About LGC
Financial results
Financial highlights 2007-2008
LGC Group Holdings Limited reported static
turnover at £101.5m, having exceeded the £100m milestone in the
previous year. Underlying turnover growth was approximately 2%,
with 2007-08 acquisitions (together with the full effect of prior
year acquisitions) contributing approximately £1.2m to turnover,
but with the joint venture accounting treatment of India reducing
turnover by £3.5m. Average employee numbers (based on
full-time equivalent employees) declined by comparison with 2006-07
as a result of action to control costs in the early part of the
financial year.
International growth
LGC launched Germany’s largest independent DNA
forensics laboratory, with the opening of the IfB-LGC site in
Cologne. This follows the acquisition of IfB (Institut fϋr
Blutgruppenforschung), a high quality paternity testing laboratory,
in 2006. The international proportion of the Group's turnover now
stands at 27%, reflecting its increasingly strong base in Germany,
France and elsewhere in Europe as well as its joint venture in
India.
Impact of UK forensic services market
Disruptions in the UK forensic services market
continued into a second consecutive year and meant that the award
of certain key contracts remained on hold. This was reflected in
severe pressure on the group’s operating profit before exceptional
items and EBITDA which, at £4.5m and £11.3m respectively, were both
reduced when compared with 2006-07.
LGC Forensics represents nearly 40% of Group
turnover and despite the temporary bottleneck in the UK market, we
remain confident that there are major opportunities for profitable
growth in the future. These include the expansion of forensic
provision in other European countries.
Highlights of the past year include:
- A new Chief Executive, David Richardson, was
appointed following the retirement of Dr Richard Worswick.
- LGC Forensics won further homicide work from
the Metropolitan Police service, reflecting the high quality of its
previous work for the force.
- LGC received the ‘Order of Distinction’ from
the Royal Society for the Prevention of Accidents (RoSPA),
following 15 consecutive years of RoSPA Gold, Gold Medal and
Presidents Awards.
- The opening of IfB-LGC’s new forensic testing
laboratory in Cologne – now Germany’s largest independent DNA
forensics laboratory.
- The appointment of Dr Derek Craston as the
new Government Chemist, following the retirement of Dr John
Marriott.
- The launch of LGC Standards, which brings
together our reference materials distribution, proficiency testing,
pharmaceutical reference materials production and analytical
quality training, into a single division. LGC Standards
incorporates all LGC Promochem subsidiaries in France, Germany,
Italy, Poland, Spain and Sweden and now has additional sales
offices in Hungary, Ireland and North America.
- AGOWA, LGC’s genomic services specialist
(which celebrates its 15th anniversary in 2008)
relocated to new premises in Berlin, and also announced record
sales for DNA extraction products.
- LGC’s Ecology Team led the forensic
investigation at the Jersey children’s home at Haut de la
Garenne.
- LGC’s Programme Management Team collaborated
with the National Institute for Health Research to launch the
Invention for Innovation (i4i) Programme.
- Successful accreditation for LGC’s new high
throughput PACE DNA laboratory in Runcorn.
- The UK Veterinary Medicines Directorate (VMD)
extended its 2004-08 contract with LGC for an additional year, to
end of 2009.
Download
Report and Accounts 2008 (667kb)