Fisons Outlook Gloomy As Interims Disappoint

Troubled pharmaceutical and scientific equipment company Fisons' interim results for the six-month period ended June 30, 1994, show that the UK-based company is still not out of the woods. Pretax profits for the first half of 1994 were L30.4 million ($47.74 million), down 26.74% on the year-earlier period, with earnings per share falling from 4.1 pence last year to 3.0 pence. Group turnover declined 1.7% to L640.3 million ($1.05 billion). Fisons' share price plunged 11 points to 139 when the results were published.

Relatively-speaking, the performance by the pharmaceutical division was good, with turnover increasing 15% to L241 million, and pharmaceutical trading profits coming in at L36.3 million, ahead of the year-earlier figure by 26%. However, the pharmaceutical performance was more than offset by a significantly poor performance by Fisons' scientific instruments division (see also page 28). It posted a trading loss of $11.2 million and turnover declined 1% to L114 million. Fisons' other main business unit, laboratory supplies, achieved turnover of L252 million, up 6%, and trading profits of L10.1 million, down from L15.3 million in the 1993 first half. Its remaining horticulture business in Europe had flat sales of L12 million and trading profits of L1.3 million, up 18%.

There was a 20% decline in total trading profits, which were L36.7 million, L35.9 million arising from continuing operations and L800,000 from discontinued operations.