In anticipation of fast growth, shares in this acquisitive pharmaceutical services concern have risen 150 per cent from last December’s 40p admission price. The £7.4m net flotation proceeds paid off debts.

Focused chief executive Simon Yaxley recently committed a maximum of £16.2m to buy US outfit PharmData and smaller German group EuroPharma. Only a few weeks’ contribution from these businesses were included in the figures for the six months to July, during which revenues rose 41% to £6.1m.

The core business, which carries out latter stage clinical trials for a range of drugs companies, saw income rise 19%. Last year’s £0.2m loss became a £0.9m pre-tax profit as the group’s debts were cleared. The acquired outfits have already been integrated well, with activities divided into US and international business.

The group has a clear focus on several therapeutic areas: oncology, which treats cancer; anti infectives, such as drugs to combat MRSA; and treatments for the central nervous system. Looking ahead Yaxley believes there are still opportunities to acquire smaller players and their contracts in this fragmented area.

The financial outlook is also solid, with the value of future work booked worth more than the past year’s revenues. This does not include any business that may stem from carrying out Phase III trials for a drug that has passed Phase II tests. For the full year pre-tax profits are forecast at £3.9m, which equates to 6.5p earnings per share. That puts the shares on a p/e of 15.4, making them fairly valued. Hold for now.