Allied Healthcare secures contract to deliver home care services

Sep 16 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."