Healthcare Locums HLO Trading Update

  Healthcare Locums (HLO) - Trading Update

RNS Number : 1348J
Healthcare Locums PLC
02 August 2012
 



2 August 2012

 

HEALTHCARE LOCUMS PLC

("HCL" or "the Company")

 

TRADING UPDATE

 

Healthcare Locums PLC today releases a trading update for the half year  ended 
30 June 2012.

 

In the AGM  statement of 23  May 2012, the  Company indicated that  unexpected 
delays in  the  tendering  processes  of several  national  and  regional  NHS 
procurement frameworks  would have  an impact  on the  timing of  HCL  signing 
supply agreements which in  turn could affect the  anticipated rate of  growth 
for this year. This remains  the case and as a  result the UK gross profit  in 
the first half of the year has been below management's expectations.  HCL  has 
continued to  restructure  its UK  operations  and  as a  result  the  overall 
performance at Adjusted EBITDA* level has improved in the UK compared with the
second half of 2011.

 

In Australia, the  Company previously  stated that progress  and trading  were 
encouraging and opportunities for organic growth existed but the national roll
out of  the existing  doctor locum  business was  behind schedule  due to  the 
change in  management. Since  then, trading  in  May and  June has  also  been 
disappointing  for  the  nursing  agency  and  has  been  behind  the  Board's 
expectations. The Board now expects trading  to improve in the second half  of 
the year, as Australia moves into its  seasonally busier time of the year  and 
the benefits of investments made in the Australian business and of changes  in 
the management team begin to come through.

 

Overall, with weaker  trading than  expected, the  group expects  to report  a 
negative Adjusted EBITDA* for the first half.

 

HCL ended the first half with £10.3 million in cash compared to £14.2  million 
as at 31  December 2011.   We remain in  constructive talks  with our  lending 
banks, which have  been supportive to  date, to ensure  banking covenants  are 
appropriate for the business on an on-going basis.

 

Despite the  disappointing  trading  in  the first  half,  the  Board  remains 
confident that  HCL is  well placed  to increase  its share  of NHS  framework 
business and the increased cost it has  put into Australia will begin to  reap 
its reward.

 

*Adjusted EBITDA  is defined  as earnings  before depreciation,  amortisation, 
interest and  tax  and before  highlighted  operating costs  and  share  based 
charges or credits.

For further information please contact:

Healthcare Locums plc

Stephen Burke, Chief Executive Officer

Sue Bygrave, Chief Finance Officer

020 7451 1451

 

Investec Bank plc

Gary Clarence/Patrick Robb/Daniel Adams

020 7597 5970

 

Pelham Bell Pottinger

David Rydell/Emma Kent/Duncan Mayall/Charlotte Offredi

020 7861 3232

 

 

                     This information is provided by RNS
           The company news service from the London Stock Exchange
 
END
 
 
TSTUUSVRUKAWRRR -0- Aug/02/2012 06:01 GMT