RE: Singer, new broker note out..10 Jul 2023 14:33
Challenging markets hit Totally
Annual underlying cash profit up 11 per cent to £6.9mn on 6.5 per cent higher revenue of £135.7mn
Profit guidance cut materially for new financial year
Forward price/earnings (PE) ratio of 11 and dividend yield of 4.7 per cent
Share price down 22 per cent post results
Derby-based Totally (TLY:13.25p), a private provider of high-quality care and workplace wellbeing services, has reined in profit guidance for the 2023-24 financial year.
At the start of the year, the board terminated urgent treatment centre (UTC) contracts at four hospitals in north-west London for unspecified legal reasons, days before they were due to end on 31 January 2023. The UTC business is a major revenue generator, accounting for 73 per cent of group revenue of £135mn in the year just ended.
Unfortunately, inertia in the urgent care healthcare sector has led to a slowdown in tender activity, so much so that Totally’s board doesn’t expect to make good the shortfall in the new financial year, despite a strong performance from its higher-margin elective care division. That business unit reported 21 per cent organic revenue growth to account for £35.2mn of group revenue, and house broker Canaccord Genuity expects a similar growth rate this year.