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Healthcare Locums Plc. (HLO:LSE) the healthcare staffing company has today announced final results for the year ended 31 December 2009.
Revenue increased by 5% to 172.1 million Pounds in 2009 compared to 164.5 million Pounds in 2008. Gross margin increased by 23% to 52.9 million Pounds in 2009 compared to 43.1 million Pounds in 2008.
Adjusted profit before tax increased by 41% to 23.2 million Pounds in 2009 compared to 16.5 million Pounds in 2008.
Executive Vice Chairman Kate Bleasdale 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."
The company has adopted a new accounting policy as follows
- Revenue from temporary placements which represents amounts billed for the services of temporary staff including the salary cost of these staff. This is recognised when the service has been provided.
- Revenue from permanent placements is generally recognised at the date when a candidate commences work. However, where the placing arrangement is such that the group is required to provide a continuous level of service over a period of time which may include assistance with visa applications and other arrangements in the country of placement for applicants from overseas, revenues are recognised in line with the provision of these services. For these latter arrangements, a provision is made against accrued income for possible cancellations of placements by the candidate prior to the commencement of employment based on past experience of this occurring.
In early trading Healthcare Locums' shares were down by -23.74% to 167 Pence