow of liquidity of 520 TEUR in the first quarter led to
a liquid equity status of 4,396 TEUR as of March 31, 2003.
Business development continues on course Mologen operates on the
basis of a plan scenario which foresees the achievement of a
positive operating cash flow without the need for further capital
financing measures. However, improvement of the financial
situation and profitability through conclusion of licensing
agreements with the pharmaceutical industry are in the forefront
of planning consideration. In this respect no immediate successes
were achieved in the first quarter. Nonetheless negotiations of
this sort are in progress and there are additional factors which
are expected to support the successful conclusion of business
deals by Mologen in this area.
At the same time, the management is continuing its effort to
secure new resources from investors.
Additional patent grants anticipated
In April, the patent office completed the examination procedure
for the European patent application "Process for the Manufacture
of Barbell-shaped DNA Molecules as Expression Constructs", and
approval is expected. This patent will provide protection in
Europe for the manufacturing process for Mologen's key technology
MIDGE.
New subsidies
In the first quarter of 2003 Mologen GmbH received subsidy grants
in the amount of 141 TEUR. With these funds the Investment Bank
of Berlin will support Mologen in the development of a new
generation of gene packages over a period of 25 months. Smart
Minimalistic Expression Circles (SMEC) are being developed with
the goal of achieving particularly good transfection efficiency.
SMEC could find preferred application in gene therapy, whereas
MIDGE is especially suited for DNA vaccination.
=========
I T A L Y
=========
CAPITALIA: Abandons Loss, Rebounds With Net Income of EUR11 MM
--------------------------------------------------------------
Results confirm the positive trends recorded in 4th Quarter 2002:
-- Stable net interest margin
-- Net commissions grow (+2.2%)*
-- Considerable increase in profits fr. Wealth Management
-- Major cuts in general administrative costs (-11.1%)*
-- Significant growth in gross operating Income (+27.5%)*
-- Net income: EUR 11 mln (vs. Avg Qtrly Loss 2002: EUR 81 mln)*
-- Tier 1 further reinforced to 6.4%
The Board of Directors of the CAPITALIA Banking Group met today
under the chairmanship of Cesare Geronzi and approved the
quarterly financial statements to March 31, 2003.
The financial statements demonstrate that the Group performance,
in line with the objectives set out in the Business Plan, confirm
the positive trend of all the principal line items already
registered in the fourth quarter 2002.
To permit a significant comparative analysis of the results of
the first quarter 2003, besides the official tables, an
additional table has been added that reports the reconstructed
figures for the first quarter 2002 and a quarterly average for
2002. The data have been reconstructed to adjust, among other
elements, for the radical change in the accounting perimeter of
the Group as a result of the entrance of the Bipop-Carire Group
on July 1, 2002, and of the sale of 147 branches carried out at
year-end 2002. (see table 3).
Starting from 2003 it was also decided to align with best market
practice by proceeding to eliminate in the consolidated Income
Statement the tax credit on dividends of the companies fully
consolidated and the elimination of the corresponding fiscal
effect (the 2002 figures have also been reclassified).
INCOME STATEMENT FIGURES
In the first quarter 2003 the net interest margin amounted to EUR
647 million, substantially in line with the quarterly average of
the prior fiscal year. This is due, principally, to the strategy
to reprice the loan portfolio, which offset the effect of the
reduction in Risk Weighted Assets carried out during 2002.
Net commissions totalled EUR 332 million, registering an increase
of 2.2% with respect to the 2002 quarterly average. This growth
is primarily a result of the development of the bancassurance and
structured product business that offset the reduction in
commissions deriving from asset management. Traditional banking
commissions remained stable, this despite the seasonal weakness
normally associated with this period of the year.
Profits from financial operations increased during the quarter to
EUR 85 million, approximately a third of which derived from
Wealth Management related activities.
Total income in the 1st quarter grew 1.9% with respect to the
2002 quarterly average, reaching EUR 1,163 million.
Operating costs amounted to EUR 848 million, registering a fall
of 5.1% with respect to the 2002 quarterly average. Personnel
costs remained substantially stable, as the first effects of the
savings plan are expected to arrive only in the second quarter of
this year. Following the agreement reached with the unions on
March 18, 2003, a campaign to encourage early retirements was
launched, to which more than 300 employees had adhered by April
30, 2003. A similar campaign to encourage adhesion to a
solidarity fund was launched, and to which over 1,600 Group
employees had adhered at the same date.
Significant is the fall (-11.1%) in general and administrative
expenses, which totalled EUR 287 million in the 1st quarter 2003
versus the 2002 quarterly average of EUR 323 million. The
sizeable contraction is the result of the rigorous programme of
cost containment and rationalization.
Gross operating income was positive for EUR 315 million, a
considerable increase (+27.5%) with respect to the 2002 quarterly
average (positive for EUR 247 million). This result, obtained
thanks to the increase in margins and the reduction in expenses,
is in line with the budget and the Business Plan 2003-2005.
Net value adjustments on credits and financial fixed assets and
the provisions for risks, totalling EUR 250 million, were 57.1%
lower than the 2002 quarterly average. In particular, net value
adjustments were in line with those forecast in the Business Plan
for the fiscal year.
After taxes on income and minority interests, net income is
positive for EUR 11 million, which compares to the quarterly
average loss recorded in 2002 of EUR 81 million.
BALANCE SHEET DATA
At the end of the period, direct funding from customers,
including subordinated liabilities, totalled EUR 83.1 billion, a
reduction of 0.7%. Total customer financial assets ("raccolta
indiretta") equalled EUR 90.5 billion, of which assets in custody
totalled EUR 47.8 billion, managed assets EUR 32.2 billion, and
the technical reserves of the bancassurance premiums equalled EUR
10.5 billion.
Loans to customers equaled EUR 79.8 billion, in line with the
figure at December 31, 2002 (EUR 80.1 billion). The stock of
classified credits (non-performing and watchlist loans) in the
first quarter 2003 remained substantially stable.
The net interbank position declined further, passing from EUR
11.2 billion at December 31, 2002, to EUR 10.3 billion at the end
of March 2003.
The securities portfolio, equal to EUR 16.2 billion, shows a fall
with respect to the EUR 18.0 billion reported at end 2002.
The Tier 1 ratio at March 31, 2003, registered a further
significant increase to 6.4% from 6.2% at end 2002, thereby
approaching the 2003 year-end target 2003 of 6.5%. This increase,
moreover, does not consider the benefits deriving from the
agreement reached to sell Entrium.
To see financials: http://bankrupt.com/misc/CAPITALIA.pdf
CONTACT: CAPITALIA
Investor Relations
Phone: +39-06-6707-03713
=====================
N E T H E R L A N D S
=====================
HEAD N.V.: Increases Operating Loss to US$8.9 Million in Q1
-----------------------------------------------------------
Head N.V. (NYSE:HED) (VSX:HEAD), a leading global manufacturer
and marketer of sports equipment, announced the following results
Thursday.
For the three months ended March 31, 2003 compared to the three
months ended March 31, 2002:
-- Turnover decreased 1.7% to $ 73.6 million
-- Operating loss increased to $8.9 million
-- Net loss increased to $9.9 million * Cash flow from operations
increased 15% to $19.7m
Based on current trading conditions, Head has prudently decided
not to pay a 2002 dividend.
Johan Eliasch, Chairman and CEO, commented: "Trading conditions
are becoming more difficult, especially in racquet sports and
diving which has impacted our results for the quarter. We are
proactively managing the business through these difficult
conditions, but based on current market conditions, we believe
that our results will be below those achieved in 2002."
Revenues
For the Three Months Ended 31st March,
2002 2003 %
(unaudited) (unaudited) Change
(in thousands)
Product Category
Winter Sports $11,921 $16,451 38.0%
Racquet Sports 47,171 42,424 -10.1%
Diving 14,092 12,444 -11.7%
Licensing 1,680 2,281 35.8%
Total Revenues $74,864 $73,600 -1.7%
Winter Sports
For the three-month period ended 31st March 2003, our winter
sports sales increased by 38% compared with the same period in
the prior year. Sales increased in all of our product segments
(skis, bindings, boots and snowboard equipment) due in part to
the strengthening of the Euro against the U.S. $ and also due to
the positive reaction by the market to our product offering. We
have had a very successful sell-through of our ski boots,
especially our new EDGE range, and positive results in the trade
with Intelligence skis.
We believe that the world wide winter sports market declined by
5% in 2002. This, we believe, was due to several winter seasons
without good snow, followed by a late start to the 2002/03
season. Once the snow arrived in 2002 however, the season was
excellent, and this has lead to more normal levels of stock in
trade and we hope a flattening of the decline experienced in the
market in the last few years.
Whilst the first three months of the year are not significant due
to the seasonality of our business, we are pleased to report that
our order book for the 2003/04 season is above the level achieved
at this time last year and approximately 70% of our 2003 business
is already booked.
Currency movements combined with the product mix change has
impacted the gross margin, reducing it by 210 basis points for
the first three months.
Racquet Sports
For the three months ended 31st March 2003, sales declined by
10.1%, with balls declining at a slightly higher rate than
racquets. By geography, in our reporting currency, our sales
increased in Europe, but this was offset by a double-digit
decline in North America. The decline was due to the very tough
market conditions currently being experienced particularly in the
USA, where both the tennis racquet and tennis ball markets were
down by 14% for the first three months and also due to a large
one-off OEM-business shipment in the first quarter of 2002 that
was not repeated in 2003.
We believe that the decline in the market is short term due to
customer distractions such as the war in Iraq and economic
uncertainties. The unprecedented decline in the tennis ball
market is a result of a lack of participation. However, we are
confident that consumers will return to the sport once these
distractions are eliminated.
Whilst market conditions remain tough, Head continues to make
advances, Penn market share in the U.S. was up by nearly one
percentage point in the first quarter 2003 compared to the first
quarter 2002 and Head is holding market share despite tough
competition.
The gross margin for the Racquet Sports division declined by 200
basis points as a result of the strengthening of the Euro and a
reflection of the tough market conditions, which have resulted in
increased competition and lower average prices.
Diving
For the three months ended 31st March 2003, diving product
revenues decreased 11.7%. The overall market for diving equipment
is generally perceived to have declined by 10% in 2002, with some
of our important markets such as the U.S. and Japan showing,
according to some estimates, a downturn in demand of up to 20%.
This overall decline was, we believe, principally due to the
general world wide economic slowdown and a consequent decrease in
the number of the end users of diving products travelling on
holiday to diving and other resorts. In the first quarter of
2003, the Iraq war and the SARS epidemic exacerbated this effect.
In addition to the poor market conditions, our Diving division's
results were also effected by the timing of shipments.
Gross margins have declined due to higher sales of close-out
products at low margins in the USA and the strengthening of the
Euro against the U.S. Dollar compared to the first quarter 2002.
Sales are expected to recover in the second quarter when a number
of recently launched products reach the market. The momentum
should extend into the second half of the year with the launch of
our new dive computer line and a special sales campaign planned
for the Fall.
Licensing
Licensing revenues grew by 35.8% in the three months to 31st
March 2003 compared to the first three months of 2002. The
increase was due in part to the timing of licensing income
receipts and in part due the strengthening of the Euro against
the U.S. Dollar compared to the first quarter 2002.
Profitability
For the three months ended 31st March, 2003, due to lower
revenues and margins, gross profit decreased by $2.7 million to
$26.8 million from $29.4 million in the first three months of the
prior year.
Gross margins reduced by 300 basis points due mainly to the
strengthening of the Euro, and some margin erosion in racquet
sports due to increased competition in the market.
For the three months ended 31st March, 2003, selling and
marketing expenses increased by $2.5 million, or 10.7%, to $26.3
million from $23.7 million in the first three months of the prior
year. The increase was entirely due to exchange rate effects on
these predominantly Euro denominated costs.
For the three months ended 31st March 2003, general and
administrative expenses increased by $1.5 million, or 20.7%, to
$8.7 million from $7.2 million in the prior year. The increase
was almost entirely due to exchange rate effects on these
predominantly Euro denominated costs.
For the three months to 31st March 2003, operating loss increased
by $7.0 million to $8.9 million from $1.9 million in the first
three months of the 2002.
Interest expenses for the three months ended 31st March 2003
increased by $0.7 million compared to the first three months of
2002 due to exchange rate effects, in particular on the Euro
denominated bond.
Cash flow from operations for the first three months of 2003 was
$19.7 million, compared to $17.1 million for the first three
months of 2002. Consolidated Results
For the Three Months Ended 31st March,
2002 2003
REVENUES
Total revenues $ 74,864 $ 73,600
Cost of sales 45,439 46,848
Gross profit 29,425 26,752
Gross margin 39.3% 36.3%
Selling & marketing expense 23,738 26,287
General & administrative 7,176 8,659
expense (excl. non-cash
compensation expense and
restructuring costs)
Non-cash compensation 408 164
expense
Restructuring costs - 530
Operating loss (1,898) (8,888)
Interest expense (2,636) (3,382)
Interest income 161 263
Foreign exchange gain/(loss) 262 (3)
Other income, net 9 27
Loss from continuing (4,102) (11,983)
operations before income
taxes
Income tax benefit 545 2,129
Net loss $ (3,556) $ (9,854)
About Head
Head NV is a leading global manufacturer and marketer of premium
sports equipment.
Head NV's ordinary shares are listed on the New York Stock
Exchange ("HED") and the Vienna Stock Exchange ("HEAD").
Our business is organized into four divisions: Winter Sports,
Racquet Sports, Diving and Licensing. We sell products under the
Head (tennis, squash and racquetball racquets, alpine skis and
ski boots, snowboards, bindings and boots), Penn (tennis and
racquetball balls), Tyrolia (ski bindings), and Mares/Dacor
(diving equipment) brands.
We hold leading positions in all of our product markets and our
products are endorsed by some of the world's top athletes
including Andre Agassi, Marat Safin, Gustavo Kuerten, Marco
Buchel and Francisco "Pipin" Ferreras.
For more information, please visit our website:
http://www.head.com
CONTACT: HEAD N.V.
Clare Vincent, Head of Investor Relations
Phone: +44 207 499 7800
Fax: +44 207 491 7725
E-mail: htmcv@aol.com
Ralf Bernhart, Chief Financial Officer
Phone: +43 1 70 179 354
Fax: +43 1 707 8940
ING GROEP: Net Profit Down 85% to EUR 167 MM in First Quarter
-------------------------------------------------------------
-- Organically: income +4.2%, expenses -1.6%, operating net
profit +3.3%
-- Operating net profit EUR 902 million (-3.1%)
-- Net profit EUR 167 million, per share EUR 0.08
-- Banking operating net profit up 14%, insurance -13% from first
quarter 2002
Chairman's statement
"In the first quarter of 2003 ING successfully managed to
increase revenues and reduce costs, organically. Excluding the
negative revaluation reserve on shares of EUR 735 million this
resulted in a net profit of EUR 902 million. Should the stock
markets show a further recovery in the course of 2003, the
revaluation reserve may become positive again, offsetting a
potential negative effect on the full-year result 2003. ING
continues to adapt its business to the current reality of a
sluggish economic environment", said Ewald Kist, chairman of the
Executive Board. "This means that our top priorities continue to
be the strengthening of the capital base and the lowering of the
cost base. Furthermore, we will continue to invest in profitable
growth, as is shown for example by the launch of ING Direct in
the United Kingdom earlier this week."
Outlook 2003
In view of the current economic uncertainties, the Executive
Board will not make a forecast for ING's 2003 full year results.
The Executive Board remains convinced that ING Group has a solid
base in core markets, is well-positioned in growth markets, will
continue to exploit its many synergy opportunities successfully
and is adequately responding to today's difficult market
conditions.
Table 1. Key profit and loss figures ING Group
in EUR x million Q1 Q1 % % organic Q4 %
2002 2003 change change 2002 change
----------------------------------------------------------------
Operating net profit
- insurance operations 582 504 -13.4 -7.2 675 -25.3
- banking operations 349 398 14.0 19.7 45 n.a.
Group operating net profit 931 902 -3.1 3.3 720 25.3
Capital gains/negative
revaluation reserve shares+205 -735 +205
Net profit 1,136 167 -85.3 925
Total operating income 20,174 18,227 -9.7 4.2 18,145 0.5
- insurance operations 7,297 15,347 -11.3 4.5 15,597 -1.6
- banking operations 2,899 2,891 -0.3 2.6 2,554 13.2
Total operating expenses 3,432 3,159 -8.0 -1.6 3,118 1.3
- insurance operations 1,379 1,189 -13.8 -1.5 1,185 0.3
- banking operations 2,053 1,970 -4.0 -1.6 1,933 1.9
in EUR
Operating net profit
per share 0.48 0.46 -5.1 1.2
Net profit per share 0.59 0.08 -86
Group net profit affected by negative revaluation reserve shares
Net profit for the first quarter 2003 amounts to EUR 167 million,
85.3% less than a year ago. To a large extent, the decrease was
caused by negative value adjustments of the revaluation reserve
shares of EUR 735 million (EUR 613 million in insurance, EUR 122
million in banking). In the first quarter 2002, realised capital
gains on shares amounted to EUR 205 million. The negative value
adjustments reflect the fact that at 31 March 2003 the market
value of the equity investment portfolio was below cost price.
Accounting principles require such an unrealised loss to be
charged to the profit & loss account. Ultimately, year-end
closing prices at 31 December 2003 will determine whether or not
the full year result for 2003 will be negatively impacted.
Operating net profit was 3.1% lower at EUR 902 million. The
strengthening of the euro against most currencies strongly
affected total income and total expenditure. The negative impact
on operating net profit was EUR 60 million, including the
mitigating effect of the dollar hedge of +EUR 25 million.
Organically (excluding currency fluctuations and
acquisitions/divestments), operating net profit increased by
3.3%.
The effective tax rate decreased from 24.1% to 19.4%, mainly
caused by a deferred tax benefit in the Netherlands.
Insurance results lower in difficult market circumstances
The operating net profit from insurance operations decreased by
13.4% from EUR 582 million to EUR 504 million. The profit
decrease reflects weak stock markets, low interest rates,
lacklustre demand due to weak consumer confidence and the
stronger euro. In line with management expectations, the result
before taxation of the life operations in the U.S. was
substantially lower compared to the good first quarter 2002.
The operating result before taxation from life insurance business
decreased from EUR 660 million to EUR 445 million (- 32.6%). Non-
life results showed strong growth worldwide. The non-life
operating result before taxation rose from EUR 120 million a year
ago to EUR 167 million (+39.2%).
Total premiums decreased by 11.2% to EUR 12,550 million, but they
increased organically by 5.3%. Organically, total expenses were
1.5% lower, despite a strong increase in pension costs (+EUR 12
million). The strengthening of the euro had a negative impact on
the operating net profit from insurance of EUR 41 million.
Banking results are recovering
Operating net profit from the banking operations improved by
14.0% to EUR 398 million compared to a year ago. This figure
marks a strong recovery from the EUR 45 million operating net
profit in the fourth quarter 2002. The main drivers of the year-
on-year increase are a higher interest result and lower expenses.
The interest result increased strongly as the interest margin
widened 7 basis points to 1.63% and volumes increased. Total
expenses were 1.6% lower organically despite higher pension
expenses (+EUR 11 million) and the impact of the collective
labour agreement in the Netherlands. Risk costs increased by EUR
25 million to EUR 325 million, equal to 54 basis points of
average credit risk-weighted assets. This is still high but in
line with expectations and a strong improvement on the fourth
quarter 2002. Currency fluctuations had a negative impact of EUR
19 million on operating net profit.
The efficiency ratio improved from 71.0% for the full year 2002
to 66.6% in the first quarter 2003 (both excluding ING Direct).
The overall (pre-tax) RAROC figure of ING's banking operations
was 18.8%, a strong improvement compared to the full year 2002
(13.2%).
ING Direct made a pre-tax profit of EUR 7 million against a loss
of EUR 46 million a year ago.
Asset management under pressure from falling stock markets and
stronger euro
The functional operating result before taxation from asset
management activities was 41% lower at EUR 67 million. This
figure is derived by breaking out the asset management profit
contribution from the insurance and banking results.
Assets under management decreased by EUR 16.2 billion (-3.6%) to
EUR 432.8 billion compared to year-end 2002. Net inflow was
strong at EUR 6.1 billion. Falling stock markets had a negative
impact of EUR 11.3 billion. The stronger euro lowered assets
under management by EUR 10.9 billion.
The investment performance of ING's asset management businesses
continues to be satisfactory. Compared to peers, 55% of assets
under management ended up in the first and second quartile on a
5-year horizon. Twelve ING mutual funds have earned a top, i.e.
five star rating from either Lipper of Morningstar rating agency
and 60 ING funds have a four star rating.
Balance sheet
Shareholders' equity amounted to EUR 17.5 billion, end of March
2003, a decrease of 3.9% compared to year-end 2002 (see table 2
on page 4). The negative revaluation of equity and real estate
investments was EUR 1.4 billion. Exchange rate fluctuations
impacted shareholders' equity by -EUR 0.2 billion. First quarter
operating net profit added EUR 0.9 billion. Shareholders' equity
per share decreased from EUR 9.14 at year-end 2002 to EUR 8.79.
Table 2. Key balance sheet figures ING Group
In EUR x billion Year-end 31 March %
2002 2003 change
----------------------------------------------------------------
Shareholders' equity 18.3 17.5 -3.9
- insurance operations 10.8 9.9
- banking operations 15.8 16.1
- eliminations* - 8.3 - 8.5
Total assets 716.4 732.9 2.3
Operating net return on equity 17.4% 20.4%
- insurance operations 18.6% 19.5%
- banking operations 6.5% 11.7%
Total assets under management 449.0 432.8 -3.6
* Own shares, subordinated loans, third-party interests,
debenture loans and other eliminations.
Key strategic developments
The risk of further falls in stock market prices has been limited
further by hedging an additional EUR 2 billion of equity
investments. This brings the total amount of hedged equity
investments to EUR 4 billion, end of March 2003. On 8 May 2003,
ING sold 80 million shares ABN AMRO, also reducing the
vulnerability to stock market volatility. The gross proceeds of
EUR 1.1 billion will be used to reduce the external debt of ING
Verzekeringen N.V. (ING Insurance).
End of March 2003, the capital base of ING Insurance amounted to
EUR 13.7 billion, 158% of the legally required level of EUR 8.7
billion. The tier-1 ratio and the BIS ratio of ING Bank were
7.27% and 10.78% respectively at the end of March 2003.
BBL rebranded to ING Belgium on 22 April 2003 after a period of
thorough preparations that started in December 2001.
ING Direct continued its commercial success in seven countries
with first quarter growth of funds entrusted of EUR 14.1 billion
(26%) to a total of EUR 69.3 billion. ING Direct welcomed the 6
millionth customer in April 2003. On May 12, ING Direct was
launched in the United Kingdom offering the ING Direct Savings
Account with a highly competitive interest rate.
ING created a Global Pension Steering Committee . The committee
will focus on capturing the long-term growth opportunity in the
field of pensions for ING's retirement savings/benefits
businesses worldwide. ING currently offers pension products in 30
countries around the globe and is advising several governments on
pension reforms. ING wants to accelerate the growth of its
pension business by leveraging its expertise and experience, for
instance through the export of successful business concepts from
one country to others.
Life insurance operations in developing markets showed a growth
in premium income in local currency of approximately 20% and
increased the result before taxation by almost 5% in local
currencies.
In the US, the integration efforts in 2002 led to a reduction in
expenses by 9% organically in the first quarter 2003. ING
Netherlands made good progress in achieving optimum synergy and
efficiency at the Dutch business units. For the years 2003 to
2005 this will result in a reduction of the workforce by
approximately 1,000 - 1,500 full-time equivalents per year. It is
expected that this reduction can be realised through attrition.
ING GROEP: Ratings Unchanged Despite 85% Fall in Net Profit
-----------------------------------------------------------
Standard & Poor's--Standard & Poor's Ratings Services said that
its ratings on ING GROEP N.V. (A+/Stable/A-1+) and related
entities were unchanged, following the announcement of an 85%
fall in ING's statutory net profit in the first quarter of 2003.
The decline was primarily due to a negative EUR735 million
revaluation reserve caused by the impact of depressed global
equity markets on ING's investment portfolios. Following recent
actions, including the sale of part of its stake in ABN AMRO
Holding N.V., ING reports that the revaluation reserve deficit is
currently around EUR400 million.
Excluding the revaluation reserve and other exceptionals, ING's
underlying net profit was down 3% at EUR902 million as a recovery
in banking earnings was offset by reduced insurance profits,
particularly in the U.S.
Standard & Poor's adjusts for the volatile revaluation reserve
when assessing the balance-sheet strength of banks and insurers.
ING's capitalization weakened significantly following its
acquisitions of Aetna and ReliaStar in 2000, and retained
earnings from its enhanced U.S. business position have been less
than expected. Standard & Poor's expects that ING's
recapitalization plan, which includes the payment of stock
dividends, repayment of debt, and reduced equity exposure, will
improve its leverage ratios to a level more consistent with its
current ratings.
ANALYST E-MAIL ADDRESSES
hans_wright@standardandpoors.com
moira_taylor@standardandpoors.com
paul_bradley@standardandpoors.com
richard_barnes@standardandpoors.com
FIG_Europe@standardandpoors.com
InsuranceInteractive_Europe@standardandpoors.com
CONTACT: STANDARD & POOR'S
Hans Wright, London
Phone:(44) 20-7847-7055
Moira Taylor, London
Phone: (44) 20-7847-7221
Paul Bradley, London
Phone: (44) 20-7847-7054
Richard Barnes, London
Phone: (44) 20-7847-7227
STORTEBOOM GROUP: Declared Bankrupt After Outbreak of Avian Flu
---------------------------------------------------------------
The independent poultry processor, which has been slaughtering
approximately 24% of the total Dutch production output for years,
has been declared bankrupt.
Storteboom Group is the largest poultry processing company in the
Netherlands, with a market share of 20%. However, intense
competition from poultry producers in Thailand and Brazil had
adversely affected the business.
The Dutch poultry processor, based in the north of the country,
previously sought for an investor to help it fund its operations.
The company posted losses in 2001 and 2002, and two of its
processing facilities in the Gelderse Vallei, western
Netherlands, have been closed. Such dire financial state was
aggravated by the recent outbreak of bird flu in the country.
Reports say the company's around 1000 workers are to be laid off
by the end of June 2003, although a number of them may be re-
employed if the company resumes operating.
CONTACT: STORTEBOOM INTERNATIONAL B.V.
Netherlands
Phone: + 31 (0) 594 677 519
Fax: + 31 (0) 594 677 518
E-mail: oleksandr.antonyuk@storteboom.nl
Hompage: http://www.storteboom.nl/
=============================
S L O V A K R E P U B L I C
=============================
EUROTEL BRATISLAVA: Ratings Raised to 'BB-', Outlook Positive
--------------------------------------------------------------
Standard & Poor's Ratings Services said it raised its long-term
corporate credit rating on Slovak Republic-based mobile
telecommunications provider EuroTel Bratislava A.S. to 'BB-' from
'B+', reflecting the improvements in EuroTel's operational and
financial performance. In addition, Standard & Poor's also raised
its senior unsecured debt rating on guaranteed related entity
Slovak Wireless Finance Co. B.V. to 'BB-' from 'B+'. The outlook
is positive.
"The upgrade reflects EuroTel's continued solid operational
performance, improvement in its credit metrics, and the
expectation that the company will generate positive free
operating cash flow from 2003," said Standard & Poor's credit
analyst Michael O'Brien. "Furthermore, EuroTel has been
successful in protecting its relatively strong market position
and 42.6% subscriber market share in the two-player Slovak mobile
telecoms market."
The upgrade is also supported by the effects of improvements in
the Slovak Republic economy (local currency A-/Stable/A-2;
foreign currency BBB/Positive/A-3), the increased purchasing
power of Slovak consumers, and the effects of the stronger Slovak
koruna, which have enabled the company to pay less for equipment
purchases.
EuroTel remains exposed, however, to foreign exchange risk on its
outstanding EUR160 million ($183 million) bonds due 2007. In
addition, a high 76% of the company's 1.3 million customers use
prepaid services, leaving EuroTel exposed to churn. The company
is expected to continue in its efforts to migrate its customers
from prepaid telephony to postpaid subscriptions to mitigate this
risk.
Standard & Poor's expects competition in the Slovak Republic to
continue to be driven by service quality, innovative tariff
plans, and value-added services. Although competitive pressure
will continue from Orange Slovensko, a.s.--the market leader and
a subsidiary of Orange S.A. (BBB/Positive/--)--the two-player
Slovak market structure encourages rational competition. Given
the 57% mobile penetration rate at March 31, 2003, following a
significant slowdown in subscriber growth, Standard & Poor's
believes that it is now less likely that there will be a third
facilities-based player in the Slovak market, which mitigates the
risk of an intensification of price competition, higher churn,
and subscriber-retention rates.
"Standard & Poor's expects competition to remain rational and
that EuroTel will maintain its strong market position and high
levels of operating efficiency," added Mr. O'Brien. "This will
enable EuroTel to generate sustained free operating cash flow and
maintain acceptable levels of liquidity and refinancing risk. The
ratings also assume that the company will maintain a reasonable
financial policy."
=====================
S W I T Z E R L A N D
=====================
ABB LTD.: Court Delays Asbestos Package Ruling by a Few Weeks
-------------------------------------------------------------
The court reviewing ABB Ltd.'s proposed US$1.2 billion asbestos
package delayed the final ruling over the case by at least two
weeks, prompting analysts to say the group could ask investors
for fresh cash as early as next week.
The judge hearing the case had scheduled concerned parties to
"present their findings of fact" on May 23, at the earliest.
"It is definitely not positive," said Andreas Riedel, Bank
Sarasin analyst. "They need cash, they need equity and the faster
the better," an analyst told Reuters.
The court might present her ruling on May 23 or two days later.
A 30-day appeal period follows the publication of the ruling.
ABB is expected to ask shareholders permission to increase its
capital as much as a third through the issuance of up to 400
million shares worth CHF1.8 billion (US$1.37 billion) at current
prices.
The asbestos liability package is a key factor in the company's
turnaround strategy, which includes the sale of its oil, gas and
petrochemicals business. Approval of the plan is expected to
ease out the sale of the business.
ABB is confident the package will be accepted, given a majority
of asbestos claimants have already done so.
The engineering group has US$8.2 billion in debt.
SWISS AIR: Parent Issues Notice of Initial Pro Rate Distribution
----------------------------------------------------------------
NOTICE OF DISTRIBUTION
Please take notice that on April 8, 2003, the United States
Bankruptcy Court for the Southern District of New York entered an
order confirming the Second Amended Plan of Liquidation for
SAIRGROUP FINANCE (USA), INC.
Please take further notice that commencing on Friday, May 2, 2003
the company intends to make an initial pro rate distribution, as
provided in the rate Plan, to its creditors, including all
holders of those certain US$350,000,000 7.50% Guaranteed Notes
Due 2004 issued by the company.
Please take further notice that the company has declared that the
Plan will become effective as of the Distribution Date.
Please take further notice that the Distribution will be made
electronically to each account holder who holds one or more Notes
through Euroclear Bank S.A./N.V. as operator of the Euroclear
System and/or Clearstream Banking, societe anonyme on the
Distribution Date for onward distribution to the beneficial
owners of such notes.
Please take further notice that in order for holders of the Notes
in certificated bearer form to receive the Distribution, each
such holder must either deposit the Notes it holds with the
Clearing Systems prior to the Distribution Date or present the
Notes to the Distribution Agent within one hundred and twenty
(120) days of the Distribution Date. HOLDERS OF NOTES WHO FAIL TO
COMPLY WITH THESE REQUIREMENTS WILL FORFEIT THEIR RIGHT TO
RECEIVE THIS DISTRIBUTION.
For further information regarding the Distribution, please
contact the Distribution Agent:
THE BANK OF NEW YORK
One Canada Square
London E14 5AL
Phone: 44 20 7964 6047
Fax: 44 20 7964 6061
Attention: Sunjeeve Patel
ZURICH FINANCIAL: Appoints New CEO for Zurich Group Germany
-----------------------------------------------------------
Zurich Financial Services has appointed Eduard Thometzek, 52, as
the new Chief Executive Officer (CEO) of Zurich Group Germany
effective July 1, 2003. The current CEO Axel P. Lehmann will then
focus on his role as Chief Executive Officer of the Continental
Europe Business Division (Zurich Continental Europe).
Eduard Thometzek was appointed Deputy Chief Executive Officer of
Zurich Group Germany and member of the Executive Committee of
Zurich Continental Europe on January 1, 2003, with operational
responsibility for the German business. Before joining Zurich, he
had held various senior positions in the insurance and financial
services industries.
Axel P. Lehmann, CEO of the Continental Europe Business Division,
said: "After the successful completion of the integration of
Deutscher Herold, we have strengthened our market position and
positioned ourselves among the leading insurers in Germany. With
his experience and his leadership qualities, Eduard Thometzek
will successfully implement our important projects, especially
the program to strengthen our profitability.
Zurich Financial Services is an insurance-based financial
services provider with an international network that focuses its
activities on its key markets of North America, the United
Kingdom and Continental Europe. Founded in 1872, Zurich is
headquartered in Zurich, Switzerland. It has offices in
approximately 60 countries and employs about 68,000 people.
*****
The insurer posted first half net loss of US$2 billion. It said
it plans to return to profit by the end of 2003 during the
presentation of the first half results.
CONTACT: ZURICH FINANCIAL SERVICES
Public Relations
8022 Zurich, Switzerland
Phone: +41 (0)1 625 21 00,
Fax: +41 (0)1 625 26 41
Home Page: http://www.zurich.com
===========================
U N I T E D K I N G D O M
===========================
AQUILA INC.: Reports Net Loss of $51.9 Million in First Quarter
---------------------------------------------------------------
-- First Quarter Net Loss Reflects Costs of Energy Merchant Wind-
Down, as Expected; Rate Actions and Lower Expenses Contribute to
Improved Results in Domestic Networks
Aquila, Inc. (NYSE:ILA) reported first quarter results that
reflect, as anticipated, the costs of winding down its wholesale
energy trading business, while also seeing significantly improved
results from its domestic utility networks.
Aquila had a fully diluted loss of $.27 per share for the first
quarter of 2003, or a net loss of $51.9 million on sales of
$579.3 million. For the 2002 first quarter, the company had net
income of $.32 per share, or $44.4 million on sales of $767.4
million, including earnings of $4.4 million from discontinued
operations, net of tax.
The loss in 2003 is primarily due to trading and contract losses
related to last year's decision to exit the energy trading
business, an increase in fixed capacity payments for merchant
generation capacity, mark-to-market losses on certain long-dated
forward contracts, and higher interest cost reflecting additional
borrowings and higher interest rates due to the company's non-
investment grade credit rating. The company also recorded $6.3
million in restructuring charges primarily connected with
unfavorable interest rate swaps.
Earnings before interest and taxes (EBIT) from Domestic Networks
increased 53 percent, reflecting cost control measures and rate
adjustments that took effect in two states after the first
quarter of 2002. Lower results from International Networks
reflect the October 2002 sale of all Aquila's interests in New
Zealand and an unfavorable regulatory decision regarding
depreciation of its network assets in Alberta, Canada.
"As planned, in 2003 we are continuing our transition from being
a major participant in the energy trading sector to concentrating
on our core utility operations in the United States," said
Richard C. Green, Jr., Aquila's chairman and chief executive
officer. "We will continue following our restructuring plan
throughout 2003 and 2004."
Restructuring Charges
Aquila recorded restructuring charges of $6.3 million in the
first quarter of 2003. These included a $5.3 million
restructuring charge to exit portions of interest rate swaps
related to construction financing arrangements for two merchant
power plants. In conjunction with the company's recent
refinancing, debt related to these facilities was paid down and
the interest rate swaps were no longer necessary. The company
reduced its position and realized the loss associated with the
cancelled portion of the unfavorable swaps. In April 2003, Aquila
repaid the outstanding balances on the debt and incurred an
additional $17.5 million of expense to exit the remaining swap
positions, which will be recognized in the second quarter
results.
During the 2003 first quarter, the company also recorded $1.0
million of severance costs following the elimination of
approximately 128 positions at Aquila's telecommunications
business, Everest Connections. As a result of the recent
restructuring at Everest, Aquila expects to incur approximately
$1.3 million in additional restructuring charges for severance
and other related costs in the second quarter of 2003.
Financing Update
In April 2003, the company reached a new financing agreement to
replace its maturing credit facilities and other obligations, as
previously announced. This two-part financing package consisted
of two secured loan facilities -- a 364-day $200 million loan to
Aquila's Australian operations and a $430 million three-year term
loan to Aquila. Upon closing of the Australian asset sale, the
$200 million, 364-day loan will be repaid.
Domestic Networks
Domestic Networks reported first quarter EBIT of $70.6 million in
2003, compared to $46.1 million a year earlier. Results reflect
$6.4 million of additional EBIT from interim rate increases in
Michigan and Iowa. Operating expense decreased $24.5 million year
to year, primarily due to labor and benefit savings and lower
administrative expenses as a result of Aquila's 2002
restructuring. In addition, Everest Connections' EBIT was $2.8
million higher in the 2003 quarter due primarily to an increase
in customers. The business recently has become self-funded and
cash-flow positive, following a decision in the fourth quarter of
2002 to halt network expansion activities and focus solely on
customer retention and new customer acquisition to the existing
Everest network. Everest will meet its own cash flow needs going
forward.
Results in the 2002 period included EBIT of $8.1 million from
Aquila's ownership interest in Quanta Services, Inc. However, due
to Aquila's reduced ownership position in 2003, it could no
longer record equity earnings from Quanta Services for accounting
purposes. During the first quarter of 2003, Aquila sold its
remaining interest in Quanta.
International Networks
International Networks reported EBIT of $10.6 million for the
first quarter of 2003 compared to $33.6 million in the 2002
quarter. The drop reflects a $31.1 million decrease in sales due
to a reduction in electric rates for 2002 and 2003, offset by a
decrease of $16.8 million in depreciation and amortization
related to the Alberta network assets due to a change in
regulatory treatment. Equity in earnings of investments decreased
$7.2 million in 2003 compared to the 2002 first quarter,
primarily due to the October 2002 sale of the company's interest
in UnitedNetworks Limited in New Zealand. Aquila's investment in
UnitedNetworks contributed equity earnings of $8.4 million in the
first quarter of 2002.
Capacity Services
Capacity Services reported a loss before interest and taxes of
$48.7 million for the first quarter of 2003 compared to EBIT of
$2.2 million in the 2002 quarter. The loss resulted primarily
from a $21.4 million decrease in mark-to-market gains that
occurred in 2002 but did not recur due to lower spark spreads in
the forward market. In addition, there were $16.0 million of non-
cash mark-to-market losses on long-dated forward contracts in the
2003 quarter.
In connection with its merchant power plants, Aquila makes fixed
capacity payments evenly throughout the year. For the first
quarter of 2003, capacity payments increased by $11.5 million
compared to a year earlier as new plants became operational late
in 2002. This additional capacity was utilized on a limited basis
at prices that were not sufficient to cover the fixed capacity
payments.
Wholesale Services
Wholesale Services reported a loss before interest and taxes of
$52.6 million in the 2003 first quarter compared to EBIT of $21.5
million a year earlier. Aquila announced its intention to exit
from the wholesale energy trading business in last year's second
quarter and did not add to its trading portfolio in the first
quarter of 2003.
The $52.6 million loss before interest and taxes included a non-
cash loss of approximately $27.0 million related to the sale of
all of the capacity under certain long-term gas transportation
contracts at substantially less than Aquila's future commitments.
The loss was recognized for accounting purposes, however, the
cash associated with the loss will be paid out over the life of
the contract. In addition, there were $5.9 million of losses
related to terminating additional trading contracts in the 2003
first quarter. The remaining first quarter 2003 margin losses
stem from mark-to-market losses and unfavorable settlements
related to Aquila's trading portfolio, including highly
structured rainfall, streamflow and load base fixed price sale
transactions.
Wholesale Services' operating expense decreased $35.8 million
compared to a year earlier, primarily due to labor and benefit
savings and related reductions in operating costs resulting from
the exit from Aquila's wholesale energy trading operations.
Asset Sales
Continuing its program of asset sales that was begun in 2002,
Aquila announced on April 22 that it had reached an agreement to
sell its interests in all of its Australian investments --
Multinet Gas, United Energy and AlintaGas -- for approximately
US$589 million, which after fees, expenses and taxes is projected
to yield net cash proceeds of approximately US$445 million at
closing targeted for third quarter of 2003.
With the closing of the Australia sale, Aquila will have
generated $1.7 billion in proceeds from its asset sale program.
Proceeds from asset sales will continue to be used to reduce
liabilities and fund working capital needs.
Corporate and Other
Corporate and Other reported a loss before interest and taxes of
$1.1 million for the first quarter of 2003, compared to a loss
before interest and taxes of $16.7 million in 2002. The improved
results are primarily due to $16.5 million of foreign currency
gains in 2003, reflecting favorable movements in the Australian
and New Zealand dollar exchange rates.
Interest expense increased $16.5 million in the first quarter of
2003 compared to the prior year's quarter. The increase resulted
primarily from higher interest costs related to the $500.0
million of senior notes that Aquila issued in July 2002 and
$287.5 million of senior notes it issued in February 2002. These
increases were offset in part by the retirement of debt
outstanding in Australia and New Zealand in late 2002 and early
2003 and the conversion of the premium equity participating
securities to common equity in November 2002.
Income tax benefits increased $32.5 million in 2003 compared to
the first quarter of 2002, primarily due to Aquila's loss before
income taxes in 2003 compared to earnings and certain regulatory
adjustments that were made in the first quarter of 2002.
Discontinued Operations
In 2002 and early 2003, Aquila sold its Texas natural gas storage
facility, its Texas and Mid-Continent natural gas pipeline
systems, including its natural gas and natural gas liquids
processing assets and its ownership interest in the Oasis Pipe
Line company, its coal terminal and handling facility and its
Merchant loan portfolio. The results of operations of those
assets are now reported as discontinued operations. They earned
$4.4 million in the first quarter of 2002.
Conference Call, Webcast and Additional Information
Aquila will host a conference call and webcast today at 9:00 a.m.
Eastern Time in which senior executives will review 2003 first
quarter results and outlook. Participants will be Chief Executive
Officer Rick Green, Chief Operating Officer Keith Stamm and Chief
Financial Officer Rick Dobson.
To access the live webcast via the Internet, go to Aquila's
website at www.aquila.com and click on Investors to find the
webcast link. Listeners should allow at least five minutes to
register and access the presentation. For those unable to listen
to the live broadcast, replays will be available for two weeks,
beginning approximately two hours after the presentation. Web
users can go to the Investors section of the Aquila website,
www.aquila.com, and choose Presentations & Webcasts. Replay will
also be available by telephone through May 22 at 800-405-2236 in
the United States, and at 303-590-3000 for international callers.
Callers must enter the access code 538347 when prompted.
Additional supplemental information, including income statements
by business segment, consolidated cash flow statement,
consolidated balance sheet and statistical information, is
available at www.aquila.com. Choose the "Financial Performance"
link in the "Investors" box on Aquila's home page.
Based in Kansas City, Mo., Aquila operates electricity and
natural gas distribution networks serving customers in seven
states and in Canada, the United Kingdom and Australia. The
company also owns and operates power generation assets. At March
31, 2003, Aquila had total assets of $8.7 billion. More
information is available at www.aquila.com.
"EBIT"
Aquila uses the term earnings before taxes and interest ("EBIT")
as a performance measure for segment financial analysis. The term
is not meant to be considered an alternative to net income or
cash flows from operating activities, which are determined in
accordance with generally accepted accounting principles, as an
indicator of operating performance or as a measure of liquidity
or other performance measures used under generally accepted
accounting principles. In addition, the term may not be
comparable to similarly titled measures used by other companies.
AQUILA, INC.
Consolidated Statements of Income
3 Mos.
Ended
March 31
--------------------------------------------- ---------------
In millions, except per share amount 2003 2002
--------------------------------------------- ---------------
Sales $579.3 $767.4
Cost of sales 431.2 438.1
--------------------------------------------- ---------------
Gross profit 148.1 329.3
--------------------------------------------- ---------------
Operating expenses 167.1 222.7
Restructuring charges 6.3 --
Gain on asset sales (2.2) --
Depreciation and amortization expense 45.0 53.6
--------------------------------------------- ---------------
Total operating expenses 216.2 276.3
Equity in earnings of investments 24.5 32.3
Minority interest in income of subsidiaries -- 2.5
Other income (expense) 22.4 (1.1)
--------------------------------------------- ---------------
Earnings (loss) before interest and taxes (21.2) 86.7
-------------------------------------------- ---------------
Total interest expense 65.1 48.6
Income tax benefit (34.4) (1.9)
--------------------------------------------- ---------------
Earnings (loss) from continuing operations (51.9) 40.0
Earnings from discontinued operations, net of tax -- 4.4
--------------------------------------------- ---------------
Net income (loss) $(51.9) $44.4
============================================= ===============
Weighted average shares outstanding - diluted 194.1 138.3
--------------------------------------------- ---------------
Earnings (loss) per share from continuing operations -
diluted $(.27) $.29
Earnings per share from
discontinued operations - diluted -- .03
--------------------------------------------- ---------------
Net income (loss) per share - diluted $(.27) $.32
============================================= ===============
AQUILA, INC.
Earnings Before Interest and Taxes (EBIT)
3 Months Ended
March 31,
Favorable
--------------
In millions 2003 2002 (Unfavorable)
---------------------------------- ---------------------------
Global Networks:
Domestic Networks:
Utilities $75.0 $45.0 $30.0
Quanta Services (.2) 8.1 (8.3)
Communications (4.2) (7.0) 2.8
---------------------------------- ---------------------------
Total Domestic Networks 70.6 46.1 24.5
International Networks 10.6 33.6 (23.0)
---------------------------------- ---------------------------
Total Global Networks 81.2 79.7 1.5
Merchant Services:
Capacity Services (48.7) 2.2 (50.9)
Wholesale Services (52.6) 21.5 (74.1)
---------------------------------- ---------------------------
Total Merchant Services (101.3) 23.7 (125.0)
Corporate and Other (1.1) (16.7) 15.6
---------------------------------- ---------------------------
Total EBIT $(21.2) $86.7 $(107.9)
================================== ===========================
AQUILA, INC.
Consolidated Balance Sheets
March 31, December 31,
In millions 2003 2002
----------------------------------- -------------------------
ASSETS
Cash and cash equivalents $489.4 $441.7
Restricted cash 267.9 493.9
Accounts receivable, net 1,250.9 1,672.8
Price risk management assets 485.6 545.2
Other current assets 903.0 920.6
----------------------------------- -------------------------
Total current assets 3,396.8 4,074.2
----------------------------------- -------------------------
Property, plant and equipment, net 3,265.4 3,180.6
Investments in unconsolidated subsidiaries 904.4 914.9
Price risk management assets 588.7 491.6
Other assets 593.8 597.9
----------------------------------- -------------------------
Total Assets $8,749.1 $9,259.2
=================================== =========================
LIABILITIES AND SHAREHOLDERS' EQUITY
Current maturities of long-term debt $354.2 $530.7
Short-term debt 307.0 301.0
Accounts payable 1,196.4 1,616.6
Price risk management liabilities 448.2 469.5
Other current liabilities 718.5 679.1
----------------------------------- -------------------------
Total current liabilities 3,024.3 3,596.9
----------------------------------- -------------------------
Long-term debt, net 2,401.0 2,398.0
Deferred income taxes and credits 431.4 423.0
Price risk management liabilities 385.4 282.8
Long-term gas contracts 645.7 671.2
Other liabilities 249.3 279.4
Common shareholders' equity 1,612.0 1,607.9
----------------------------------- -------------------------
Total Liabilities and Shareholders' Equity$8,749.1 $9,259.2
=================================== =========================
CONTACT: Aquila, INC
Investors
Neala Clark
Phone: 816/467-3562
BRITISH ENERGY: Appoints New Non-Executive Directors to Board
-------------------------------------------------------------
British Energy is pleased to announce the appointment of two new
Non-Executive Directors to its Board.
They are:
William A. Coley
Bill Coley retired as Group President of Duke Power, the U.S.
based global energy company, in February 2003. Throughout a long
career at Duke Power, he held engineering, operational and senior
management positions, and played a key role in making Duke Power
one of the US's leading operators of nuclear power plants.
He is a Non Executive Board Member of CT Communications, Inc,
SouthTrust Corporation and Novant Healthcare, and until April
2003, was a Board Member of the Electric Power Research Institute
in the US. He is 60 years old and will join the Board on 1 June
2003.
Pascal Colombani
A Nuclear Physicist, he was until recently Non Executive Chairman
of Areva, the international nuclear services group in France,
which includes Cogema and Framatome. He is a Board Member of
Electricite de France. He is a former Board Member of France
Telecom and until last year, was Chairman and CEO of CEA
(Commissariat a l'Energie Atomique) in France. He is 57 years old
and will join the Board on 1 June 2003.
British Energy Chairman Adrian Montague CBE commenting on the new
appointments said, 'I am delighted at the appointment of such
senior and respected professionals to the Board. Bill Coley is a
highly experienced nuclear operator who has a track record as a
hands-on manager in transforming the performance of nuclear
plants.
'Pascal Colombani has a broad strategic view across the nuclear
industry, with particular emphasis on safety issues, reactor
designs and technological innovations.
Mr. Montague added, 'These appointments acknowledge the
fundamental task we face of improving the reliability and
availability of our U.K. nuclear fleet, whilst continuing to
maintain the high level of operational safety we have achieved
over the past few years'.
CONTACT: BRITISH ENERGY
David Wallace
Phone: 01355 262574
Andrew Dowler
Phone: 020 7831 3113
CHRISTIAN SALVESEN: Confirms Receipt of Interest From Buyer
-----------------------------------------------------------
The board of European logistics company Christian Salvesen Plc
confirmed it received an unsolicited preliminary expression of
interest from a financial buyer regarding a possible offer for
the company.
The board in a statement said it will keep the market informed of
any further developments.
A spokeswoman for Christian Salvesen declined to pinpoint who
might be the interested buyer, but she suggested the likelihood
of a private equity house, according to The Scotsman.
The troubled logistics business had shunned a near 200-p-per
share offer from Swedish investment firm Custos in mid-2000.
Stock in the Northampton-based firm, which has slumped in the
past year after a string of profit warnings, gradually showed
signs of recovery after the company sold its loss-making German
industrial logistics division.
The company, which transports good for clients such as Ford,
Safeway and Tesco, showed pre-tax profits of GBP8.8 million last
year. The figure compares with GBP22 million in 2002.
Its chief executive, Edward Roderick, has announced plans for an
urgent review of the business.
CONTACT: HOGARTH PARTNERSHIP LIMITED
Phone: 020 7357 9477
John Olsen
Tom Leatherbarrow
CORUS GROUP: Russian Shareholder Interested in Raising Stake
------------------------------------------------------------
Russian investor Alisher Usmanov considers raising his interest
in Anglo-Ducth company Corus to 10% in order to gain a seat on
the board of the troubled steelmaker.
Mr. Usmanov, who owned 5.11% Corus shares through interests in
Gallagher Holdings, said, "Corus's shares are undervalued and I
don't think the company's crisis is a systemic one. I don't rule
out increasing my stake if conditions were right."
The steelmaker denied having discussed the matter with Mr.
Usmanov, although it confirmed having talked with him just as it
does with other shareholders.
Mr. Usmanov has controlling interest in one of Russia's largest
iron ore mines in the Urals and a nearby steel production plant,
and he plans to link these assets with Corus.
His plans might include supplying Russian ore and semi-finished
products to Corus's U.K. and Dutch plants, or piping gas to the
Anglo-Dutch company's production units, according to the
Financial Times.
The report noted that Corus is interested in principle in linking
with suppliers of raw materials in low-cost countries such as
Russia.
As for Corus' semi-finished steel plant on Teesside, Mr. Usmanov
said he was against closing it.
The Financial Times report said Mr. Usmanov is regarded in the
global steel industry as a relatively minor player, but with a
strong position in the Russian business community. He is well
connected with the business world in the UK, being the deputy
chairman of Global Natural Energy, a natural resources business
based in London, and chairman of Europe Steel, a London-based
steel trading company.
Mr. Usmanov had a history of being tried for fraud by a military
tribunal in his native Uzbekistan and sentenced to eight years in
prison in 1980. He was rehabilitated in 2000 by Uzbekistan's
high court, which threw out the case for being fabricated and
lacking in substance, according to the report.
CORUS GROUP: Chairman Reveals Plans, Outlook for Teeside Plant
--------------------------------------------------------------
Corus chairman Sir Brian Moffat said the steelmaker plans to
concentrate steel production in three sites in South Wales,
Scunthorpe and South Yorkshire, and to use the Teesside plant to
make slab steel for the export market as part of its
restructuring plan.
He said the Teeside plant, which is under threat under the
sweeping restructuring plan unveiled last month, will still be
operational in three years' time. He, however, refused to
guarantee its long-term future.
According to him, Corus was intent on making the Teesside plant
as competitive as possible. The facility needs to find its own
export customer under the plan.
"I am confident that the Teesside plant will still exist in two
or three years, but the question is what happens after that," the
retiring chairman told an industry select committee.
Sir Moffat was heavily criticized for the decline of the steel
industry by union leaders, politicians, and steelworkers.
Corus had already cut thousands of jobs and closed parts of its
operation in recent years, only two years after its last
restructuring.
Corus, which was created between the merger of British Steel and
Hoogovens in 1999, is beset by conflicts between its U.K.
management and the Dutch supervisory board.
When asked whether the merger had been a mistake, Sir Moffat
said: "British Steel would have been under even more pressure
without the Hoogovens asset base."
According to him, the problem in the company is its U.K. customer
base is still not growing.
FINSBURY SMALLER: Notice to Creditors to Identify Claims
--------------------------------------------------------
In The Matter Of
Finsbury Smaller Quoted Companies Trust PLC
And In The Matter Of The Insolvency Rules 1986
In accordance with rule 4.106 of the Insolvency Rules 1986 notice
is hereby given that Simon Peter Bower and Michael John Hore of
RSM Robson Rhodes, 186 City Road, London EC1V 2NU were appointed
Joint Liquidators of the above company by the members on April
22, 2003.
Notice is hereby given that the creditors of the above named
company are required on or before June 1, 2003 to send their
names and addresses, with particulars of their debts and claims
to the undersigned Simon Peter Bower and Michael John Hore of RSM
Robson Rhodes, 186 City Road, London EC1V 2NU the Joint
Liquidators of the company, and if so required by notice in
writing from the Joint Liquidators either personally or by their
solicitors, to come in and prove their debts or claims at such
time and place as shall be specified in such notice and in
default thereof they will be excluded from the benefit of any
distribution made before such debts are proven.
Note: This notice is purely formal and all creditors have been or
should be paid in full.
Dated 29 April 2003.
CONTACT: Simon Peter Bower
Michael John Hore
Joint Liquidators
HIGH PEAK: Administrators Offer Business Up for Sale
----------------------------------------------------
High Peak Brushes Limited
Lion Brush (Glossop) Limited
(both in administrative receivership)
The Joint Administrative Receivers, Gerald Smith and Matthew
Dunham offer for sale, together or separately, the business and
assets of the above brush manufacturing companies.
Principal features of include:
-- Manufacture of artistic, cosmetic, educational, industrial and
specialist brushes
-- Leasehold premises of 13,000 sq. ft. in Glossop, Derbyshire
("High Peak")
-- Leasehold premises of 17,000 sq. ft. in Chapel-en-le-Frith,
Derbyshire ("Lion")
-- Total of 55 employees
-- Combined estimated turnover of GBP3 million
-- Substantial order books from customers including household
names and several major brands
For further information please contact either Matthew Gibson or
Paul Palmer
CONTACT: RSM ROBSON RHODES
Phone: 0161 236 3777
Fax: 0161 455 3309
E-mail: paul.palmer@rsmi.co.uk
INDIGOVISION GROUP: Update on Return of Cash to Shareholders
------------------------------------------------------------
IndigoVision Group plc (LSE: IND) announces that a Court hearing
seeking confirmation of its proposed reduction of its share
premium account and share capital (a proposal which would result
in the return of 17p per share to shareholders (in excess of
GBP11.7 million in aggregate)) has been scheduled for
Tuesday 20 May 2003.
Accordingly, the Record Date for the return of cash will be
Monday 19 May 2003. Only those persons registered in the
company's register of members as at close of business on the
Record Date will be entitled to participate in the return of
cash.
Subject to confirmation being obtained at the Court hearing, the
Court order confirming the return of cash will be registered with
the Registrar of Companies on Wednesday 21 May 2003 (the
'Effective Date'). With effect from close of business on the
Effective Date every 10 issued ordinary shares of 0.1p resulting
from the share capital reduction will be consolidated into an
ordinary share of 1p. Application will be made to the U.K.
Listing Authority for the 6,919,976 ordinary shares of 1p each
which will be in issue immediately following the consolidation to
be admitted to the Official List and to the London Stock Exchange
for these shares to be admitted to trading. Admission of and
commencement of dealings in such shares is expected to commence
on Thursday 22 May 2003, being the business day immediately
following the Effective Date.
Subject to Court confirmation being obtained, monies are expected
to be sent to qualifying shareholders prior to the end of May
2003. For those shareholders who hold their shares in
certificated form, new share certificates will be sent along with
the cheques for the relevant monies.
If any of the above dates should change, revised dates will be
notified to shareholders by an announcement on a Regulatory
Information Service.
*****
In December, TCR-EU wrote: Technology firm IndigoVision would
like to give back GBP11 million to shareholders.
Bridgewell Securities analyst Richard Lucas said: "There's
clearly been quite a bit of shareholder pressure to release some
of the cash. This should help defend themselves against a
takeover." The GBP11 million equates to about 16 p per share.
The struggling Edinburg technology is currently a takeover target
after being hit by the slump in the technology stock.
CONTACT: INDIGOVISION
Oliver Vellacott (CEO)
Phone: + 44 (0)131 475 7200
FINANCIAL DYNAMICS
James Melville-Ross/Juliet Clarke
Phone: + 44 (0)207 831 3113
KWELM: Administrators to Distribute Latest Returns to Creditors
---------------------------------------------------------------
Administrators of the Kwelm companies, an acronym for five
insolvent London market insurers that collapsed in 1990,
announced it would distribute its latest returns to creditors.
The companies include Kingscroft, Walbrook, El Paso, Lime Street
and Mutual, all part of the London United Investments group.
They specialized in U.S. casualty, professional indemnity and
other liability insurance business.
The administrators Chris Hughes and Ian Bond, in what is
considered as a signal that the case could be nearing its
conclusion, said: "Later this year, we will be putting forward
proposals to creditors [that] could result in earlier closure
being achieved and the substantial balance of funds available to
be paid to them within three years."
Creditors of the companies are due to receive an average
additional 9% pay-out this month. This brings their total
payments to date higher by between 38 and 56%, according to the
2002 annual report.
Funds recovered for distribution to creditors increased to $2.3bn
(GBP1.4bn).
The administrators are seeing continuing good progress in the
process, and believe creditors are "pleased with the returns."
They said the payments already exceeded original expectations.
They said further: "Our original outline timescale for the
effective run-off of the Kwelm companies extended beyond 2015.
But based on the progress now made, we believe it will be
possible to conclude in a significantly shorter timescale."
More than 90 per cent of the Kwelm assets and liabilities are in
dollars and most of the policyholders are based in the US.
LASTMINUTE.COM PLC: Announces Quarter 2 and Interim Results
-----------------------------------------------------------
lastminute.com Announces Quarter 2 and Interim Results for the
Period Ending 31 March 2003; Quarter 2 and Interim Financial
Results Statement
Continuing strong progress in a tough quarter for the travel
industry lastminute.com (Nasdaq:LMIN) on Thursday announces
Quarter 2 2003 and interim results:
-- Customer conversion rate improved to 29.1% from 18.3% year-
on-year
-- Total transaction value for the Quarter grew by 126.4% year-
on-year to 92.2m pounds (Q2 2002: (40.8m pounds)
-- Gross profit for the Quarter up 144.0% to 15.0m pounds (Q2
2002: 6.1m pounds)
-- Record forward bookings at 31 March 2003 of 56.0m pounds (Q2
2002: 13.8m pounds) including advanced sales in holiday autos of
31.0m pounds
-- Group EBITDA loss before exceptional items 1.7m pounds, down
45.2% year-on-year (Q2 2002: EBITDA loss 3.2m pounds)
-- Loss (before goodwill amortization, exceptional items and
taxation) down 20.2% year-on-year to 4.2m pounds (Q2 2002: 5.3m
pounds)
-- Operating cash inflow (before exceptional items) of 0.9m
pounds for the Quarter (Q2 2002: outflow of 1.4m pounds)
after 0.6 million pounds outflow in holiday autos
-- "Breakbuilder," the lastminute.com dynamic packaging
product, achieved TTV of 5.3m pounds in the Quarter and
now represents 9.7% of U.K. TTV
-- The holiday autos acquisition, the largest leisure car
rental broker in the world, now completed
Allan Leighton, Chairman said: "Our model demonstrated its
resilience in the last Quarter which was tough for the travel
industry. Quarter 3 has started well with a record order bank for
Easter departures. We remain confident that we will meet our
expectations of continued growth and overall Group profitability
for the current Quarter and the year as a whole."
Brent Hoberman, Chief Executive, added: "During the Quarter the
Group continued to gain momentum towards the peak Summer season
with a record order bank and record margins. Industry trends are
leading towards more last minute internet booking, more short
breaks and more consumers building their own flexible packages.
These trends have ensured that demand for our products remained
robust and delivered 60% organic growth in the Quarter."
Notes to Editors:
About lastminute.com
lastminute.com operates directly in eight European countries
andparticipates in four international joint ventures,
providinginspirations and solutions for customers at the last
minute. At 31March 2003 lastminute.com had over 7 million
subscribers to itsweekly newsletter and had established over
15,000 supplierrelationships.
The business is based on the idea of matching supply and
demand.lastminute.com offers consumers opportunities to acquire
airlinetickets, hotel rooms, package holidays, car-hire,
entertainmenttickets, restaurant reservations and food delivery,
specialityservices, gifts and auctions in the United Kingdom,
France, Germany,Italy, Sweden, the Netherlands, Spain, Belgium,
Australia, NewZealand, South Africa and Japan.
CHAIRMAN'S STATEMENT
The Group has continued to make significant progress during the
past six months and the second quarter despite the uncertainty
surrounding Iraq at the start of the Quarter and the subsequent
hostilities in that
country.
lastminute.com is in a strong position with a product mix that
has ensured that it has been able to minimise the effect of
outside factors like the Iraqi situation and more recently SARS.
As a result, we have been broadly able to achieve our target of
approximately 35% of our anticipated full year TTV by the end of
the first half.
TTV for Quarter 2 was GBP92.2m, including a GBP9.5m contribution
from holiday autos, with the Group entering Quarter 3 with a
record order bank. This is partly a result of Easter falling late
this year and partly an improvement in consumer confidence
following the cessation of hostilities in Iraq.
Subscriber numbers now in excess of 7 million
During the Quarter ended 31 March 2003 the Group's subscribers
increased to beyond 7.0 million, a growth of 40.3% from the
equivalent quarter of the prior year. Positive operating cashflow
(pre exceptional items) The Group has delivered positive
operating cash flow (pre exceptional items and acquisition
related liabilities) of GBP0.9m during the Quarter, a significant
improvement from the GBP7.4m outflow seen in the previous
quarter.
This has been achieved despite increased capital expenditure in
Quarter in relation to substantial further investments in our
technical platforms for flights and Dynamic Packaging.
Acquisition of holiday autos group
On 26 March 2003 the Group announced its intention to acquire the
holiday autos group and the acquisition successfully completed on
16 April 2003. This acquisition is a further key milestone for
the development of the Group and it moves us materially towards
our goal of delivering GBP1 billion of TTV with significant
margins and EBITDA in the medium term. We assumed effective
management control of the business on 1 March 2003 and have,
therefore, included the results from holiday autos group for that
one month period.
The initial consideration for the acquisition was GBP39.0m and
was satisfied through the issue of 27,191,771 shares and GBP16.0m
in cash, GBP12.0m of which was raised through the placing of
fully underwritten shares and GBP4.0m from the Group's existing
cash resources.
Outlook
Our model demonstrated its resilience in the last Quarter which
was tough for the travel industry. Quarter 3 has started well
with a record order bank for Easter departures. We remain
confident that we will meet our expectations of continued growth
and overall Group profitability, pre exceptional items and
goodwill amortisation, for the current Quarter and the year as a
whole.
Allan Leighton
Chairman
15 May 2003
lastminute.com plc
Quarter 2 2003 Results
OPERATIONAL REVIEW
Further growth in subscribers, customers and conversion
Year-on-year we continue to see significant increases in the
number of subscribers, customers and the conversion of lookers to
bookers. Subscribers have increased to in excess of 7.0 million
at 31 March 2003, which represents an increase of 40.3% year-on-
year (Q2 2002: 5.0 million).
Customers have continued to be attracted to purchase from our
websites resulting in increased customer numbers. The cumulative
number of unique customers since inception has grown by 122.2% to
over 1.8 million at 31 March 2003 (Q2 2002: 0.8 million),
including 50,000 customers for holiday autos for the month of
March 2003. The conversion rate also continues to grow and stood
at 29.1% at 31 March 2003, up from 25.6% at 31 December 2002.
This success is due in part to ongoing technological enhancements
to the website as well as the attractiveness of our product
offering, both of which have led to improved conversion rates.
Continuing total transaction value (TTV) growth and margin
quality Year-on-year TTV growth continues with our varied product
base and competitive pricing contributing to this growth. We have
also improved the overall gross margin to 16.2% (Q2 2002: 15.0%)
despite strong TTV growth in the U.K. short haul flights area. In
Continental Europe, the TTV performance has been mixed with
France and Germany being slower than we originally anticipated,
however, more recently there have been signs of an improvement.
TTV during Quarter 2 2003 on Quarter 2 2002 has grown by 126.4%
to GBP92.2m (Q2 2002: GBP40.8m) with the U.K. growing by 168.8%
to GBP54.6m and France growing by 46.1% to GBP22.6m. Overall TTV
benefited from a month's contribution from holiday autos of
GBP9.5m. Due to the increasing significance of our Italian
business, we have for the first time presented this area
separately in our segmental analysis. Italy is delivering
significant TTV growth which for Quarter 2 2003 totalled GBP4.0m
(Q2 2002: GBP0.9m), up 356.8% year-on-year. The acquisition of
the holiday autos group will contribute significantly to scale in
our German business as approximately 30.0% of holiday autos
revenues were earned in Germany during 2002 and we will benefit
from the strong relationships they have in this marketplace.
At the half year stage to 31 March 2003 we have delivered
GBP179.3m of departure date TTV. As previously mentioned, the
late Easter this year resulted in TTV for this important travel
period not being included in the Quarter 2 results. Consequently
at 31 March 2003, the Group's order bank of confirmed forward
sales stood at a record level of GBP56.0m, including GBP31.0m of
forward sales in holiday autos. Almost half of the Group's 31
March 2003 TTV order bank was scheduled to depart during the
month of April.
The increase in the Group's gross margin is partly due to the
growth in commercial sales on the lastminute.com websites and
partly due to the benefit of including the results of holiday
autos group for the first time. The Group's underlying gross
margin improved from that seen in Quarter 1 2003 growing from
13.0% to 13.9%, despite the increased volume of U.K. short haul
flights. Gross profit for Quarter 2 2003 has increased year-
onyear by 144.0% to GBP15.0m (Q2 2002: GBP6.1m) and quarter-on-
quarter by 32.1% (Q1 2003: GBP11.3m), reflecting the contribution
from the holiday autos business and the improved margins in the
underlying business generally.
Continued growth from Dynamic Packaging
We are very pleased with the performance of our dynamic packaging
product "Breakbuilder", which at the end of Quarter 2 represented
9.7% of U.K. TTV. For Quarter 2 2003, Dynamic Packaging achieved
TTV of GBP5.3m, demonstrating the attractiveness of this customer
proposition and continued rapid category development seen since
the initial launch. Dynamic Packaging is planned to be launched
in our French, German and Italian businesses later this financial
year, and in advance of the key Summer Quarter. During the second
half of the financial year the product range will also be further
extended to include car hire, insurance and airport parking.
Quarter 2 2003 Results
Investment to deliver a more flexible cost base
During Quarter 2 2003, we incurred an exceptional charge of
GBP1.3m for costs associated with the reorganisation of the cost
base to be more flexible in nature. A further GBP1.0m of
exceptional costs are expected to be incurred in Quarter 3 of a
similar nature. These costs relate principally to planned
redundancy programmes and related expenditure and the
streamlining of our flight processes. The cost base
reorganisation benefits the Group as it provides a less fixed and
more variable cost base from which to operate by the use of
outsourced organisations which charge a per unit fee rather than
a per employee cost.
Costs for Quarter 2 2003, before the exceptional charge, continue
generally in line with expectations. As announced at the time of
the acquisition of holiday autos, a full year exceptional charge
of GBP1.5m will be incurred before the end of Quarter 4. Part
will be incurred in Quarter 3 and part in Quarter 4.
Integration of acquisitions
The integration of the Travelprice.com business in France and
Italy was completed as planned by 28 February 2003 and we are now
starting to see the benefits of the cost synergies arising
following the restructuring and integration actions taken after
the acquisition of that business. The synergy savings will
benefit the Group from Quarter 3 onwards.
Ongoing development of supplier relationships and product
availability During the Quarter the Group continued to broaden
supplier relationships and product availability.
In March 2003 we launched city breaks at our lowest ever prices
in an exclusive promotion with British Airways and five key
international hotel partners (Hilton, Le Meridien, Radisson SAS,
Sol Melia and Swissotel). We also announced an exclusive deal
with BCP, the UK's leading airport parking booking service, which
allows our U.K. customers booking travel online to save money on
airport parking. In addition, we announced a partnership with
Mondial to provide customers with cost effective travel
insurance.
Also during the Quarter, the Group signed a pan-European
marketing arrangement with Alitalia, Italy's national carrier.
The agreement will give lastminute.com customers access to all
Alitalia's leisure fares worldwide.
In the Entertainments product category, we announced a
partnership with Theatrenow, the independent information service
for theatregoers and late availability online ticket channel.
This partnership creates a new independent ticket sale and
marketing channel for producers and theatre venues.
Further brand building partnerships
In March 2003 we joined with Eurostar to launch, through the
newly branded 'leweekend' website, a three month campaign
bringing together the best of both brands, offering access to a
wide variety of short break packages as well as ski offers and
direct access to the Alps. Eurostar is also promoting this in
their terminals.
During the Quarter we continued to leverage the lastminute.com
brand with various key partners. In February we announced "the
Big MacT experience" - a major marketing initiative with
McDonaldsT, heavily marketed online in lastminute.com newsletters
and the U.K. website, instore by McDonalds and supported by TV
advertising for the duration of the four week promotion. This
promotion was also run in conjunction with Travelprice.com in
France.
Continuing our promise to deliver lastminute.com products and
services on the communications device most useful to every
customer, we launched the lastminute.com service on Vodafone
Live! allowing browsers to access various travel and leisure
products from the lastminute.com database. With this new
functionality, customers can view colour pictures and information
on a range of lastminute.com holidays, flights, hotels,
entertainment tickets, gifts and restaurant offers. We also
announced the further development of our existing relationship
with BT Broadband via a joint promotion that gives customers
using any of BT's 1,300 U.K. Internet Kiosks free rental of one
of thousands of films on DVD via the lastminute.com DVD delivery
service.
In April 2003, we teamed up with Masterfoods, a division of Mars
U.K. Limited 2003, for the 'chocollect' pack promotion, on some
of the UK's biggest confectionary brands - including Mars, Twix,
Bounty, Maltesers and Snickers. With promotion on television,
national press, online and instore, this continues the expansion
of the lastminute.com brand through the use of innovative
marketing campaigns.
Continued customer satisfaction
Our improved conversion rate is enhanced by our level of customer
satisfaction: of those who responded, 96% of our customers would
return to lastminute.com for their future purchases.
Technological developments
We have continued to make significant investments in the area of
our flights engine and dynamic packaging. The V3 flights engine
is now operated Groupwide and dynamic packaging has seen
substantial improvement in the depth of the product offering.
"Breakbuilder" will be further enhanced during the remainder of
the financial year with both geographic expansion and a wider
product set. Early in Quarter 3 a new shopping basket has been
launched which will make integration and connection to other
websites much faster. This will be rolledout across other
geographies and products as the quarter progresses.
The technology team have also spent time developing a number of
connectivity projects for our hotel and holiday partners. The new
shopping basket will ensure that these projects can be delivered
earlier in the development cycle. Back office automation has also
remained a key deliverable for the technical group with Oracle
Financials now installed across the majority of the Group's
businesses.
FINANCIAL REVIEW
Total transaction value (TTV), turnover and gross margins TTV for
Quarter 2 was GBP92.2m (Q2 2002: GBP40.8m, Q1 2003: GBP87.1m),
representing an increase of 126.4% and 5.9% over the equivalent
period of the prior year and prior quarter respectively. Turnover
including our share of joint ventures for the Quarter totalled
GBP21.2m (Q2 2002: GBP6.8m, Q1 2003: GBP11.8m), increases of
213.4% and 80.3% year-on-year and quarter-on-quarter
respectively. Gross profit for the Quarter was GBP15.0m (Q2
2002:GBP6.1m, Q1 2003: GBP11.3m) representing increases of 144.0%
and 32.1% year-on-year and quarter-on-quarter respectively.
TTV for the six months ended 31 March 2003 was GBP179.3m
representing an increase of 147.4% over the equivalent period of
the prior year (6 months ended 31 March 2002: GBP72.5m).
Exceptional item - charge to allow increased cost base
flexibility As mentioned in the Operational Review, during the
Quarter we have incurred an exceptional charge of GBP1.3m
essentially to improve the flexibility of our cost base and move
from fixed to variable. Excluding the effect of this exceptional
charge and after taking into account the impact of additional
costs from one month's results of the holiday autos group, total
Group costs continue broadly in line with expectations. A further
GBP1.0m of exceptional costs are expected to be incurred in
Quarter 3 of a similar nature.
As announced at the time of acquisition of holiday autos, a full
year exceptional charge of GBP1.5m will be incurred before the
end of Quarter 4. Part of this will be incurred in Quarter 3 and
part in Quarter 4. The growth in overall costs for the half year
reflects the increased cost bases associated with the various
acquisitions made since Q2 2002.
EBITDA performance
Losses before exceptional items, interest, taxation, depreciation
and goodwill amortisation have reduced by 45.2% year-on-year to
GBP1.7m. These significant improvements continue to be delivered
through increased sales, improved operating margins and tight
cost control.
For the half year the EBITDA loss (pre exceptional items) has
improved by 60.0% from GBP8.3m to GBP3.3m.
Operating loss improvements
Group operating losses before exceptional items and goodwill
amortisation, include GBP0.5m of operating losses from the
recently acquired holiday autos group, which is in line with our
expectations.
Excluding exceptional
items and goodwill amortisation, the Group's operating loss for
Quarter 2 2003 has declined by 20.2% year-on-year to GBP4.2m (Q2
2002: GBP5.3m). Quarter 2 2003 on Quarter 1 2003, the Group's
ongoing operating loss before exceptional items and goodwill
amortisation has declined by 6.8% to GBP3.8m (Q1 2003: GBP4.0m)
before inclusion of an operating loss of GBP0.5m from holiday
autos.
Operating cash inflow
During the Quarter ending 31 March 2003 the Group delivered
operating cash inflow before exceptional items and acquisition
related liabilities of GBP0.9m (Q1 2003: operating cash outflow
of GBP7.4m, Q2 2002: operating cash outflow GBP1.4m). The GBP0.9m
is net of GBP0.6m of operating cash outflows for the holiday
autos group in the month of March.
Balance sheet
Included within the Group's cash balance at 31 March 2003 is
GBP12.0m of funds raised from the placement arranged in March
2003 in connection with the holiday autos acquisition. A creditor
for GBP16.0m is also included within creditors at 31 March 2003
as this amount was paid to the vendors as consideration during
April 2003. Also included within creditors are approximately
GBP49.6m of current liabilities from the holiday autos group
including the record forward sales position for holiday autos.
The Group's overall cash balance of GBP52.3m includes the
GBP12.0m referred to above. The overdraft of the holiday autos
group of GBP10.1m at 31 March 2003 is not included in the cash
balance, but shown in creditors.
To see financials: http://bankrupt.com/misc/Lastminute.pdf
CONTACT: LASTMINUTE.COM
Brent Hoberman, Chief Executive Officer
Martha Lane Fox, Group Managing Director
David Howell, Chief Financial Officer
Phone: +44 (0) 20 7802 4498
Hudson Sandler
Lesley Allan
Noemie de Andia
Phone: +44 (0) 20 7796 4133
LION BRUSH: Administrators Offer Business for Sale
--------------------------------------------------
High Peak Brushes Limited
Lion Brush (Glossop) Limited
(both in administrative receivership)
The Joint Administrative Receivers, Gerald Smith and Matthew
Dunham offer for sale, together or separately, the business and
assets of the above brush manufacturing companies.
Principal features of include:
-- Manufacture of artistic, cosmetic, educational, industrial and
specialist brushes
-- Leasehold premises of 13,000 sq. ft. in Glossop, Derbyshire
("High Peak")
-- Leasehold premises of 17,000 sq. ft. in Chapel-en-le-Frith,
Derbyshire ("Lion")
-- Total of 55 employees
-- Combined estimated turnover of GBP3 million
-- Substantial order books from customers including household
names and several major brands
For further information please contact either Matthew Gibson or
Paul Palmer
CONTACT: RSM ROBSON RHODES
Phone: 0161 236 3777
Fax: 0161 455 3309
E-mail: paul.palmer@rsmi.co.uk
MARCONI PLC: Obtains Permanent Court Injunctions and Orders
-----------------------------------------------------------
-- Permanent Injunctions and Orders of the U.S. Bankruptcy Court
Granted; Further Positive Step in the Restructuring
Marconi plc (plc) (MONI) announces that permanent injunctions and
orders of the U.S. Bankruptcy Court have been obtained in respect
of the plc and Marconi Corporation plc (Corp) schemes of
arrangement. It is expected that the schemes of arrangement for
Corp and plc will become effective and legally binding on Corp
and plc and their respective scheme creditors on 19 May 2003 (the
Effective Date).
It is expected that dealing in plc shares will cease at 4.30 p.m.
on 16 May 2003 after which the plc shares will be de-listed. The
pro rata entitlements of plc shareholders on the register of
members as at close of business on 16 May 2003 to new Corp shares
and warrants, will also be determined as at this date. It is
expected that trading in the new Corp securities will commence on
the morning of the Effective Date.
It is expected that a Corp scheme creditor with an admitted
scheme claim of GBP1 million on the Effective Date will be
entitled to receive an initial distribution of the following:
Cash GBP64,321
Principal amount of new senior notes $135,759
Principal amount of new junior notes $92,169
Number of new Corp shares 188,359 shares
It is expected that a plc scheme creditor with an admitted scheme
claim of GBP1 million on the Effective Date will be entitled to
receive an initial distribution of the following:
Cash GBP9,587
Principal amount of new senior notes $23,492
Principal amount of new junior notes $15,949
Number of new Corp shares 32,594
shares
The scheme rate should be used to convert admitted scheme claims
into Pounds Sterling if claims are in U.S. Dollars or Euros as
follows: GBP1 per $1.6107 and GBP1 per EUR1.3949.
New Notes to be issued
In relation to the application for listing by way of a program of
Corp US$1 denominated senior notes and junior notes, expected to
commence trading on 19 May 2003, it can be confirmed that the
maximum number of notes that may be issued under the program is
1,650,054,833. This number is made up of the maximum number of
senior notes that may be issued, plus the maximum number of
junior notes that may be issued, including all junior notes that
may potentially be issued by way of payment in kind for the
duration of the program.
About Marconi plc
Marconi plc is a global telecommunications equipment and
solutions company. The company's core business is the provision
of innovative and reliable optical networks, broadband routing
and switching and broadband access technologies and services. The
company's customer base includes many of the world's largest
telecommunications operators.
The company is listed on the London Stock Exchange under the
symbol MONI. Additional information about Marconi can be found
at http://www.marconi.com
CONTACT: MARCONI PLC
David Beck/Joe Kelly, Public Relations
Phone: +44 (0) 207 306 1771
+44 (0) 207 306 1490
E-mail: joe.kelly@marconi.com
Heather Green
Investor Relations
Phone: +44 (0) 207 306 1735
E-mail: heather.green@marconi.com
WESTON MEDICAL: Sells Intraject and Other Assets to Aradigm
-----------------------------------------------------------
Weston Medical, the privately held company in U.K. that is under
administration, has sold some of its assets to Hayward's Aradigm
Corporation for US$2 million.
Aradigm acquired test and production equipment, intellectual
property and other assets, including the needle-less drug
delivery system, Intraject.
Weston's pen-sized Intraject product is a liquid-based, needle-
free drug delivery technology. The company was led into
bankruptcy in February 2003 after the delay in the development of
the technology made it lost more than 95% of its US$150 million
market capitalization.
Keenan said Aradigm believes it has solved the problem that led
to the delay and will manage the development effort from its
Hayward office.
He said the Intraject nitrogen-gas-powered actuator "pulls your
skin up, creates a vacuum and infiltrates the drug through the
porous regions of the skin". Patients can inhale drugs such as
insulin through an inhaler known as Aradigm's AERx system.
However, both drug delivery systems are still in the testing
stages and will be ready for sale in approximately 2006. The
Intraject product is being developed to deliver drugs such as
monoclonal antibodies, proteins and small molecule drugs.
Keenan revealed that pharmaceutical giants Abbott Laboratories,
Roche and GlaxoSmithKline are funding the testing and that these
companies will handle the marketing and distribution of the drugs
when they are ready to be sold.
CONTACT: WESTON MEDICAL GROUP PLC
Wingate House
Maris Lane
Trumpington
Cambridge, CB2 2FF
UK
Phone: +44 (0) 1223 550 000
Fax: +44 (0) 1223 550 100
************
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter -- Europe is a daily newsletter co-
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USA, and Beard Group, Inc., Washington, DC USA. Kimberly
MacAdam, Larri-Nil Veloso, Ma. Cristina Canson, and Laedevee
Gonzales, Editors.
Copyright 2003. All rights reserved. ISSN 1529-2754.
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