Connecting to LinkedIn...

Blank

Healthcare Locums Final results

Financial Highlights

Revenue increased by 5% to 172.1m (2008 restated: 164.5m)
Gross margin increased by 23% to 52.9m (2008 restated: 43.1m)
Adjusted operating profit* increased by 31% to 25.2m (2008 restated: 19.3m), despite adoption of longer term permanent placement income accounting policy
Operating profit increased by 18% to 19.7m (2008 restated: 16.7m)
Net margin as a percentage increased by 13% to 11.5% (2008 restated: 10.2%)
Adjusted net margin** as a percentage increased by 25% to 14.6% (2008 restated: 11.7%)
Adjusted profit before tax*** increased by 41% to 23.2m (2008 restated: 16.5m)
Profit before tax increased by 27% to 17.7m (2008 restated: 13.9m)
Adjusted basic earnings per share**** increased by 37% to 16.0 pence (2008 restated: 11.7 pence)
Basic earnings per share increased by 24% to 12.3 pence (2008 restated: 9.9 pence)
Net debt has fallen to 17.3m (2008: 26.9m)
Second interim dividend of 1.5p announced to be paid on 1 April 2010
Final proposed dividend of 1.9p per share to be declared by the Board bringing total dividend for 2009 to 5.0p (2008: 2.0p per share)

Operational Highlights

Strong organic like-for-like gross profit growth rate of 23% (2008 restated: 44%)
International permanent placement division a key growth driver - delivering strong pipeline in the second half of 2009
The passing of President Obama's healthcare reforms is likely to increase demand for the 12,500 international candidates now on our database
The US needs 1.2m new nurses by 2014, this is now expected to increase to circa 1.6m
Demand for healthcare staff continues to grow from the NHS with a 20% increase in the market between 2008-2009 (Laing and Buisson 2010)
Growing proportion of private sector business, particularly internationally
Strategic shift towards higher margin permanent placements - International & UK permanent placements together now contribute 10.2% of Group gross margin (2008 restated: 6.0%)
Global networks becoming increasingly important in meeting our clients' needs in the UK
New offices opened in Australia, Canada and the Middle East
US operation continues successful expansion
Continued streamlining of back office and support functions resulted in significant cost savings and improved adjusted net margin percentage** to 15% (2008 restated: 12%)

* Adjusted operating profit refers to operating profit before reorganisation charges, amortisation of intangibles and share scheme charges as shown in the Results Summary in the Chairman's Statement
** Adjusted net margin refers to adjusted operating profit as a % of revenue
*** Adjusted profit before tax refers to profit before tax before reorganisation charges, amortisation of intangibles and share scheme charges as shown in the Results Summary in the Chairman's Statement
**** Adjusted earnings per share refers to earnings per share before reorganisation charges, amortisation of intangibles and share scheme charges as shown in the Results Summary in the Chairman's Statement

Kate Bleasdale, Executive Vice Chairman, said:"We are very pleased with these results which once again demonstrate the continued success of our strategy of pursuing organic growth in the UK, and international expansion. In the UK we continue to benefit from rising NHS demand for our cost efficient staffing services. Our investment in international recruitment is bearing fruit delivering a strong pipeline of candidates, and significant contract wins during 2009 will benefit 2010 and beyond. The database of international candidates has increased from 4,500 in 2008 to over 12,500 by the end of 2009. We have adopted a more prudent accounting policy to reflect the longer term income generation associated with this growth, particularly now that the US healthcare reform bill has been passed and demand from this market increases significantly. We have positioned our business as a worldwide operator in the specialist health and social care markets. We look forward to the future with confidence."

Tags:

Articles similar to

Articles similar to