REG - Totally PLC - Preliminary results

TotallyAnnouncement

06/07/2021 07:05

RNS Number : 2434E
  
Totally PLC
  
06 July 2021
  
 

 
Prior to publication, the information contained within this announcement was deemed by the Company to constitute inside information as stipulated under the UK Market Abuse Regulation. With the publication of this announcement, this information is now considered to be in the public domain.
 
06 July 2021
Totally plc
("Totally", the "Company" or the "Group")
Preliminary results for the 12-month period ended 31 March 2021
Record Revenue and EBITDA
Totally plc (AIM: TLY), a leading provider of a range of healthcare services across the UK and Ireland, is pleased to announce its preliminary results for the 12-month period ended 31 March 2021.
 
Operational highlights
 
·    Exceptional year during times of unprecedented pressure supporting the NHS to manage demand for services during the COVID-19 pandemic
·    Each delivery division impacted differently:
o  Demand for access to urgent care services via NHS 111 increased beyond all expectations, some of which continues;
o  Planned (elective) care services all suspended by the NHS and other healthcare providers in order to protect hospital capacity for those diagnosed with COVID-19 resulting in huge increases in the number of people waiting for treatment as lockdown restrictions are lifted and service recommenced; and
o  Insourcing services suspended with all contracts paused from March 2020. Services recommenced in Northern Ireland from June 2020 with others following during the period.
§ Strong performance of Totally Healthcare (established October 2019) despite restrictions and significant opportunities in the face of huge waiting lists
·    Vocare Ltd ("Vocare") awarded a place on the regional Integrated Urgent Care Clinical Support Framework hosted by Yorkshire Ambulance Service NHS Trust ("YAS") after competitive process
·    Totally's Planned Care division awarded new contract to provide occupational physiotherapy services to four police forces in the South West of England
·    Outstanding delivery of services throughout the pandemic 24 hours a day, 7 days a week
·    All registered services rated as 'Good' by the Care Quality Commission ("CQC")
 
Financial highlights
 
·    7.4% increase in revenue to £113.7 million (2020: £105.9 million)
·    18.3% gross margin (2020: 18.1%)
·    24.5% increase in underlying EBITDA to £5.0 million, no exceptional items incurred (2020: £4.0 million EBITDA excluding exceptional items)
·    Substantial increase in profit before tax to £0.1 million (2020: £3.4 million loss)
·    Cash as at 31 March 2021 of £14.8 million (31 March 2020: £8.9 million)
·    Total dividend for the year of 0.50p (2020: 0.50p per share)
·    Substantial increase in earnings per share to 0.17p (2020: 1.82p loss)
·    Urgent Care revenue increased by 9.2% to £105.4 million (2020: £96.5 million)
o  17.8% gross margin (2020: 17.5%)
·    Planned Care revenue reduced by 37.6% to £5.2 million (2020: £8.4 million)
o  23.7% gross margin (2020: 22.6%)
·    Insourcing revenue increased by 202.0% to £3.1 million (2020: £1.0 million)
o  26.8% gross margin (2020: 28.7%)
 
Post period highlights
 
·    The Group's Urgent Care division has been awarded a number of contract extensions worth a total of c. £17.8 million
·    Totally Healthcare Limited ("Totally Healthcare") awarded its largest contract to date, to provide endoscopy procedures to The Saolta Group of Hospitals in Galway, Republic of Ireland
·    Planned Care mobilised its largest community dermatology contract in April 2021 following a 12-month delay due to the pandemic
·    Market forecasts reintroduced today
·    Final dividend of 0.25 pence per share proposed, bringing total dividend for the year to 0.50 pence per share
 
Investor presentation


A reminder that Wendy Lawrence, CEO and Lisa Barter, CFO, will provide a live presentation relating to the preliminary results and outlook for the Company via the Investor Meet Company platform on 14 July 2021 at 14:00 BST. The presentation is open to all existing and potential shareholders. Questions can be submitted pre-event via the Investor Meet Company dashboard up until 9:00am the day before the meeting, 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   
 
Investors who already follow Totally plc on the Investor Meet Company platform will automatically be invited.
 
CHAIRMAN'S STATEMENT


I am pleased to report record results for the year ended 31 March 2021.
 
Revenues were £113.7m (2020: £105.9m) with EBITDA of £5.0m (2020: £4.0m). Net cash as at 31 March 2021 stood at £14.8m. 
 
The year was impacted throughout by the Covid-19 pandemic and as a trusted partner of the NHS the teams at Totally were part of the frontline resource providing care. Demand increased on an almost daily basis. Specific details of the impact throughout the business are highlighted within the Chief Executive Officer's review. 
 
The NHS is faced with a continual and ongoing review of its core services and we expect to continue to be involved in an evolving appraisal of NHS national guidelines. The NHS 111 services, where we provide a significant part of the national requirement, has overstretched capacity on a continuing basis. I commend our staff who gave commitment way above their normal working ethos to ensure that patients were given a first class response. 
 
As ever the safety and well-being of our staff has been paramount and we continually review working practices and ways that we can support staff who themselves face the daily pressures of working in demanding environments. I would like to place on record the Board's thanks to our employees at all levels who have given a huge commitment throughout the period reported. 
 
Our insourcing business was successful in winning significant new orders some of which were placed on hold due to the inability to provide elective care in hospitals during the pandemic. I am pleased to report that the service has restarted as we look to reduce hospital waiting times throughout the UK and Ireland. 
 
We look forward to a year of growth in a controlled manner. Our buy and build strategy continues as we seek out earnings enhancing opportunities in both organic and acquired growth. 
 
With a strong balance sheet and growth opportunities I look forward to bringing stakeholders news of future developments. 
 
Bob Holt OBE
Chairman
06 July 2021
 
CHIEF EXECUTIVE OFFICER'S REVIEW
 
Introduction


I am pleased to report excellent results during a year of unprecedented challenges as we all worked tirelessly through the global pandemic battling COVID-19. 
 
Our staff have stood shoulder to shoulder with the NHS and other healthcare providers, delivering frontline care to patients across the UK, whilst at the same time responding to changing national guidance. Demand for our services throughout the year increased beyond all of our estimates. 
 
Each of our divisions were impacted differently and all responded professionally to the challenges and ensured that they protected their staff as well as the patients they were treating. 
 
Our Urgent Care division saw demand for NHS 111 services increase beyond anything we planned for and responded quickly to ensure continued delivery of the 24/7 service across the UK. Every NHS 111 provider was asked to increase capacity which was achieved by our in-house corporate services, such as recruitment, who worked to bring back people into the service who had recently retired or left for other roles. The response to the NHS call for people to return to work helped us to respond to the demands from the pandemic. 
 
At the same time, it was imperative that we protected our staff. National guidance was adopted at all times, Personal Protective Equipment ("PPE") was provided and every step possible was taken to ensure everyone was kept safe. All of our premises implemented COVID safe processes and where possible people were asked to work from home but of course this was not possible for many people, especially those in patient facing roles and some of our corporate support staff as our business continued to rise to the challenges presented by the pandemic. 
 
Trading Performance


The Group made excellent progress with its operational performance throughout the year and exceeded our internal management expectations. We remain debt free and had healthy cash balances throughout the period which is a reflection of our excellent approach to cash management. 
 
The Group followed Government guidelines and policy during the COVID-19 pandemic and this includes access to applicable financial support where appropriate to support the different impacts across the Group. We ended the year with no deferred payments and no debt. 
 
A detailed update on our trading performance is of course included further on in this report by our Chief Financial Officer, Lisa Barter. 
 
Growth


We believe that we are a leading private provider of healthcare across the UK, supporting healthcare commissioners and providers to respond proactively and robustly to changes in demand for services and indeed to provide new models of care as required especially during the COVID-19 pandemic. We hold long term contracts for our services across the UK 
 
During the year we successfully retained numerous contracts that were due to expire and secured new work across the Group.
 
Our People


Our people are our greatest asset and what make Totally unique in its flexibility to respond quickly and professionally to every demand faced.
 
It would be remiss of me not to formally recognise the excellent management of the pandemic by our clinical quality and divisional management teams. Gloria Cooke is to be commended for her leadership in establishing our Sickness Absence Management service ("SAMs") and responding to the daily guidance issued by Government. The SAMs service supported every vulnerable member of the team with 1:1 advice and coaching in order to keep them safe. This will continue as a permanent service for our staff in order to proactively manage absence and support individuals to positively manage their own health and wellbeing. 
 
The Emergency Preparedness, Resilience and Response ("EPRR") systems established across our urgent care division should also be recognised for its robust approach to the Pandemic which in turn ensured all services continued to operate 24/7 everyday throughout the period. 
 
The overall approach proved that all the hard work that had previously been undertaken as part of our Business Continuity Planning ("BCP") was certainly worthwhile. 
 
The Future
 
Totally has a solid platform for growth, which will be achieved by our own organic growth along with our agreed strategy to remain acquisitive.
 
During 2021 we are focused on making further progress with our growth strategy whilst ensuring we maintain the delivery of high quality services. We strongly believe that our approach of creating and supporting distinct delivery divisions will again demonstrate the robustness of this approach as they all develop further and support care delivery across the UK. We expect urgent care to continue to lead the delivery of a range of COVID specific services, along with Think 111 First services, to ensure patients can access the most appropriate care quickly, efficiently and as close to home as possible. Whilst our planned care and insourcing divisions focus on reducing the huge waiting lists which are a consequence of elective care being paused whilst hospitals battled to deliver services throughout the pandemic and maintain capacity for patients requiring care for COVID-19
 
We invested heavily in our infrastructure during the period to improve the resilience and efficiencies of our technical services. This included the implementation of a new telephony system across our NHS 111 service, providing new kit to enable remote working as well as implementing new technology to replace some face to face services with video technology.
 
We will continue to invest in our growing and increasingly skilled workforce, ensuring we deliver the best care possible to every patient we treat whilst growing the business and increasing our coverage across the UK.
 
We will also ensure that we are well positioned to offer new services that are required as a direct consequence of the pandemic or resulting from new policies to promote well-being and self care services as part of employers' responsibilities to their workforce.
 
Wendy Lawrence
Chief Executive Officer
06 July 2021
 
STRATEGIC REVIEW


Our strategy remains to become the partner of choice for the NHS and other healthcare bodies across the UK and Ireland. Steadily over the years we have built a robust platform to ensure we deliver relevant, high quality services and attract the very best people to work as part of our team. 
 
We have done this via acquisitions and organic growth and transformed the company so position ourselves to be able to respond to the ever changing demands placed upon the healthcare sector 
 
2020/21 was no exception and back in February 2020, we began to see the very beginnings of the impact of the COVID-19 pandemic and today, over a year later, we continue to face the changes demands placed upon us. 
 
During 2020/21 we completely changed the way we work. Not only in order to provide safe, reliable, accessible services to our patients but also to keep our staff safe.... 
 
Every person in the UK and Ireland has been impacted by COVID-19 either directly or with the changes required in business and the community in order to keep everyone safe. Totally was no different. 
 
The first indicator that major changes were on their way was the unprecedented increase in calls made to the NHS 111 service. Totally, like other 111 service providers, were asked to increase capacity whilst NHS England continually reviewed its care models and advice so that when people called 111 they were not only supported but also guided into the most appropriate care setting for their condition. NHS 119 was launched which was specifically designed for callers with COVID-19 and everyone worked tirelessly to create more call management capacity and to introduce new working practices to keep our staff safe. New call centre capacity was created quickly, training was continually updated to ensure everyone involved in care delivery were up to date with the current national guidance and our in-house Sickness Absence Management service ("SAMs") worked with every individual member of staff to help then stay safe and take the most appropriate action according to their own health needs. 
 
A huge amount of new IT equipment was mobilised and installed to facilitate home working for those roles that could safely be undertaken remotely and for those people who needed to come into work, we made every effort to ensure they could follow social distancing advice, access Personal Protective Equipment ("PPE") along with additional deep cleaning processes and the installation of additional equipment to keep them safe (such as perspex screening for work stations, hand sanitiser and antibacterial routines). Emergency Preparedness, Resilience and Response processes were implemented across the business with Gold Command meetings daily and cascade messaging to all staff established immediately and continue. 
 
Urgent Care 


Our Urgent Care Division was impacted with numerous requests for new services throughout the period and responded proactively. 
 
We:
·    Experienced 111 demand increases day upon day and remains high against all previous estimates 
·    Assisted with the Implementation of 111 online and 119 to support COVID-19 enquiries 
·    Implemented care models across all of the Urgent Treatment Centres to ensure that Accident & Emergency departments could focus on those requiring assistance with immediate and life threatening conditions 
·    Implementation of Think 111 First 
·    Numerous additional COVID-19 specific services 
·    Video consultations to support delivery of patient care 
 
Planned Care 


Our Planned Care Division saw almost the opposite of our Urgent Care Division. Services were halted as GP surgeries closed and all elective care was paused. Where possible urgent treatments continued and technology enabled us to provide some services via video consultations and via PhysiTrak which is our technology for supporting physiotherapy consultations and pathway delivery remotely and widely used across the division.
 
Where possible services continued and from December 2020 onwards there has been a return to delivering services directly to patients. We aim to continue developing the use of technology which will include video consultations and the use of Apps to ensure disruptions to patient care are kept to a minimum in the future. 
 
During 2020 the mobilisation of new contracts was paused but we are pleased to confirm that these have now been mobilised. 
 
New business opportunities continue to be pursued as we are aware of new pressures placed upon the NHS with increasing waiting lists along with new services as a result of the pandemic such as Long Covid services. 
 
Insourcing


Our Insourcing Division had to pause all services for a short time during 2020 due to the pandemic and all elective care being suspended to allow hospitals to focus on managing the many demands of COVID-19. All contracts were retained and services restarted in Northern Ireland during June 2020 with hospital across England gradually restarting elective care during the winter months. 
 
There has been many reports referring to the increased number of people waiting for treatment across the UK and Totally Healthcare are responding proactively to requests for help. They continue to work across the UK supporting hospitals mainly at weekends but also providing some services 7 days a week in order to ensure patients are treated as quickly as possible. 
 
We expect that the demand for high quality insourcing services to continue to rise over future months. 
 
Changes to Commissioning Processes - The White Paper - The Future of Health and Care published February 2021.


On the 11 February 2021, the Department of Health and Social Care published the White Paper Integration and Innovation: working together to improve health and social care for all. 
 
The paper represents a shift away from the focus of competition which underpinned the 2012 Government reforms. At the same time as removing some of the competition and procurement rules it gives the NHS and its partners greater flexibility to deliver joined-up care to the increasing number of people who rely on joined up services. 
 
At the heart of the changes the proposal to establish Integrated Care Systems (ICS) brings huge opportunities for faster decisions to be made to deliver changes to care as changes in demands are seen from the public. The new systems should allow and enable flexibility for geographical areas to determine the best arrangements for their populations and to work with trusted, respected partners to deliver targeted high quality services without the need to lengthy procurement processes 
 
This should result in a reduction in bureaucracy and recognise quality partnerships with whom cooperation delivers much improved care. Partnership working has never been so important for the success of care delivery businesses - an area where all of Totally's businesses shine. 
 
Totally is already working in areas that have used the new systems as defined within the White Paper and welcome the ongoing changes which mean services can quickly be mobilised to deliver targeted local services - this was demonstrated numerous times during the pandemic where all of our divisions responded proactively when asked to mobilise new services. 
 
The way that we have developed the business into our distinct divisions has proven beyond doubt that the flexibility this provides is not only robust but also ensures every division is well placed to grow and continue to provide excellent services to patients across the UK and support hospitals as they face the ever changing demands for services. 
 
The Board at Totally will continue to refine its strategy to ensure opportunities are identified to increase its customer base and grow both organically and via acquisition. 
 
Wendy Lawrence
Chief Executive Officer
06 July 2021
 
FINANCIAL REVIEW


2020 was undoubtedly a demanding year for healthcare services and the Totally group were no exception. The global pandemic that shook healthcare services across the world, has had a significant impact on the demand and provision of our services, bringing with it both opportunity and challenge.
 
The government response to the pandemic and proactive initiatives to ensure patients were directed away from A&E and from face to face Primary Care played to the strengths of the group and placed unprecedented demand on our services. Funding to enable the response was well managed by the Department of Health which allowed our services to respond and grow without unreasonable financial restriction. Growth in revenue was 7.4% year on year at £113.7 million and the Group generated a profit before tax of £0.1 million (2020: £3.4 million loss). EBITDA before exceptionals increased 24.5% to £5.0 million.
 
The group remains cash generative and responded with the distribution of our interim dividend in February 2021. The intention is to consider future dividend payments based upon the trading performance of the Group.
 
Growth in revenues was primarily driven by the growth in Urgent Care 9.2%, bringing revenues to £105.4 million. Planned Care revenues reduced by £3.2 million directly as a result of the reduction in face to face consultations and considerable disruption to services. Insourcing continued to grow, despite travel restrictions preventing procedures from being performed in April and May, the continued demand for services in this area was the driver of the revenue growth from £1 million to £3.1 million.
 
Opportunity for new contract wins was understandably limited during the year yet the group was able to achieve underlying growth in two of the three divisions. Urgent Care provided new services relating specifically to COVID-19 support as well as incremental contracts in services such as Clinical Assessment Services (CAS). Insourcing increased the number of contracts and its bank of staff. The new contract for Planned Care, in Manchester was postponed for 12 months and mobilised on 1 April 2021. All divisions continue to tender for relevant contracts where opportunity exists.
 
Margin improved to 18.3% from 18.1% (underlying 17.2%) largely as a result of improved performance in the urgent care business. Furlough funding claimed by the group during the period was £0.8 million, the vast majority of staff were redeployed, working from home or their roles were unaffected.
 
All of our businesses continually review service delivery models and this approach has supported us through our response to the global pandemic. By utilising additional technology, reducing face to face contact, delivering 111 24/7 and flexing our services we have continued to deliver sustainable support to our partners, the NHS.
 
The Group posted an EBITDA of £5.0 million and no exceptional items. The profit before tax of £0.1 million is stated after an amortisation charge of £2.5 million relating to the intangible value of contracts acquired.
 




 


 


 


 


31 March 2021


31 March 2020




Revenue


 


 


 


£113.7m


£105.9m




Gross profit


 


 


 


£20.8m


£19.2m




EBITDA


 


 


 


£5.0m


£4.0m




Exceptional items


 


 


-


(£2.0m)




Depreciation


 


 


 


(£2.0m)


(£1.9m)




Amortisation


 


 


 


(£2.8m)


(£3.1m)




PBT/(LBT)


 


 


 


£0.1m


(£3.4m)




Net assets


 


 


 


£34.0m


£34.4m




Cash


£14.8m


£8.9m




 


 


 


 


 


 




 


 


 


 


 


 




Exceptional items


 


 


 


 




 


 


 


 


12 months to

31 March 2021


12 months to

31 March 2020




 


 


 


 


£000


£000




Acquisition-related costs


 


 


-


528




Impairment of goodwill


 


 


-


1,500




Revaluation of contingent consideration


 


-


-




Other exceptional costs


 


 


-


-




Total exceptional items


 


 


-


2,028




Tax credit attributable to exceptional items


 


-


(100)




Total exceptional items after tax


-


1,928




 
 
Cash flow statement 
 
Cash generated from operating activities is positive in the year, reflecting improved profitability of the Group.
 
 




 


 


 


 


31 March 2021


31 March 2020




Net cash flows from operating activities


 


£9.2m


£2.9m




Net cash flows from investing activities


 


(£0.7m)


(£8.6m)




Net cash flows from financing activities


 


(£2.6m)


£7.1m




Net increase in cash and cash equivalents


 


£5.9m


£1.4m




Cash and cash equivalents at the beginning of the year


 


£8.9m


£7.5m




Cash and cash equivalents at the end of the year


£14.8m


£8.9m




 
Dividend 
 
We remain committed to the payment of dividends as we believe this reflects our confidence in the Company's future prospects. The Board is therefore pleased to be recommending to shareholders a final dividend of 0.25p per share. This, together with the interim dividend of 0.25p paid in February 2021, makes a total dividend for the year of 0.50p per share. Subject to approval by shareholders at the Annual General Meeting, to be held on 6 September 2021, the final dividend will be paid on 13 October 2021 to shareholders in the register as at the close of business on 10 September 2021. The shares will be marked ex-dividend on 9 September 2021.
 
Lisa Barter ACA 
Chief Financial Officer
06 July 2021 
 
 
For further information please contact:

 




Totally plc 


020 3866 3330




Wendy Lawrence, Chief Executive
Bob Holt, Chairman
 


 




Allenby Capital Limited (Nominated Adviser & Joint Corporate Broker)


020 3328 5656




Nick Athanas / Liz Kirchner (Corporate Finance) 
Amrit Nahal (Sales & Corporate Broking)
 


 




Canaccord Genuity Limited (Joint Corporate Broker)


020 7523 8000




Bobbie Hilliam
Alex Aylen
 


 




Yellow Jersey PR


020 3004 9512




Joe Burgess
Henry Wilkinson


 




 
 
 
Consolidated Statement of Profit or Loss and Other Comprehensive Income
For the year ended 31 March 2021           
                        




 


 


 


 


31 March 2021


31 March 2020




Continuing operations


 


 


£000


£000




Revenue


 


 


 


113,709


105,948




Cost of sales


 


 


 


(92,886)


(86,772)




Gross profit


 


 


 


20,823


19,176




Administrative expenses


 


 


(16,455)


(15,140)




Other income


 


 


 


656


-




Profit before exceptional items


 


 


5,024


4,036




Exceptional items


 


 


-


(2,028)




Profit before interest, tax and depreciation


 


5,024


2,008




Depreciation and amortisation


 


 


(4,780)


(5,122)




Operating profit/(loss)


 


 


244


(3,114)




Finance income


 


 


 


5


6




Finance costs


 


 


 


(193)


(302)




Profit/(loss) before taxation


 


 


56


(3,410)




Income tax credit


 


 


262


577




Profit/(loss) for the year attributable to the equity

shareholders of the parent company


318


(2,833)




Other comprehensive income


 


 


-


-




Total comprehensive profit/(loss) for the year net of tax

attributable to the equity shareholders of the parent company


318


(2,833)




 


 


 


 


 


 




 


 


 


 


 


 




 


 


 


 


31 March 2021


31 March 2020




Profit/(loss) per share


 


 


Pence


Pence




From continuing operations:


 


 


 


 




Basic


 


 


 


0.17


(1.82)




Diluted


 


 


 


0.17


(1.82)




 


 


 


 


 


 




 
 
 
Consolidated Statement of Changes in Equity
For the year ended 31 March 2021
 




 


 


 


Share capital


Share premium


Retained earnings


Equity shareholders' funds




 


 


 


£000


£000


£000


£000




At 1 April 2019


 


5,979


16,408


3,492


25,879




Total comprehensive loss for the year


-


-


(2,833)


(2,833)




Cancellation of share premium account


-


(16,408)


16,408


-




Issue of shares


 


 


12,240


-


-


12,240




Expenses attached to equity issue


-


-


(450)


(450)




Dividend payment


 


-


-


(455)


(455)




Credit on issue of warrants and options


-


-


64


64




At 31 March 2020


 


18,219


-


16,226


34,445




Total comprehensive profit for the year


-


-


318


318




Issue of shares


 


 


-


1


-


1




Dividend payment


 


-


-


(911)


(911)




Credit on issue of warrants and options


-


-


120


120




At 31 March 2021


 


18,219


1


15,753


33,973




 
 
 
Consolidated and Company Statements of Financial Position
As at 31 March 2021




 


 


 


 


 




 


 


 


 


31 March 2021


31 March 2020




 


 


 


 


£000


£000




Non current assets


 


 


 


 




Intangible assets


 


 


37,468


39,631




Property, plant and equipment


 


1,083


789




Right-of-use assets


 


 


2,927


4,129




Investments in subsidiaries


 


 


-


-




Deferred tax


 


 


 


112


408




 


 


 


 


41,590


44,957




Current assets


 


 


 


 


 




Inventories


 


 


 


100


77




Trade and other receivables


 


 


8,675


11,370




Cash and cash equivalents


 


 


14,797


8,923




 


 


 


 


23,572


20,370




Total assets


 


 


 


65,162


65,327




Current liabilities


 


 


 


 




Trade and other payables


 


 


(26,130)


(24,367)




Contingent consideration


 


 


(258)


(271)




Lease liabilities


 


 


(564)


(1,449)




 


 


 


 


(26,952)


(26,087)




Non current liabilities


 


 


 


 




Trade and other payables


 


 


(1,080)


(786)




Lease liabilities


 


 


(2,432)


(2,729)




Deferred tax


 


 


 


(725)


(1,280)




 


 


 


 


(4,237)


(4,795)




Total liabilities


 


 


(31,188)


(30,882)




Net current liabilities


 


 


(3,380)


(5,717)




Net assets


 


 


 


33,973


34,445




Shareholders' equity


 


 


 


 




Called up share capital


 


 


18,219


18,219




Share premium


 


 


1


-




Retained earnings


 


 


15,753


16,226




Equity shareholders' funds


 


 


33,973


34,445




 
 
 
 
 
Consolidated Cash Flow Statement
For the year ended 31 March 2021
 




 


 


 


 


 


31 March 2021


31 March 2020




 


 


 


 


 


£000


£000




Cash flows from operating activities


 


 


 


 




Profit/(loss) for the year


 


 


 


318


(2,833)




Adjustments for:


 


 


 


 


 




- options and warrants charge


 


 


 


120


64




- depreciation and amortisation


 


 


 


4,780


5,122




- impairment of goodwill


 


 


 


-


1,500




- tax income recognised in profit or loss


 


 


(262)


(577)




- finance income


 


 


 


(5)


(6)




- finance costs


 


 


 


 


193


302




- receipt from escrow relating to acquisitions


 


 


(656)


-




Movements in working capital:


 


 


 


 


 




- inventories


 


 


 


 


(24)


(8)




- movement in trade and other receivables


 


 


2,710


1,891




- movement in trade and other payables


 


 


2,044


(2,452)




Cash used for operations


 


 


 


9,218


3,003




Income tax paid


 


 


 


(4)


(104)




Net cash flows from operating activities


 


 


9,214


2,899




Cash flows from investing activities


 


 


 


 




Purchase of property, plant and equipment


 


 


(778)


(397)




Disposal of property, plant and equipment


 


 


12


-




Additions of intangible assets


 


 


 


(605)


(192)




Acquisition of subsidiaries, net of cash acquired


 


 


-


(7,955)




Receipt from escrow relating to acquisitions


 


 


656


-




Contingent consideration paid


 


 


 


(13)


(51)




Net cash flows from investing activities


 


 


(728)


(8,595)




Cash flows from financing activities


 


 


 


 




Issued share capital


 


 


 


2


9,739




Expenses attached to equity issue


 


 


-


(450)




Dividends paid to the holders of the parent


 


 


(911)


(455)




Interest paid


 


 


 


 


(55)


(97)




Principal paid on lease liabilities


 


 


 


(1,648)


(1,638)




Net cash flows from financing activities


 


 


(2,612)


7,099




Net increase in cash and cash equivalents


 


 


5,874


1,403




Cash and cash equivalents at the beginning of year


 


 


8,923


7,520




Cash and cash equivalents at the end of the year


 


 


14,797


8,923




 
 
 
NOTES TO THE FINANCIAL INFORMATION
FOR THE YEAR ENDED 31 MARCH 2021
 
1. GENERAL INFORMATION
Totally plc is a public limited company ("the 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 Cardinal Square West, 10 Nottingham Road, Derby DE1 3QT. The Company's ordinary shares are traded on the AIM market of the London Stock Exchange ("AIM").
The Group's principal activities are the provision of innovative and consolidatory solutions to the healthcare sector, which are provided by the Group's wholly owned subsidiaries.
The Company's principal activity is to provide management services to its subsidiaries.
2. BASIS OF PREPARATION
The financial information set out in this announcement does not constitute statutory accounts as defined by section 435 of the Companies Act 2006. It has been prepared in accordance with the prepared in accordance with the recognition and measurement principles of international accounting standards in conformity with the requirements of the Companies Act 2006 and in accordance with the AIM rules and is therefore not in full compliance with IFRS.  The principal accounting policies applied in the preparation of the financial information are detailed in note 3.
The financial statements for the year ended 31 March 2021 are not authorised for issue however it is anticipated that audit reports will not be modified and will not draw attention to any matters by way of emphasis or contain a statement under 498(2) or 498(3) of the Companies Act 2006.
The financial information has been prepared on the historical cost basis and is presented in Sterling and all values are rounded to the nearest thousand pounds (£000) except when otherwise indicated.
The Group's business activities, together with the factors likely to affect its future development, performance and position are set out in the Strategic Report. The financial position of the Group is described in the Financial Review.
The Group has consistently had net current liabilities in recent reporting periods which reflects the nature of the contractual terms with customers and suppliers. The Group carefully manages financial resources, closely monitoring the working capital cycle and has long-term contracts with a number of customers and suppliers across different geographic areas within the United Kingdom and industries. Based on the existing cash balances, underlying performance and cash flows generated from operating activities, the Directors believe that the Group has sufficient financial resources to be able to meet its obligations as they fall due for a period of at least 12 months from the date of this financial information and are comfortable that it is a going concern.
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of consolidation
The Group's financial statements include the results of the Company and its subsidiaries, all of which are prepared up to the same date as the parent company.
Subsidiaries
Subsidiaries are all entities over which the Company has the ability to exercise control and are accounted for as subsidiaries. The trading results of subsidiaries acquired or disposed of during the period end are included in the income statement from the effective date of acquisition or up to the effective date of disposal, as appropriate.
All intra-group transactions, balances, income and expenditure are eliminated on consolidation.
The purchase method of accounting is used to account for the acquisition of subsidiaries by the Company. The cost of an acquisition is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are initially measured at fair value at the acquisition date irrespective of the extent of any non-controlling interest. The excess of cost of acquisition over the fair values of the Group's share of identifiable net assets acquired is recognised as goodwill. Any deficiency of the cost of acquisition below the fair value of identifiable net assets acquired (i.e. discount on acquisition) is recognised directly in the income statement. All acquisition expenses have been reported within the income statement immediately.
Any contingent consideration to be transferred by the Group is recognised at fair value at the acquisition date. Subsequent changes to the fair value of the contingent consideration that are deemed to be an asset or liability are recognised in accordance with IAS 39 either in profit or loss or as a change to other comprehensive income.
Where necessary, adjustments are made to the financial information of subsidiaries to bring the accounting policies used in line with those used by other members of the Group.
Revenue recognition
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.
Insourcing services                                                                                                                                         
Revenue is recognised as services are provided. Revenue is recognised in the month when the service is provided, as this is the point when revenue activity can be reliably measured.
Planned care services
Revenue represents invoiced sales of services to regional Care Commissioning Groups of the National Health Service. Revenue is recognised in the month when the service is provided, as this is the point when revenue activity can be reliably measured. Revenue can be subject to clawback adjustments based on performance against criteria as detailed in the individual contracts.                                       
Urgent care services
Revenue is recognised in the month when the service is provided, as this is the point when revenue activity can be reliably measured. Revenue can be subject to clawback adjustments based on performance against criteria as detailed in the individual contracts.
All revenue originates in the United Kingdom.
Finance income
Finance income comprises bank interest received, recognised on an accruals basis.
Finance costs
Finance costs comprise bank charges and interest on leases recognised under IFRS 16. The prior year also included the unwinding of the fair value adjustment of the contingent consideration.
Government grants                                                                                                                                       
The Group applied for government support programmes introduced in response to the global pandemic. Included in comprehensive income is £967,000 (2020: £nil) of government grants obtained relating to supporting the payroll of the Company's employees. The Company has elected to present this as reducing the related expense. The Company had to commit to spending the assistance on payroll expenses, and not reduce employee head count below prescribed levels for a specified period of time. The Company does not have any unfulfilled obligations relating to this programme.
Property, plant and equipment
Property, plant and equipment is carried at cost less accumulated depreciation and any recognised impairment in value. Cost comprises the aggregate amount paid to acquire assets and includes costs directly attributable to making the asset capable of operating as intended.
Depreciation is calculated to write down the cost of the assets to their residual values by equal instalments over the estimated useful economic lives as follows:




Motor vehicles


- 3 and 5 years




Computer equipment


- 2 and 5 years




Plant and machinery and Office equipment


- 2 to 5 years




Freehold property improvements and Short leasehold property


- 3 to 10 years






The assets' residual values, useful lives and methods of depreciation are reviewed, and adjusted if appropriate, on an annual basis. An asset is de-recognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on de-recognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the income statement in the period that the asset is de-recognised.
Inventories
Inventories are valued at the lower of cost and net realisable value. In general, cost is determined on a first in first out basis and includes all direct expenditure based on a normal level of activity. Net realisable value is the price at which the stocks can be sold in the normal course of business after allowing for the costs of realisation and where appropriate for the costs of conversion from its existing state to a finished condition.
Intangible assets other than goodwill
Intangible assets other than goodwill comprise computer software and customer contracts and relationships.
Computer software is recognised at cost and subsequently amortised over its expected useful economic life of three years.
Customer contracts and the related customer relationships were acquired in business combinations and recognised separately from goodwill. They are initially recognised at their fair value at the acquisition date (which is regarded as their cost). Subsequent to initial recognition, these assets are amortised over the expected life of contracts and reported at cost less accumulated amortisation and accumulated impairment losses. Assets are reviewed for impairment on at least an annual basis.
Goodwill
Goodwill represents the excess of the fair value of the consideration of an acquisition over the fair value of the Group's share of the net identifiable assets of the acquired subsidiary at the date of acquisition. Goodwill is considered to have an indefinite useful life. Goodwill is tested for impairment annually and again whenever indicators of impairment are detected and is carried at cost less any provision for impairment.
Impairment of non-current assets
For the purposes of impairment testing, goodwill is allocated to each of the Group's cash-generating units ("CGU"s) or groups of CGUs that is expected to benefit from the synergies of the combination.
A CGU to which goodwill has been allocated is tested for impairment annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the CGU is less than its carrying amount, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata based on the carrying amount of each asset in the unit. Any impairment loss for goodwill is recognised directly in profit or loss. An impairment loss recognised for goodwill is not reversed in subsequent periods.
The value of the goodwill was tested for impairment during the current financial year by means of comparing the recoverable amount of each CGU or group of CGUs with the carrying value of its goodwill.
On disposal of the relevant CGU, the attributable amount of goodwill is included in the determination of the profit or loss on disposal.
Trade and other receivables
Trade receivables, which are generally received by the end of the month following terms, are recognised and carried at the lower of their original invoiced value less provision for expected credit losses.
Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and short-term deposits with an original maturity of three months or less.
Trade and other payables
Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade and other payables are recognised at original cost.
Borrowings
Borrowings are initially recognised at fair value, being proceeds received less directly attributable transaction costs incurred. Borrowings are subsequently measured at amortised cost with any transaction costs amortised to the income statement over the period of the borrowings using the effective interest method.
Foreign currency transactions
Transactions denominated in foreign currencies are translated at the exchange rate at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the period end are translated at the exchange rate ruling at that date. Foreign exchange differences arising on translation are recognised in the income statement.
Leased assets
Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of fixed lease payments. The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, the lessee's incremental borrowing rate is used, being the rate that the lessee would have to borrow the funds necessary to obtain an asset of similar value to the right-of-use asset with similar terms, security and conditions.
Lease payments are allocated between principal and finance costs. The finance cost is charged to profit or loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period.
Right-of-use assets are measured at cost comprising the initial measurement of lease liability, any lease payments made at or before the commencement date less any lease incentives received, and any initial direct costs.
Right-of-use assets are depreciated over the shorter of the asset's useful life and the lease term on a straight-line basis.
Payments associated with short-term leases of equipment and vehicles and all leases of assets considered low value are recognised as an expense in profit or loss on a straight-line basis. Short-term leases are leases with a lease term of twelve months or less.
Exceptional items
Exceptional items are those items that, in the Directors' view, are required to be separately disclosed by virtue of their size or incidence to enable a full understanding of the Group's financial performance.
Income taxes
Current income tax assets and liabilities are measured at the amount expected to be recovered or paid to the taxation authorities based on tax rates and laws that are enacted or substantively enacted by the period-end date. Deferred income tax is recognised using the balance sheet liability method, providing for temporary differences between the tax bases and the accounting bases of assets and liabilities. Deferred income tax is calculated on an undiscounted basis at the tax rates that are expected to apply in the period when the liability is settled and the asset is realised, based on tax rates and laws enacted or substantively enacted at the period-end date.
Deferred income tax liabilities are recognised for all temporary differences, except for an asset or liability in a transaction that is not a business combination, and at the time of the transaction affects neither the accounting profit nor taxable profit or loss.
Deferred income tax is charged or credited to the income statement, except when it relates to items charged or credited to equity, in which case the deferred tax is also dealt with in equity. Deferred income tax assets and liabilities are offset against each other only when the Company has a legally enforceable right to do so.
Deferred income tax assets are recognised to the extent that it is probable that future taxable profits will be available against which the deductible temporary differences can be utilised.
Retirement benefits
The Group operates a defined contribution plan. A defined contribution plan is a pension plan under which the employer pays fixed contribution into a separate entity. Contributions payable to the plan are charged to the income statement in the period to which they relate. The Group has no legal or constructive obligations to pay further contributions if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Share-based payments
The Group provides benefits to employees (including Directors) of the Group in the form of share-based payment transactions, whereby employees render services in exchange for shares or rights over shares. The fair value of the employee services rendered is determined by reference to the fair value of the shares awarded or options granted. Share options are valued using the Black-Scholes pricing model, or the Monte Carlo model where performance-based market vesting conditions apply. This fair value is charged to the income statement over the vesting period of the share-based payment scheme, with the corresponding increase in equity.
The value of the charge is adjusted in the income statement over the remainder of the vesting period to reflect expected and actual levels of options vesting, with the corresponding adjustment made in equity.
Standards adopted in the year
There have been no standards adopted that have had a material impact on the financial statements and no standards adopted in advance of their implementation dates.
Standards, interpretations and amendments not yet effective
There are a number of standards, amendments to standards, and interpretations which have been issued by the International Accounting Standards Board ("IASB") that are effective in future accounting periods that the Group has decided not to adopt early. The following amendments are effective for the period beginning 1 April 2021:
·    Amendments to References to Conceptual Framework in IFRS Standards;
·    Definition of a Business (Amendments to IFRS 3);
·    Definition of Material (Amendments to IAS 1 and IAS8);
·    Interest Rate Benchmark Reform (Amendments to IFRS 9, IAS 39 and IFRS 7)
·    Covid 19-Related Rent Concessions (Amendment to IFRS 16)
·    Amendments to IFRS 4 Insurance Contracts; and
·    Interest Rate Benchmark Reform Phase 2 (Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16).
The Group does not believe that these will have a significant impact on the financial statements.             
4. EARNINGS PER SHARE
 




 


 


 


31 March 2021


31 March 2020




 


 


 


Earnings


Basic earnings per share


Diluted earnings per share


Earnings


Basic loss per share


Diluted loss per share




 


 


 


£'000


 


 


£'000


 


 




Profit/(loss) before exceptional items


318


0.17p


0.17p


(905)


(0.58)p


(0.58)p




Effect of exceptional items


-


-


-


(1,928)


(1.24)p


(1.24)p




Profit/(Loss) attributable to owners of the parent


318


0.17p


0.17p


(2,833)


(1.82)p


(1.82)p




 


 


 


 


 


 


 


 


 




 


 


 


 


 


 


 


2021


2020




 


 


 


 


 


 


 


£'000


£'000




Weighted average number of ordinary shares


 


 


 


182,187


155,696




Dilutive effect of shares from share options


 


 


 


2,552


-




Fully diluted weighted average number of ordinary shares


 


184,739


155,696



 
 
 
 
 
 
 
 
 
 
 
 



 
Basic earnings/(loss) per share is calculated by dividing the profit/(loss) attributable to equity holders of the Company by the weighted average number of ordinary shares in issue during the year. Dilutive potential ordinary shares are those share options granted to employees where the exercise price is less than the average market price of the Company's ordinary shares during the period. For diluted earnings per share the weighted average number of ordinary shares in issue is adjusted to assume conversion of all dilutive potential ordinary shares unless there is a loss before exceptional items. 
 

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