A health staffing agency is to float on the stock exchange, despite the current uncertain outlook in the health recruitment sector.

The Public Recruitment Group (PRG), which owns the temporary doctor agency, Birmingham and Midlands Locums, and the supply teacher agency, the Supply Desk, aims to use the listing to raise £10m.

Analysts estimate the company’s market capitalisation will be in the region of £20m to £30m. The firm plans to use the opportunity to place ordinary shares in the company with institutional investors.

PRG hopes to build a £100m staffing empire, based around the government’s commitment to provide more front-line public sector staff. The directors hope to use the float to raise cash for new acquisitions and build the profile of the group.

According to data released on the stock market, trading in all four of its subsidiaries is ahead of budget.

Margins are robust, demand in healthcare and education is rising and the group is recruiting staff to further build its business.

But although PSG is optimistic about the future, the two other listed health recruitment companies have both found the going tough in the health recruitment sector over the last year.

Reed Health Group and Nestor have both been affected by a wide-ranging rationalisation of the health service’s recruitment strategy, designed to cut the NHS’s annual spend on agency staff.

Nevertheless, PRG has committed to go for growth and plans to increase its number of branches and invest in its IT system.