REG - Totally PLC - Interim Results
06/11/2024 07:00
For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20241106:nRSF0777La&default-theme=true
RNS Number : 0777L Totally PLC 06 November 2024
Totally plc
("Totally", "the Company" or "the Group")
Interim results for the six months ended 30 September 2024
Good progress with new contracts secured and improved profitability
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 2024.
Financial highlights
• Revenue in line with the Board's expectations at £41.7
million (H1 2024: £55.8 million; H2 2024: £50.9 million).
• Gross margin consistent with the comparative half year at 17.3%
(H1 2024: 17.4%).
• Underlying EBITDA before exceptional items increased by 5%
to £1.2 million (H124: £1.1 million).
• EBITDA before exceptional items as a percentage of revenue at
2.8% (H1 2024: 2.0%).
• Improved profit performance delivering a break-even profit after
tax (H1 2024: £1.9 million loss before tax).
• Gross cash of £1.4 million as at 30 September 2024 (30 September
2023: £1.7 million; 31 March 2024: £2.3 million).
• Debt remains unchanged at £2.5 million.
• RCF renewed for a further two years at £3.5 million, as
announced on 31 October 2024.
Operational highlights
· Six new contracts confirmed at a value of c.£7.5 million to be
realised in the current financial year.
· A further 14 contracts renewed at a total value of c. £19
million
· 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.
· New insourcing contract mobilised in the North of England,
ensuring patients with long waits for elective procedures receive treatment as
soon as possible.
· Energy Fitness Professionals mobilised their largest contract to
date at a value of £0.5 million.
· 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.
Chair's statement
I am pleased to announce Totally's trading results for the six months ended 30
September 2024. The actions taken in the last financial year have led to an
improved financial position versus that reported for the year ending 31 March
2024 with revenues in line with the guidance issued at the 2024-year end and
improved margins. The operating environment continues to be challenging, but
we are beginning to see the benefits of those actions. We focused on
increasing the profitability of our contracts reflected by the delivery of
EBITA slightly ahead of prior year despite reduced revenues. I am also
pleased to report a return to profitability with a modest profit before tax
being reported.
During the first half of the year, we continued 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. Most significantly we
won a new contract in the North of England to support patients with long waits
for elective care. This contract has been mobilised and patient and
commissioner feedback is positive. Performance across our urgent care
services remains strong with an exceptional performance delivered on behalf of
NHS England as part of the ongoing NHS 111 resilience contract. As we enter
the seasonally busier winter months, these services will be important in
ensuring patients can continue to access the support they need.
I would like to share my thanks with our hardworking teams, who continue to
deliver essential services alongside their NHS colleagues, and to our
shareholders, who have supported Totally plc as we turn the business back to
profitability. I believe that we are a stronger and more resilient
organisation than we were a year ago, and have confidence that we can now
respond positively to new opportunities and begin to grow the business once
again.
Simon Stilwell
Chair
6 November 2024
Operational review
During the first half of the year, we have continued to realise the benefit of
actions taken to respond to the difficult operating environment, increase
accountability and improve performance and we are pleased to announce that we
are on track to deliver against forecasts for the current financial year.
Revenue in the first half of the year was lower than in previous quarters but
in line with the Board's expectations at £41.2 million (H1 2024: £55.8
million; H2 2024: £50.9 million) and although profit realisation remains
challenging due to continued wage pressures, profitability has improved.
EBITDA before exceptional items was resilient at £1.2 million (H1 2024: £1.1
million, H2 2024: £1.1 million) and we achieved a small profit before tax, a
significant improvement from the previous period (H1 2024: £1.8 million loss
before tax; H2 2024 £2.0 million loss before tax). Cash at the end of
September was £1.4 million (31 March 2024 £2.3 million) and we have now
completed the renewal of the Revolving Credit Facility ("RCF") as announced on
31 October 2024, which has been renewed for a further two years at a level of
£3.5 million reflecting the current size of the business. Draw down against
the RCF remains unchanged at £2.5 million. We continue to manage costs
proactively.
Following the election of the new government, we have seen a slight
improvement in the market and the pipeline of new opportunities to review is
healthy. As part of the Autumn Budget 2024, the government allocated an
extra £25.7 billion to the NHS over 2024 and 2025. Some of this additional
funding will target the delivery of an extra 40,000 elective appointments a
week to help reduce waiting times and we anticipate further opportunities to
arise as this funding, alongside increased clarity on targets for the coming
year, becomes available. Further guidance and a new 10-year plan is expected
in late Spring 2025. The Board view this funding as positive for the
prospects of the Company.
The Group has also reviewed other implications of the recent budget. As part
of its forecasting, the Board had anticipated some change in the national
minimum wage. While the reduction in national insurance threshold was not
anticipated, and given the changes only take effect from April 2025, the Group
will endeavour to mitigate the impact of these including delivering further
efficiencies, savings and some contractual mechanisms in the financial year.
The opportunity to work with the NHS remains attractive. During the period
we announced six new contract wins across elective care totalling c. £7.5
million including a new sizeable contract for the delivery of insourcing
services in the North of England valued at c. £5 million, all of which will
be recognised in the current financial year. A further 14 contracts were
renewed at a total value of c. £19 million.
In Corporate Wellbeing we mobilised the new contract to deliver services in
the City and we are seeing existing customers investing in new trends within
the market such as Paddle Courts.
The second half of the year is traditionally busier as we move into the winter
season and we expect this year to be no different. Record attendances at
A&E across the NHS during September alongside an expected resurgence of
Covid, flu and RSV (Respiratory syncytial virus) indicate an incredibly busy
winter within healthcare. The delivery of UTCs is a model which supports the
reduction of waiting times by streaming patients to the most appropriate care
and within UTCs managed by Totally, 93% of patients were transferred or
discharged within four hours, ensuring patients receive the care they need as
quickly as possible and supporting overall A&E KPI for the Trusts with
which we work. Within NHS 111 we consistently outperformed the national
service average and placed in the top three providers in the country for calls
answered within 60 secs, abandonment rates, and for patients receiving a call
back from a clinician within 20 mins. During October 98.8% of patients'
calls were answered within 60 seconds and 78.6% of patients requiring a
clinician call back are receiving that call within 20 mins, versus a national
average of 39.9%.
Focus also continues on the reduction of waiting lists and new contracts for
insourcing and outsourcing will support this effort. Overall, some 7.6
million patients await treatment with c. 280,000 people in England waiting
more than 52 weeks to start routine hospital treatment at the end of August.
The new contract for insourcing in the North of England is specifically
targeting those with waits of more than 52 weeks.
Outlook
The healthcare market continues to face significant challenges but we have
continued to focus on what we can control to ensure quality services for
patients, value for money for commissioners, and appropriate returns for
investors.
We are confident that our strong cost management culture and most robust
organisation will deliver this year's market guidance.
The Board has increased confidence in the near to long term prospects of the
business and we remain confident that the business is well-positioned for
growth. We look forward to the publication of the Government's 10-year health
plan for the NHS, due in Spring 2025 and believe that with correct funding,
independent healthcare providers will be able to play a key role to play in
tackling the challenges faced by the NHS, once and for all.
In the meantime, we continue to support NHS organisations to address their
individual needs and take actions to improve patient access to services and
provide high quality services for all commissioned services.
I would like to thank our team for their continued hard work and commitment.
Wendy Lawrence
Chief Executive Officer
6 November 2024
Investor presentation
Wendy Lawrence, Chief Executive Officer and Laurence Goldberg, Chief Financial
Officer 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, 7
November 2024. 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 Officer
Simon Stilwell, Chair
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.
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 62 gyms on behalf of its corporate customers, with more than 13,000
members.
For more information visit www.totallyplc.com
(https://can01.safelinks.protection.outlook.com/?url=http%3A%2F%2Fwww.totallyplc.com%2F&data=05%7C02%7Chrees%40cgf.com%7C7fbd6b6e36ed48269e2208dcb23a16cb%7C55a8d9e9da724987ac2851b3b5add15f%7C0%7C0%7C638581209791333600%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C0%7C%7C%7C&sdata=cBslxpTp%2FaUqCxst5g5dJ3C1ax5PxNWsYSvjYrXMWlk%3D&reserved=0)
Interim Consolidated Income Statement
For the six months ended 30 September 2024
Six Months ended 30 September 2024 Six Months ended 30 September 2023 Year ended 31 March 2024
(unaudited) (unaudited) (audited)
£000 £000 £000
Revenue 41,706 55,802 106,678
Cost of sales (34,479) (46,114) (88,947)
Gross profit 7,227 9,688 17,731
Administrative expenses (6,054) (8,569) (15,855)
Other income - - 387
EBITDA before exceptional items 1,173 1,119 2,263
Exceptional items (42) (475) (874)
EBITDA 1,131 644 1,389
Depreciation and amortisation (939) (2,254) (4,867)
Operating profit 192 (1,610) (3,478)
Finance costs (187) (257) (387)
Profit before tax 5 (1,867) (3,865)
Income tax credit - - 731
Profit after tax 5 (1,867) (3,134)
Earnings per share
Basic: Pence 0.00 (0.95) (1.60)
Diluted: Pence 0.00 (0.95) (1.60)
Adjusted Earnings per share
Basic: Pence 0.02 (0.50) 1.09
Diluted: Pence 0.02 (0.50) 1.09
All activities relate to continuing operations.
Interim Consolidated Statement of Changes in Equity
For the six months ended 30 September 2024
Share Share premium Retained earnings Equity Shareholders' funds
capital
£000
£000 £000
£000
At 1 April 2024 (Audited) 19,655 1,945 12,130 33,730
Comprehensive profit for the period (Unaudited) - - 5 5
At 30 September 2024 (Unaudited) 19,655 1,945 12,135 33,735
At 1 April 2023 (Audited) 19,610 1,945 15,510 37,065
Comprehensive loss for the period (Audited) - - (3,134) (3,134)
Issue of shares, net of share issue expenses (Audited) 45 - - 45
Dividend payment (Audited) - - (246) (246)
At 31 March 2024 (Audited) 19,655 1,945 12,130 33,730
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, net of share issue expenses 45 - - 45
At 30 September 2023 (Unaudited) 19,655 1,945 13,643 35,243
Interim Consolidated Statement of Financial Position
As at 30 September 2024
30 September 2024 30 September 2023 31 March 2024
(unaudited) (unaudited)
£000 £000 (audited)
£000
Non-current assets
Intangible fixed assets 46,057 46,641 45,809
Property, plant and equipment 938 1,107 1,114
Right-of-use assets 2,003 2,689 2,308
Deferred tax 560 242 560
Total non-current assets 49,558 50,679 49,791
Current assets
Inventories 54 72 53
Trade and other receivables 9,669 16,609 11,147
Cash and cash equivalents 1,379 1,704 2,341
Total current assets 11,102 18,385 13,541
Total assets 60,660 69,064 63,332
Current liabilities
Trade and other payables (21,633) (26,753) (24,061)
Borrowings (2,500) (2,500) (2,500)
Lease liabilities (595) (508) (578)
Contingent consideration - (528) -
Total current liabilities (24,728) (30,289) (27,139)
Non-current liabilities
Lease liabilities (1,625) (2,311) (1,891)
Other payables (12) (209) (12)
Deferred tax (560) (1,012) (560)
Total non-current liabilities (2,197) (3,532) (2,463)
Total liabilities (26,925) (33,821) (29,602)
Net current liabilities (13,626) (11,904) (13,598)
Net assets 33,735 35,243 33,730
Shareholders' Equity
Share capital 19,655 19,655 19,655
Share premium account 1,945 1,945 1,945
Retained earnings 12,135 13,643 12,130
Equity shareholders' funds 33,735 35,243 33,730
Interim Consolidated Cash Flow Statement
For the six months ended 30 September 2024
Six Months ended 30 September 2024 Six Months Year ended 31 March 2024
(unaudited) ended 30 September 2023 (audited)
£000 (unaudited) £000
£000
Cash flow from operating activities:
Profit/(Loss) before tax 5 (1,867) (3,865)
Adjustments for:
Amortisation and depreciation 939 2,254 4,867
Loss on disposal of non-current assets - - (25)
Finance Income - - (27)
Finance costs 187 257 414
Movements in working capital:
Movement in inventory (1) 3 22
Movement in trade and other receivables 1,478 (2,929) 2,467
Movement in trade and other payables (2,354) (1,554) (4,517)
Cash generated from/(used in) operations 254 (3,836) (664)
Income tax received/(paid) - - -
Net cash flows from operating activities 254 (3,836) (664)
Cash flow from investing activities:
Purchase of property, plant and equipment (108) (224) (636)
Disposal of property, plant and equipment - - 29
Additions of intangible assets (578) (114) (1,013)
Contingent consideration - - (312)
Net cash flows from investing activities (686) (338) (1,932)
Cash (outflow)/inflow before financing (432) (4,174) (2,596)
Cash flow from financing activities:
Issue of share capital - 45 45
Dividends paid - - (246)
Interest paid (187) (188) (218)
Finance lease payments (343) (430) (1,095)
Net cash flow from financing activities (530) (573) (1,514)
Net decrease in cash and cash equivalents (962) (4,747) (4,110)
Cash and cash equivalents at beginning of the period 2,341 6,451 6,451
Cash and cash equivalents at end of the period 1,379 1,704 2,341
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.
The consolidated financial statements have been prepared in accordance with
UK-adopted International Accounting Standards and with the requirements of the
Companies Act 2006 as applicable to companies reporting under those standards.
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 2024 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 2025.
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 5 November. The results for the six months to 30 September
2024 and the comparative results for the six months to 30 September
2023 are unaudited. The amounts for the period ended 31 March 2024 are
extracted from the audited statutory financial statements of the Group for
that period.
The Directors have considered the financing needs for the Group for the period
to 31 December 2025 taking into account the risks and uncertainties referred
to in the 2024 Annual Report. This assessment considered reasonably plausible
downsides and measured these against available cash resources and the recently
renewed RCF. The directors have concluded that the Group is a going concern
for the period to 31 December 2025, and that therefore 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 2024
30 September 2024 30 September 2023 £000
£000 £000 (Audited)
(Unaudited) (Unaudited)
Profit/(Loss) (£000) 5 (1,867) 3,134
Weighted average number of shares used in basic earnings per share 196,547 196,547 196,464
calculations ('000)
Potentially dilutive share options and contingent share consideration ('000) - 144 15
Weighted average number of shares used in diluted earnings per share 196,547 196,691 196,479
calculations ('000)
Basic earnings per share (Pence) 0.00 (0.95) 1.60
Diluted earnings per share (Pence) 0.00 (0.95) 1.60
Adjusted Earnings per share 6 months ended 6 months ended Year ended 31 March 2024
30 September 2024 30 September 2023 £000
£000 £000 (Audited)
(Unaudited) (Unaudited)
Pre-exceptional profit before tax (£000) 47 (1,867) 2,346
Amortisation of intangible customer contracts & relationships - 880 850
Adjusted profit (£000) 47 (987) (2,141)
Weighted average number of shares used in diluted earnings per share 196,547 196,547 196,464
calculations ('000)
Potentially dilutive share options and contingent share consideration ('000) - 144 15
Weighted average number of shares used in diluted earnings per share 196,547 196,691 196,479
calculations ('000)
Adjusted basic earnings per share (Pence) 0.02 (0.50) (1.09)
Adjusted diluted earnings per share (Pence) 0.02 (0.50) (1.09)
3. Dividends
No interim dividend proposed (H124: nil).
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END IR DBBDBBGGDGSURecent news on Totally
See all newsREG - Totally PLC - Holding(s) in Company
AnnouncementREG - Totally PLC - Trading Update
AnnouncementREG - Totally PLC - Commencement of Strategic Review
AnnouncementREG - Totally PLC - Director/PDMR Shareholding
AnnouncementREG - Totally PLC - Holding(s) in Company
Announcement