Disposal

RNS Number:3131V
Public Recruitment Group plc
23 April 2007


23 April 2007



                          Public Recruitment Group PLC
                      Disposal of locum doctor division


Public Recruitment Group PLC (the "Group" or "PRG"), the public sector
recruitment and services group announces the disposal of its locum doctor
division to Healthcare Locums plc for a consideration of #5.5m.


In the year to December 2006, the locum doctor division contributed turnover of
#26.7m (2005: #23.8m) and profit before tax of #0.5m (2005: loss #0.2m).


In addition to the proceeds from the disposal, there will be the benefit from
the repayment of an invoice discounting facility of over #2.5m. Therefore, the
total benefit from the transaction will be to immediately reduce total Group
gearing by #8m, or 30%. These proceeds will be used to reduce net debt and
enhance existing working capital facilities.


This transaction marks the start of a new and exciting phase for PRG. The
disposal of health is a positive strategic move, allowing concentration on the
two remaining sectors, Education and Social Work, which are significantly more
profitable. We have already signalled our intention to converge the two business
streams, under common management control. This is in response to the way 'child
services' is moving, following the publication of The Children Act 2004. In
education we are the market leader in the supply of qualified teachers and our
market share is increasing. In social work we have the benefit of being at the
forefront of the convergence with education and can foresee opportunities for
additional growth.



PRG has an inherent advantage over its peers when aligning itself with the new
cohesive management structures within the public sector.  Prompted by the
Gershon review and the need for efficiencies, local authorities are keen to find
a managed resource solution that provides both the economies of scale they seek
and the quality of value add they require. The highly successful 'Teach In'
scheme has recently won its thirteenth contract, strengthening its position as
the UK's number one provider of managed recruitment within the Education sector.
Direct Solutions, our in-sourced team working with Warwickshire county council,
has won the first pilot of its kind, to provide a managed resource solution to
Education and Social Care. This offers efficiencies across both departments,
whilst ensuring a quality of service that far exceeds that of a neutral vendor
platform. Several other authorities are currently examining this unique offering
to provide a resource solution and assist with the implementation of 'Child
Trust Teams', a government requirement that all authorities must fulfil by the
end of 2008.



Ancillary services such as campaign and career management are providing exciting
opportunities within education, and numerous schools have already committed for
the September term. Recently our success within Education has not been limited
to the UK. In addition to winning an international sole supplier agreement with
a world leader in the provision of independent education, placements are being
made in New Zealand, China and America, establishing our global credentials.



Commenting on the disposal, Darren McLaney, Chief Executive said:

"We have taken the decision to dispose of our locum doctor business to
concentrate on the more profitable education and social work divisions where we
have significant market share. The current locum doctor market is a very
competitive environment with low margins. We believe we have achieved a good
price for the business given the difficult trading conditions that NHS suppliers
are operating within. Net debt has been reduced by 30% which is consistent with
our previously stated dual aims of achieving organic growth and reducing
gearing."





For further enquiries:



Enquiries:              Darren McLaney
                        Chief Executive, Public Recruitment Group PLC
                        (0114 283 4925)


                        Nick Williams
                        Group Finance Director, Public Recruitment Group PLC
                        (0114 283 4925)


                        Ginny Pulbrook / Fiona Bradshaw / Justin Griffiths
                        Citigate Dewe Rogerson,
                        (0207 638 9571)






                      This information is provided by RNS
            The company news service from the London Stock Exchange
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