Icon profits rise 10% in first quarter

PROFITS JUMPED 10 per cent at clinical trials group Icon in the first three months of 2012.

Net revenue of $252.3 million (€191 million) was 10 per cent ahead of the corresponding quarter in 2011 and 4 per cent up on the fourth quarter of 2011.

Higher costs from its expanding operations saw operating income fall by a quarter to $11.7 million in the period. The operating income ratio was 4.6 per cent of revenue. The company noted that this compared to 4.8 per cent in the same period last year once non-recurring items were stripped out.

Earnings per share of 15 US cents on pre-tax profit of $8.97 million were slightly ahead of the 14 cents recorded in the first three months of 2011, again without the impact of non-recurring items. Including these the year-ago figure was 21 cents.

Chief executive Ciaran Murray said the company “continues to see the benefits of our strategic investment decisions, with record gross business wins of $485 million” in the period. He said this resulted in a backlog increase of 23 per cent year-on-year.

The Dublin company provides outsourced clinical trials development and management services to companies in the pharmaceuticals and medical device sectors. It employs more than 8,500 people in 40 countries.

Icon has reported a number of bolt-on acquisitions over the past year, and reported that, during the first quarter, it spent $48.6 million on deals including the purchase of US-based consultancy Pricespective and the closing of the Beijing Wits Medical Consulting deal in China. It also spent $1.4 million on a stock repurchase programme.