23rd Jan 2007 07:00
Company Health Group PLC23 January 2007 Embargoed until 07.00, 23 January 2007 Company Health Group PLC ("Company Health" or "the Company") PRE-CLOSE TRADING UPDATE, ACQUISITION PROGRESS AND NEW CONTRACT WINS Company Health (AIM: CHT), a provider of occupational health services tocorporates and medical evidence collecting services to life assurance providers,today provides an update on trading in its financial year to 31 December 2006. The Company expects that despite significant year-on-year growth, turnover forthe year ended 31 December 2006 is expected to be around 10% below marketexpectations at approximately £4.5 million leading to approximately £120,000 ofpre-tax profits as a result of operational gearing. This is in large measure dueto exceptional costs relating to restructuring, relocation and redundancyexpenses at its occupational health subsidiary, Company Health Ltd. The Board is pleased to announce that Sale and Purchase Agreements have now beensigned and exchanged for the acquisition announced in December 2006 which hastwo subsidiaries. The first is an occupational health business which will expandCompany Health's geographic footprint in this market, add volume and scale andbring key management. The second subsidiary is an occupational healthrecruitment business which will give the Company access nationwide to temporaryqualified staff and thus benefit significantly Company Health's ability totender for and execute national contracts in this fast growing market. Inaddition, the acquisition of these two businesses will provide materialsynergistic savings. Together, the two businesses are expected to contributesome £3.9 million to turnover in the current financial year and profit beforetax of £300,000. There will be no significant impact on the results for the yearended 31 December 2006 from this transaction. The underlying performance of the business, without the effect of theexceptional item referred to above, is satisfactory and likely to show organicsales growth of over 15% and an increase in profit before tax of some 40%. Anumber of new contracts have recently been gained which will positively impactresults in the current financial year. These include occupational healthcontracts with Morgan Stanley in Scotland and the National Probation Service inLancashire and physiotherapy/ergonomic assessment contracts with JobCentre Plusin London and the South East and an international pharmaceutical company inScotland. Company Health plans the early adoption of IFRS for its 2006 results which willbe announced by the end of April at which time it will give a further update onthe progress of the business. - ends - For further information please contact: Ralph Gough, Chairman Simon Hudson / Clemmie CarrCompany Health Group Tavistock CommunicationsTel: 020 7553 8820 Tel: 020 7920 3150 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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