Healthcare Locums see red following a challenging year

EMBATTLED medical recruiter Healthcare Locums wallowed in the red after a year overshadowed by a boardroom clear-out and the suspension of its shares.

‘Without doubt, 2011 has been the most challenging year in the history of Healthcare Locums,’ said chairman Peter Sullivan in a frank update as the group posted pre-tax losses of £12.9m.

The result compares favourably to the whopping £63.6m loss the year before, as Sullivan presses on with a turnaround plan to bring the firm back into the black.

2011 got off to a bad start for Healthcare when trading of its stock was suspended in January after a probe uncovered ‘serious’ flaws in its accounts from previous years.

The group was forced to re-issue its results. The shenanigans continued with the ousting of the entire board, including founder Kate Bleasdale.

The group racked up £30m of administrative expenses in the UK and a further £21m in costs from its Australian arm during the year.

It was then forced to opt for a £64.3m refinancing deal to help pay down its £130m debt mountain and stop its banks from coming in to run the group.

Even then it faced a revolt from small shareholders, who objected to the knockdown price offered in the debt-for-equity swap. Shares were up 0.02 at 2.4p.

‘Although there will be many risks and challenges ahead, we believe 2011 saw the nadir in the company’s fortunes,’ said Sullivan.