Clinical trials group Icon has reported a 29 per cent increase in operating profits for the second quarter. Income from operations in the three months to November 30th last came to $9 million (€7.4 million), up from $7 million in the same period of 2004.

Turnover for the quarter was $88 million, representing an 11 per cent increase on the equivalent period in 2004.

Operating margin for the quarter was 10.2 per cent, compared with 8.8 per cent in the previous period.

"We are very pleased with our performance in the second quarter," commented chairman Dr John Climax. "Revenue growth accelerated, operating margin continued to improve and we booked record levels of new business, continuing the momentum built up over the past few quarters."

The company employs 3,000 people, providing services to the pharmaceutical, biotech and medical device industries.

These include clinical research, biometrics, interactive technologies, laboratory work, clinical pharmacology and consulting services.

The main challenge facing the company is that companies in the pharmaceutical and biotech sectors have been cost cutting in recent times. However, Icon has large cash reserves and should be able to fund a significant acquisition.

In the six months to November 30th, 2005, net revenues were $174 million, representing a 10 per cent increase on the equivalent period in 2004. Operating profits were up 5 per cent at $17.4 million, compared to the same period in 2004.

The company also reported record net new business of $140 million for the second quarter and a 20 per cent increase in earnings per share during the same period.

Cash generated from operations during the period was $11.7 million and capital expenditure was $7.8 million.