Chiltern posts positive annual results with 44% rise in revenue

By Antoine Clarke

- Last updated on GMT

Related tags Generally accepted accounting principles Chiltern

UK CRO Chiltern International announced positive financial results for the year ending March 2009, possibly suggesting a bounce for a sector that has been hit by project cancellations.

Earlier this year for example, New Jersey-based Covance reported a 46 per cent cut in preclinical operating income earlier this year, while rival contract research firm Charles River Laboratories suffered a 42 per cent drop in Q1 profits.

By contrast, Chiltern posted a 44 per cent revenue increase (15% of which was the benefit of acquisitions) in the 12 months to 31 March 2009 to £73.7m. This was actually an acceration from the previous year's 29 per cent rise from £39.7m to £51.2m.

Glenn Kerkhof, Chiltern's CEO, described the 2008-2009 financial year as "very successful​" and commented that "Chiltern is emerging rapidly as a leading global clinical research organisation​."

Explaining why the UK firm appears to be growing significantly faster than the sector average, Kerkhof said: "We provide global and high quality services to our clients at reasonable prices and in an era of uncertainty we are pleased that this is proving to be a very successful formula​."

For the coming year, Chiltern expects to develop expertise across all its business units and to expand its geographic network. Despite what Kerkhof acknowledged are "difficult market conditions​," he said: "we look forward to another year of progress​.

Other financial highlights from Chiltern's results include:

¥ EBITDA of £9.5 million, up 57% over March 2008;

¥ Backlog grew 43% to £137 million at 31 March 2009, up from £93 million at 31 March 2008;

¥ New business awards of £116 million, 29% increase over March 2008;

¥ Operating cash flow of £8.6 million;

¥ Capital expenditure of £1.0 million mainly comprises investment in new systems and IT infrastructure;

¥ Largest client represented 10% of revenue; top 10 clients represent 48% of revenue. 84% of studies active at 31 March 2009 represent repeat business.

Related topics Preclinical Research

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