RHG Real Hotel Grp

RNS Number:5535K
Reed Health Group PLC
25 September 2001

                               
                     REED HEALTH GROUP PLC
                    ("RHG" or "the Group")
                               
                    INTERIM TRADING UPDATE

RHG  is pleased to announce that the results of its businesses
for  the  27  week period ended 4 July 2001 were satisfactory.
RHG  is  a  provider of healthcare staffing  services  to  the
public  and private sectors in the UK.  The Group's businesses
were demerged from Reed Executive PLC ("Reed Executive")  on 4
July  2001  and therefore the results for the RHG  businesses,
which  are  set  out within Reed Executive's  interim  results
announced  today,  cover  a period during  which  the  Group's
businesses formed part of the Reed Executive group.

Results for the 27 weeks to 4 July 2001

In  the  27  week  period ended 4 July 2001, RHG's  businesses
achieved  turnover of #33.33 million (#26.63 million in  2000)
and  an  operating profit of #2.03 million (#2.30  million  in
2000).  It should be noted that the prior year period in  2000
was for a 26 week period.

The  Directors  of  RHG  consider  that  the  turnover  growth
achieved  in the first half is representative of the  progress
that has been made by the Group.  The decline in profitability
was  caused by government driven changes in profit related pay
arrangements and increased staff and other costs  incurred  as
part of the demerger.

Review of the Group's operations

RHG  operates  within  three distinct  sectors  in  healthcare
recruitment: social care, nursing and health professionals.

Social Care
Significant  progress  has been made in  the  period  in  Reed
Social  Care. Recruitment of international social  workers  to
work within the UK increased during the six months and RHG has
continued  to  win business. Most importantly, the  Group  won
several 'Adolescent Outreach Services' contracts from a number
of  different Social Services clients. RHG continues to  focus
on  broadening its specialisation in niche markets such as the
provision of mental health care workers which  has proved very
successful. Significantly, the Group's position as leaders  in
the  area  of fostercare recruitment projects remains  strong.
The  Directors  firmly believe that the Group's   strategy  of
integration of services across Social Care and Health  sectors
will   continue   to   provide  the  Group  with   significant
opportunities.

Nursing
As  we have previously announced, Reed Nurse has been selected
to  be part of the London Agency Project.  RHG is very pleased
to  be  able  to work in partnership with the NHS  to  improve
services.  This  framework agreement  came  into  effect  this
month;  client interest in Reed Nurse's services continues  to
be strong.

In  the first six months of the year Reed Nurse opened two new
branches  in East London and the East Midlands. The division's
first  'Primary  Health  Trust' contract,  giving  it  primary
supplier  status  was won in East London, whilst  two  further
contracts  with  Whipps  Cross and  Parkside  NHS  Trust  were
renewed until early and mid 2002 respectively.

Reed  Nurse's  aim of providing clients with a national  reach
will  be achieved with the establishment of a fully functional
central Call Centre based in the Midlands. This brings with it
substantial administrative efficiencies cutting down time  and
bureaucracy for the division's clients whilst not  losing  the
specialist knowledge and consultant-client relationship  which
is invaluable to its NHS clients.

Health Professionals
Health Professionals continues to see strong organic growth in
its  core  business. Three new niche areas, ambulance drivers,
pharmacy  and optometry were established in the last  3  to  6
months   and   are   already  showing  good  potential.    Two
provisional agreements with NHS Ambulance Trusts and  a  major
high  street  optical and pharmaceutical  retailer  have  been
entered into.

Christa Echtle, Chief Executive, said:   "We have been pleased
with the progress made by Reed Health Group since its demerger
from  Reed Executive in July of this year. We are now  in  the
third  month  of our financial year and trading  continues  to
meet our expectations. Our existing and new business areas are
performing strongly and we believe that our future presents us
with a number of exciting opportunities.


                           - ends -

Enquiries:

Reed Health Group PLC                            020 7834 3181
Christa Echtle, Chief Executive

Square Mile BSMG Worldwide                       020 7601 1000
Susan Ellis or Becky Jewers

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