RE: Totally Healthcare - insourcing24 Aug 2020 19:48
That's not true, is it, Bumbag?
30th July you posted the same copy of 1gw's bear points and they were countered on the day
You have a memory of a fish, hence why you keep repeating them!!!
Declining organic revenue
During a General Election there is usually uncertainty in NHS over new government plans.
"The year ended 31 March 2020 was a good year for Totally delivering profit before depreciation and amortisation during times of unrivalled political instability which included BREXIT and a General Election followed by the worldwide pandemic of COVID-19 which has impacted on every person and every business."
"New contract wins were adversely impacted by the uncertainty created by Brexit and the general election. NHS commissioning understandably paused during this time; nonetheless, the Group was able to secure extensions of several existing contracts across the Group, plus a significant new contract for Planned Care, in Manchester. The new Insourcing division delivered over £1m in revenues in its first period of trading."
Increasing losses
Same as your 1st point. Understandably, the NHS have been renewing contracts but have paused new ones.
"The loss before tax of £3.4m is stated after an amortisation charge of £2.8m relating to the intangible value of contracts acquired."
Weak balance sheet
"The Group is cash generative and responded with the distribution of our maiden dividend in February 2020. The Board is also proposing the payment of a full year dividend of 0.25 pence per share, payable in October 2020. The intention is to consider future dividend payments based upon the trading performance of the Group."
Possible share overhang
That's rubbish, as ex-GBH holders were expected to sell and new/current II have bought.
Miton trimmed down their TLY holding probably due to their investors withdrawing funds, as they have had to do on previous occasions, as stated in this article.
"To fund withdrawals, Williams has trimmed some of his holdings while selling out of others completely. The number of stocks in the portfolio has fallen from 89 at the end of May to 56 at the end of last year."
https://citywire.co.uk/funds-insider/news/gervais-williams-insists-he-can-bounce-back-as-fund-shrinks-75/a1317959
No visibility (lack of guidance/broker forecasts)
The timing of NHS contract tenders has been delayed due to Covid 19.
"Whilst we expect the business to grow in 2021 and beyond, due to current run rates and new contract wins, the timing of new tenders, which is a key part of our growth plans, remains uncertain due to the COVID-19 pandemic and its impact on the NHS. We are therefore unable to give firm guidance at this stage on our growth expectations for the current financial year and the Board has considered it appropriate for market forecasts to be withdrawn at this time. The medium to long term outlook and trajectory of the business however remains unchanged."
https://polaris.brighterir.com/public/totally/news/
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