Reed Health upbeat despite dip

REED Health said it remains well-placed for growth despite the potential impact of Government initiatives to ease the staffing crisis in the National Health Service.

The group, which supplies nurses and other healthcare staff to the NHS and the private sector, was hit by higher costs following its demerger from Reed Executive last year. Pre-tax profits for the six months to 30 December fell to £2.2m from £2.4m. Turnover rose almost 18% to £37.9m and there is a maiden interim dividend of 0.66p a share.

Chief executive Christa Echtle said the group was moving into new areas such as optometry and pharmacy recruitment and, combined with market growth and continuing public/private partnership, expects further progress.