Buyback for NHS recruitment firm

Global Medics look set to post a loss for the current financial year

An entrepreneur who sold a company that recruits foreign doctors for the NHS is set to buy it back after it failed to achieve its targets.

Justyn Randall quit a job in IT recruitment and founded Global Medics in 2002 after spotting a need for medical staff in the UK.

In December, Multi Group agreed to pay £13.7m for the firm, which recruits 80% of its candidates from South Africa.

Now Multi is selling it back, because earnings are not meeting expectations.

Negotiations

At the time of the sale, in February this year, Multi agreed to pay £8.6m up front, and to defer £5.1m.

But last month, Multi said it was in talks to renegotiate the deal, after it emerged Global Medics would run at a loss in the year to March 2007.

Profits would be "significantly below the level portrayed to the company by the vendors of Global at the date the business was acquired", it said.

At the same time, Mr Randall, who joined Multi's board as part of the deal, resigned as a Multi director.

Multi has now "reached an agreement in principle" with Mr Randall, who owned 50% of Global, and his two business partners.

The deal is expected to go through within a few days, but no details of the financial arrangements have been released.

Controversial

Global Medics has offices in London and Keighley, West Yorkshire, and recruits for the private sector as well as the NHS.

As well as finding work for trained medical staff, it also arranges police checks and helps staff set up UK bank accounts.

Mr Randall, who was to earn almost £7m from the original deal, was unavailable for comment.

But at the time of the he sale said that most of those who came to the country through his firm were attracted by the strong pound and the training offered in UK hospitals.

The recruitment of overseas doctors is controversial because of the brain drain effect it has on their home countries.