Last checked at 31 May 2013 13:30
31 May 2013
Totally PLC
("Totally", "the Company" or "the Group")
Preliminary results for the year ended 31 December 2012
Performance highlights
* Revenues from continuing operations £1.62m up 86 per cent. (2011: £0.87m)
* Gross Profit from continuing operations £0.63m up 31 per cent. (2011: £0.48m)
* Operating Loss from continuing operations before tax £(0.55)m (2011: £0.08m)
* Total EBITDA from continuing operations £(0.52)m (2011: £0.06m)
* Cash (utilised)/generated from operating activities £0.02m (2011: £(0.01)m)
* Basic earnings/(loss) per share (0.6)p (2011: (0.2)p per share)
* Commencement of sales of digital solutions to healthcare sector
* Entry into Shared Decision Making contract with the NHS
* Sale of the UK publishing business
Chairman's Statement
I am pleased to present the preliminary results for the year ended 31 December 2012.
2012 marked the transformation of Totally Plc into a serious participant in the Healthcare IT market, maximising the digital expertise within our Totally Communications business to extend and strengthen the capabilities of Totally Health.
Key events included the signing of the important Shared Decision Making (SDM) contract with the NHS in January and the sale of our print media business in May. However, more important even than these significant milestones, was the assembly of a strong team of expert professionals and corporate partners.
During the latter part of 2012 and early 2013, we raised approximately £1.1 million (net of expenses) of capital for the Company through the placing and exercise of warrants. This fundraising will help us to meet the ongoing challenges of our enhanced contractual responsibilities. As we win new contracts we will seek to ensure that the strength of our balance sheet keeps pace with the strength of our market success. We expect the real benefits of the repositioning of Totally Plc to be reflected in earnings performance from 2014 onwards.
Our management team, expertly led by Wendy Lawrence as CEO, is currently submitting proposals for a number of contracts which, if awarded, will enable us to leverage our SDM experience. Wendy was formally appointed to the Board on 2 May 2013. With her previous NHS and private sector experience we are very pleased to have her as our CEO. With healthcare systems throughout the world battling to adapt to serious financial constraints, we believe that the cost savings and enhanced health outcomes we have demonstrated through our programmes to date, will mean our solutions will not only be in demand by Clinical Commissioning Groups (CCGs) and other health organisations in the UK, but also by healthcare providers internationally. We hope to be able to make positive announcements in this regard over the summer months.
By providing patients with clear and accurate information to support them through their care pathways, we intend to make an important contribution to society. We believe that by empowering patients with timely and trusted information, Totally's healthcare solutions can play an important part in the therapeutic process. Our success in these endeavours will, I believe, lead to significant increases in value for shareholders and stakeholders alike.
Dr. Michael Sinclair
Non-Executive Chairman
Further enquiries:
Totally Plc www.totallyplc.com
Wendy Lawrence, CEO 020 7284 9730
Allenby Capital Limited
(Nominated Adviser and Joint Broker)
Mark Connelly / Nick Athanas 020 3328 5656
Optiva Securities Limited
(Joint Broker)
Christian Dennis / Jeremy King 020 3137 1902
Chief Executive's Review
Totally Plc entered 2012 with two clear aims; to continue its development and growth in the healthcare sector, and to build upon its established reputation as a leading provider of digital technologies. Throughout the year, these two individual Group companies, Totally Health and Totally Communications (with Rise Digital), worked collaboratively to deliver innovative solutions to NHS and private sector organisations, not-for-profit companies and charities.
Totally Health
At the end of January 2012, Totally Plc signed its first NHS contract to provide 36 disease-specific Personal Decision Aids (PDAs) and associated Mobile Apps for iPhone and Android handsets. It was also commissioned to provide a CRM database to underpin the Shared Decision Making programme and health coaching for all users of the service. This was an initial one-year contract that ran through to mid-March 2013 for all deliverables. Excellent progress was made during 2012, with the formation of our Medical Advisory Groups, comprising national clinical leaders across specific disease areas. Work continues with NHS England to secure a way forward with their Shared Decision Making Programme
2012 also saw us sign of our first NHS contract for the Management of Long Term Conditions, a critical issue and a major priority for the UK's health service. The initial programme has seen us begin work with a group of COPD (Chronic Obstructive Pulmonary Disease) patients, to provide them with telecare (via another supplier) together with Health Coaching services from Totally Health. Early results from this programme are very positive. Evidence shows that the initiative has not only yielded significant cost-savings for the CCG, but it has also had a tremendously positive impact on the health outcomes of the patients involved. Unplanned/emergency admissions to hospital have reduced significantly for this group of patients and their condition has been much better managed, even through the winter months, which are traditionally when COPD patients struggle most.
Totally Communications
Totally Communications delivered services to more than 50 clients, many of them with multiple contracts for diverse services.
Key highlights include:
NHS Shared Decision Making Programme
o 36 Mobile Apps for both iPhone and Android handsets
o Shared decision making application and associated services
o Interactive Website for all Personal Decision Aids (36 in total for 2012)
o SANDY CRM system
Health Foundation
o Website redesign
o Design and delivery of mobile website
o Research scan database integration
o Website build for self-management support resource centre
o Website build for Shared Decision Making resource centre
o Email marketing services integration
United Synagogue
o Update to membership system to integrate child / teen membership services
o Development of a front end, self-service portal for adult, child / teen members
o Development of back-end events / trip management system, fully integrated reporting and communications tools to service adult and child / teen members
Operations
2012 was also about building capacity and extending capability. Throughout the year, we continued to expand our team of experts to support sustainable growth across the Group and to ensure we consistently provide the optimal team to deliver a top quality offering to the markets in which we operate.
We have strengthened our management teams:
o Andy Margolis is now Chief Operating Officer for Totally Plc
o Ben Gritz is Managing Director for Totally Communications
o Don Baladasan is our Finance Director
Our clinical team continues to grow in strength as new service models are planned and developed.
Our Bids team has gone from strength to strength and processes are in place to ensure we are able to respond to all queries efficiently and effectively. This work has continued into 2013.
2012 was certainly an exciting year for all concerned - but I believe that this was only the beginning of what promises to be an exciting phase of growth and development for the Company.
Financial Review
The Company's strategic repositioning translated into revenue growth of 86% in 2012 to £1.62m (2011:£0.87m). Totally Health contributed £0.77m of which £0.71m related to delivery of the NHS SDM contract and £0.06m related to the pilot COPD health coaching contract for NHS Leicester. Totally Communications contributed £0.85m.
The operating loss for the year was £(0.56)m and the contribution split across the Group was Totally Communications £0.03m, Totally Health £(0.26)m and Totally Plc £(0.33)m. The losses in Totally Health reflected the infrastructure improvement costs including ISO accreditation and business development. These costs were incurred to strengthen the Group's ability to win and deliver further contracts.
Group operating cash generated during the year was £0.02m this included the covering of all Plc costs. In addition the Group undertook a warrant conversion funding round which generated net cash of £0.5m in December 2012. The second part of this funding generated a further £0.5m in January 2013. The funding proceeds were used to finance the costs incurred in repositioning the Company and to provide working capital. The current cash balance is approximately £0.3m and there are no bank borrowings.
As referred to above we are pleased that there are a number of significant new business opportunities under negotiation, certain of which we hope to be able to announce in the near term. The recent transition from Primary Care Trusts (PCTs) to CCGs in April has resulted in considerable internal reorganisation within the NHS. In particular for Totally this has affected the management of budgets and the contract decision making process with the new NHS bodies.
Totally is confident that, as the new CCGs and other NHS bodies bed down, the award of contracts will accelerate in the second half of 2013. In the short term this has resulted in a reduction in expected revenues for the Group in the current financial year but the Board is confident that it has sufficient working capital at present to operate the business going forward should the expected contracts and contracted revenue crystallise in line with internal projections. Having said that the Board is exploring options to strengthen the Company's balance sheet over the next few months, one of which may be through the issue of new equity to ensure that the Company has adequate resources to implement its business plan in full and fully capitalise on the exciting opportunities that the Company has ahead of it.
I would like to thank everyone involved with the delivery of every aspect of every area of the Company and for their dedication and commitment during 2012.
Wendy Lawrence
Chief Executive Officer
Consolidated Income Statement for the year ended 31 December 2012
|
|
|
2012 £000 |
|
2011 £000 |
Continuing operations: |
|
|
|
|
|
Revenue |
|
| 1,619 |
| 871 |
|
|
|
|
|
|
Cost of sales |
|
| (986) |
| (395) |
|
|
|
|
|
|
Gross profit |
|
| 633 |
| 476 |
|
|
|
|
|
|
Administrative expenses |
|
| (1,150) |
| (539) |
|
|
|
|
|
|
Loss before interest, tax, depreciation and amortisation |
|
| (517) |
| (63) |
|
|
|
|
|
|
Depreciation |
|
| (13) |
| (4) |
Amortisation |
|
| (25) |
| (18) |
|
|
|
|
|
|
Operating loss |
|
| (555) |
| (85) |
Share issue costs |
|
|
(54) |
|
- |
Finance costs |
|
| (38) |
| (25) |
|
|
|
|
|
|
Loss before taxation |
|
| (647) |
| (110) |
|
|
|
|
|
|
Tax |
|
| - |
| - |
|
|
|
|
|
|
Loss for the year from continuing operations |
|
| (647) |
| (110) |
|
|
|
|
|
|
Profit/(loss) for the year from discontinued operations |
|
| 59 |
| (39) |
|
|
|
|
|
|
Loss for the year attributable to the equity shareholders of the parent company |
|
| (588) |
| (149) |
Earnings/(loss) per share |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
|
|
|
Continuing operations |
|
| (0.63) |
| (0.12) |
Discontinued operations |
|
| 0.06 |
| (0.04) |
Total |
|
| (0.57) |
| (0.16) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated statement of changes in equity for the year ended 31 December 2012
|
|
|
|
|
| |||||||
| Share capital |
| Share premium account |
| Profit and loss account |
| Equity share- holders' deficit |
| ||||
| £000 |
| £000 |
| £000 |
| £000 |
| ||||
|
|
|
|
|
|
|
|
| ||||
At 1 January 2011 | 1,124 |
| 3,353 |
| (4,798) |
| (321) |
| ||||
|
|
|
|
|
|
|
| |||||
Total comprehensive loss for the year | - |
| - |
| (149) |
| (149) |
| ||||
|
|
|
|
|
|
|
| |||||
Credit on issue of warrants | - |
| - |
| 14 |
| 14 |
| ||||
|
|
|
|
|
|
|
| |||||
At 1 January 2012 | 1,124 |
| 3,353 |
| (4,933) |
| (456) |
| ||||
|
|
|
|
|
|
|
| |||||
Total comprehensive loss for the year | - |
| - |
| (534) |
| (534) |
| ||||
|
|
|
|
|
|
|
| |||||
Issue of share capital | 569 |
| - |
| (54) |
| 515 |
| ||||
|
|
|
|
|
|
|
| |||||
Credit on issue of warrants | - |
| - |
| 13 |
| 13 |
| ||||
|
|
|
|
|
|
|
| |||||
At 31 December 2012 | 1,693 |
| 3,353 |
| (5,508) |
| (462) |
| ||||
Consolidated statement of financial position as at 31 December 2012
|
| 2012
| 2011
| ||
|
| £000 | £000 | £000 | £000 |
|
|
|
|
|
|
Non current assets |
|
|
|
|
|
Intangible fixed assets |
| 11 |
| 29 |
|
Property, plant and equipment |
| 24 |
| 23 |
|
|
|
| 35 |
| 52 |
|
|
|
|
|
|
Current assets |
|
|
|
|
|
Amounts recoverable on contracts |
| 154 |
|
|
|
Trade and other receivables |
| 363 |
| 606 |
|
Cash and cash equivalents |
| 50 |
| 134 |
|
|
|
|
|
|
|
|
|
| 567 |
| 740 |
|
|
| 602 |
| 792 |
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
Trade and other payables |
|
| (1,064) |
| (658) |
Financial liabilities |
|
| - |
| (590) |
|
|
| (1,064) |
| (1,248) |
|
|
|
|
|
|
Net current liabilities |
|
| (497) |
| (508) |
|
|
|
|
|
|
|
|
|
|
|
|
Net liabilities |
|
| (462) |
| (456) |
|
|
|
|
|
|
Shareholders' equity |
|
|
|
|
|
|
|
|
|
|
|
Called up share capital |
|
| 1,693 |
| 1,124 |
Share premium account |
|
| 3,353 |
| 3,353 |
Retained earnings |
|
| (5,508) |
| (4,933) |
|
|
|
|
|
|
Equity shareholders' deficit |
|
| (462) |
| (456) |
Consolidated cash flow statement for the year ended 31 December 2012
|
| 2012 | 2011 | ||
|
|
| £000 |
| £000 |
Cash flows from operating activities |
|
|
|
|
|
Operating loss |
|
| (555) |
| (85) |
Option and warrants charge |
|
| 13 |
| 14 |
Amortisation and depreciation |
|
| 35 |
| 22 |
|
|
|
|
|
|
Movement in amounts recoverable on contracts |
|
| (154) |
| - |
Movement in trade and other receivables |
|
| (211) |
| 5 |
Movement in trade and other payables |
|
| 965 |
| 74 |
|
|
|
|
|
|
Cash generated from continuing operations |
|
| 93 |
| 30 |
Cash utilised from discontinued operations |
|
| (70) |
| (44) |
Net cash flows from operating activities |
|
| 23 |
| (14) |
|
|
|
|
|
|
Cash flow from investing activities |
|
|
|
|
|
Purchase of intangible fixed assets |
|
| (9) |
| - |
Purchase of property, plant and equipment |
|
| (28) |
| (15) |
Cash received from disposal of subsidiary net of costs |
|
| 43 |
| - |
|
|
|
|
|
|
Net cash flows from investing activities |
|
| 6 |
| (15) |
|
|
|
|
|
|
Cash inflow/(outflow) before financing |
|
| 29 |
| (29) |
|
|
|
|
|
|
Cash flow from financing activities |
|
|
|
|
|
Interest paid |
|
| (38) |
| (25) |
Issue of share capital, net |
|
| 515 |
| - |
|
|
|
|
|
|
Net cash flows from financing activities |
|
| 477 |
| (25) |
|
|
|
|
|
|
Net increase/(decrease) in cash and cash equivalents |
|
| 506 |
| (54) |
Cash and cash equivalents at beginning of year |
|
| (456) |
| (402) |
|
|
|
|
|
|
Cash and cash equivalents at end of year |
|
| 50 |
| (456) |
|
|
|
|
|
|
Cash and cash equivalents comprise:- |
|
|
|
|
|
Cash at bank |
|
| 50 |
| 134 |
Bank overdrafts |
|
| - |
| (590) |
|
|
| 50 |
| (456) |
General information
Totally Plc is a public limited company incorporated in the United Kingdom under the Companies Act 2006 (registration number 3870101). The Company is domiciled in the United Kingdom and its registered address is Unit 800 Highgate Studios, 53-79 Highgate Road, London NW5 1TL. The Company's Ordinary Shares are traded on the AIM Market of the London Stock Exchange ("AIM").
The Group's principal activities have been the provision of software development and digital marketing services, provided by the subsidiary Totally Communication. At the beginning of 2012 the group established a new subsidiary, Totally health, which provides digital solutions to the healthcare sector. The group had activities of niche community media activities until the Jewish News was sold in May 2012. The Company's principal activity is to act as a holding company for its subsidiaries.
Segmental analysis
The Group considers there to be the following reportable operating segments organised around goods and services:
Digital marketing - consists of Totally Communications' activities which have three main service sectors being website and software design & development, consultancy & systems integration and online marketing.
Digital solutions to the healthcare sector - consists of Totally Health's activities.
Head office costs - these are central costs that are offset by internal cost recoveries from the Group's operating businesses and by sundry income which is not attributable to any of the Group's operations.
The UK publishing operation was discontinued in the current year.
Analysis by business segment 2012:
Digital marketing | Digital solutions for healthcare | Head Office | Intra-group adjustments | Total continued operations | Discontinued operations | Total | |
£000 | £000 | £000 | £000 | £000 | £000 | £000 | |
Revenue | 988 | 769 | - | (138) | 1,619 | 550 | 2,169 |
EBITDA | 62 | (253) | (326) | - | (517) | (12) | (529) |
Depreciation | (4) | (8) | (1) | - | (13) | (3) | (16) |
Amortisation | (25) | - | - | - | (25) | - | (25) |
Operating (loss) / profit | 33 | (261) | (327) | - | (555) | (15) | (570) |
Profit on disposal of UK publishing | - | - | - | - | - | 74 | 74 |
Share issues costs | - | - | (54) | - | (54) | - | (54) |
Finance costs | (1) | - | (37) | - | (38) | - | (38) |
(Loss)/profit before tax | 32 | (261) | (418) | - | (647) | 59 | (588) |
Income tax | - | - | - | - | - | - | - |
(Loss)/profit after tax | 32 | (261) | (418) | - | (647) | 59 | (588) |
Analysis by business segment 2011:
Digital marketing | Head Office | Total continued operations | Discontinued operations | Total | |
£000 | £000 | £000 | £000 | £000 | |
Revenue | 871 | - | 871 | 974 | 1,845 |
EBITDA | 152 | (215) | (63) | (43) | (106) |
Depreciation | (4) | - | (4) | (5) | (9) |
Amortisation | (18) | - | (18) | - | (18) |
Operating (loss)/profit | 130 | (215) | (85) | (48) | (133) |
Finance costs | - | (25) | (25) | - | (25) |
(Loss)/profit before tax | 130 | (240) | (110) | (48) | (158) |
Income tax | - | - | - | 9 | 9 |
(Loss)/profit after tax | 130 | (240) | (110) | (39) | (149) |