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									Regulatory News Announcement: Healthcare Locums - Interim Results




 HEALTHCARE LOCUMS           PLC   NEWS ANNOUNCEMENT
 Healthcare Locums - Interim Results
 R NS Number : 0855D
    Healthcare Locums PLC
    10 September 2008


 H ealthcare Locums plc
 ( 'Healthcare Locums', 'HC L ' o r t h e ' G r o u p ' )

 I nterim results for the s i x m o n t h s e n d e d 3 0 J u n e 2 0 08


 F inancial Highlights

 *       Revenue up 34% to £ 7 9 . 7 m ( 2 0 0 7 : £ 5 9 . 4 m )

 *       Adjusted operating p r o f i t ( 1 ) u p 5 3 % t o £ 7 . 8 m (2007: £5.1m)

 *       Operating profit up 1 6 1 % t o £ 7 . 3 m ( 2 0 0 7 : £ 2 . 8 m)

 *       Profit before tax u p 2 6 3 % t o £ 5 . 8 m ( 2 0 0 7 : £ 1 . 6m)

 *       Basic earnings per s h a r e u p 3 0 0 % t o 4 . 0 p e n c e (2007: 1.0 pence)

 *       Adjusted basic earn i n g s p e r s h a r e ( 2 ) u p 6 3 % t o 4.4 pence (2007: 2.7 pence)

 *       Strong organic like - f o r - l i k e g r o s s p r o f i t g r o wth rate of 30% (2007: 12.8%)

 *      Run rate turnover ( 3 ) n o w i n e x c e s s o f £ 1 7 6 m and run rate gross margin (4)
 n ow over £48m

 *       Net debt reduced to £ 3 1 . 6 m ( Y / E 2 0 0 7 : £ 3 5 . 3 m )

 * Maiden interim dividend d e c l a r e d o f 0 . 8 p ( 2 0 0 7 : n il)

 O perational Highlights

 *      Market leadership p o s i t i o n a c h i e v e d a n d s u s t a ined in all UK operating
 m arkets

 *      Significant develop m e n t a n d c o n t r a c t w i n s i n international permanent
 p lacement division - offi c e s i n L o n d o n , D u b a i a n d F lorida

 *       International partn e r c o u n t r i e s i n c l u d e N e p a l , South Korea and Sri Lanka

 *      Significant contrac t s s i g n e d i n M i d d l e E a s t , including Bumrungrad, EMAAR,
 H AAD/ SEHA and contracts w i t h c l i e n t s c o v e r i n g o v e r 100 facilities across the
 U SA

 *       Accelerating organi c g r o w t h r a t e s i n a l l d i v i sions across the Group

 * Highly incentivised and s u c c e s s f u l s a l e s t e a m s o p erating throughout the UK
 f rom three call centres

 K ate Bleasdale, Chief Exe c u t i v e O f f i c e r , s a i d :
 ' We are very pleased with t h e s e i n t e r i m r e s u l t s , w h ich demonstrate HCL's
 c ontinued strong organic g r o w t h i n e a c h o f i t s o p e r ating divisions. In just
 u nder five years of tradi n g , H C L h a s b e c o m e t h e l e a ding specialist health and
 s ocial care recruitment
 c ompany in the UK, growin g g r o s s m a r g i n r e v e n u e s t o a current run rate of £48m
 o n an annualised basis. H C L h a s a l s o d e v e l o p e d i t s international placement
 b usiness from a 'start-up ' b u s i n e s s , w i t h r e v e n u e s of under £50k in 2006, to a
 s ignificant
 g lobal specialist staffin g p r o v i d e r w i t h r e v e n u e s o n a current run rate of
 a pproximately £4m. Our ne t d e b t h a s f a l l e n t o £ 3 1 . 6 m, compared to £35.3m at the
 2 007 year end. Our aim is t o a c h i e v e 2 0 % m a r k e t s h a re in the next three years.
 We
 c ontinue to focus above a l l o n d e l i v e r i n g m a x i m u m v alue to our shareholders, and
 d elivering on our promise s . '

 ( 1) Adjusted operating pr o f i t r e f e r s t o o p e r a t i n g p rofit before reorganisation
 c osts, amortisation of in t a n g i b l e s a n d s h a r e s c h e m e charges as shown in the
 R esults Summary in the Ch a i r m a n ' s S t a t e m e n t .
 ( 2) Adjusted basic earnin g s p e r s h a r e r e f e r s t o e a r nings per share before
 r eorganisation costs, amo r t i s a t i o n o f i n t a n g i b l e s a nd share scheme charges as
 s hown in the Results Summ a r y i n t h e C h a i r m a n ' s S t a t ement.
 ( 3) Run rate turnover ref e r s t o J u l y 2 0 0 8 t u r n o v e r extrapolated to an annual
 b asis.
 ( 4) Run rate gross margin r e f e r s t o J u l y 2 0 0 8 g r o s s margin extrapolated to an
 a nnual basis.


 F or further information c o n t a c t :




                                                                                                           Page 1 of 12
Regulatory News Announcement: Healthcare Locums - Interim Results


 K ate Bleasdale, Chief Exe c u t i v e
   Diane Jarvis, Finance Di r e c t o r              020 7451 1451

  Bell Pottinger Corporate & F i n a n c i a l
  David Rydell/Emma Kent                             020 7861 3232

  Adrian Hadden
  Collins Stewart Europe L i m i t e d               020 7523 8353


  Tom Jenkins
  Daniel Stewart
                                                     020 7776 6550


 C hairman's Statement

 B USINESS OVERVIEW

 I am pleased to announce a n o t h e r r o b u s t p e r f o r m a n c e with interim results for
 2 008. Revenue saw a 34% i n c r e a s e i n t h e f i r s t h a l f of 2008 to £79.7m (2007:
 £ 59.4m). Adjusted operati n g p r o f i t i n c r e a s e d b y 5 3 % to £7.8m (2007: £5.1m),
 a nd adjusted basic earnin g s p e r s h a r e i n c r e a s e d b y 63% to 4.4p (2007: 2.7p).
 O perating profit increase d b y 1 6 1 % t o £ 7 . 3 m ( 2 0 0 7 : £2.8m) and basic earnings per
 s hare increased 300% to 4 . 0 p ( 2 0 0 7 : 1 . 0 p ) . W e b e l i e ve we have delivered on all
 o f our
 u ndertakings to our share h o l d e r s , a n d i n t e n d t o c o n tinue to do so.

 T he first half of 2008 ha s s e e n a s i g n i f i c a n t i n c r e ase in organic growth rate,
 r ising to 30% (2007: 12.8 % ) . O u r r u n r a t e t u r n o v e r is now in excess of £176m, an
 i ncrease of 10% over the l a s t f o u r m o n t h s , a n d o u r run rate gross margin is now
 o ver
 £ 48m - an increase of 33% o v e r t h e s a m e p e r i o d .

 T he UK locum health and s o c i a l c a r e m a r k e t c o n t i n u e s to grow, with increasing
 d emands for a flexible wo r k f o r c e . M o r e o f o u r c l i e n ts recognise that using a
 f lexible workforce means a r e d u c t i o n i n t h e i r c o s t base, and balancing the mix
 o f permanent to
 f lexible workers is the m o s t c o s t e f f e c t i v e w a y t o run a high quality and lower
 c ost health and social ca r e s e r v i c e . T h i s n e e d f o r a flexible workforce is
 d riven in part by the req u i r e m e n t s o f h e a l t h a n d s o cial care clients providing
 s ervices for the
 r apidly growing ageing po p u l a t i o n . I n a d d i t i o n , t h e demand for flexible workers
 i s being driven by the la c k o f a p p r o p r i a t e l y q u a l i f ied staff in the UK; we are
 n ow sourcing approximatel y 7 0 % o f o u r l o c u m w o r k e r s from abroad.

 O ur international permane n t p l a c e m e n t d i v i s i o n h a s now started to deliver solid
 r esults month on month. I t i s a s a r e s u l t o f o u r r e lationships with
 i nternational partners th a t w e h a v e b e e n s o s u c c e s s ful in developing this
 d ivision, which has incre a s e d
 f rom a less than £50,000 c o n t r i b u t i o n t o a r u n r a t e of approximately £4m in less
 t han two years. This is a s i g n i f i c a n t a c h i e v e m e n t a nd a very exciting
 d evelopment for HCL.

 T he future prospects for t h i s p a r t o f o u r b u s i n e s s are being secured with
 s ignificant contract wins i n t h e M i d d l e E a s t a n d N o rth America. We have been
 w orking with governments a l l o v e r t h e w o r l d t o e n s u re that the scarce supply of
 h ighly qualified
 h ealth and social care st a f f i s b e i n g u s e d e f f i c i e n tly and effectively.

 T he Board's focus is now o n o r g a n i c g r o w t h , r e d u c i n g our cost base, reducing our
 d ebt, and adopting a prog r e s s i v e d i v i d e n d p o l i c y f o r our shareholders.

 W e are pleased to announc e o u r m a i d e n i n t e r i m d i v i d end of 0.8p.


 R ESULTS SUMMARY

                                                6 m o n t h s e n d e d 30      6 months Ended 30 June 2007   12 months Ended 31 Dec 20 0 7
                                                             J u n e 2 0 08
                                                             U n a u d i t ed                    Unaudited                       Unaudit e d
  Business Performance                                                     £m                            £m                                £m
  Revenue                                                              7 9 .7                          59.4                           13 4 . 9
  Adjusted operating profi t                                             7 .8                           5.1                            14.8
  Reorganisation charges                                                    -                           1.9                              3.7
     Amortisation of intan g i b l e s                                   0 .4                           0.3                              0.7
  Share scheme charges                                                   0 .1                           0.1                              0.1
  Operating profit                                                       7 .3                           2.8                            10.3
  Net finance cost                                                       1 .5                           1.2                              2.9
      Adjusted profit befo r e t a x                                     6 .3                           3.9                            11.8
  Profit Before tax                                                      5 .8                           1.6                              7.3
  Basic earnings per share -                                           4 . 0p                          1.0p                            5.4p
  pence
  Adjusted basic earnings p e r                                       4 . 4p                           2.7p                             8.6p
  share- pence


 * Adjusted operating prof i t , a d j u s t e d p r o f i t b e f o r e tax and adjusted basic
 e arnings per share are sh o w n b e f o r e r e o r g a n i s a t i o n charges, amortisation of


                                                                                                                                                 Page 2 of 12
Regulatory News Announcement: Healthcare Locums - Interim Results


 i ntangibles and share sch e m e c h a r g e s .

 O UTLOOK

 F ollowing the completion o f o u r a c q u i s i t i o n s t r a t e g y in April 2007, management's
 f ocus has been on deliver i n g s t r o n g o r g a n i c g r o w t h . As these results
 d emonstrate, we have achi e v e d t h i s a i m , a n d w i l l c o ntinue to build on what we
 h ave achieved so far.

 T he group continues to bu i l d o n i t s m a r k e t l e a d i n g position in each of its
 m arket segments. Our aim i s t o a c h i e v e 2 0 % m a r k e t s hare in the next three years,
 a nd we look forward with c o n f i d e n c e t o a v e r y s u c c e ssful 2008, and a stronger
 p erformance in
 2 009 onwards.

 A lan Walker
 C hairman
 1 0 September 2008


 C hief Executive's Stateme n t

 O VERVIEW

 H CL is now in its fifth y e a r o f t r a d i n g . I n t h e l a s t five years we have grown
 H CL from a start up busin e s s o p e r a t i n g w i t h 1 2 s t a f f, to a company that now
 e mploys more than 350 hig h l y m o t i v a t e d a n d s u c c e s s f ul sales and support staff.
 M aintaining a low
 c ost base, HCL has delive r e d c o n s i s t e n t l y a b o v e a v e rage operating margins,
 c ompared with our competi t o r s . O u r m a n a g e m e n t p r i o r ities are focused on
 m aintaining a low cost ba s e , i m p r o v i n g g r o s s a n d n e t margins, and developing
 f urther our international
 p lacement division. We ha v e b u i l t a t e a m t h a t i s u n rivalled in our industry, and
 t heir commitment to the H C L s t r a t e g y s h o w s t h r o u g h in the results we have
 a chieved.

 F INANCIAL PERFORMANCE

 T he group has yet again d e l i v e r e d a n i m p r e s s i v e f i n ancial performance. Gross
 m argin percentages improv e d i n o u r l o c u m s b u s i n e s s by approximately 2%. Gross
 m argin locum revenue incr e a s e d b y o v e r 4 6 % a n d g r o s s margin permanent placements
 i ncreased by
 2 1%. Strong growth contin u e s i n e a c h o f o u r d i v i s i o ns.

 T he Group maintains a str a t e g i c b a l a n c e b e t w e e n t h e temporary locum business and
 p ermanent placements, as s h o w n i n t h e t a b l e b e l o w :


                 6 months end e d 3 0 J u n e 2 0 0 8     6 m o n t h s ended 30 June 2007
                                      Unaudited                                  Unaudited
  Placements      Revenue   Gross           Gross          Revenue        Gross     Gross
                            Margin      Margin %                          Margin Margin %

                          £'m            £'m          %           £'m          £'m           %

      Locum            77.7         17.7          22.8         57.9        12.1         20.9
  Permanent             2.0          1.7          85.0          1.5         1.4         93.3

         Total         79.7         19.4          24.3         59.4        13.5         22.7

 T he table below shows the s p l i t o f b u s i n e s s i n H C L ' s three divisions by revenue
 a nd gross margin contribu t i o n f o r t h e f i r s t h a l f o f this year compared with the
 f irst half of 2007:


              6 months ended 3 0 J u n e 2 0 0 8      6 m o n t h s e n d ed 30 June 2007
                                  Unaudited                                     Unaudited
               Revenue   Gros s        Gross           Revenue          G ross     Gross
                         Marg i n  Margin %                             M argin Margin %
                   £'m      £'m                %              £'m           £'m          %

  Doctors          29.9          5.5           18.4        20.1          3.8         18.9
     QSWs          22.7          5.1           22.5        21.6          4.8         22.2
    AHPs           27.1          8.8           32.5        17.7          4.9         27.7

     Total         79.7         19 . 4         24.3        59.4         13.5         22.7


 T he gross margin percenta g e s i n b o t h t h e A l l i e d H e a lth Professionals (AHP) and
 Q ualified Social Workers ( Q S W ) d i v i s i o n s h a v e i m p r o ved when compared with the
 s ame period in 2007. The m a r g i n a l d r o p i n t h e D o c t o rs division's gross margin
 p ercentage seen
 i n the first half of 2008 i s a r e s u l t o f t h e J C J a c quisition in April 2007.
 H owever, the Doctors divi s i o n , w h i c h i s n o w n o l o n g er constrained by the
 n ational framework contra c t , i s s h o w i n g s i g n i f i c a n t improvement in the second
 h alf of 2008, and it is n o w
 a chieving an average of 2 5 % g r o s s m a r g i n a s w e l l a s an increase in weekly sales.

 A CQUISITIONS


                                                                                                         Page 3 of 12
Regulatory News Announcement: Healthcare Locums - Interim Results



 T he HCL acquisition strat e g y w a s c o m p l e t e d i n A p r i l 2007, as we achieved our aim
 o f being market leader in e a c h d i v i s i o n , a n d o u r a i m of having a more even split
 o f business between the t h r e e d i v i s i o n s . S i g n i f i c a n t re-structuring costs were
 i ncurred
 d uring 2007 as a result o f o u r i n t e g r a t i o n a n d c o s t cutting program. In the
 f irst half of this year, w e h a v e n o t i n c u r r e d a n y e xceptional costs; however, we
 a re in the process of out s o u r c i n g s o m e o f o u r b a c k office support services, and
 w e expect this to
 d eliver annual savings to t h e g r o u p o f a p p r o x i m a t e l y £500,000 per annum.

 O PERATIONAL REVIEW

 H CL now has a well establ i s h e d t e a m o p e r a t i n g o u t o f three call centres in
 S kipton (Doctors), Lought o n ( A H P ) a n d L o n d o n B r i d g e (QSW), as well as our three
 i nternational placement o f f i c e s i n L o n d o n , D u b a i a n d Florida.

 W e continue to focus abov e a l l o n r e c r u i t i n g g o o d q uality staff from all over
 t he world to work in the U K l o c u m m a r k e t , a n d a l s o to recruit staff for our
 i nternational partners. T o t h i s e n d , w e a r e p l e a s e d to have developed
 r elationships with the
 S outh Korean, Sri Lankan, a n d N e p a l e s e g o v e r n m e n t s enabling HCL to grow its
 d atabase of qualified wor k e r s w h o a r e a b l e t o f i l l the increasing requirements
 f or staff in many parts o f t h e w o r l d . A c c o r d i n g t o the World Health
 O rganisation, there are
 c urrently more than 300,0 0 0 v a c a n c i e s f o r h e a l t h c a r e staff in North America
 a lone, and there are an e s t i m a t e d 4 m i l l i o n v a c a n c i es world wide. This emerging
 a nd growing international m a r k e t p r e s e n t s a s i g n i f i cant opportunity for HCL and
 o ne that we
 c ontinue to invest in and d e v e l o p m o n t h o n m o n t h .

 T he UK remains our primar y m a r k e t p l a c e f o r o u r l o c u m businesses and we continue
 t o serve both the public a n d p r i v a t e s e c t o r . T h e C o mpany continues to enjoy
 p referred supplier status t o t h e N H S a n d o t h e r p u b l ic health and social care
 b odies. In
 a ddition, we supply our l o c u m s t a f f t o t h e p r i v a t e health and social care
 s ectors, retail and pharm a c e u t i c a l c l i e n t s , a n d i n c reasingly to the MOD and many
 o ther clients.

 W e continue to invest in o u r t e c h n o l o g y a n d a r e m o v ing the Group towards a fully
 i ntegrated front and back o f f i c e s y s t e m . F o l l o w i n g 13 acquisitions we inherited
 m any different ways of wo r k i n g , a n d s y s t e m s t o w o r k with. Our back office
 s ystems are now
 a ll fully integrated and o u r f r o n t o f f i c e s y s t e m s w ill be fully integrated
 d uring the second half of 2 0 0 8 . T h e i n v e s t m e n t m a d e in the systems and processes
 o ver the last two years w i l l e n a b l e H C L t o s i g n i f i c antly increase its volumes of
 b usiness with
 m inimal further investmen t i n 2 0 0 9 a n d b e y o n d .

 O UTLOOK

 H CL has established a ver y s t r o n g b a s e f r o m w h i c h t o deliver exceptional organic
 g rowth during the rest of 2 0 0 8 a n d i n t o 2 0 0 9 . W e a r e confident of delivering
 s ignificant value to our s h a r e h o l d e r s , a n d l o o k f o r ward to the rest of 2008 and
 b eyond.

 K ate Bleasdale
 C hief Executive
 1 0th September 2008

        Consolidated Income S t a t e m e n t

                                               Note      S i x m o n t h s ended 30    Six months ended 30   Year ended 31 December
                                                                          J une 2008             June 2007                     2007
                                                                          U naudited             Unaudited                  Audited
                                                                               £'000                 £'000                    £'000

                         Revenue                    2                        79,679                 59,443                  134,877
                   Cost of s a l e s                2                        60,305                 45,972                  103,661
                    Gross p r o f i t               2                        19,374                 13,471                   31,216
  Administrative expenses b e f o r e
            reorganisation c o s t s           2, 3                        (12,058)                (8,764)                 (17,289)
            Reorganisation c o s t s              4                               -                (1,870)                  (3,668)
   Total administrative ex p e n s e s
                                                                           (12,058)               (10,634)                 (20,957)
                   Operating p r o f i t                                      7,316                  2,837                   10,259
                   Financing i n c o m e                                         32                      -                       47
                    Financing c o s t s                                     (1,514)                (1,272)                  (2,989)
             Profit before ta x a t i o n                                     5,834                  1,565                    7,317
                 Income tax e x p e n s e                                   (1,724)                  (599)                  (2,112)
              Profit for the p e r i o d                                      4,110                    966                    5,205

          Basic earnings per s h a r e
                           (pence)                  5                          4.0p                   1.0p                     5.4p
        Diluted earnings per s h a r e
                           (pence)                  5                          4.0p                   1.0p                     5.3p

 T he above results relate t o c o n t i n u i n g o p e r a t i o n s .



                                                                                                                                      Page 4 of 12
Regulatory News Announcement: Healthcare Locums - Interim Results


       Statement of Changes i n E q u i t y

                                              Note            C a l l e d up share    Share premium        Cash flow hedge      Retained ea r n i n g s         Total
                                                                            capital                                reserve
                                                                         U naudited       Unaudited              Unaudited                Una u d i t e d   Unaudited
                                                                              £'000           £'000                  £'000                      £'000           £'000

         Balance at 1 Januar y 2 0 0 7
                                                                            9,395            27,649                     56                          267        37,367
        Profit for the six m o n t h s
               ended 30 Jun e 2 0 0 7                                            -                 -                        -                       966           966
     Fair value gain on cas h f l o w
                              hedge                                              -                 -                   284                             -          284
 T otal recognised income a n d
               expense for p e r i o d                                          -                 -                    284                          966         1,250
           Issue of share c a p i t a l                                       229             1,171                      -                            -         1,400
       Credit in respect of s h a r e
                   scheme c h a r g e s          3                              -                 -                      -                         64              64
          Balance at 30 Jun e 2 0 0 7                                       9,624            28,820                    340                      1,297          40,081
        Profit for the six m o n t h s
           ended 31 Decembe r 2 0 0 7                                            -                 -                        -                   4,239           4,239
     Fair value loss on cas h f l o w
                              hedge                                              -                 -                 (465)                             -        (465)
 T otal recognised income a n d
               expense for p e r i o d                                          -                 -                  (465)                      4,239           3,774
           Issue of share c a p i t a l                                       423             2,946                      -                          -           3,369
          Costs of issue of s h a r e
                          capital                                                -            (124)                         -                          -        (124)
       Credit in respect of s h a r e
                   scheme c h a r g e s          3                               -                 -                        -                        81             81
 B alance at 31 December 20 0 7
                                                                          10,047             31,642                  (125)                      5,617          47,181
        Profit for the six m o n t h s
               ended 30 Jun e 2 0 0 8                                            -                 -                        -                   4,110           4,110
     Fair value gain on cas h f l o w
                              hedge                                              -                 -                   238                             -          238
 T otal recognised income a n d
               expense for p e r i o d                                          -                 -                    238                      4,110           4,348
           Issue of share c a p i t a l                                       334             2,666                      -                          -           3,000
          Costs of issue of s h a r e
                          capital                                                -             (94)                         -                          -         (94)
       Credit in respect of s h a r e
                   scheme c h a r g e s          3                             -                  -                      -                        135             135
          Balance at 30 Jun e 2 0 0 8                                     10,381             34,214                    113                      9,862          54,570
         Consolidated Balan c e S h e e t

                                              As at 30 June 2008          As at 30 June 2007       As at 31 December 2007
                                                       Unaudited                   Unaudited                      Audited

                                                                £'000                      £'000                    £'000
               Non-current a s s e t s
    Property, plant and equ i p m e n t                         1,337                      1,600                    1,591
                         Go o d w i l l                        60,242                     57,829                   60,233
          Other intangible a s s e t s                          9,404                      6,662                    8,395
                                                               70,983                     66,091                   70,219
                   Current a s s e t s
      Trade and other recei v a b l e s                        32,613                     30,725                   31,181
      Derivative financial a s s e t s                            113                        340                        -
        Cash and cash equiv a l e n t s                         1,327                      1,452                    1,122
                                                               34,053                     32,517                   32,303
              Current liabi l i t i e s
         Trade and other pa y a b l e s                      (11,457)                    (8,605)                  (9,904)
            Short term borr o w i n g s                      (15,268)                   (13,691)                 (16,989)
     Current portion of lon g - t e r m
                       borr o w i n g s                       (3,250)                    (4,823)                  (3,717)
              Current tax p a y a b l e                       (2,790)                    (1,575)                  (1,328)
            Short term prov i s i o n s                         (590)                    (8,269)                  (4,867)
             Derivative fin a n c i a l                             -                          -                    (125)
                      liabi l i t i e s
                                                             (33,355)                   (36,963)                 (36,930)
                        Net c u r r e n t                         698                    (4,446)                  (4,627)
               assets/(liabil i t i e s )

           Non-current liabi l i t i e s
              Long term borr o w i n g s                     (14,455)                   (17,666)                 (15,721)
            Deferred tax lia b i l i t y                      (2,026)                    (1,075)                  (1,785)
              Long term prov i s i o n s                        (630)                    (2,823)                    (905)
                                                             (17,111)                   (21,564)                 (18,411)
                            Net a s s e t s                    54,570                     40,081                   47,181

              Capital and re s e r v e s
           Called up share c a p i t a l                       10,381                      9,624                   10,047
                     Share p r e m i u m                       34,214                     28,820                   31,642
                   Cash flow h e d g e                            113                        340                    (125)
                 Retained ea r n i n g s                        9,862                      1,297                    5,617
                     Total E q u i t y                         54,570                     40,081                   47,181


          Consolidated State m e n t o f C a s h F l o w s


                                                                                                                                                            Page 5 of 12
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                                                  Note      S i x m o n t h s ended 30    Six months ended 30   Year ended 31
                                                                             J une 2008             June 2007   December 2007
                                                                             U naudited             Unaudited         Audited
                                                                                  £'000                 £'000           £'000
          Cash flows from ope r a t i n g
                          acti v i t i e s
               Profit for the p e r i o d                                       4,110                     966           5,205
                    Adjustment s f o r :
     Depreciation of property ,
     plant and equipment                                                          333                     313             645
     Amortisation of intangib l e                                                 657                     317           1,024
     assets
     Finance income                                                              (32)                       -            (47)
     Finance expense                                                            1,514                   1,272           2,989
     Share based payments cha r g e s                 3                           135                      64             145
                  Income tax e x p e n s e                                      1,724                     599           2,112
          Cash flows from ope r a t i n g
       activities before chan g e s i n                                         8,441                   3,531          12,073
     working capital and prov i s i o n s
     Changes in receivables                                                  (1,312)                  (5,691)         (5,826)
     Changes in payables                                                         170                    2,941            (33)
     Cash generated from oper a t i o n s                                      7,299                      781           6,214
                     Income ta x p a i d                                       (139)                    (197)           (502)
             Net cash from ope r a t i n g                                     7,160                      584           5,712
                          acti v i t i e s
          Cash flows from inv e s t i n g
                          acti v i t i e s
            Disposal of busine s s a n d                                             -                      -              29
                               assets
      Acquisition of subsidia r y n e t               7
                    of cash ac q u i r e d                                       (9)                  (9,195)         (9,740)
      Contingent consideratio n p a i d                                      (3,165)                  (2,612)         (6,046)
     Acquisition of property, p l a n t
                       and equ i p m e n t                                      (49)                    (682)           (615)
          Acquisition of inta n g i b l e                                    (1,700)                        -         (3,566)
                               assets
         Net cash used in inv e s t i n g
                          acti v i t i e s                                   (4,923)                 (12,489)        (19,938)
          Cash flows from fin a n c i n g
                          acti v i t i e s
       Proceeds from issue of s h a r e                                         2,906                   1,400           4,645
                             capital
                  New loans ac q u i r e d                                       335                    7,211          20,304
      Interest and similar ex p e n s e s                                    (1,482)                  (1,327)         (2,942)
                                   paid
             Repayment of borr o w i n g s                                   (2,070)                    (261)        (16,291)
         Net cash used in fin a n c i n g
                          acti v i t i e s                                      (311)                   7,023           5,716
      Net movement in cash an d c a s h
                         equiv a l e n t s                                    1,926                   (4,882)         (8,510)
               Opening cash an d c a s h                                   (15,867)                   (7,357)         (7,357)
                         equiv a l e n t s
               Closing cash an d c a s h                                   (13,941)                  (12,239)        (15,867)
                         equiv a l e n t s

            Notes to the Inter i m F i n a n c i a l S t a t e m e n t s

 1               Accounting pol i c i e s

 T he accounting policies s e t o u t b e l o w h a v e , u n l e s s otherwise stated, been
 a pplied consistently to a l l p e r i o d s p r e s e n t e d i n t h is statement.

 B asis of preparation
 T his unaudited consolidat e d i n t e r i m f i n a n c i a l i n f o r mation has been prepared
 u sing the recognition and m e a s u r e m e n t p r i n c i p l e s o f International Accounting
 S tandards, International F i n a n c i a l R e p o r t i n g S t a n d a rds and Interpretations
 a dopted for use in the
 E uropean Union (collectiv e l y ' a d o p t e d I F R S s ' ) . T h e principal accounting policies
 u sed in preparing the int e r i m r e s u l t s a r e u n c h a n g e d from those disclosed in the
 G roup's financial stateme n t s f o r t h e y e a r e n d e d 3 1 December 2007.

 T he unaudited financial i n f o r m a t i o n p r e s e n t e d i n t h is document has been prepared
 o n the basis of the expec t e d a c c o u n t i n g p o l i c i e s w h ich the Group will comply
 w ith in the accounts to 3 1 D e c e m b e r 2 0 0 8 a n d o n t h e basis of all adopted
 I nternational
 F inancial Reporting Stand a r d s , i n c l u d i n g I n t e r n a t i o nal Accounting Standards
 ( 'IAS') and interpretatio n s i s s u e d b y t h e I n t e r n a t i onal Accounting Standards
 B oard ('IASB') and its co m m i t t e e s , a s a d o p t e d b y t h e EU. These are subject to
 o ngoing amendment by the
 I ASB and subsequent endor s e m e n t b y t h e E u r o p e a n C o m mission and are therefore
 s ubject to possible chang e . A s a r e s u l t , i n f o r m a t i o n contained within this
 r elease will require upda t i n g f o r a n y s u b s e q u e n t a m endment to adopted IFRS
 r equired for first time
 a doption or those new sta n d a r d s t h a t t h e G r o u p m a y elect to adopt early.

 T he financial statements h a v e b e e n p r e p a r e d i n a c c o rdance with applicable
 a ccounting standards, and u n d e r t h e h i s t o r i c a l c o s t accounting rules, except for
 d erivative financial inst r u m e n t s w h i c h a r e s t a t e d a t their fair value.


                                                                                                                                Page 6 of 12
Regulatory News Announcement: Healthcare Locums - Interim Results



 T he financial statements f o r t h e t w e l v e m o n t h s e n d e d 31 December 2007 have been
 r eported on by the Compan y ' s a u d i t o r s a n d d e l i v e r e d to the Registrar of
 C ompanies. The report of t h e a u d i t o r s o n s u c h a c c o u nts was unqualified, and did
 n ot include
 r eferences to any matters t o w h i c h t h e a u d i t o r s d r e w attention without
 q ualifying their report, a n d d i d n o t c o n t a i n a n y s t atement under Sections 237(2)
 o r 237 (3) of the Compani e s A c t 1 9 8 5 .

 B asis of consolidation
 S ubsidiaries are fully co n s o l i d a t e d f r o m t h e d a t e o n which the power to control
 i s transferred to the Gro u p . A l l i n t r a - g r o u p t r a n s a ctions, balances, income and
 e xpenses are eliminated o n c o n s o l i d a t i o n .

 B usiness combinations
 T he acquisition of subsid i a r i e s i s a c c o u n t e d f o r u s ing the purchase method. The
 c ost of acquisition is me a s u r e d a t t h e a g g r e g a t e o f the fair values, at the date
 o f exchange, of assets gi v e n , l i a b i l i t i e s i n c u r r e d or assumed, and equity
 i nstruments
 i ssued by the Group in ex c h a n g e f o r c o n t r o l o f t h e acquiree, plus any costs
 a ttributable to the busin e s s c o m b i n a t i o n . T h e a c q u i ree's identifiable assets,
 l iabilities and contingen t l i a b i l i t i e s t h a t m e e t t h e conditions for recognition
 u nder IFRS 3
 ' Business Combinations' a r e r e c o g n i s e d a t f a i r v a l u e at the acquisition date.

 R evenue recognition
 R evenue represents sales t o e x t e r n a l c u s t o m e r s a t i nvoiced amounts less value
 a dded tax or local taxes o n s a l e s . T h e s e c o n s i s t o f :
 *      Revenue from tempor a r y p l a c e m e n t s w h i c h r e p r e sents amounts billed for the
 s ervices of temporary sta f f i n c l u d i n g t h e s a l a r y c o st of these staff. This is
 r ecognised when the servi c e h a s b e e n p r o v i d e d ;
 *      Revenue from perman e n t p l a c e m e n t s i s r e c o g n i s ed at the date where an offer
 h as been accepted by the c a n d i d a t e , e x c e p t w h e r e t h e offer is contingent on
 f uture events which are o u t s i d e o f t h e G r o u p ' s c o n t rol. In these cases revenue
 i s only

 r ecognised once any mater i a l c o n t i n g e n c i e s h a v e b e e n resolved. A provision is
 m ade against accrued inco m e f o r p o s s i b l e c a n c e l l a t i ons of placements by the
 c andidate prior to the co m m e n c e m e n t o f e m p l o y m e n t b ased on past experience of
 t his occurring.

 A ll revenue relates to th e r e n d e r i n g o f s e r v i c e s .

 S hare based payment
 T he Group operates an equ i t y - s e t t l e d , s h a r e - b a s e d c ompensation plan. When share
 o ptions are awarded to em p l o y e e s a c h a r g e i s m a d e t o the Income Statement
 r ecognising the fair valu e o f t h e o p t i o n s i s s u e d o v er the vesting period. The
 o ptions vest after
 a specific period (3 year s f o r o p t i o n s i s s u e d f r o m 2006 onwards, 1 year for
 o ptions issued earlier). T h e r e a r e n o v e s t i n g c o n d i tions, other than that the
 o ptions lapse should the e m p l o y e e l e a v e t h e G r o u p . The cumulative expense is
 a djusted for failure to
 a chieve non-market vestin g c o n d i t i o n s , s u c h a s a n e mployee leaving.

 U nder this standard the c r e d i t e n t r y f o r t h i s c h a r g e is taken to the Retained
 E arnings and reported in t h e S t a t e m e n t o f C h a n g e s I n Equity.

 T axation
 T he charge for current ta x a t i o n i s p r o v i d e d a t r a t e s of corporation tax that
 h ave been enacted or subs t a n t i a l l y e n a c t e d b y t h e b alance sheet date. Current
 t ax is based on taxable p r o f i t s f o r t h e y e a r a n d a n y adjustments to tax payable
 i n respect of
 p revious years.

 D eferred tax is provided, u s i n g t h e b a l a n c e s h e e t l iability method, on all
 t emporary differences whi c h r e s u l t i n a n o b l i g a t i o n at the balance sheet date to
 p ay more tax, or a right t o p a y l e s s t a x , a t a f u t u re date, based on tax rates
 a nd tax laws
 t hat have been enacted or s u b s t a n t i v e l y e n a c t e d a t the balance sheet date.
 T emporary differences ari s e b e t w e e n t h e t a x b a s e s o f assets and liabilities and
 t heir carrying amounts in t h e f i n a n c i a l s t a t e m e n t s . The exceptions, where
 d eferred tax assets are
 n ot recognised nor deferr e d t a x l i a b i l i t i e s a r e n o t provided, are:
 *      At initial recognit i o n o f g o o d w i l l ;
 *      The initial recogni t i o n o f a n a s s e t o r l i a b i l ity in a transaction that is
 n ot a business combinatio n a n d , a t t h e t i m e o f t h e transaction, affects neither
 t he accounting profit nor t a x a b l e p r o f i t o r l o s s ; a nd
 *      Taxable temporary d i f f e r e n c e s a s s o c i a t e d w i t h investments in subsidiaries
 w here the timing of the r e v e r s a l o f t h e t e m p o r a r y d ifference can be controlled
 a nd it is probable that t h e t e m p o r a r y d i f f e r e n c e w i ll not reverse in the
 f oreseeable future.
 T he carrying amount of de f e r r e d t a x a s s e t s i s r e v i e wed at each balance sheet
 d ate and reduced to the e x t e n t t h a t i t i s n o l o n g e r probable that sufficient
 t axable profit will be av a i l a b l e t o a l l o w a l l o r p a rt of the deferred income tax
 a sset to be
 u tilised.

 G oodwill
 G oodwill represents the e x c e s s o f t h e c o s t o f a n a c quisition of a business over


                                                                                                           Page 7 of 12
Regulatory News Announcement: Healthcare Locums - Interim Results


 t he fair value of the ide n t i f i a b l e a s s e t s , l i a b i l i t ies and contingent
 l iabilities acquired. Goo d w i l l i s t e s t e d a n n u a l l y f or any impairment and carried
 a t cost less
 a ccumulated impairment lo s s e s . A n y i m p a i r m e n t c h a r g e would be included within
 a dministrative expenses i n t h e I n c o m e S t a t e m e n t . G o odwill impairment charges
 c annot be reversed. As th e G r o u p h a s t a k e n a d v a n t a g e of the exemption from
 r estating all pre
 t ransition period acquisi t i o n s u n d e r I F R S 3 ' B u s i n e ss Combinations', goodwill
 i ncludes intangibles aris i n g o n t h o s e a c q u i s i t i o n s that are not separately
 i dentifiable.

 O ther intangible assets
 I ntangible assets other t h a n g o o d w i l l a c q u i r e d b y t he Group as part of a
 b usiness combination are s t a t e d a t f a i r v a l u e a n d a re amortised on a
 s traight-line basis over t h e i r u s e f u l l i v e s i n a c c o rdance with IAS 38
 ' Intangible Assets'. The a m o r t i s a t i o n
 i s shown as part of Admin i s t r a t i v e E x p e n s e s w i t h i n the Consolidated Income
 S tatement.


 T he estimated useful live s a r e a s f o l l o w s :

           Customer relation s h i p s                -           10 years
           Computer software                              -         5 y e a rs
           Knowledge databas e                    -               2 years

 C osts that are directly a s s o c i a t e d w i t h t h e p r o d u c t ion of the candidate
 d atabases are recognised a s i n t a n g i b l e a s s e t s . D i r e ct costs include those of
 e mployees as well as exte r n a l c o s t s i n c u r r e d i d e n t i fying and recruiting the
 c andidates. The costs of
 a ssembling a candidate da t a b a s e r e c o g n i s e d a s a n a s set are amortised as the
 r elated candidates accept e m p l o y m e n t o f f e r s . T h e a m ortisation is shown as part
 o f Cost of Sales expenses w i t h i n t h e C o n s o l i d a t e d I ncome Statement.

 T he other intangible asse t s a r e s u b j e c t t o i m p a i r m e nt tests whenever events or
 c hanges in circumstances i n d i c a t e t h a t t h e i r c a r r y i ng amount may not be
 r ecoverable. When the car r y i n g v a l u e o f a n a s s e t e x ceeds its recoverable amount
 t he asset is written
 d own accordingly. Any imp a i r m e n t c h a r g e w o u l d b e i n cluded within administrative
 e xpenses with the Consoli d a t e d I n c o m e S t a t e m e n t .

 P roperty, plant and equip m e n t
 I tems of property, plant a n d e q u i p m e n t a r e i n i t i a l l y recognised at cost. As well
 a s the purchase price, co s t i n c l u d e s d i r e c t l y a t t r i butable costs. All items are
 c arried at depreciated co s t .

 D epreciation is provided t o w r i t e o f f t h e c o s t , l e s s estimated residual values,
 o f all tangible fixed ass e t s , e v e n l y o v e r t h e i r e x p ected useful lives. It is
 c alculated at the followi n g r a t e s :

 I mprovements to leasehold b u i l d i n g s                 -   t e r m o f lease
      Motor vehicles                                                             - 4 years
      Office and computer e q u i p m e n t                           -   3 to 8 years

 F inancial instruments
 T he Group classifies its f i n a n c i a l a s s e t s a n d l i a b i lities into one of the
 f ollowing categories, dep e n d i n g o n t h e p u r p o s e f o r which the asset was acquired.
 T he Group's accounting po l i c y f o r e a c h c a t e g o r y i s as follows:
 H edge accounting:   The Gr o u p h o l d s a n u m b e r o f i n t e rest rate instruments,
 p rotecting a portion of t h e G r o u p ' s b o r r o w i n g s a g a i nst movements in interest
 r ates. These derivatives h a v e b e e n v a l u e d a t f a i r v alue at each balance sheet
 d ate and any movements
 i n this fair value have b e e n r e c o g n i s e d i n e q u i t y . Hedge accounting is applied
 t o financial assets and f i n a n c i a l l i a b i l i t i e s o n l y where all of the following
 c riteria are met:
 *       At the inception of t h e h e d g e t h e r e i s a f o r m al designation and
 d ocumentation of the hedg i n g r e l a t i o n s h i p a n d t h e g roup's risk management
 o bjective and strategy fo r u n d e r t a k i n g t h e h e d g e .
 *       For cash flow hedge s , t h e h e d g e d i t e m i n a f o recast transaction is highly
 p robable and presents an e x p o s u r e t o v a r i a t i o n s i n cash flows that could
 u ltimately affect profit o r l o s s .
 *       The cumulative chan g e i n t h e v a l u e o f t h e h e d ging instrument is expected
 t o be between 80-125% of t h e c u m u l a t i v e c h a n g e i n t he fair value or cash flows
 o f the hedged item attrib u t a b l e t o t h e r i s k h e d g e d (i.e. it is expected to be
 h ighly
 e ffective).
 *       The effectiveness o f t h e h e d g e c a n b e r e l i a b l y measured.
 *       The hedge remains h i g h l y e f f e c t i v e o n e a c h d a te it is tested. The Group
 h as chosen to test the ef f e c t i v e n e s s o f i t s h e d g e s on a twice yearly basis.
 T he Group does not hold o r i s s u e d e r i v a t i v e i n s t r u m ents for speculative
 p urposes.

 C ash flow hedge: The effe c t i v e p a r t o f t h e d e r i v a t i ves used to manage cash flow
 i nterest rate risk are me a s u r e d a t f a i r v a l u e w i t h changes in fair value
 r ecognised directly in eq u i t y . T h e g a i n o r l o s s r e l ating to any ineffective
 p ortion is recognised
 d irectly in the income st a t e m e n t w i t h i n f i n a n c e e x p ense of finance income line.

 F inancial assets:


                                                                                                         Page 8 of 12
Regulatory News Announcement: Healthcare Locums - Interim Results


 L oans and receivables: Th e s e a s s e t s a r e n o n - d e r i v a t ive financial assets with
 f ixed or determinable pay m e n t s t h a t a r e n o t q u o t e d in an active market. They
 a rise principally through t h e p r o v i s i o n o f s e r v i c e s to customers (trade
 r eceivables), but also
 i ncorporate other types o f c o n t r a c t u a l m o n e t a r y a s s et. They are initially
 r ecognised at fair value a n d s u b s e q u e n t l y a t a m o r t i sed cost. Impairment
 p rovisions are recognised w h e r e t h e r e i s e v i d e n c e t hat the Group will be unable
 t o collect all of the amo u n t s
 d ue under the terms recei v a b l e . T r a d e r e c e i v a b l e s a re reported net of impairment
 p rovisions, which due to t h e n a t u r e o f t h e c u s t o m e r base are insignificant. The
 G roups loans and receivab l e s c o m p r i s e t r a d e a n d o t h er receivables and cash in
 t he balance
 s heet.

 O ther financial liabiliti e s :
 T rade payables and other s h o r t - t e r m m o n e t a r y l i a b i l ities: These are initially
 r ecognised at fair value a n d s u b s e q u e n t l y a t a m o r t i sed cost.
 B ank borrowings: These li a b i l i t i e s a r e i n i t i a l l y r e cognised at the amount
 a dvanced net of any trans a c t i o n c o s t s d i r e c t l y a t t r ibutable to the issue of the
 i nstrument. The costs of r a i s i n g t h e f i n a n c i n g a r e offset against the loan
 a mount and are
 a mortised over the term o f t h e l o a n a n d a r e i n c l u d e d within finance costs on the
 f ace of the Income Statem e n t .

 C ash and cash equivalents
 C ash and cash equivalents i n c l u d e c a s h i n h a n d , d e p osits held at call with banks
 a nd short term borrowings w h i c h i n c l u d e b a n k o v e r d r afts. Short term borrowings
 a re shown within current l i a b i l i t i e s o n t h e b a l a n c e sheet, and are included
 w ithin cash and
 c ash equivalents for the p u r p o s e s o f t h e S t a t e m e n t of Cash Flows.

 S hare capital
 F inancial instruments iss u e d b y t h e G r o u p a r e t r e a t ed as equity only to the
 e xtent that they do not m e e t t h e d e f i n i t i o n o f a f i nancial liability. The
 G roup's ordinary shares a r e c l a s s i f i e d a s e q u i t y i n struments.

 2       Segmental Analysis

 T he group provides recrui t m e n t s e r v i c e s f o r t h r e e t ypes of health and social
 c are staff, being Doctors , Q u a l i f i e d S o c i a l W o r k e r s (QSW) and Allied Health
 P rofessionals (AHP). It v i e w s t h e s e a s i t s p r i n c i p a l business segments. Sales
 a rise exclusively in
 t he UK and are predominan t l y t o p u b l i c s e c t o r c l i e n ts. The Board receives
 r egular information on th e r e v e n u e a n d c o s t s o f s a l es of each of its principal
 b usiness segments, it doe s n o t r e c e i v e s e g m e n t i n f o rmation on the costs below
 g ross profit or on
 a ssets or liabilities. Th e r e i s n o r e a s o n a b l e b a s i s by which overhead expenses,
 a ssets and liabilities ca n b e a l l o c a t e d t o t h e t h r e e segments and therefore no
 a dditional segmental info r m a t i o n h a s b e e n d i s c l o s e d .


                                                                  Doctors                                       Qualified Social Work e r s
                                            6 months ended        6 months ended        Year ended     6 months ended 6 months ended Y e a r e n d e d
                                              30 June 2008          30 June 2007                31       30 June 2008    30 June 2007              31
                                                                                          December                                          December

                                                                                              2007                                                       2007
                                                       £'000                 £'000           £'000               £'000             £'000                £'000
     Revenue
     External sales                                   29,893                20,130          52,560             22,728            21,598                44,176
     Result
     Segment gross profit
                                                       5,449                 3,799           9,482               5,081             4,813               10,299
     Unallocated administrati v e
     expenses
     Operating profit
     Financing income
     Financing costs
     Profit before taxation


                                                    A l l i e d H e alth Professionals                                         Group
                                             6 months ended           6 months ended Year ended            6 months ended      6 months e n d e d        Year ended
                                               30 June 2008             30 June 2007         31              30 June 2008        30 Jun e 2 0 0 7                31
                                                                                       December                                                            December
                                                                                           2007                                                                2007
                                                        £'000                  £'000      £'000                      £'000                  £'000             £'000
     Revenue
     External sales                                    27,058                 17,715          38,141                79,679                 59,443           134,877
     Result
     Segment gross profit
                                                         8,844                  4,859         11,435                19,374                 13,471               31,216
     Unallocated administrati v e
     expenses                                                                                                     (12,058)            (1 0 , 6 3 4 )       (20,957)
     Operating profit                                                                                                7,316                 2,837             10,259
     Financing income
                                                                                                                         32                       -                 47
     Financing costs
                                                                                                                   (1,514)              (1,272)             (2,989)


                                                                                                                                                         Page 9 of 12
Regulatory News Announcement: Healthcare Locums - Interim Results


     Profit before taxation
                                                                                                                       5,834   1,565         7,317


 3       Administrative expen s e s b e f o r e r e o r g a n i s a t i o n costs

                                                      6 months       6 m o nths                          12 months
                                                         ended              ended                              ended
                                                       30 June           3 0 June                        31 December
                                                          2008               2007                               2007

                                                  Unaudited            U n a udited                          Audited
                                                      £'000                   £'000                            £'000
     Administrative expenses b e f o r e
      reorganisation costs in c l u d e :

         Amortisation of inta n g i b l e
                  assets char g e d t o                    393                  317                              671
            administrative ex p e n s e s
               Share scheme c h a r g e s                  135                       64                          145

 4 Reorganisation costs

                                        6 months          6 months                        12 months
                                           ended               ended                            ended
                                         30 June             30 June                      31 December
                                            2008                2007                             2007

                                      Unaudited            Unaudited                           Audited
                                          £'000                £'000                             £'000

     Reorganisation costs                         -              1,870                           3,668

 T he reorganisation cost i n 2 0 0 7 c o m p r i s e s c h a r g e s f or integration,
 r eorganisation and restru c t u r i n g c o s t s f o l l o w i n g t h e acquisitions of Blue Group,
 T empaid, Fairstaff, Medir e c a n d E l i t e i n D e c e m b e r 2 006 and JCJ Locums Ltd in
 A pril 2007. These costs
 i nclude expenses relating t o t h e r e s t r u c t u r i n g o f t hese businesses to fully
 i ntegrate each of them wi t h i n t h e H C L G r o u p , a n d t h ese businesses are now fully
 i ntegrated within the Gro u p o p e r a t i o n s .

 5 Earnings per share

                                                      6 months           6 months                    12 months
                                                           ended              ended                        ended
                                                         30 June            30 June                  31 December
                                                            2008               2007                         2007

                                                       Unaudited          U naudited                        Audited
                                                          Number              Number                         Number
      Number of ordinary 10p s h a r e s
         Weighted average num b e r o f           102,616,167            9 5 ,372,339                    96,909,541
                              shares
           Dilution effect of s h a r e                  280,746             758,487                        482,637
                           op t i o n s

       Weighted average num b e r o f
 s hares used for diluted E P S     102,896,913                  9 6 , 1 3 0 , 826                97,392,178

                                                           £'000                £'000                         £'000

              Profit for the p e r i o d                   4,110                  966                         5,205
     Add back: reorganisation c o s t s                        -                1,870                         3,668
          Add back: amortisat i o n o f                      393                  317                           671
                        intan g i b l e s
     Add back: share scheme c h a r g e s                    135                          64                    145
                Less: tax eff e c t o f
              reorganisation c o s t s ,                   (158)                (675)                       (1,345)
      amortisation and share s c h e m e
                            charges

           Adjusted earnings f o r t h e                   4,480                2,542                         8,344
                               period

                                                           Pence                Pence                         Pence

        Basic earnings per or d i n a r y                   4.0p                     1.0p                      5.4p
                      share o f 1 0 p
      Diluted earnings per or d i n a r y                   4.0p                     1.0p                      5.3p
                       share o f 1 0 p

        Adjusted basic earnin g s p e r                     4.4p                     2.7p                      8.6p
              ordinary share o f 1 0 p
      Adjusted diluted earnin g s p e r                     4.4p                     2.6p                      8.6p
             ordinary share o f 1 0 p


 6 Acquisition of JCJ Apri l 2 0 0 7



                                                                                                                                       Page 10 of 12
Regulatory News Announcement: Healthcare Locums - Interim Results


 H ealthcare Locums Plc pur c h a s e d 1 0 0 % o f t h e v o t i n g equity instruments of JCJ
 G roup Ltd (JCJ Locums) on 2 0 A p r i l 2 0 0 7 f o r a t o t a l consideration of £5,500,000,
 p lus capitalised costs of a c q u i s i t i o n a m o u n t i n g t o £939,000. The principal
 a ctivity
 o f JCJ Locums is the prov i s i o n o f r e c r u i t m e n t s e r v i ces, on a temporary and
 p ermanent basis.

 I n calculating the goodwi l l a r i s i n g o n t h e a c q u i s i t ion the fair values of the
 n et assets acquired have b e e n a s s e s s e d .

                                               Book value         F a i r v alue adjustments      Fair value

                                                   Audited                             Audited       Audited
                                                     £'000                               £'000         £'000
              Net assets ac q u i r e d
    Property, plant and equ i p m e n t                106                                 (92)           14
        Trade & other recei v a b l e s              4,154                                    -        4,154
           Trade & other pa y a b l e s            (1,153)                                    -      (1,153)
            Short term borr o w i n g s            (2,990)                                    -      (2,990)
           Current tax rece i v a b l e                954                                    -          954
            Short term prov i s i o n s              (286)                                    -        (286)
     Onerous contracts prov i s i o n              (3,260)                                    -      (3,260)
           Deferred tax lia b i l i t y                 17                                    -           17

                 Net assets ac q u i r e d         (2,458)                                 (92)      (2,550)

                    Conside r a t i o n
    Purchase consideration - c a s h                                                                      5,500
             Costs of acqui s i t i o n                                                                     939

         Total cost of acqui s i t i o n                                                                  6,439

                            Go o d w i l l
                 Goodwill aris i n g o n                                                                  8,989
                         acqui s i t i o n

 T he goodwill arising on t h e a c q u i s i t i o n o f J C J L o c u ms is attributable to the
 a nticipated profitability o f t h e G r o u p ' s s e r v i c e s a nd the anticipated future
 o perating synergies from t h e c o m b i n a t i o n .

 7 Cash flows in respect o f p u r c h a s e o f a c q u i s i t i o n s


                                                      6 m o n t h s e n d e d 30     6 monthsended30        12 monthsended31 December2007
                                                                   J u n e 2 0 08           June2007
                                                       U n a u d i t e d £ * 0 00     Unaudited£*000                         Audited£*000

  Total anticipated                                                            9                  5,500                             5,500
  consideration
  Costs of acquisitions                                                        -                  1,148                             1,140

                                                                               9                  6,648                             6,640

  Less net current asset                                                       -                  (440)                               110
  adjustment, not yet reco v e r e d

                                                                               9                  6,208                             6,750

  Add net borrowings acqui r e d                                               -                  2,987                             2,990

                                                                               9                  9,195                             9,740


 8 Financial Instruments

 T he Group's principal fin a n c i a l i n s t r u m e n t s c o m p r i s e bank term loans, bank
 o verdraft facilities, inv o i c e d i s c o u n t i n g f a c i l i t i e s and cash.

 T he Group's bank loans, £ 1 6 . 6 m a s a t 3 0 J u n e 2 0 0 8 , are based upon LIBOR plus
 m argin. The invoice disco u n t i n g f a c i l i t i e s , £ 1 5 . 3 m as at 30 June 2008, are based
 u pon floating rates which a r e b a s e r a t e p l u s m a r g i n .

 T he Group considers its c a p i t a l t o c o m p r i s e i t s o r d inary share capital, share
 p remium, cash flow hedge r e s e r v e a n d a c c u m u l a t e d r e tained earnings. In managing
 i ts capital the Group's p r i m a r y o b j e c t i v e i s t o e n s ure its continued ability to
 p rovide a

 g rowing return for its eq u i t y s h a r e h o l d e r s t h r o u g h a combination of capital
 g rowth and distributions. I n o r d e r t o a c h i e v e t h i s objective the Group seeks to
 m aintain a gearing ratio t h a t b a l a n c e s r i s k s a n d r e turns at an acceptable level
 a nd also to
 m aintain a sufficient fun d i n g b a s e t o e n a b l e t h e G r oup to meet its working
 c apital and strategic inv e s t m e n t n e e d s . T h e G r o u p ' s gearing ratio at the balance
 s heet date is shown below :


                                                  30 June 2008             3 0 June 2007   31 December 2007
                                               Unaudited £*000                 Unaudited       Audited£*000
                                                                                   £*000


                                                                                                                                            Page 11 of 12
Regulatory News Announcement: Healthcare Locums - Interim Results


  Cash in hand                                          (1,327)               (1,452)   (1,122)
  Invoice discounting faci l i t y                       15,268                13,691    16,989
  Bank loans                                             16,643                20,000    18,100
  Obligations under financ e                              1,062                 2,488     1,338
  leases and hire purchase
  contracts
  Net borrowings                                         31,646                34,727    35,305

  Share capital                                          10,381                 9,624    10,047
  Share premium                                          34,214                28,820    31,642
  Cash flow hedge reserve                                   113                   340     (125)
  Profit and loss account                                 9,862                 1,297     5,617
  Total capital                                          54,570                40,081    47,181

  Gearing ratio                                              58%                  87%       75%


 T his information is provi d e d b y R N S
 T he company news service f r o m t h e L o n d o n S t o c k E x c h ange

    END

 I R FKCKBABKDPCK




                                                                                                  Page 12 of 12

								
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