Healthcare Locums plc Final Results

Healthcare Locums plc Final Results

Healthcare Locums plc, a market leader in the supply of workforce solutions to the health and social care industries in the UK and Australia, today announces its audited results for the year ended 31 December 2010.

Market Challenges & the new Board's response

  • HCL has a very experienced new Board and executive management team.  Since the new Board and executive management team was formed in 2011, the business has been refocused and good progress has been made over recent months.
  • Challenges faced have been considerable. The new Board has needed to extensively restate prior year figures, propose a significant refinancing of the Group to ensure future stability and importantly, re-engineer the UK business to meet the changing needs in the healthcare staffing market.
  • Following these actions, the Board now believes that HCL is in a far stronger position to respond to the needs of its customers and grow sustainably over the long term.

UK & Australian businesses

  • In the UK, HCL is a leading business, one capable of generating good levels of profit by delivering a high level of service on competitive terms to the NHS and private sector. The new executive team is committed to re-focusing the business, to address changing market dynamics.
  • In Australia, the HCA business, which was acquired in December 2010 shortly before the financial year end, has continued to trade in line with expectations since its acquisition.The Board's goal is to build a broadly based specialist healthcare recruitment business in Australia, similar to HCL's position in the UK.
  • Synergies can be achieved over time by owning both the UK and Australian healthcare recruitment businesses. 

Proposed Refinancing & Trading on AIM

  • The Board's priority remains to improve the Group's financial situation by reducing debt. The Board believes that the proposed Refinancing announced today is in the best interests of all shareholders.
  • Toscafund has been very supportive of the company and its management, reflecting its positive view of the company's future prospects for growth
  • Trading in the Company's shares is scheduled to resume consequent to shareholder approval of the proposed Refinancing.

Peter Sullivan, Chairman, said: "The Group has faced considerable challenges and the complexity and extent of the challenges faced by the Company has meant that the process of producing these audited Financial Statements has taken considerably longer than initially expected. Nevertheless, the action taken by the Board has been vital in restoring stability and positioning the Group for sustainable growth in the future.

Despite its recent troubles, HCL remains fundamentally a good business.  Furthermore, having announced a refinancing today, the Board believes that the Refinancing, if completed, will provide the Group with a strengthened balance sheet, a much lower level of debt, and additional cash funding for operational initiatives, thereby creating a viable, sustainable capital structure giving it the capability to achieve significant returns.

The Board and I are confident that HCL can grow again and prosper from here on."

No Comments

Post a Comment