Totally Regulatory News (TLY)

2 May 2023

Totally plc

("Totally", the "Company" or the "Group")

Trading Update for 12 months ending 31 March 2023

The Board of Totally plc (AIM: TLY), a leading provider of frontline healthcare services, corporate fitness and wellbeing services across the UK and Ireland, today announces an update on trading for the 12-month period ended 31 March 2023 ("FY23").

Financial performance in line with revised consensus

Based on unaudited draft numbers, the Group anticipates reporting EBITDA* for FY23 in line with consensus market expectations. At year end, the Company had gross cash of £6.4 million (31 March 2022: £15.3 million); net cash at the same date was £3.9 million.

The Group's Care Quality Commission (CQC) registered services continue to be rated as "Good".

During the last quarter of the period, Totally undertook multiple actions to manage and control costs driven by the high-inflation economy and national workforce challenges, whilst continuing to deliver essential services on behalf of the NHS. These actions will lead to exceptional costs being incurred for FY23 and, to a lesser extent, in the current financial year. Actions included the restructuring of the business to bring together all healthcare services under one healthcare delivery business focused on Urgent Care and Elective Care, the realisation of economies of scale and the removal of duplicated costs. In aggregate, these actions are expected to enhance the operational and financial performance of the Group's businesses.

A healthcare market full of opportunity

The Totally management team is working closely with healthcare commissioners to respond to opportunities to support the reduction of record waiting lists for elective care and help meet or beat waiting time targets in urgent care.

Totally's insourcing and outsourcing revenue, delivered through Pioneer Healthcare, doubled in FY23 compared to the previous year, and the Company recently announced two new contracts for urology services in Ireland and a key position on a new framework agreement in Wales.

Within Urgent Care, the Company successfully retendered and mobilised a five-year contract for the delivery of two Urgent Treatment Centres in Bromley, and was the first provider to fully mobilise on NHS England's Single Virtual Contact Centre model, enabling rapid mobilisation of additional NHS 111 services where required. Totally continues to deliver other urgent care services across London, Staffordshire and the North East of England. Following the demobilisation of four Urgent Treatment Centre contracts in North West London, as announced in January 2023, the Company is not expecting any further revenue, costs or liabilities from these contracts for the year to 31 March 2024.

Corporate Wellbeing demand returning

Corporate Fitness revenues, delivered through Energy Fitness Professionals ("EFP"), have returned to almost pre-pandemic levels with the addition of new contracts, including Adidas, and equipment installations for existing customers such as EA (Electronics Arts) and Network Rail. EFP also agreed on a new contract to support the Royal Mail for a further five years, extending this relationship to more than 20 years. 

New business opportunities continue to be driven by employers wanting to entice employees back into the workplace and have refocused on core bricks and mortar fitness centres, supported by a flexible digital offering, which has been enhanced by a new licensing agreement with Les Mills, market leaders in class instruction, to provide digital classes to all EFP members. 

Looking ahead the Company has invested in additional business development capacity to help respond to the increasing opportunities available.

Financial Results for FY23

Final results for FY23 are expected to be released in July 2023 when the Annual Report and Accounts are also expected to be available, along with confirmation of the date for the Company's Annual General Meeting.

* EBITDA is defined as earnings before interest, tax, depreciation and amortisation and excludes one-off exceptional items.

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Notes to editors

About Totally

Totally is a leading provider of healthcare and wellbeing services across the UK and Ireland, working in partnership with the NHS, other healthcare providers and corporate customers to help address the challenges of increased demand for healthcare services.

The Company is committed to pursuing a progressive buy-and-build consolidation strategy within the fragmented healthcare market and looks to capitalise on the attractive opportunities that its disruptive service model offers to generate value to shareholders.

Totally helps healthcare commissioners and hospitals ensure patients can access the most appropriate care quickly and efficiently by delivering quality urgent care services, such as NHS 111 and urgent treatment centres, elective care services including insourcing, outsourcing and elective care delivered via 'Any Qualified provider', as well as community dermatology clinics; and therapy servicing including first contact practitioner and a full physiotherapy and podiatry offering. Our corporate customer services also play a role in reducing reliance on healthcare by promoting healthy lifestyles and physical and mental health.

Healthcare services

Urgent Care: Totally's urgent care services are delivered under the Totally Urgent Care brand, by Vocare and Greenbrook Healthcare. Both businesses have a strong heritage and have been delivering quality urgent care services including NHS 111, GP Out of Hours and Urgent Treatment centres on behalf of the NHS for more than 25 years and 15 years respectively.

Elective care: Totally's elective care services are delivered by Pioneer Healthcare, About Health and Premier Physical Healthcare.

· Pioneer Healthcare was established in 2007 and delivers a wide range of acute services to NHS patients, in partnership with independent healthcare sector private hospitals across England, to help the NHS reduce waiting lists whilst maintaining patient care and quality. Pioneer offer services through insourcing and outsourcing agreements and through its Any Qualified Provider status. 

· About Health has been delivering community-based specialist care with a focus on delivering prompt assessment and treatment across the country since 2008.

· Premier Physical Healthcare was established in 2007 and provides physiotherapy and podiatry services to NHS patients, often within a community GP practice, and to the prison service.

Corporate Wellbeing Services

Energy Fitness Professionals ("EFP"): EFP is a corporate fitness provider established in 1990 to address a gap in the market for workplace fitness, which has grown to offer a range of services covering workplace wellbeing. EFP manages 58 gyms on behalf of its corporate customers, with more than 11,500 members.

For more information visit www.totallyplc.com