PRG.L Regulatory News (PRG)

6 Feb 2007 07:01

Premier Research Group06 February 2007 6 February 2007 PREMIER RESEARCH GROUP PLC Trading Update Further strong progress in line with year end market expectations Premier Research Group plc ("Premier Research" the "Company" or the "Group"),the international pharmaceutical services group today announces a tradingperformance update for the year ended 31 January 2007. The Company alsoannounces the establishment of an Operating Board to oversee the day to daymanagement of the business. Key Highlights * Results for the year ending 31 January 2007 in line with market expectations * Strong fourth quarter order intake - book to bill ratio continues at greater than one + Order book coverage of FY2007 revenues significantly in excess of prior period * Integration of Scirex, acquired in July 2006, successfully completed and generating sales through cross selling of services + Two global deals recently signed with delivery already underway + Significant number of Phase III projects in sales pipeline * Board focused on becoming a leading global player within the CRO market + Growth driven through earnings enhancing acquisitions and accelerating organic sales * Operating Board established + Overseeing day to day management of US and International business + Allowing main Board to focus on strategic development of the Company, including acquisitions * No customer or project concentration + Well spread business with over 240 current projects across more than 150 customers giving protection against individual project delays * Negligible currency effect on profitability despite weak US dollar + Natural hedging through revenues and costs both being in US dollars (The US currently represents approximately 60% of the business by revenue) Commenting on the trading statement, Dr Simon Yaxley, Chief Executive Officer ofPremier Research said: "We are delighted to be reporting that strong sales are continuing into thecurrent year and that we have maintained a book to bill ratio at greater thanone, providing excellent visibility into 2007 and beyond. The second half of 2006 has seen strong organic growth of the core business andthe benefits from the Scirex integration process have exceeded management'sexpectations. The establishment of an Operating Board to oversee the day to day management ofour business both in the US and Internationally is extremely important as itallows the main Board to concentrate both on accelerating our buy and buildstrategy and driving the future strategic vision for the business. We look forward to providing further detail on this year's performance andfuture prospects at the time of our Preliminary Results in April." For further information, please call: PREMIER RESEARCH GROUP PLC Tel: 01344 458 311Dr Simon Yaxley, Chief Executive EVOLUTION SECURITIES Tel: 020 7071 4300Tim Worlledge/ Simon Leathers BUCHANAN COMMUNICATIONS Tel: 020 7466 5000Lisa Baderoon / Rebecca Skye Dietrich Notes to editors: About Premier Research Premier Research is a growing contract research organisation (CRO) involved inthe design and execution of clinical trials (Phases II-IV) on behalf ofpharmaceutical and biotechnology companies. Premier is established in threetherapeutic areas - oncology, CNS (central nervous system) and anti-infectives -with a strong underlying expertise in paediatrics. Through a focused approach toclinical management, the company has built a reputation with its customers fordelivery of its services, and has demonstrated organic growth following itsrecent acquisitions. Premier has also established itself as an activeparticipant in the consolidation activity within the sector. TRADING UPDATE Since the release of the interim results for the six months ended 31 July 2006,trading has remained buoyant and the Board expects the Group to report resultsfor the year ended 31 January 2007 in line with market expectations. Strongorder intake in the fourth quarter has ensured that the book to bill ratioremains greater than one and gives the Board confidence that the current yearwill be another year of strong growth. Premier Research completed its largest acquisition to date during the year,Scirex Corporation LLC in July 2006. Scirex, headquartered in Philadelphia, USA,with ten offices in US, UK and Poland, is a full service CRO that specialises inproviding outsourced clinical services to the global biotechnology andpharmaceutical industries. The rationale behind Scirex's acquisition was that itprovides a broader strategic footprint for Premier Research to access doctorsand patients within the important US market. It also adds significant experienceand expertise in central nervous system (CNS) disorder clinical trials. The integration of Scirex has gone extremely well and has exceeded management'sexpectations; a huge endorsement to the Board's and key management's experiencein the integrating of acquisitions into the core business. It also endorses theview that the integration of large acquisitions in one key territory can becompleted quickly and efficiently. Importantly, since the completion of theacquisition, Premier Research has been awarded repeat business from a number oflegacy Scirex customers and has been successful with the winning of several newglobal contracts. The Company strongly believes that the Scirex acquisition andthe skill base that it has brought to the Group was a significant contributingfactor to two major contract wins over the last few months. Trading in the second half of the year demonstrated strong organic growth: areflection on the quality and motivation of Premier Research's sales teamsacross both the US and International territories combined with the continuedfocus on winning new business and driving organic growth. FRS 20 requires the Company to expense share options granted to employees anddirectors and, in line with the requirements of UK standard accounting practice,the Company will be adopting FRS 20 for the first time in the year to 31 January2007. This will result in a non-cash charge to the Profit and Loss for the yearto 31 January 2007 and will be of an amount that is determined by the company'sshare price. Formation of an Operating Board Moving into the current financial year the focus is twofold: acceleratingorganic growth and identifying and executing earnings enhancing synergisticacquisitions. With this key growth strategy being increasingly important to the successfuldevelopment of the Company, and therefore demanding more of the Board's time,Premier Research has established an Operating Board. This Board is comprised asfollows: * Dr Troy McCall - Chief Operating Officer * Peter Malamis - President and General Manager, US Operations * Philip Butler - President and General Manager, International Operations * Peter Kyle - President, Finance and Administration This Operating Board will have responsibility for the day to day management ofthe business thus allowing the main Board to focus its attention on pursuingearnings enhancing acquisitions and the longer term strategic development of theCompany, with a key emphasis on becoming a leading global player within the CROmarket. Directorate Change It is with regret that the Company announces the resignation of Dr John Gilly,Chief Operating Officer, who steps down from his position with immediate effect.The Company and the Board would like to take this opportunity to thank him forall his invaluable efforts over the last four years and we wish him well in hisfuture endeavours, the primary focus of which is moving back into oncologyresearch in the biopharmaceutical development program at the National CancerInstitute in the US. Preliminary results date Premier Research anticipates announcing its preliminary results for the yearended 31 January 2006 on Tuesday 17 April 2007. This information is provided by RNS The company news service from the London Stock Exchange