Clinical trials group Icon said profits climbed 56 per cent in the second quarter. The group also raised its revenue forecast for the full year after the company won more new business and its Central Lab unit turned in a profit earlier than expected.

Profits amounted to $9.3 million (€7.4 million), or 65 cents per share on a diluted basis, in the three months ended June 30th, compared with a profit of $5.9 million, or 42 cents a share, a year earlier. Revenue rose 25 per cent to $107.4 million, while operating margin widened to 11.5 per cent from 8.6 per cent in the second quarter of the previous financial year, which ended on May 31st, 2005. Icon has changed its financial year to coincide with the calendar year.

Traders described Icon's earnings as "well ahead of expectations". The Dublin-based clinical research group said last month that its Central Lab business unit would reach a profit in the second quarter, three months earlier than expected. Central Lab had been losing money for about two years, but turned around after attracting new business.

Icon said in February it was emerging from a difficult period as pharmaceutical companies began to show stronger pipelines of new drugs coming onto the market and as investment in biotechnology companies increased. The firm won $166 million worth of new business in the second quarter and estimated it has $360 million in bookings for the next 12 months. "We look forward with confidence to the remainder of 2006," said chairman Dr John Climax. "With our backlog at record levels, continuing good business flow and the Central Lab reaching profit earlier than forecast, we are upgrading our guidance for the rest of the year."

Icon now expects revenue of as much as $440 million for 2006, compared with its previous forecast of up to $410 million.