Revenues were up from 74.9 million Pounds in H1 2010 to 116.8 million Pounds in H1 2011 at Healthcare Locums Plc (HLO:LSE), the beleaguered specialist health and social care staffing firm.

Interim results for the six months ended 30 June 2011 reveal that gross profit was up from 20.9 million Pounds in H1 2010 to 26.3 million Pounds in H1 2010.

Profit before tax was down from 800,000 Pounds in H1 2010 to a loss of -19 million Pounds in H1 2011.

Business challenges and the new board's response

• HCL has a new board and executive management team, which was formed during the first half of 2011.

• Challenges faced since the beginning of 2011 have been considerable. The new board has needed to extensively restate prior year figures, refinance the group to ensure future stability and plan the re-engineering of the UK business to meet the significantly changing needs of the healthcare staffing market.

• The new board has been unable to implement a number of its planned actions until the refinancing had been secured due to lack of cash and an inability to commit future funds. However, following the approval of the refinancing by shareholders, the board now believes that HCL is in a far stronger position to respond to the changing needs of its UK customers by significantly re-engineering its UK business model and is well positioned for improved performance over the medium-term

• In the UK, HCL supplies both the NHS and private sector and the new executive team is committed to  substantially improve the business model, to address changing market dynamics.

• In Australia, the HCA business, which was acquired in December 2010, has since its acquisition continued to trade in line with expectations. The board's goal is to build a broadly based specialist healthcare recruitment business in Australia, similar to HCL's position in the UK.

• The board believes that operational benefits can be achieved over time by owning both the UK and Australian healthcare recruitment businesses.

Refinancing and recommencement of trading of shares on AIM

• Since their appointment in early 2011, it has been the directors' priority to stabilise the group's capital structure by reducing debt, including funds received from the disposal of the Homecare Division in Australia in July 2011 and raising further funds for working capital.

• On 19 August 2011 the board announced a refinancing plan, including a 60 million Pounds placing, This was approved by shareholders in a General Meeting on 12 September 2011 and was accompanied by an open offer, which raised a further 950,000 Pounds. 

• Trading in the company's shares resumed on 13 September 2011 following the approval of the refinancing.

Stephen Burke, Chief Executive, commented "we anticipated difficult markets and continue to take timely action to ensure we are able to respond effectively to our clients' changing demands. These underlying results demonstrate the group's resilience as it has performed to our expectations in challenging conditions."

"Our UK and Australian footprints mean that we are well positioned for improved performance."

In a separate statement, published today, the company also announces that "the Interim Chief Financial Officer, Colin Whipp will be stepping down, following the stabilisation and recapitalisation of HCL. The publication today of the company's half yearly report concludes Colin's duties. He has quickly and effectively identified and tackled the extremely complex financial challenges faced by the company and his work has been essential in securing the long-term future of the business. The board thanks Colin for his significant contribution and wishes him well."

"As from 1 October 2011 William (Bill) Jessup, aged 59, will be appointed to the board as the Interim Chief Financial Officer. Bill is a Chartered Accountant and has been the CFO of a number of quoted companies on both a permanent and interim basis, most recently at Ricardo Plc. He has previous experience in the UK healthcare recruitment sector as a non executive director of Blue Group for five years before it was acquired by HCL in 2006."

"The company has announced that it has also appointed Mark Andrews, aged 59, to the board from 1 October 2011 as Non-Executive Director."

Mark was until 2011 a partner specialising in restructuring at SNR Denton UK LLP and was head of the firm's Restructuring Group in the UK for 20 years until 2010.  Mark remains a consultant to SNR Denton UK LLP and is a council member of the Association of Business Recovery Professionals.

"Following the completion of the refinancing and as previously reported, the board has commenced the process of recruiting a permanent Chief Financial Officer and is seeking to appoint an additional non-executive director."

"The board will update shareholders in due course."

In early trading HCL's shares were up by +8.09% to 6.35 Pence.