Stephen Burke, chief executive of Healthcare Locums (HCL), has signalled his confidence in the company by significantly increasing his holding in the company’s shares.
Burke bought 824,087 shares on the 2nd May 2012 at a price of 2.40p. Burke now holds 1,824,087 shares.
Directors purchasing their own company’s shares is often seen by investors as a sign that better times lie ahead.
HCL’s shares fell below 2p in April but should investors follow Burke’s action they may give the shares a boost. As recruiter.co.uk
went to press HCL’s shares stood at 2.6p.
The current share price is a far cry from its 10p valuation when the company was refinanced and relisted on AIM in February 2011, and the 112p when its shares were suspended in January 2011 after the discovery of “serious accounting irregularities”.
HCL is facing legal action, both in the UK, from former founder and executive vice chairman Kate Bleasdale, and in the US from former shareholders
In April, HCL chairman Peter Sullivan warned: “While the board continues to adopt the going concern basis, these claims and the other matters described in the going concern section of the financial review such as the narrow margin against banking covenants, give rise to a material uncertainty regarding the group's ability to continue as a going concern.”