A healthcare recruitment agency supplying temporary staff to care providers has collapsed into administration. Standby Healthcare (North) Ltd, based in Newcastle upon Tyne, formally entered administration on February 20 after insolvency practitioners were appointed to take control of the business, according to a notice in The Gazette.

The company, incorporated in May 2019, operated as a temporary employment agency supplying nurses, carers and support workers to care homes and healthcare providers. Accounts filed at Companies House show the firm held net assets of £120,544 as of 31 October 2024, a significant increase from just £5,854 the previous year. The business also reported cash reserves of £168,810, alongside £533,510 owed to it by customers, giving total current assets of £702,320.

However, the figures also reveal substantial financial obligations. The company owed £577,536 to creditors due within one year, with a further £11,667 in longer-term liabilities, meaning total debts stood at nearly £590,000.

Although the balance sheet showed positive net assets, the firm's financial position relied heavily on collecting money owed by customers.

Standby Healthcare described itself as a specialist recruitment agency providing temporary healthcare workers, helping care providers fill urgent staffing gaps.

The company promoted its ability to supply staff quickly to support services facing shortages.

Administration means licensed insolvency practitioners have taken control of the company from its directors.

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Their role is to assess whether the business can be rescued, sold or wound down to repay creditors.

The collapse highlights the fragile financial position many recruitment firms face, particularly those reliant on timely payments from clients to sustain cashflow.

It remains unclear whether Standby Healthcare will continue trading during administration or whether its assets and operations will be sold.

Administrators are expected to outline their plans to creditors in the coming weeks.

The Daily Express has contacted Standby Healthcare and adminstrators AMS Business Recovery for comment.