Healthcare Locums PLC Trading Update (1348J)
02 August 2012 - 4:01PM
UK Regulatory
TIDMHLO
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 GBP10.3 million in cash compared
to GBP14.2 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
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