Disposal of Homecare Division (1441J)
June 27 2011 - 3:23AM
UK Regulatory
TIDMHLO
RNS Number : 1441J
Healthcare Locums PLC
27 June 2011
Healthcare Locums plc
27 June 2011
Disposal of Homecare Division
Healthcare Locums plc ("HCL" or the "Company" or the "Group")
announces that its wholly owned Australian subsidiary, Healthcare
Australia Holdings Pty Limited ("HCA") has agreed to sell its
Homecare Division to KinCare Health Services Pty Limited
("Purchaser") for A$34 million (approximately GBP22.2 million).
The sale is in line with the Board's belief that the Homecare
Division is non-core to the business of the overall Group and
reflects that the Homecare Division would have required further
investment to realise its true potential. The disposal enables HCL
to focus on the development of the core UK and Australian
businesses and to realise value from non-core elements of the
business. The net proceeds will be used to reduce the Company's
debt.
The HCA business, which was acquired on 20 December 2010,
comprised two principal parts. The core business is engaged in the
provision of nursing agency staff, and accounted for approximately
77 per cent of the Australian business's revenue in 2010*. The
Homecare Division, which accounted for approximately 20 per cent of
HCA's revenue in 2010*, provides nursing in the home and support
services to customers through the Stanhope brand and private
homecare business, Private Care.
In the year ended 31 December 2010 the Homecare Division
generated a turnover of A$44.7 million* (approximately GBP28.1
million), a gross profit of A$12.2 million* (approximately GBP7.6
million) and an EBITDA before extraordinary items of A$4.0 million*
(approximately GBP2.5 million).
The sale is conditional upon a warranty and indemnity insurance
policy being entered into, and certain consents to change in
control being received. Under the sale agreement HCA has given the
Purchaser certain warranties and indemnities and HCL has entered
into certain covenants for the benefit of the Purchaser.
The transaction is expected to complete in July 2011. The full
consideration will be payable in cash immediately thereafter but is
subject to a post-completion audit of certain items and potentially
therefore post-completion adjustment.
Peter Sullivan, Chairman commented:
"We are pleased to announce the sale of the Homecare Division.
This is another step towards stabilising the business as it enables
the Company to reduce its indebtedness to its senior lenders. The
Board continues to work to finalise the audited annual accounts for
2010 and I look forward to updating stakeholders at the earliest
opportunity."
* Based on unaudited management accounts for HCA for the year
ending 31 December 2010.
Contact details:
Healthcare Locums Plc
Peter Sullivan, Chairman
Tel: 0207 451 1451
Fairfax I.S. PLC
Nomad and Joint Broker
Simon Bennett/Ewan Leggat/Laura Littley
Tel: 020 7598 5368
Pelham Bell Pottinger
David Rydell/Emma Kent/Duncan Mayall
Tel: 020 7861 3232
This information is provided by RNS
The company news service from the London Stock Exchange
END
DISGRGDLGDDBGBR
Healthcare Locums (LSE:HLO)
Historical Stock Chart
From Sep 2024 to Oct 2024
Healthcare Locums (LSE:HLO)
Historical Stock Chart
From Oct 2023 to Oct 2024