Interim results from the healthcare agency Reed Health have revealed falling turnover.

Additional costs of £1.75m due to provisions and interest charges to overdue debtors led to the company losing £1m before tax in the six months ended in December.

Turnover fell 17.9% to £45.1m, as national framework agreements and other tendering initiatives squeezed sales and margins. Compliance demands also added costs.

“These results are extremely unsatisfactory and management has not performed as required,” said chairman Barry Hartop. “This has been exacerbated by the difficult trading conditions. Our market is undergoing fundamental change, which will continue to place considerable challenges upon providers of staffing services to the public sector for the medium term.”