One-off charges pushed clinical trials group Icon into the red in the three months to the end of February.

The company reported an operating loss of $5.24 million (€4.1 million) for its third quarter after allowing for exceptional charges of almost $11.3 million.

A write-off of goodwill relating to Icon's troubled Central Laboratory business was the main factor behind the exceptional charge.

Excluding these factors, operating profits were down 31 per cent on the same period last year, at $6 million, as the company recovered from significant contract cancellations in the first quarter of its financial year - the three months to the end of August.

Operating margins were down to 7.3 per cent from 11.4 per cent in the same period last year, again affected by the cancellations earlier in the year which have reduced capacity utilisation in the clinical trials business to around 83 per cent.

Sales rose 8 per cent in the quarter to $82.9 million overall. Sales growth in Europe rose 14 per cent, significantly ahead of the 4 per cent recorded in the US.

Allowing for the impact of acquisitions, revenue rose 6 per cent across the group.

Chairman John Climax said the results for the quarter were "satisfactory and in line with our expectations".

Discounting exceptionals, Icon's clinical trials business recorded $7.8 million profit on sales of $76.7 million.

The Central Laboratory division lost $1.8 million on turnover of $6.4 million over the period.

The group secured $115 million in new business during the three-month period.

Cancellations in the quarter amounted to just $9 million, which the company said was in line with historic levels. Net new business totalled $106 million compared with $91 million a year earlier. Executives said it was reducing its concentration on major clients.