Public Recruitment Group, a temp agency for doctors and teachers, will today announce plans to raise money by listing on the stock market.
PRG is looking to raise £10m with its flotation next month. The firm, should be valued at up to £30m on the Alternative Investment Market following the fundraising.
The use of agency staff in the NHS has been controversial. Some insiders complain that it is more expensive and makes it more difficult for hospitals to recruit permanent staff as they are lured towards the better paying agencies.
The practice came under particular scrutiny last week when Barrie Blower, chairman of Walsall Hospitals NHS Trust, had to resign following the revelation that he had said agency nurses "kill more people than they bloody cure", to a grieving relative.
PRG does not provide agency nurses, but claims it is the third largest provider of locum doctors in the UK, through its Birmingham and Midlands Locums business, bought last year, and JCJ, a short-term booking locum doctor service. It has a call centre in India that will match vacancies in hospitals with doctors looking for work.
It also claims to be one of the top five suppliers of teachers and classroom assistants to schools in the UK through Supply Desk. PRG said its strategy is to build a "£100m plus revenue public sector staffing group driven by the government's commitment to address the historical under-funding of the UK's public services."
Last year it had revenues of £28m, more than double the figure for 2001. The firm did not reveal its latest profit figures. However, in its most recent accounts filed at Companies House, for 2002, the com pany made a loss. It had been backed by Granville Baird Capital Partners to the tune of £6.2m up until this point.
It is understood that none of the company's backers are looking to sell any of their holdings. They include managing director Lorraine Percival, finance director Darren McLaney, Renoir Partners and Teeside Private Equity Fund according to Companies' House. The firm is being advised by Collins Stewart.
Yesterday it was also announced that CNG Travel Group intends to raise £30m via a listing on the AIM, which would value it at over £80m.
The firm sells vacant hotel room nights to travel agents and consumers, via its own software.
The company says it is profitable and has annual sales of around £330m. It is raising the money for working capital to boost its sales and marketing initiatives, and look at ac quisitions. It is being advised by Evolution Beeson Gregory.
There have been a steady stream of companies looking to take advantage of a more optimistic mood among investors and hoping to raise money and list on the stock market.
They include noodle bar Wagamama, athletes' caterer PKL Holdings, Moneysupermarket.com, software services company Civica and hedge fund operator RAB Capital.
