Revenues and profits have fallen at Healthcare Locums (HCL) but the group expects improved H2 trading, according to interim results for the six months ended 30 June 2010.

The group’s results reveal:

• revenue of  £76.4m (Restated 2009: £85.6m)
• operating profit of  £7.6m (Restated 2009: £9.5m)
• profit before tax of £6.8m (Restated 2009: £8.6m)
• basic earnings per share of 4.8 pence (Restated 2009: 6p)
• net debt reduced to £14.5m (Y/E 2009: £17.3m)

Kate Bleasdale, executive vice chairman, says: “We have experienced challenging trading conditions in our operations exposed to the NHS as a consequence of NHS managers’ uncertainty over spending priorities in the run up to the general election and the pending autumn spending review.

“We firmly believe that this is a short to medium-term situation. The fundamental demographics of the ageing and growing population are unchanged, as are the key drivers for growth in the medium to long term in the UK healthcare locum market. Significantly, NHS operations account for less than 50% of the overall business and uncertainty in the UK market is being partially offset by strong growth in the international division and by significantly improved performance in the qualified social work division compared with the second half of 2009.

“We expect that the UK government’s stated commitment to maintaining front line services will improve trading in the second half of 2010. The International division continues to expand at a pace, with our database of candidates growing rapidly and we see further opportunities to expand this division.”