That Healthcare Locums survived to publish these figures at all - after its annus horribilis - was an achievement in itself. Shares in the healthcare staffing company were suspended between January and September after accounting irregularities were uncovered and only a rescue fundraising, which heavily diluted most equity holders, has allowed the company to continue to trade.
An entirely new board has been appointed and tasked with refocusing the UK business, where it remains a top three healthcare staffing provider, despite its woes. It's also working on driving growth at the Australian staffing business, acquired last December, and which is already the largest operator there. The proceeds from the sale of an Australian homecare division and the rescue fundraising have been used to reduce debt - had that activity taken place before the year-end, net debt would have reduced to £23.9m.
The failure to adapt the UK business to rapidly changing NHS trends was reflected in a slump in revenues across all business sectors, although improved margins helped the nursing business deliver a 14 per cent increase in gross profit. Management is acting to align the business with current NHS procurement trends, which favour taking staff under framework agreements and which are usually lower margin. Still, opportunities in Australia look good with demand for healthcare staff continuing to outstrip supply.
HEALTHCARE LOCUMS (HLO) | ||||
|---|---|---|---|---|
| ORD PRICE: | 5p | MARKET VALUE: | £42.4m | |
| TOUCH: | 5-6p | 12-MONTH HIGH: | 141p | LOW: 5p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | * | NET DEBT: | £121m | |
| Half-year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | 74.9 | 0.8 | 0.70 | 1.8 |
| 2011 | 117 | -19.0 | -15.7 | nil |
| % change | +56 | - | - | - |
Ex-div:- Payment:- *Negative equity shareholders' equity | ||||
