AGM Statement (8804D)

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RNS Number : 8804D

Healthcare Locums PLC

23 May 2012

HEALTHCARE LOCUMS PLC

("HCL" or "the Company")

AGM STATEMENT

Peter Sullivan, non-executive Chairman of Healthcare Locums PLC, will make the following statement at the Company's Annual General Meeting being held later today:

"I am pleased to announce that the new management team leading your Company has made significant progress in ensuring the stabilisation of the business. In the UK, the transformation of the Company to one that puts the satisfaction of its customers' requirements at the heart of its business is well underway. Provision of locums to the NHS through framework agreements is now the normal way of doing business.

In the UK, the new national and regional NHS buying frameworks are expected to be awarded late in the 3rd quarter this year. These framework agreements extend across all categories of health and the procurement processes are running some 3 months later than originally expected. Delays in the tendering process will have an impact on the timing of signing supply agreements which will affect our rate of growth this year. The new buying frameworks should provide the momentum for Trusts to review and refresh their existing supply chain and open up new opportunities for HCL. To date only the London Procurement Program (LPP) framework agreement for the supply of Medical Locums has been awarded. I am pleased to report that HCL has been selected as a framework supplier on this framework and the implementation process has begun.

We have restructured our UK Business, investing in people, processes and systems to position the business as a major supplier to the NHS with a quality led offering. Although this has increased costs, it was essential to build a widely skilled management team that is capable of delivering the company's strategic vision. Alongside these changes we have reorganised our UK Business Development function together with our Recruitment and Compliance functions, to mirror our clients' demands and to facilitate relationships at national, regional and local levels. We are also investing in software-led solutions - HCL Clarity - that will deliver significant savings to our customers by providing visibility and control to reduce the cost of agency spend and optimise the permanent workforce, without compromising the quality of care.

Our Australian business, Healthcare Australia, is making good progress and trading has been encouraging. In Australia opportunities for organic growth exist, in particular, by the further development of our nursing agency business in the Eastern states and the national roll out of the existing doctor locum business although the latter has been delayed by a change in HCA's management for personal reasons.

As shareholders will be aware, the Board has previously announced two major claims against the Company, one being a tribunal claim from the former Executive Vice Chairman Kate Bleasdale, and the other being a US action from a number of shareholders. The Board is awaiting the outcome of the tribunal claim and a decision is expected during summer 2012.

The Board is currently taking legal advice upon the way the Company should react to the institution of the proceedings in the US.

There are challenges ahead; however the reengineering of the business is well underway. We have a new professional business leadership team in place which has already brought significant stability to the Company, and which is implementing new growth strategies and innovative services to generate long-term improvements in financial performance. The Company has maintained its position as a leading healthcare recruitment business in both the UK and Australia, and the Board remains confident about the future opportunities for the business.

For further information please contact:

Healthcare Locums plc

Stephen Burke, Chief Executive Officer

020 7451 1451

Investec Bank plc

Gary Clarence/Patrick Robb/Daniel Adams

020 7597 5970

Pelham Bell Pottinger

David Rydell/Emma Kent/Duncan Mayall/Charlotte Offredi

020 7861 3232

This information is provided by RNS

The company news service from the London Stock Exchange

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