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17-Oct-2007 - International science-based company LGC exceeds £100m turnover

LGC’s international turnover at 28% -- in Germany, France, rest of Europe and India

The Board of LGC Group Holdings plc has announced its annual results, with turnover in 2006-07 exceeding £100m for the first time. Assisted by acquisitions, this represents an increase of 18% on last year’s Group results of £85.9m. The proportion of the Group’s international turnover now stands at 28%, representing its strong base in Germany, France and elsewhere in Europe and its relationship with its joint venture in India.

However, with temporary disruptions in the UK forensic services market for police forces, operating profit before exceptional items and EBITDA at £6.5m and £12.5m respectively are less than reported last year.

Commenting on this year’s results, Dr Richard Worswick, LGC’s Deputy Chairman and Chief Executive, said: "We are delighted to have achieved the milestone of being a £100m company, confirming LGC’s position as a successful and highly respected international group. Although profitability for this year has been eroded in the forensics area of our business, I am convinced that there are major opportunities for profitable growth in the future. This includes opportunities to expand forensic provision in other European countries, especially in Germany where LGC has won new work and is building a reputation for quality and speed of forensic and paternity DNA results.

"LGC Forensics assisted in the solving of thousands of crimes. Among high profile cases, our forensic examinations led to successful convictions for the tragic murder of Damilola Taylor.

"Non-forensic work accounts for 60% of our business and has developed strongly. In particular, LGC Standards, which brings together our reference materials distribution, proficiency testing, pharmaceutical reference materials production and analytical quality training, has maintained its record of continuous growth with new sales offices in Hungary, Ireland and North America. We have expanded our pharmaceutical reference materials production facilities in Luckenwalde, investing in new equipment, including an NMR system, which complements our pharmaceutical and chemical analytical capabilities at Runcorn."

Other notable highlights of the past year include:

  • The award of a new BSE testing contract in a continuation of our service to Defra in which LGC has tested in excess of 1.4 million brainstem samples since 2001.
  • The acquisition of a paternity testing business, Labor für Hämogenetik, based in Baden-Baden, Germany - and the recent move of the Institut für Blutgruppenforschung LGC GmbH to the BIOcenter Technologiepark Köln, the largest science park in Cologne.
  • The launch of a gunshot discharge residues service using scanning electron microscope (SEM) technology to detect inorganic particles down to half a micron.
  • A memorandum of understanding to collaborate on reference materials and food analysis with the National Institute of Metrology, China.
  • An agreement to provide veterinary drugs testing for the Government of Malta.
  • Widespread recognition for our scientific capability under the UK Department for Innovation, Universities and Skills (DIUS) Chemical and Biological Measurement Programme. For example, LGC´s Dr Heidi Goenaga Infante, in collaboration with Simon Joel and his team at St Barts Hospital in London, published a paper in JAAS1 on the effects of combining selenium compounds with cytotoxic drugs in cancer therapy (also highlighted in Chemical Biology2 for progression in the field of organoselenium speciation analysis).

 

Printed copies of LGC’s Report and Accounts 2007 are available from LGC, Queens Road, Teddington, Middlesex TW11 0LY, UK. Tel: +44 (0)20 8943 7000. Fax: +44(0)20 8943 2767.

Email: info@lgc.co.uk.

Online copies available at: www.lgc.co.uk/about_financial.asp.

References: (1) J. Anal. At. Spectrom., 2007, 22, 888. (2) Chemical Biology, 2 August 2007, Issue 9, Research News.


Notes to Editors