ICON, the Irish clinical trials company floated on the NASDAQ market in May, has reported strong growth in its final quarter and for the year to the end of May. Profits before tax and interest in the fourth quarter were up 88 per cent to $1.6 million (£1.1 million), while profits for the year more than quadrupled to just under $5.8 million (£4.1 million).
Icon was floated on NASDAQ in May at $18 per share and since then the shares have traded as high as $28 1/2 before settling into a recent trading pattern around $2627. At that level, Icon is valued at $283 million (£201 million). The 52 per cent stake held by founders Dr Ronan Lambe and Dr John Climax is worth £104 million. Following the results announcement, Icon shares traded at $28, indicating the market's contentment with the figures. Turnover for the year - which mainly comes from income from contract research on behalf of international pharmaceutical and biotechnology companies - increased from $38.6 million in 1997 to $64.1 million in the year to the end of May. Earnings per share rose from $0.04 to $0.49, reflecting the strong rise in profits and the increased number of shares as a result of the May flotation.
The flotation also has had a fundamental effect on Icon's balance sheet, with cash at the end of May of over $54 million. Further strong growth seems likely with Icon having a backlog - the unearned value of contracts signed by the company - totalling $82 million, from $54 million the previous quarter.
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