SOURCE: Allied Healthcare

Allied Healthcare

September 15, 2009 09:16 ET

Allied Healthcare International Inc. Secures Contract Win With London Borough of Redbridge Council

Expands Coverage in London Region With Three-Year Contract Award With Council

NEW YORK, NY--(Marketwire - September 15, 2009) - Allied Healthcare International Inc. (NASDAQ: AHCI) (AIM: AHI) (http://www.alliedhealthcare.com), a leading provider of flexible healthcare staffing services in the United Kingdom, has secured a three-year contract with the London Borough of Redbridge Council in the United Kingdom.

Under the new Redbridge contract, Allied has the opportunity to deliver up to one thousand four-hundred hours of home care services a week (72,800 hours a year) as one of six providers within Redbridge, a borough of London with a population of 250,000. This award, which was secured in August 2009, is Allied's first contract with Redbridge and is currently in its implementation stage in preparation for the contract start in November 2009. Allied will use its London East branch to service the contract.

Sandy Young, Chief Executive Officer of Allied, commented: "We continue to see strong organic growth in our homecare services business and the Redbridge contract is representative of that. Penetrating the London market has been one of our objectives and we are making good progress securing long-term contract wins in the region. Leveraging the London East branch will provide efficiencies to our SG&A by increasing throughput to the office. We reported strong growth in the homecare services business this year and we expect to see this trend continue with new contract wins similar to Redbridge. I look forward to continuing this momentum and updating our shareholders as we move ahead."

For more news and information on Allied Healthcare International Inc., please visit http://www.IRGnews.com/coi/AHCI where you can find the CEO's video, a fact sheet on the company, investor presentations, and more.

ABOUT ALLIED HEALTHCARE INTERNATIONAL INC.

Allied Healthcare International Inc. (http://www.alliedhealthcare.com) is a leading provider of flexible healthcare staffing services in the United Kingdom. Allied operates a community-based network of 110 branches with the capacity to provide carers (known as home health aides in the U.S.), nurses, and specialized medical personnel to locations covering approximately 90% of the U.K. population. Allied meets the needs of private patients, community care, nursing and care homes, and hospitals.

FORWARD-LOOKING STATEMENTS

Certain statements contained in this news release may be forward-looking statements. These forward-looking statements are based on current expectations and projections about future events. Actual results could differ materially from those discussed in, or implied by, these forward-looking statements. Factors that could cause actual results to differ from those implied by the forward-looking statements include: general economic and market conditions; Allied's ability to continue to recruit and retain flexible healthcare staff; Allied's ability to enter into contracts with local government social services departments, NHS Trusts, hospitals and other healthcare facility clients on terms attractive to Allied; the general level of patient occupancy at our clients' hospitals and healthcare facilities; dependence on the proper functioning of Allied's information systems; the effect of existing or future government regulation of the healthcare industry, and Allied's ability to comply with these regulations; the impact of medical malpractice and other claims asserted against Allied; the effect of regulatory change that may apply to Allied and that may increase costs and reduce revenues and profitability; Allied's ability to use net operating loss carry forwards to offset net income; the effect that fluctuations in foreign currency exchange rates may have on our dollar-denominated results of operations; and the impairment of goodwill, of which Allied has a substantial amount on the balance sheet, may have the effect of decreasing earnings or increasing losses. Other factors that could cause actual results to differ from those implied by the forward-looking statements in this press release include those described in Allied's most recently filed SEC documents, such as its most recent annual report on Form 10-K, all quarterly reports on Form 10-Q and any current reports on Form 8-K filed since the date of the last Form 10-K. Allied undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

Contact Information

  • CONTACT

    Allied Healthcare International Inc.
    Sandy Young
    Chief Executive Officer
    Paul Weston
    Chief Financial Officer
    UK 00-44-1785 810-600

    or

    The Investor Relations Group
    Adam Holdsworth
    212-825-3210

    or

    Cenkos Securities plc (Nominated Advisor)
    Elizabeth Bowman
    London: 00-44-20-7397-8928

    or

    Ian Soanes
    London: 00-44-20-7397-8924