Healthcare Locums (HCL) saw turnover more than triple to £43.9m in 2005 after an acquisition spree that has continued into 2006 (Recruiter 22 March).

Chairman Ian Rosenblatt said HCL was operating in an “increasingly regulated” NHS market, and recognised “that this market had proved difficult for many smaller companies lacking the infrastructure to meet the needs of NHS contracts”.

HCL said it had capitalised on this opportunity and gained market share. HCL's statement comes after Nestor Healthcare said it was scaling down in the NHS market and focusing more on social care.

HCL said it saw a shift towards more permanent placement requirements in both the NHS and private sector. This has helped boost its margins. Rosenblatt added: “We anticipate that this trend will continue into 2007 and for the foreseeable future.”

According to a recent NHS survey, vacancies for Allied Health Professionals (AHP), such as physiotherapists and dietitians, were the hardest to fill. The current NHS framework for AHP is being re-tendered in the first half of this year. HCL chief executive Kate Bleasdale (pitcured) expects to remain a “key provider” to this contract.

About 40% of locum staff are now coming from outside the UK. HCL said it had developed a network of international recruitment agents across the world. It said this had led it to identify staff shortages in other parts of the world. Bleasdale said: “This represents a new business opportunity for HCL which we intend to pursue during 2006.”

The company's pre-tax loss widened to £1.4m, from £0.1m. The results were affected by one-off charges, such as the expense of office closures after the acquisition of RS Locums.

HCL listed on the Alternative Investment Market in November. Bleasdale said HCL was “well positioned for further growth in the coming financial year”.

House broker Collins Stewart is forecasting revenue of £92.6m for 2006. Revenue will be boosted by a strong of acquisitions, including that of BBL earlier this year.