Last checked at 2 Mar 2023 07:00
The information contained within this announcement is deemed by the Company to constitute inside information pursuant to Article 7 of EU Regulation 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 as amended.
2 March 2023
Totally plc
("Totally", the "Company" or the "Group")
Trading Update
Totally plc (AIM: TLY), a leading provider of frontline healthcare services, corporate fitness and wellbeing services across the UK and Ireland, today provides a trading update for the twelve months ending 31 March 2023.
Totally continues to deliver strong revenue growth against the prior year and in line with consensus market expectations. The growth of NHS waiting lists have been well-publicised and Totally has seen revenue for insourcing and outsourcing services, which target the reduction of waiting lists, double in the year to date. In addition, the new contract awarded in January 2023 for the delivery of NHS 111 resilience support delivers additional organic revenue growth. This contract went live during February 2023.
The Board of Totally remains very confident in the medium and longer-term opportunities for the Company and believes the business is well positioned to support the NHS as it continues to focus on the recovery and embedding of sustainable services able to cope with continuing higher levels of demand.
The Company has however been impacted by the combined impact of high inflation, national strikes, which increase pressure on services and scheduling, and clinical workforce shortages which increase reliance on agency staff for the delivery of urgent care services. Alongside delays in the conclusion of tender processes and continuing legal discussions with one commissioner on certain contracts (as previously announced by the Company in January 2023), Totally now expects EBITDA for the twelve months ending 31 March 2023 to be c. £6.3 million which is below current consensus market expectations.
Totally has, and continues to take, multiple actions to manage and control costs whilst continuing to deliver essential services on behalf of the NHS. As these actions are managed and executed, some impact on forecasts for the first quarter of the next financial year is anticipated.
Cash at period end is expected to be c.£5.5 million and the Company intends to maintain its dividend in line with previous expectations.
The Board remains confident in the prospects of the Company and expects continued growth moving forward.
Wendy Lawrence, CEO of Totally, commented:
"We have seen revenue growth broadly in line with expectations as we continue to operate in what are exceptionally challenging conditions which require difficult decisions to be made in relation to the management of costs and maintenance of essential NHS services.
"As unprecedented demand for healthcare services continues, we have been impacted by the same challenges facing the NHS. National strikes are putting more pressure on services and we have seen increased numbers of calls to 111 which need to be answered within existing performance targets. Workforce shortages, driven by doctors and nurses leaving the sector following the COVID-19 pandemic and clinical staff from abroad choosing not to come to the UK following Brexit, have increased our reliance on agency staff for a period of time which increases costs and complexity for rota fill. This has been exacerbated by higher cost inflation and changes in the staffing market.
"We continue to take a range of actions to manage costs and reduce our reliance on agency staff and remain confident in the quality of our services, our ability to deliver and the opportunities available for independent providers in this sector. The business is robust and well placed to take advantage of increased opportunities and deliver profitable growth.
"Demand for support to help NHS services to recover, and deliver wellbeing programmes to corporate clients, is higher than ever and we have faced significant challenges before and have proven our ability to manage the business carefully and position it for success. I am confident that we will do this again."
For further information, please contact:
Totally plc Wendy Lawrence, Chief Executive Bob Holt, Chairman | 020 3866 3330 |
Allenby Capital Limited (Nominated Adviser & Joint Corporate Broker) Nick Athanas / Piers Shimwell (Corporate Finance) Amrit Nahal (Sales & Corporate Broking) | 020 3328 5656 |
Canaccord Genuity Limited (Joint Corporate Broker) Bobbie Hilliam | 020 7523 8000 |
Yellow Jersey PR Sarah Hollins / Annabelle Wills / Jazmine Clemens | 020 3004 9512 |
Notes to editors
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 and elective care services, such as community dermatology clinics and first contact practitioner. Totally also delivers additional clinical capacity through insourcing and outsourcing arrangements to trusts and hospitals tackling growing waiting lists. Our corporate customer services also play a role in reducing reliance on healthcare by promoting healthy lifestyles and physical and mental health.
Totally Urgent Care
Totally Urgent Care is made up of Vocare and Greenbrook Healthcare. Both businesses have a strong heritage. Vocare was established in 1996 as Northern Doctors Urgent Care to provide urgent care services in the North of England and continues to deliver urgent treatment centres and GP Out of Hours services across the North of England as well as national support for NHS 111. Greenbrook was established in 2006 and cares for NHS patients across London and the home-counties through the delivery of urgent treatment centres.
Totally Planned Care
Totally Planned Care is made up of About Health and Premier Physical Healthcare. The businesses are focused on giving patients access to the right care quickly, reducing pressure on other NHS services and, ultimately, reducing waiting lists. 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, established in 2007, provides high quality physiotherapy and podiatry to NHS patients, often within a community GP practice, and to the prison service.
Pioneer Healthcare
Pioneer Healthcare was established in 2007 and has grown under the direction of three senior NHS consultants. Pioneer 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 can offer services through insourcing and outsourcing agreements and through its Any Qualified Provider status. Totally Healthcare, Totally's insourcing business, which was launched in 2019 and previously made up Totally's insourcing division, was incorporated into Pioneer in 2022 following its acquisition.
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.
More information can be found at:
www.totallyplc.com