Health Clinic have been suspended on the London Stock Exchange

Shares in the beleaguered Health Clinic Group have been suspended on the London Stock Exchange at the company's own request, pending clarification of its financial position. The Newcastle-based company also said that it was expecting a 'substantial loss' for the current financial year that ends in April 2003, blaming higher than anticipated 'peak short-term working capital'. Redundancies cannot be ruled out for the group's 600 staff, which includes around 80 optometrists.

The group now has 12 Eye Clinic optical practices - compared to just three in 1998 - and eight Health Clinic sites, most of which provide on-site laser refractive surgery, as well as other health services such as dentistry, chiropody and general practice.

The company's difficulties began in June when it postponed publication of its annual results following non-cash accountingissues (News, June 28), causing shares to halve to 74.5p. A week later, the Health Clinic revealed a pre-tax loss of 800,000 and then in August it announced a cash shortfall of some ú3m causing its shares to plummet to just 17p. They were suspended last Friday at 13.5p.