Operating income at clinical trials group Icon slipped by 12 per cent to $8.4 million (€7 million) in the three months to the end of August, compared to the same period last year.

However, it was up by 14 per cent on the $7.4 million reported in the previous quarter, as the company continued its steady recovery from a number of contract cancellations which hit the business last year. Net revenues in the company's fiscal first quarter rose by 10 per cent to $85.9 million. If the impact of acquisitions is stripped out, revenue growth was 9 per cent, the company said.

Sales in the US were up by 4 per cent, while sales in Europe and the rest of the world increased by 18 per cent.

The company said that it had been awarded $122 million of net new business compared to just $46 million in the first quarter of last year, when it was hit by $47 million worth of cancellations.

New business levels were also above the $101 million recorded in the previous quarter.

The company also sounded a positive note about the outlook.

"Operating margin has again improved and we achieved another strong quarter of business wins, which has further strengthened our backlog," Dr John Climax said.

"With a continued strong business flow, we expect to maintain this momentum through the rest of the year."

Shares in Icon rose by 5.5 per cent to $44.64 on the Nasdaq as investors welcomed signs that the company was back on track.

"The trend is upward, margins are increasing and earnings are rising. Since February, we have seen a steady recovery in profitability," said Jack Gorman of company broker Davy. He has upgraded his share price target for the company to $48 from the current level of $40.