RE: Earl/Riddler19 Jun 2015 15:16
hi there.
I asked the company the question on what GP and NP should be on a run rate basis once acquisitions were bedded in - and they didn't really answer the question just referred me back to the Zeus broker note which I do not have.
I doubt the P&L is clean now for the post acquisition clear up and also maybe not even this year if they buy another CRO in Eastern Europe. No idea what synergies they take from these acquisitions as yet.
So - to answer your question - yes would expect net margins to improve over time if they have a proper handle on their cost structure. And, of course if they get more throughput in lower cost geographies where they are established. Ongoing trend amongst CROs.