Profits jump 10% at Icon

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

Net revenue of $252.3 million was 10 per cent ahead of the year ago quarter 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 cent s 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 in a statement that the company "continues to see the benefits of our strategic investment decisions, with record gross business wins of $485 million" in the period.

This resulted in a backlog increase of 23 per cent year on year, he said.

The Dublin company provides outsources 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 worldwide.

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 Beijing Wits Medical Consulting deal in China, originally announced in the fourth quarter.

The company also spent $1.4 million on a stock repurchase programme.

It also announced that it had been selected by Swiss pharma group Roche as its technology partner for storing and managing medical images collected during the company's clinical research programs.