REG - Totally PLC - Interim Results
28/11/2023 07:00
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RNS Number : 8312U Totally PLC 28 November 2023
28 November 2023
Totally plc
("Totally", "the Company" or "the Group")
Interim results for the six months ended 30 September 2023
Responding to an evolving market - supporting the NHS during their challenging
times
Totally plc (AIM: TLY), a leading provider of frontline healthcare services,
corporate fitness and wellbeing services across the UK and Ireland, is
pleased to announce its unaudited interim results for the six months ended 30
September 2023.
Financial highlights
· Group turnover down 20.6% to £55.8 million (H1 2023: £70.3
million).
· Gross profit down 18.5% to £9.7 million (H1 2023: £11.9
million).
· EBITDA excluding exceptional items £1.1 million (H1
2023: £3.4 million).
· Exceptional items of £0.5 million relating to restructuring
costs (H1 2023: nil).
· Loss before tax of £1.9 million (H1 2023: £1.0 million
profit before tax).
· Adjusted loss before tax of £1.0 million (H1 2023: £2.0 million
profit before tax).
· Cash position of £1.7 million at 30 September 2023 (31 March
2023: £6.5 million).
· No interim dividend proposed at this time (H1 2023: 0.125p).
· New contracts secured in the period contributing £14.8 million
of annualised revenue.
Operational highlights
· Totally continues to support the NHS and healthcare providers
across the UK and in the Republic of Ireland with the delivery of urgent and
elective care services across multiple locations, ensuring that patients can
access the appropriate care, when they need it.
· Totally has responded robustly to challenging market conditions
by taking responsible action to reduce overhead and rationalise operational
infrastructure.
· Group is well positioned to return to profitability following
rationalisation of contracts, careful management of increasing costs and
reduced support costs.
· New contracts worth c.£2.3 million in the current financial year
awarded to support the reduction of elective care waiting lists in the
Republic of Ireland.
· Fully mobilised £10 million contract announced in January 2023
for NHS England 111 Resilience support. Post period additional capacity
mobilised to ensure resilience during winter months.
· Successful pilots with multiple ambulance trusts to broaden
access to care for all types of patient.
· All Care Quality Commission (CQC) registerable services continue
to be rated as GOOD reflecting Totally's commitment to excellent patient care
during continued pressure across the healthcare industry.
Chairman's statement
I am pleased to announce trading results for the six months ended 30 September
2023. My AGM announcement in early September highlighted the challenging
operating environment that the Group was facing, with increasing costs and
difficulties in hiring suitably qualified teams of people.
The NHS continues to be in crisis, and this impacts all organisations that are
there to support them. The loss of North West London contracts resulted in a
downturn in our revenues in the period being reported. As the contracts came
to the end of their contracted period, and despite previous assertions that we
would retain the contracts, the ICB allowed the contracts to end. We were
unable to terminate all costs immediately at that point but have since
undertaken a significant cost review to remove costs related to those
contracts as well as other costs which are not critical to the day to day
running of the business.
Totally prides itself on being able to support the NHS by looking after those
patients who do not have life critical conditions, meaning that the NHS can
focus on those patients that only it can treat. We remain ready to provide
support where it is needed and we are confident that we will return to growth.
This approach reflects the professionalism and commitment to patient care with
which the Company delivers all its services.
During the first half of the year, we have participated in a number of pilots
with ambulance trusts to identify ways to increase access to care for all
types of patients. We are very positive about the outcomes of these pilots and
the potential to support trusts on a longer-term basis. We also continue to
tender for opportunities to run urgent care services on behalf of the NHS and
to reduce elective care waiting lists through both insourcing and outsourcing.
We are continuing to see delays in the conclusion of procurement processes,
but we are confident in the quality of our tenders, our services and the
future prospects for the Group.
The scale of the opportunity for the Company remains significant and we remain
confident that the NHS will rebound, survive and thrive once more, with the
support of organisations such as Totally.
In line with corporate governance requirements, having spent nine years as a
Director of Totally, I will step down from the Board at the end of 2023. I am
pleased to confirm that Simon Stilwell will be joining our Board as a
non-executive director effective today and taking over as Chairman of Totally
plc from 1 January 2024. The Company intends to make further Board changes
over the coming months in line with best corporate governance standards.
Once again, I want to pass my ongoing thanks to our exceptional teams who
continue to deliver essential services alongside NHS colleagues under
incredible pressure. Totally is able to provide excellent and compassionate
services to thousands of individuals across the UK and Ireland every day due
to the commitment, expertise and passion of our teams.
Bob Holt OBE
Chairman
28 November 2023
Operational review
It has been a challenging first six months of the year as we continue to
respond to multiple external factors such as high inflation, an NHS in crisis
and workforce shortages. We have continued to work with NHS colleagues to
maintain effective services and seek new innovative ways to support demand.
Demand for healthcare remains high and will increase as winter months bite.
External pressures have impacted the Group in the first half of the period, to
which we have responded accordingly, quickly reorganising our operating and
corporate structure to reflect the changing shape of the business, whilst
ensuring we retain capacity to grow. We delivered £0.5 million of cost
savings in the first half of the year with increased savings to be delivered
in the second half, as further efficiencies from structural changes are
realised. In total, c.£3.0 million of annual costs have been removed from our
overheads and we continue to ensure our infrastructure is fit for purpose.
As with most businesses we manage our cash facilities on a daily basis. The
cash balance at the end of September was adversely affected by a £2.9m NHS
debtor which was paid shortly after period end. The Board expects the Company
to be cash positive in H2.
As we enter what is traditionally the busiest period of the year for
healthcare, there are opportunities to further expand support for resilience
services and we are working to ensure that we retain the capacity within the
organisation to meet demand. We have recently mobilised additional capacity
for NHS England 111 Resilience work, in addition to our continuing 111
contract as NHS England's Resilience partner (mobilised in April and valued at
£10 million). During October 2023 we delivered considerable additional
capacity demonstrating our ability to respond rapidly to increased demand. The
additional capacity agreed for the period 1 October and 2023 to 31 March 2023
has the potential to double the revenue originally confirmed for the original
NHS 111 resilience contract.
All of the services we deliver on behalf of NHS England and NHS trusts
continue to perform well.
Urgent Care
Totally's Urgent Care continues to deliver core services on behalf of the NHS
across the UK, including Urgent treatment centres, GP out-of-hours,
clinical assessment services, and online and telephonic 111 services. We
expect to support thousands of people with access to the healthcare they need
during over the forthcoming winter.
Our focus on delivering excellent, quality care continues and as a result, all
of Totally's CQC registerable services continue to be rated as GOOD.
During the period our work on adapting services, innovating current and new
services as well as taking forward our thoughts on increasing the use of
digital services continued at pace. We have also worked closely with a number
of ambulance trusts to identify and test new ways to broaden access and
support for all types of patients. Ongoing pilots have been extremely
successful and we are positive about the potential to work more extensively
with these trusts as we move forward.
Elective Care
Demand for elective care remains high, with the number of patients waiting for
care at all-time highs, as reported widely in the media. Totally continues to
be registered as an approved provider on frameworks targeting waiting
reduction across the UK and Ireland.
Energy Fitness Professionals
During the period, Energy Fitness Professional has been responding to
increased tender opportunities, including opportunities to deliver services in
partnerships with Totally healthcare operations.
During November 2023 the deferred consideration of £0.3 million, in relation
to the acquisition Energy Fitness Professionals on 16 December 2021, was paid.
Outlook
It is a difficult time for all healthcare provider organisations however,
managing demand and controlling costs is not a new challenge for Totally and
is one that we have faced and responded to for many years. We have taken
significant action to reduce costs as we respond to the current market
conditions and will continue to seek out and identify new opportunities to
drive efficiencies as part of our business-as-usual cost management processes.
We are confident that our strong cost management culture will enable us to
return to previous levels of profit in future years, whilst recognising the
potential for lower revenues. Due to the ongoing challenges however, the Board
of Totally believe it is prudent at the present time to withdraw market
forecasts until such time as normal market conditions return. As previously
stated, the Board is confident in the medium to long term prospects of the
business but views the current financial year as a period of re-structuring
and working alongside the NHS to manage current issues. The Board will seek to
provide forward looking growth targets at the appropriate time.
Despite the recognised uncertainties that once again come with the winter
period, we remain confident that the business is well-positioned. The NHS is
in crisis and issues with their workforce still need addressing. This
inevitably results in uncertainty for commissioners and delays important
decisions required for them to meet ongoing demand. Nevertheless, we are
confident that the financial challenges being currently experienced by the NHS
and those associated with it will be resolved. By working together, continuing
to seek new ways of working, such as the recent pilots undertaken with
ambulance trusts and the development of new models of care, which reflect the
needs of today's population, we can help ensure the delivery of excellent
patient care and return to growth.
I would like to thank our team for their continued hard work and commitment.
All colleagues across Totally are committed to ensure that patients receive
the very best care they can and are delivering this under exceptional
circumstances. Similarly, we thank our shareholders for their continued
support, and look forward to updating the market on new opportunities in due
course.
Wendy Lawrence
Chief Executive Officer
28 November 2023
Investor presentation
Wendy Lawrence, Chief Executive Officer, Lisa Barter, Chief Financial Officer,
and John McMullan, Medical Director will provide a live presentation relating
to the Company's interim results via the Investor Meet Company at 11:00 a.m.
(UK) on Thursday, 30 November 2023. The online presentation is open to all
existing and potential shareholders and will consist of a presentation
followed by a Q&A session. Questions can be submitted pre-event via
the Investor Meet Company dashboard or at any time during the live
presentation.
Investors can sign up to Investor Meet Company for free and add to
meet Totally plc via:
https://www.investormeetcompany.com/totally-plc/register-investor
(https://www.investormeetcompany.com/totally-plc/register-investor)
Investors who already follow Totally plc on the Investor Meet
Company platform will automatically be invited.
For further information please contact:
Totally plc 020 3866 3330
Wendy Lawrence, Chief Executive
Bob Holt, Chairman
Holly Smart, Director of Communications & Marketing
Canaccord Genuity Limited (Nominated Adviser & Corporate Broker) 020 7523 8000
Bobbie Hilliam
Harry Rees
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 (http://www.totallyplc.com/)
Interim Consolidated Income Statement
For the six months ended 30 September 2023
Six Months ended 30 September 2023 Six Months ended 30 September 2022 Year ended 31 March 2023
(unaudited) (unaudited) (audited)
£000 £000 £000
Revenue 55,802 70,300 135,696
Cost of sales (46,114) (58,376) (110,695)
Gross profit 9,688 11,924 25,001
Administrative expenses (8,569) (8,516) (18,113)
Other income - - 2
Exceptional items - (562)
(475)
EBITDA 644 3,408 6,328
Depreciation and amortisation (2,254) (2,249) (4,249)
Operating profit (1,610) 1,159 2,079
Finance costs (257) (119) (295)
Profit before tax (1,867) 1,040 1,784
Income tax - (150) -
Profit after tax (1,867) 890 1,784
Earnings per share
Basic: Pence (0.95) 0.48 0.94
Diluted: Pence (0.95) 0.47 0.93
Adjusted Earnings per share
Basic: Pence (0.50) 1.06 1.99
Diluted: Pence (0.50) 1.05 1.96
All activities relate to continuing operations.
Interim Consolidated Statement of Changes in Equity
For the six months ended 30 September 2023
Share capital Share premium Retained earnings Equity Shareholders' funds
£000
£000 £000 £000
At 1 April 2023(Audited) 19,610 1,945 15,510 37,065
Comprehensive loss for the period (Unaudited) - - (1,867) (1,867)
Issue of share capital (Unaudited) 45 - - 45
At 30 September 2023 (Unaudited) 19,655 1,945 13,643 35,243
At 1 April 2022 (Audited) 18,723 1,053 15,634 35,410
Comprehensive profit for the period (Audited) - - 1,784 1,784
Issue of share capital (Audited) 887 892 - 1,779
Dividend payment (Audited) - - (1,908) (1,908)
At 31 March 2023 (Audited) 19,610 1,945 15,510 37,065
At 1 April 2022 (Audited) 18,723 1,053 15,634 35,410
Comprehensive profit for the period (Unaudited) - - 890 890
Credit on issue of warrants and options (Unaudited) - - 61 61
At 30 September 2022 (Unaudited) 18,723 1,053 16,585 36,361
Interim Consolidated Statement of Financial Position
As at 30 September 2023
Six Months ended 30 September 2023 Six Months ended 30 September 2022 Year ended 31 March 2023
(unaudited) (unaudited)
£000 £000 (audited)
£000
Non-current assets
Intangible fixed assets 46,641 48,492 48,210
Property, plant and equipment 1,107 1,295 1,218
Right-of-use assets 2,689 1,526 1,362
Deferred tax 242 363 242
Total non-current assets 50,679 51,676 51,032
Current assets
Inventories 72 72 75
Trade and other receivables 16,609 17,547 13,680
Cash and cash equivalents 1,704 7,441 6,451
Total current assets 18,385 25,060 20,206
Total assets 69,064 76,736 71,238
Current liabilities
Trade and other payables (26,753) (31,093) (28,057)
Borrowings (2,500) - (2,500)
Lease liabilities (508) (275) (275)
Deferred acquisition consideration (528) (6,636) (528)
Total current liabilities (30,289) (38,004) (31,360)
Non-current liabilities
Lease liabilities (2,311) (1,778) (1,661)
Other payables (209) (47) (140)
Deferred tax (1,012) (546) (1,012)
Total non-current liabilities (3,532) (2,371) (2,813)
Total liabilities (33,821) (40,375) (34,173)
Net current liabilities (15,436) (15,315) (11,154)
Net assets 35,243 36,361 37,065
Shareholders' Equity
Share capital 19,655 18,723 19,610
Share premium account 1,945 1,053 1,945
Retained earnings 13,643 16,585 15,510
Equity shareholders' funds 35,243 36,361 37,065
Interim Consolidated Cash Flow Statement
For the six months ended 30 September 2023
Six Months ended 30 September 2023 Six Months Year ended 31 March 2023
(unaudited) ended 30 September 2022 (audited)
£000 (unaudited) £000
£000
Cash flow from operating activities:
(Loss)/profit before tax (1,867) 1,040 1,784
Adjustments for:
Options and warrants charge - 61 -
Amortisation and depreciation 2,254 2,249 4,249
Loss on disposal of non-current assets - - 33
Finance Income - - (26)
Finance costs 257 119 321
Movements in working capital:
Movement in inventory 3 2 (1)
Movement in trade and other receivables (2,929) (4,512) 419
Movement in trade and other payables (1,554) (5,186) (8,106)
Cash (used in)/generated from operations (3,836) (6,227) (1,327)
Income tax received/(paid) - - (280)
Net cash flows from operating activities (3,836) (6,227) (1,607)
Cash flow from investing activities:
Purchase of property, plant and equipment (224) (400) (730)
Additions of intangible assets (114) (305) (665)
Contingent consideration - - (4,896)
Acquisition of subsidiary, net of cash acquired - - (735)
Net cash flows from investing activities (338) (705) (7,026)
Cash (outflow)/inflow before financing (4,174) (6,932) (8,633)
Cash flow from financing activities:
Issue of share capital 45 - 567
Dividends paid - - (1,908)
Borrowings - - 2,500
Interest paid (188) (119) (295)
Finance lease payments (430) (819) (1,091)
Net cash flow from financing activities (573) (938) (227)
Net decrease in cash and cash equivalents (4,747) (7,870) (8,860)
Cash and cash equivalents at beginning of the period 6,451 15,311 15,311
Cash and cash equivalents at end of the period 1,704 7,441 6,451
Notes to the Interim Results
1. Basis of preparation
Totally plc is a public limited company incorporated in the United
Kingdom under the Companies Act 2006 (registration number: 3870101). The
Company's ordinary shares are admitted to trading on the AIM market of
the London Stock Exchange ("AIM").
The Group's principal activities in the period under review have been the
provision of innovative and consolidatory solutions to the healthcare sector,
which are provided by the Group's wholly owned subsidiaries, Totally Health
Limited, Premier Physical Healthcare Limited, About Health
Limited, Optimum Sports Performance Centre Limited, Vocare
Limited, Greenbrook Healthcare (Hounslow) Limited, Greenbrook
Healthcare (Earl's Court) Limited, Totally Healthcare Limited, Pioneer
Health Care Limited and Energy Fitness Professionals Limited.
The Group's interim report and accounts for the six months ended 30 September
2023 have been prepared using the recognition and measurement principles of
International Accounting Standards in conformity with the requirements of the
Companies Act 2006 as per the annual report.
These interim financial statements for the six months ended 30 September
2023 have been prepared in accordance with the AIM Rules for Companies and
should be read in conjunction with the financial statements for the year
ended 31 March 2023, which have been prepared in accordance with
International Accounting Standards in conformity with the requirements of the
Companies Act 2006 as per the annual report. The interim report and the
condensed financial statements do not include all the information and
disclosures required in the annual financial statements.
The interim report and condensed financial statements have been prepared on
the basis of the accounting policies, presentation and methods of computation
as set out in the Group's March 2023 Annual Report and Accounts and on the
basis of the principal accounting policies that the Group expects to apply in
its financial statements for the year ending 31 March 2024.
The interim report and condensed financial statements do not comprise
statutory accounts within the meaning of section 434 of the Companies Act
2006. These interim financial statements were approved by the Board of
Directors on 14 November 2023. The results for the six months to 30
September 2023 and the comparative results for the six months to 30
September 2022 are unaudited. The amounts for the period ended 31 March
2023 are extracted from the audited statutory financial statements of the
Group for that period.
The Directors believe that a combination of the Group's current cash and
credit facilities, projected revenues from existing and future contracts will
enable the Group to meet its obligations and to implement its business plan in
full. Inherently, there can be no certainty in these matters, but the
Directors believe that the Group's internal trading forecasts are realistic
and that the going concern basis of preparation continues to be appropriate.
2. Earnings per share
Basic earnings per share is calculated by dividing the (loss)/profit
attributable to equity holders of the Company by the weighted average number
of ordinary shares in issue during the period. Diluted earnings per share
takes into account the effects of share options in issue.
Adjusted earnings per share is calculated by dividing the pre-exceptional
(loss)/profit before amortisation of intangible customer contracts &
relationships and tax by the weighted average number of ordinary shares in
issue during the period.
Statutory Earnings per share 6 months ended 6 months ended Year ended 31 March 2023
30 September 2023 30 September 2022 £000
£000 £000 (Audited)
(Unaudited) (Unaudited)
Profit (£000) (1,867) 890 1,784
Weighted average number of shares used in basic earnings per share 196,547 187,268 190,836
calculations ('000)
Potentially dilutive share options and contingent share consideration ('000) 144 2,070 3,238
Weighted average number of shares used in diluted earnings per share 196,691 189,338 194,074
calculations ('000)
Basic earnings per share (Pence) (0.95) 0.48 0.94
Diluted earnings per share (Pence) (0.95) 0.47 0.93
Adjusted Earnings per share 6 months ended 6 months ended Year ended 31 March 2023
30 September 2023 30 September 2022 £000
£000 £000 (Audited)
(Unaudited) (Unaudited)
Pre-exceptional profit before tax (£000) (1,867) 1,040 2,346
Amortisation of intangible customer contracts & relationships 880 950 1,459
Adjusted profit (£000) (987) 1,990 3,805
Weighted average number of shares used in diluted earnings per share 196,547 189,268 190,836
calculations ('000)
Potentially dilutive share options and contingent share consideration ('000) 144 2,070 3,238
Weighted average number of shares used in diluted earnings per share 196,691 189,338 194,074
calculations ('000)
Adjusted basic earnings per share (Pence) (0.50) 1.06 1.99
Adjusted diluted earnings per share (Pence) (0.50) 1.05 1.96
3. Dividends
The below dividends are recorded in the financial information
6 months ended 30 September 2023 6 months ended 30 September 2022 Year ended 31 March 2023
£000 (Unaudited) £000 (Unaudited) £000 (Audited)
Interim dividend (FY23) - 0.50p per share - - 937
Final dividend (FY22) - 0.50p per share - - 971
- - 1,908
In addition to the above, a final dividend (FY23) of 0.125p per share
or £246,000 was paid in October 2023. The Board are not proposing to pay
an interim dividend in respect of FY24.
4. Distribution of Interim Report
A copy of the interim report will be available shortly on the Company's
website (www.totallyplc.com (http://www.totallyplc.com/) ) in accordance with
Rule 26 of the AIM Rules for Companies.
This announcement contains inside information for the purposes of article 7
of the Market Abuse Regulation (EU) 596/2014 as amended by regulation 11 of
the Market Abuse (Amendment) (EU Exit) Regulations 2019/310. With the
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