
Adecco reports better than expected Q2 operating profit
The Swiss company, which places temporary and permanent staff in factories and offices, said its operating income rose 6% to 115 million euros ($132.93 million) in the three months to the end of June.
The figure beat forecasts for 107 million euros in a company collected consensus of analysts.
($1 = 0.8651 euros)
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Charles River profit forecast clouded by order cancellations from biotechs
Aug 6 (Reuters) - Charles River Laboratories' (CRL.N), opens new tab annual profit forecast raise on Wednesday was clouded by investor concerns about the higher number of order cancellations from clients, sending the contract research firm's shares down 8% in afternoon trading. The company's quarterly book-to-bill ratio – the number of orders versus those fulfilled – came in at 0.82x. Evercore ISI analyst Elizabeth Anderson said the ratio was below Wall Street expectations of 0.94x, adding some questions remain about demand environment in the sector. Charles River CEO Jim Foster said on a conference call that while proposals were higher in the quarter, cancellations from biotechs were also higher. Contract research organizations – including Charles River, Fortrea (FTRE.O), opens new tab and ICON (ICLR.O), opens new tab – have posted better-than-expected quarterly profit, reflecting a rebound in spending from pharmaceutical and biotech clients after a cautious stretch driven by tighter sector financing. Charles River's Foster, however, said that funding for smaller biotechs is still more cash constrained, due to the funding slowdown, and mid-sized biotechs are performing better, as many can support their R&D programs without external funding. "We are continuing to see clear signs that the biopharmaceutical demand is stabilizing, and in this environment, we are making gradual progress to return to organic revenue growth," he added. The Wilmington, Massachusetts-based company raised its 2025 adjusted profit forecast to $9.90 to $10.30 per share, from its previous range of $9.30 to $9.80. Charles River's overall second-quarter revenue came in at $1.03 billion, surpassing analysts' estimate of $985.1 million, according to data compiled by LSEG. On an adjusted basis, quarterly profit was $3.12 per share, above estimates of $2.50.


Reuters
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Times
an hour ago
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Bain & Company given £24m of state contracts after UK ban lifted
Bain & Company has been awarded almost £24 million of state contracts since the British government backed down on a ban on the consultancy over alleged state corruption in South Africa. Bain, based in Boston, Massachusetts, and one of the world's biggest management consultancy firms, was given a three-year ban in August 2022 by the Cabinet Office from bidding for government contracts. It was barred over what Sir Jacob Rees-Mogg, the Cabinet Office minister at the time, alleged was 'grave professional misconduct, which renders its integrity questionable'. • Big three consultancies 'rarely worth hiring', say executives The British government's decision followed an inquiry in South Africa into so-called 'state capture' during the presidency of Jacob Zuma, which criticised the role of international firms, including Bain. The company made a legal challenge against the decision of Boris Johnson's government, which it argued was 'based on a flawed process', and pledged to improve its corporate governance. The ban was abruptly lifted in March 2023 after less than eight months; Whitehall sources said a legal challenge could have left the taxpayer with a large bill. An analysis of state contracts by Tussell, the data company, for The Times shows that Bain has since been awarded nine state contracts worth a combined £23.9 million, including with the Ministry of Defence and the Home Office. Lord Hain, a former Labour minister and anti-apartheid campaigner, who lobbied the Johnson administration and current government over Bain, said he was 'very disappointed' it had received any British state contracts. 'I trust that there will be no more. Just because it's apparently legally not possible to ban them is no reason to award them any government work.' Bain was approached for comment on the UK contracts. A government spokesman said: 'Bain colluded with the former government of South Africa to damage state organisations. Whilst decisions on the exclusion of Bain from bidding for UK government contracts were made by the previous government, the government will take strong action against any future supplier misconduct wherever it is found.' Sources said the MoD contracts were awarded through an existing central government management consultancy framework. The government has new powers under the Procurement Act 2023 to take action against suppliers involved in misconduct but they are not retrospective. In October Hain wrote to Pat McFadden, minister for intergovernmental relations, urging a fresh ban on contracts. In his response in January, McFadden said that he had requested legal advice on options to extend a ban but was told 'no legal route existed'. Bain was accused of undermining the South African Revenue Service (Sars) through consultancy work that allegedly benefited Mr Zuma's allies. The management consultancy firm, which was founded in 1973 and operates in 40 countries, has said that it has taken 'significant measures' to strengthen its governance for public sector contracts. 'While there were no findings from two official commissions of inquiry of any illegal actions by Bain, we accepted responsibility for the events at that time and repaid all fees, with interest, to Sars.' Earlier this month, Bain said that it was 'winding down' consulting operations in South Africa and that its Johannesburg office will become a services hub supporting Bain's global operations.