€8.6m once-off charges hit Icon

CLINICAL research firm Icon had a once-off hit of $11.3 million (€8.6m) to blame for sending its third-quarter results into the red yesterday.

The Dublin-based company, which has operations in 23 countries, recorded pre-tax losses of $5m for the three months to February.

This compared unfavourably with an $8.8m profit in the same period last year and was largely due to exceptional charges relating to its central laboratory businesses, as well as costs incurred in terminating leases and closing down certain activities in the US.

But excluding the once-off charges, net income was still 31% lower at $6m. Operating margins tumbled to 7.3% from 11.4% in the same period last year. Net income per share was down from 47c to 36c.

Underlying revenues grew 8% to $82.9m, however, while there was also positive news on Icon’s pipeline as the company won new business worth $106m during the quarter.

Icon co-founder and chairman John Climax said the results were satisfactory and in line with expectations.