Multi Group has reported a substantial loss, and unveiled the details of its deal to sell Global Medics back to its vendors.

Multi reported a pre-tax loss of £9.5m for the 15 months to 31 March, compared with a profit of £2m for the 12 months to 31 December 2004.

The results were delayed to allow Multi to include the effect of the re-sale of Global.

Multi shares were suspended as it did not report within the timeframe required by the Alternative Investment Market. They have since started trading again but the whole company is worth barely £2m.

Multi bought Global in February. It paid an initial consideration of £9.6m, with another £4.1m to be paid depending on Global's performance. In July, it announced to the stock exchange that Global's performance was "likely to be below the level portrayed to the company (Multi) by the vendors of Global," (Recruiter, 9 August).

Executive chairman Oliver Cooke said after the re-sale announcement: "The immediacy and scale of the underperformance was such that the acquisition posed a threat to the ongoing viability of the group."

The repayment terms see the vendors' shares in Multi being cancelled. The vendors will pay Multi £350,000 cash and issue it with a £170,000 loan note, to be repayable next year. It puts the loss on the deal at £7.88m.

Cooke said he will split his role. He is likely to become chief executive, and a separate chairman will be appointed. Justyn Randall, one of the directors buying back the Multi Business, told Recruiter that, as part of the repurchase deal, he was prevented from commenting.

Global Medics includes Doctors on Call, which provides doctors to the NHS and private sector health operators. It operates out of offices in London and Yorkshire and also has a dedicated recruitment and accreditation office in South Africa, through which it sources a high proportion of its consultants and senior doctors.

Multi's turnover for the 15-month period was £15.98m, but only £7.48m when discontinued operations are excluded. This compares with £5.74m for the 12 months to December 2004.