REG - Totally PLC - Preliminary results
24/07/2024 07:00
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RNS Number : 5520X Totally PLC 24 July 2024
Totally plc
("Totally", the "Company" or the "Group")
Preliminary results for the 12-month period ended 31 March 2024
Improving health, supporting healthcare
Totally plc (AIM: TLY), a leading provider of frontline healthcare services
which increases access to quality healthcare across the UK and
in Ireland by targeting the reduction of waiting lists and waiting times for
patients, alongside corporate fitness and wellbeing services for corporate
customers, is pleased to announce its preliminary results for the 12-month
period ended 31 March 2024.
Financial highlights
• Revenue down 21% to £106.7 million (2023: £135.7 million).
• Gross margin decreased 1.8 percentage points to 16.6% (2023:
18.4%).
• Underlying EBITDA (excluding exceptional items) decreased 67%
to £2.3 million (2023: £6.9 million, H1 24: £1.1 million),
excluding £0.9 million in exceptional items.
• Loss before tax of £3.9 million (2023: profit of £1.8
million).
• Gross cash as at 31 March 2024 of £2.3 million (31 March
2023: £6.5 million; 30 September 2023: £1.7 million). Cash recovered
throughout the second half of the year.
• Debt remains unchanged, and the Company continues to have
headroom on all bank covenants.
• Indicative terms provided by existing lender NatWest for the
renewal of our RCF for a further two years at a level of £3.5 million to
better reflect the current size of the business.
• Cost savings initiatives delivered £2.2 million in year with
annualised cost savings of £3.5 million, with £0.9m exceptional costs to
deliver organisational restructuring.
• Intangible value of contracts ("IVOCs") has been fully amortised
by the end of the year (2023 closing balance £2.6m).
• Basic (losses)/earnings per share of (1.60) pence (2023: 0.94
pence).
• Directors do not propose a dividend for year ended 31 March
2024.
• With the healthcare market now easing and after allowing for the
full year impact of the previously flagged contract exits, the Company expects
revenues for the year ending 31 March 2025 to be c. £85 million and EBITDA to
be not less than £3.5 million.
Operational highlights
• All Care Quality Commission ("CQC") registered services continue
to be rated as "Good".
• More than two million patients were able to access appropriate
care via Totally, including the treatment of c. 175,000 patients from elective
care waiting lists.
• Contract with NHS England for the delivery of NHS 111 resilience
services renewed for a further year.
• Mobilisation of new elective care contracts in England and three
new contracts for the delivery of elective care services provided to Saolta
Group in Ireland.
• Multiple contract renewals and extensions underpinning 2023/24
revenue.
• Mobilised largest corporate fitness and wellbeing contract to
date, valued at £1.0 million over five years.
• Secured accreditation of Cyber Essentials Plus, providing
assurance that our IT environment remains secure and we have a framework in
place to reduce the risk of cyber-attacks.
Post period highlights
· New contract to manage the fitness centre and wellbeing suites at
prestigious new development in the City, commencing September 2024 and valued
at £0.5 million over three years.
· Multiple contract renewals and extensions underpinning 2024/25
revenue.
· The appointment of Bob Forsyth as a Non-Executive Director and
Chair of the Audit Committee.
Investor presentation
Wendy Lawrence, CEO, Simon Stilwell, Non-Executive Chairman and Laurence
Goldberg, Director of Finance, will provide a live presentation relating to
the preliminary results and outlook for the Company via the Investor Meet
Company platform on 24 July 2024 at 11.30 am 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 9:00 am 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
(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
It was undoubtedly a difficult year for the Group but the actions on costs,
structure, internal process and financial controls taken in the second half of
the year have seen a stabilisation in the business and a return to positive
monthly EBITDA contribution. As we look to the year ahead, we are a stronger
organisation with clear accountability and improving performance.
Revenues for the period were £106.7 million (2023: £135.7 million) with
underlying EBITDA (excluding exceptional items) of £2.3 million (2023: £6.9
million). Gross cash as at 31 March 2024 stood at £2.3 million (31 March
2023: £6.5 million) and borrowings remained at £2.5 million. Actions taken
in a difficult operating environment resulted in annualised cost savings of
£3.5 million and exceptional costs of £0.9 million.
I remain convinced that the opportunity to work with the NHS remains
attractive and recent contract wins and extension announcements demonstrate
early signs of commissioners taking action as the market begins to ease
post-election. Research published in February by the Office of National
Statistics1 gives new insight into the number of people on waiting lists -
with one in five in England alone awaiting treatment. It is important to
remember that elective care waiting lists are only part of the challenge and
need to be managed in the context of a similarly stretched urgent care model.
The NHS and other healthcare organisations must seek new ways to deliver care
to more and more people, whilst not compromising on safety or quality. Totally
has a strong track record of innovating to increase access to care whilst
improving the quality and safety in its services and we remain ready to
support commissioners with this challenge. All of the actions taken during the
year have been to ensure we are fit for this purpose and can contribute to the
success of an NHS which is fit for the future and at the cutting edge of
healthcare once more.
I am particularly pleased with the work we have done during the year to
support NHS 111 resilience. NHS England renewed this contract for a further
year in January 2024 and we consistently rank first or second in the country
for this service, demonstrating the quality of our model. We have also
delivered a number of pilots in the period which have the potential to support
long-term growth as commissioners seek innovative ways to address new and
existing challenges.
I would like to thank everyone in our team and our shareholders for their
commitment during what has been a challenging year operationally. I am proud
of the work we deliver to increase access to care for people across the UK and
in Ireland. Additionally, I would like to take this opportunity to thank Mike
Rogers for the contribution as Non-Executive Director and Chair of the Audit
Committee made to Totally over the last nine years. Mike stepped down from the
Board on 24 July 2024 and I am delighted to welcome Bob Forsyth to the Board
as a Non-Executive Director and the Chair of Audit Committee, as detailed in a
separate announcement, today.
The strength of this business is in its nationwide presence, excellent
reputation and high professional standards. These factors, combined with a
more efficient operating model and an increased focus on innovation to develop
new solutions, should see us prosper, despite the challenging backdrop. The
recent contract wins and extensions are an encouraging sign and reflect a
lifting of the election decision making hiatus, and we are ready to respond to
any new NHS initiatives.
Simon Stilwell
Chairman
24 July 2024
(1) ONS survey undertaken 16 January to 15 February 2024.
(https://www.ons.gov.uk/peoplepopulationandcommunity/healthandsocialcare/healthcaresystem/datasets/nhswaitingtimes16januaryto15february2024)
CHIEF EXECUTIVE OFFICER'S REVIEW
Introduction
The healthcare sector continues to be challenging but post-election we are
beginning to see increased clarity on NHS priorities and subsequent actions.
During the last financial year, we faced increased uncertainty, driven by an
imminent election and delayed NHS planning guidance, making it more important
than ever that we managed our costs effectively, delivered quality services
and ensured our workforce remained ready to face the challenges ahead. Record
numbers of patients are waiting for treatment on elective waiting lists
alongside the ever-increasing number of people accessing urgent care services
via 111 (telephone and online) and accident and emergency departments. We, as
a leading provider of services to assist the NHS, remain steadfast in what we
do.
Totally has focused on delivering contracted services to a high standard and
took action to ensure that our corporate and operational structure reflected
the needs of current demand, ultimately protecting those services, our
workforce and long-term shareholder value. Our vision and purpose stand firm.
We seek to improve healthcare outcomes by helping healthcare providers tackle
their challenges, helping the NHS and other healthcare providers be the best
they can be. We have realised significant efficiencies within the year, with
more to come through the application of innovative approaches and new thinking
to deliver more with less.
Although the healthcare landscape continues to change, and we wait for more
clarity post-election, commitment to continue to use independent providers to
help reduce waiting lists and ensure patients are diagnosed and treated more
quickly remains. Inevitably, what commissioners need from us will evolve. In
the past we have stood by our commitment to deliver excellent services,
seeking to provide the very best care for every single patient. In this new
environment, with sustained, high levels of demand, commissioners need us to
deliver consistently good care to more people than ever before, ensuring every
single patient is safe and can access care quickly. And once we have helped
reduce waiting lists, we will ensure we remain nimble enough to help tackle
the next challenge.
As we tackled the challenges presented by increased demand and the broader
economic and political landscape, we are delighted that all of our CQC
registered services continued to be rated as "Good" during the year and that
we enabled around two million people across England and Ireland to access the
care and treatment they needed.
Financial performance impacted by NHS challenges
In January, NHS England committed to a further year with Totally as its sole
resilience partner for NHS 111, increasing the scope of the contract, renewed
at c. £13 million. The Group also increased the level of insourcing activity
delivered on behalf of several NHS trusts across England and the Saolta Group
in Ireland and renewed multiple urgent care contracts.
Demand for corporate wellbeing services, delivered by Energy Fitness
Professionals ("EFP"), continued to remain buoyant and during the year we
confirmed a new contract worth £1.0 million over five years, our largest
corporate fitness contract to date. More recently, we have secured a further
new contact to manage the fitness centre and wellbeing suites a prestigious
new development in the City. The contract commences in September 2024 and is
valued at £0.5 million over three years.
Our phased cost reduction programme, delivered during the last 18 months,
sought to right size our corporate and operational structures. Cost saving
initiatives undertaken and a focus on innovation to drive efficiencies
delivered a full year reduction of £2.2 million and annualised savings of c.
£3.5 million. New protocols put in place are driving a more controlled labour
mix (substantive staff/agency spend) and contributing to a stabilising margin.
We expect an increase in the focus on healthcare as the new government settle
into their role and we remain ready, responsive to changing demand, and
prepared to support commissioners as needed. We will continue to manage our
internal costs to ensure resilience for the future.
Strategic progress
We have continued to work closely with commissioners to support them as they
face the same service challenges seen everywhere across the sector.
Internally, our continued focus has been on managing our internal costs and
processes and our new, leaner structure, with clear accountability, positions
us well for the future.
Externally, we have focused on the delivery of care and rebuilding patient
care pathways to deliver the efficiencies the NHS needs to tackle current
challenges, enabling us to increase access to care and improve quality as we
reduce cost. We were also recertified for Cyber Essentials Plus, ensuring
that all our systems remain secure as we face increased threats from
cyber-attack.
New business impacted by NHS challenges but fresh shoots now emerging
During the FY24 year, opportunities were slower to come through as a new
tender process, delayed NHS planning guidance and the imminent election
brought uncertainty.
Recent contract announcements demonstrate that this uncertainty is now
easing. We have seen new business opportunities come out to market and seen
existing contracts renewed. We continue to work closely with healthcare
commissioners to agree opportunities for piloting new models of care and
longer-term support and we expect these opportunities to grow further as the
new government rolls out new plans for tackling demand and reducing waiting
lists.
Within corporate wellbeing, new business opportunities continue to be driven
by employers wanting to enhance their workforce offering and a growing
corporate responsibility for employee wellbeing.
Our people
Our people are our greatest asset and what makes Totally unique in its
flexibility to respond quickly and professionally to every demand faced. Our
people strategy seeks to create a culture of excellence and environment which
enables all our people to be at their best.
During the year we had to say goodbye some of our team, as we right sized
structures. This is always hard to do and we never like to lose quality
members of our team, but these changes ensured we remain fit for purpose, and
help secure the future of the organisation as a whole. Alongside this change,
we undertook our annual people survey which has provided valuable insights
into what we do next to deliver on our people promises. I am pleased to
confirm that despite the level of change our teams have experienced during
this year, are engagement level increased slightly to 60%.
We continued to rollout our new people system, which brings all people data,
including rota management, into one place for the first time, driving
significant efficiencies. We also made changes to our workforce profile to
ensure we directly employ where possible and minimise the use of agencies. The
recruitment of GPs has become easier and we continue to invest to grow our own
emergency nurse practitioners and advanced nurse practitioners. We always seek
to increase the number of clinicians who choose to work solely for Totally,
but acknowledge that our flexible working options, enabling clinicians to work
for the NHS and Totally at the same time, are a key reason why many choose to
work for us.
Outlook
The Board remains very confident in the scale and attractiveness of the
opportunity available to the Company and the potential to return to growth in
the short-term, underpinned by the operational progress made internally to
drive efficiency, performance, accountability, agility and innovation.
We await further guidance from NHS England and NHS trusts and look forward to
updating the market further as more clarity emerges.
Wendy Lawrence
Chief Executive Officer
24 July 2024
STRATEGIC REVIEW
Ready to respond to burgeoning opportunities
HEALTHCARE
We provide urgent and elective care services to healthcare commissioners and
other corporate organisations, the police and the prison services.
Urgent care services are delivered under the Totally Urgent Care brand and
include all services which were previously awarded to and delivered by Vocare
and Greenbrook Healthcare, including urgent treatment centres ("UTCs"), NHS
111, clinical assessment services, GP out of hours and acute visiting
services.
Elective care services make up a range of services previously provided under
the Pioneer Healthcare, Totally Healthcare, Totally Planned Care, About Health
and Premier Physical Healthcare brands. All services are focused on tackling
growing waiting lists and accessibility to services, including:
· working with hospitals and trusts to help support the reduction of
waiting lists through insourcing, outsourcing and a range of extended primary
and secondary care collaborative partnerships through our Any Qualified
Provider ("AQP") status;
· provision of community outpatient services including specialist
dermatology and referral management services; and
· therapy services, with a focus on physiotherapy and podiatry across a
number of settings, including GP practices, prisons and health centres.
Each year we support more than two million patients who are seeking treatment
or advice.
Urgent care services
Urgent care services help healthcare commissioners ensure patients have access
to the right healthcare service, at the right time, in the right place, both
in hours and out of hours. Our services aim to reduce emergency admissions and
unnecessary attendances at hospitals to reduce pressure on the overall
healthcare system. Our clinical team is made up of experienced doctors, nurses
and paramedics, who can provide detailed assessments, advise on treatment
options, support patients to care for themselves at home and arrange urgent
care if required.
As anticipated, it was a challenging year and revenue dropped to £76.8
million (2023: 98.8 million) primarily due to the cessation of contracts for
the delivery of urgent treatment centres in the North West London area. Gross
margin reduced to 16.6% (2023: 17.6%) as higher inflation and challenged NHS
budgets continued to put pressure on existing contracts. Market potential,
nevertheless, remains strong and we are working with commissioners to review
discrepancies between planned and actual patient numbers and reviewing broader
contract arrangements where necessary. The NHS continues to struggle to manage
demand and workforce issues; and demand for all services continues to outstrip
all available capacity.
Against the backdrop of increased demand, we are pleased to confirm that all
our CQC registered services continue to be rated "Good" overall.
Demand for urgent care services remained high during the period. Our
experienced management team worked closely with healthcare commissioners to
respond to these challenges and maintain service delivery. In total, our
Urgent Care teams responded to the needs of more than 1.8 million patients
either through NHS 111, at urgent treatment centres, within GP out of hours
contracts or other services.
The number of calls taken within our NHS 111 services increased by 31% as the
new contract for NHS 111 resilience services drove increased volumes.
Performance in this contract has been strong and we are consistently
positioned in first or second position across the country for performance. In
January, the contract was extended for a further year, with greater volumes
and a contract value of c. £13 million (previous contract value c.£10
million). We have also seen a significant increase in demand through NHS 111
online, with patients supported increasing by 61% versus the previous year. At
the end of the year, Totally's contract to deliver NHS 111 services in
Staffordshire came to an end and we provided extended support to transition to
the new provider as services across Staffordshire and the West Midlands were
brought together for the first time. Reduced volumes for 2024/25 due to this
contract change will be partly offset by the increase in volume for resilience
services.
Clinical advice service ("CAS") support has remained level as increased
support for existing customers was offset by the end of arrangements with
other trusts. Support for primary care services has also increased (patients
supported up by 17%) during the year. This support includes, for example,
telephone answering services for GPs and district nurses.
In total, our teams respond to a call every 28 seconds, 24 hours a day, 365
days a year.
Within individual UTCs, we continued to see more patients than last year, and
more patients than planned. The number of attendances at London-area UTCs,
where we continued to deliver services throughout the year, was 10% higher
than last year and 22% more than planned, although this varied widely across
the locations with attendances at some UTCs c. 60% higher than expected during
busy months. Despite continued pressure, more than 95% of the c.3 00,000
patients attending UTCs (which also stream patients attending A&E to
ensure the most appropriate care) were admitted, transferred or discharged
within the four-hour waiting time target; NHS England targets were for 76% of
patients to be see within four hours by March 2024 rising to 78% from March
2025.
During the year we have actively explored innovative approaches to support
these sustained increases in demand without similar increases in cost to the
NHS. Pilots undertaken have included the introduction of single triage queues
and patient care pathway rebuilding to change patient flow.
Our GP out of hours (GPOOH) services ensure that patients can access care
overnight and during weekends and bank holidays. Demand remained broadly level
during the year, with around 200,000 patients being supported through services
in the North East, Yorkshire and Staffordshire. At the end of the year,
contracts for the delivery of GPOOH services in Yorkshire came to an end.
In addition to the contract extension for the NHS England NHS 111 national
resilience, multiple other urgent care contracts across the North of England
and the Midlands were renewed and since the end of the financial year, a
further eight contracts have been extended to enable the continuation of
services across the North East, Yorkshire and Staffordshire valued at a total
of c. £12.5 million.
Elective Care
All our services focus on helping commissioners, trusts and hospitals maximise
accessibility to good quality, safe elective care which helps support the
reduction of waiting lists.
Revenue for elective care services was lower at £27.9 million (2023: 35.2
million) as opportunities to support the NHS with the reduction of waiting
lists slowed down as commissioners awaited new NHS planning guidance and
familiarised themselves with new legislation for the commissioning of
services. Gross margin was also lower at 14.5% (2023: 19.8%).
The bottlenecking of demand, with commissioners waiting to access much needed
support from the independent sector, contributed to further increases in
waiting lists for elective care. Recent research by the Office of National
Statistics suggests that one in five people in England are awaiting treatment.
According to the NHS data(2), waiting lists are now 80% higher than in March
2020 and continue to grow.
Totally secured new contracts with a number of trusts in England and three
additional contracts with the Saolta Group in Ireland for the provision of
oral and maxillofacial outpatient and day surgery services and urology
services. In total, Totally helped remove c. 175,000 patients from waiting
lists during the year.
Totally Elective Care provides resilient capacity to deliver much-demanded
insourcing and outsourcing services across a wide range of surgical and
medical procedures, free at the point of delivery to NHS patients. We continue
to sit on all major frameworks for elective care support, enabling rapid
procurement of services to enable trusts to respond to increasing demand.
Healthcare - the year ahead
As a partner to the NHS, we will continue to identify and act upon all
opportunities to support the delivery of quality patient care, which enables
Totally to grow and continue to build its reputation as a trusted partner of
choice.
We are now seeing an increase in opportunities to support new and existing
customers following the clarification of NHS targets and the general election.
New targets include the treatment of 78% of patients attending A&E within
four hours, and the reduction of elective care waits to no more than 65 weeks
by September 2024 and no more than 52 weeks by March 2025. In England alone,
more than 55,995(3) patients are currently waiting longer than 65 weeks and a
further 307,500 have been waiting more than a year, making new targets a
significant challenge. Since the end of the financial year, we have already
rapidly mobilised two new contracts to help meet these targets.
We expect demand for urgent care services, including virtual wards and
integrated care, to continue and opportunities will be there for providers who
can evidence a combination of good performance, and value for money, for which
we have a strong track record. Ongoing positive pilots with multiple trusts
are also expected to present new opportunities for long-term growth and
growing elective care waiting lists and stricter targets for elective care
will bring a larger number of opportunities to market. We are positioned well
to rapidly mobilise new services which will both reduce the waiting times of
patients and improve access for the longer term.
(2) Data for March 2020 published on 14 May 2020 by NHS England on referral to
treatment times ("RTT")
(3) Latest data (May 24) published on 11 July 2024 by NHS England on referral
to treatment times ("RTT").
CORPORATE WELLBEING
EFP works with a growing number of high-profile organisations across the UK,
including large corporate companies, central government departments,
universities and colleges to provide workplace wellbeing and corporate fitness
services. EFP manages 62 gyms on behalf of corporate customers and also offers
gym design alongside digital services to support employee wellbeing in the
workplace.
During the year, corporate wellbeing revenue increased to £2.0 million (2023:
£1.7 million) following the addition of new contracts, including a five-year
contract valued at £1.0 million. This is the largest single contact awarded
to EFP to date. Gross margin improved to 45.3% (2023: 41.5%) reflecting the
impact of the new contracts.
Corporate wellbeing - the year ahead
Wellbeing continues to grow as a priority for corporate customers looking to
enhance their workplace and workforce offering, and we continue to see further
opportunity for growth with a number of tender opportunities due to come to a
conclusion in the next few months. Most recently, we have secured a further
new contact to manage the fitness centre and wellbeing suites a prestigious
new development in the City. The contract commences in September 2024 and is
valued at £0.5 million over three years.
We continue to focus on developing new relationships with a broader range of
corporate customers.
FINANCIAL REVIEW
A challenging year with progress made in the second half
Revenue for the year was £106.7 million (2023: £135.7 million), primarily
due to the cessation of contracts for the delivery of urgent treatment centres
in the North West London area, and uncertainty within the NHS due to delays in
NHS planning guidance, changes in procurement legislation and continuing
workforce challenges impacted the number of new business opportunities
available to the Company.
Like the NHS, we have been required to take difficult decisions and during the
year we undertook significant activity to right size the organisation for a
smaller contract base, whilst retaining the flexibly to grow again once
opportunities present. The phased cost reduction programme performed across
both our corporate and operational structures delivered a full year reduction
in FY 2024 of £2.2 million and annualised savings of c.£3.5 million.
Exceptional costs related to these cost saving initiatives was £0.9 million.
New protocols put in place for the use of agency staff also helped to drive a
more controlled labour mix and stabilise margin.
At the year end, the Company had gross cash of £2.3 million (31 March 2023:
£6.5 million.) Cash consumption in the year of £4.2 million was as a result
of net cash out flows from operating activities of £0.7 million (2023: net
cash outflow of £1.6 million) which reduced due to cost savings; net cash out
flow from investing activities of £2.0 million (2023: £7.0 million) which
reduced due to lower business acquisition related payments (fully paid in
2024); and net cash outflow from financing activities of £1.5 million (2023:
net cash out flow of £0.3 million) which increased due to the absence of
additional borrowings that improved the net flow position as in the prior
year.
We utilised £2.5 million of our revolving credit facility ("RCF") throughout
the year to support working capital requirements and continued to have
headroom on all bank covenants throughout the year. We have recently agreed
indicative term with our existing lender NatWest for the renewal of the RCF
for a further two years, from the date of signing, at a level of £3.5 million
to better reflect the current size of the business.
The Group generated a loss before tax of £3.9 million (2023: profit of £1.8
million, with exceptional costs amounting to £0.9 million. By the end of the
year the intangible value of contacts ("IVOCs") with an opening carrying value
of £2.6 million were fully amortised. As signalled earlier in the year,
underlying EBITDA was lower at £2.3 million (FY23: £6.9 million; H124: £1.1
million). This result reflects slight improved performance in the second
half of the year following costs saving actions and provided a solid base from
which to begin the current financial year.
Trading performance
Urgent care revenue fell by 22% to £76.8 million, primarily due to the
cessation of contracts for the delivery of urgent treatment centres in the
North West London area. Elective care revenue reduced by 21% reflecting the
end of some shorter-term contracts for the delivery of insourcing and
outsourcing services, and a reduction in the delivery of prison healthcare.
During the year, the Group confirmed a number of new contracts for the
reduction of waiting lists in both the UK and in Ireland; and in urgent care,
a contract extension for NHS 111 resilience services, valued at c.£13 million
(previous contract £10 million per annum). In addition, since the end of
the financial year a further eight contracts have been extended to enable the
continuation of services across the North East, Yorkshire and Staffordshire
valued at a total of c. £12.5 million. We continued to support a number of
commissioners with the development and piloting of new models of care, which
began during the 2023/4 year, and we are confident that these successful
pilots will result in further opportunities to support with the management of
demand and pressure on ambulance services during the current year.
Revenue from EFP totalled £2.0 million (2023: £1.7 million), up 18% as
demand continued to increase. During the year EFP secured its largest
corporate contract to date, valued at £1.0 million over five years and the
market remains buoyant. The nature of the market means that tender processes
can be extended and we remain focused on building long term relationships with
new and existing customers to create a long-term pipeline of new
opportunities.
Overall Group gross margin decreased to 16.6% (2023: 18.4%) largely as a
result of inflationary pressure on the cost of delivering services agreed in
previous years, and increased competition for a smaller number of available
contracts.
31 March 2024 31 March 2023
Revenue £106.7m £135.7m
Gross profit £17.7m £25.0m
EBITDA £2.3m £6.9m
Exceptional items (£0.9m) (£0.6m)
Depreciation (£1.5m) (£2.0m)
Amortisation (£3.4m) (£2.2m)
Interest (0.4m) (0.3m)
PBT (£3.9m) £1.8m
Net assets £33.7m £37.1m
Cash £2.3m £6.5m
Exceptional items
EBITDA of £2.3 million (2023: £6.9 million) excludes exceptional items of
£0.9 million (2023: £0.6 million), related to further actions taken during
the year to right size the organisation.
Cash flow statement
31 March 31 March
2024 2023
Net cash flows from operating activities (£0.7m) (£1.6m)
Net cash flows from investing activities (£2.0m) (£7.0m)
Net cash flows from financing activities (£1.5m) (£0.3m)
Net decrease in cash and cash equivalents (£4.2m) (£8.9m)
Cash and cash equivalents at the beginning of the year £6.5m £15.3m
Cash and cash equivalents at the end of the year £2.3m £6.5m
Dividend
In line with performance delivered, the Board does not recommend a dividend
for the current year.
Market guidance
Given uncertainty at the time of the interim results the Company temporarily
withdrew guidance from the market. The improving healthcare market gives
increased confidence in the trading outlook, and the Company now expects
revenues for the year ending 31 March 2025 to be c. £85 million and EBITDA to
be not less than £3.5 million.
Laurence Goldberg
Director of Finance
24 July 2024
For further information please contact:
Totally plc 020 3866 3330
Wendy Lawrence, Chief Executive Officer
Simon Stilwell, Chair
Canaccord Genuity Limited (Nominated Adviser & Joint 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 62 gyms on behalf of its corporate customers, with more than 13,000
members.
For more information visit www.totallyplc.com (http://www.totallyplc.com/)
Consolidated Income Statement
For the year ended 31 March 2024
31 March 2024 31 March 2023
Continuing operations £000 £000
Revenue 106,678 135,696
Cost of sales (88,947) (110,695)
Gross profit 17,731 25,001
Administrative expenses (15,855) (18,113)
Other income 387 2
Profit before exceptional items 2,263 6,890
Exceptional acquisition costs (874) (562)
Profit before interest, tax and depreciation 1,389 6,328
Depreciation and amortisation (4,867) (4,249)
Operating profit (3,478) 2,079
Finance income 27 26
Finance costs (414) (321)
Profit before taxation (3,865) 1,784
Income tax credit 731 -
Profit for the year attributable to the equity (3,134) 1,784
shareholders of the parent company
Other comprehensive income - -
Total comprehensive profit for the year net of tax (3,134) 1,784
attributable to the equity shareholders of the parent company
31 March 2024 31 March 2023
Profit per share Pence Pence
From continuing operations:
Basic (1.60) 0.94
Diluted (1.60) 0.93
Consolidated Statement of Changes in Equity
For the year ended 31 March 2024
Share capital Share premium Retained earnings Equity shareholders' funds
£000 £000 £000 £000
At 1 April 2022 18,723 1,053 15,634 35,410
Total comprehensive profit for the year - - 1,784 1,784
Issue of share capital 887 892 - 1,779
Dividend payment - - (1,908) (1,908)
At 31 March 2023 19,610 1,945 15,510 37,065
Comprehensive profit for the year - - (3,134) (3,134)
Issue of shares 45 - - 45
Dividend payment - - (246) (246)
At 31 March 2024 19,655 1,945 12,130 33,730
Consolidated Statement of Financial Position
As at 31 March 2024
31 March 2024 31 March 2023
£000 £000
Non current assets
Intangible assets 45,809 48,210
Property, plant and equipment 1,114 1,218
Right-of-use assets 2,308 1,362
Deferred tax 560 242
49,791 51,032
Current assets
Inventories 53 75
Trade and other receivables 11,147 13,680
Cash and cash equivalents 2,341 6,451
13,541 20,206
Total assets 63,332 71,238
Current liabilities
Trade and other payables (24,061) (28,057)
Contingent consideration - (528)
Borrowings (2,500) (2,500)
Lease liabilities (578) (275)
(27,139) (31,360)
Non current liabilities
Trade and other payables (12) (140)
Lease liabilities (1,891) (1,661)
Deferred tax (560) (1,012)
(2,463) (2,813)
Total liabilities (29,602) (34,173)
Net current liabilities (13,598) (11,154)
Net assets 33,730 37,065
Shareholders' equity
Called up share capital 19,655 19,610
Share premium 1,945 1,945
Retained earnings 12,130 15,510
Equityshareholders' funds 33,730 37,065
Consolidated Cash Flow Statement
For the year ended 31 March 2024
31 March 2024 31 March 2023
£000 £000
Cash flows from operating activities
Profit before taxation (3,865) 1,784
Adjustments for:
- depreciation and amortisation 4,867 4,249
- (profit)/loss on disposal of non current assets (25) 33
- finance income (27) (26)
- finance costs 414 321
Movements in working capital:
- inventories 22 (1)
- movement in trade and other receivables 2,467 419
- movement in trade and other payables (4,517) (8,106)
Cash used for operations (664) (1,327)
Income tax paid - (280)
Net cash flows from operating activities (664) (1,607)
Cash flows from investing activities
Purchase of property, plant and equipment (636) (730)
Disposal of property, plant and equipment 29 -
Additions of intangible assets (1,013) (665)
Acquisition of subsidiaries, net of cash acquired - (735)
Contingent consideration paid (312) (4,896)
Net cash flows from investing activities (1,932) (7,026)
Cash flows from financing activities
Issued share capital 45 567
Borrowings - 2,500
Dividends paid to holders of the parent (246) (1,908)
Interest paid (218) (295)
Payments on lease liabilities (1,095) (1,091)
Net cash flows from financing activities (1,514) (227)
Net increase in cash and cash equivalents (4,110) (8,860)
Cash and cash equivalents at the beginning of year 6,451 15,311
Cash and cash equivalents at the end of the year 2,341 6,451
NOTES TO THE FINANCIAL INFORMATION
FOR THE YEAR ENDED 31 MARCH 2024
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 AlM 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 2024 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. There were no acquisitions or disposals
during the period.
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 generated by providing urgent care services (including UTCs, GP out
of hours and NHS 111), elective care services (including insourcing,
outsourcing, AQP, community dermatology, physiotherapy and podiatry) and
corporate wellbeing services. Services are provided through short-term and
long-term contracts.
The IFRS 15 5 step revenue recognition criteria is applied as follows:
identifying the contracts with customer, identifying performance obligation,
determine the transaction price, allocate the transaction price to the
performance obligation and the satisfying of performance obligation. This
applies to all contracts with customers, except where they fully in the scope
of other standards.
Elective care services
Revenue represents invoiced sales of services to regional Clinical
Commissioning Groups of the National Health Service as well as non-NHS
clients. 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. For the NHS contracts, 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.
Corporate wellbeing services
Revenue arises from provision of management services for corporate gyms and
upfront monthly membership fees for gyms paid by individuals. Both are
recognised in the month to which they relate.
Revenue primarily originates in the United Kingdom. A small amount that has
been deemed to be immaterial for geographical segment disclosure arose from
the Republic of Ireland during the year.
Finance income
Finance income comprises bank interest received, recognised on an accruals
basis.
Finance costs
Finance costs comprise bank charges, interest on leases recognised under IFRS
16 and interest on the revolving credit facility utilised.
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
derecognised 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 derecognised.
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 development costs, 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 contributions 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.
New and amended standards adopted by the Group
The accounting policies adopted are consistent with those of the previous
financial year. New or amended financial statements or interpretations adopted
during the year are detailed below:
• IAS 1 and IFRS Practice statement 2: Amendments regarding the
disclosure of Accounting Policies;
• IAS 8: Amendment to definition of accounting estimates;
• IAS 12: Amendments to deferred tax related to assets and
liabilities arising from a single transaction; and
• IAS 12: Amendments relating to international tax reform - Pillar
Two Model rules.
No material impact has arisen as a result of applying these standards.
Standards, interpretations and amendments not yet effective
There are no applicable standards, amendments and interpretations which are
effective for reporting periods beginning after the date of these financial
statements and have not been early adopted.
4. EARNINGS PER SHARE
31 March 2024 31 March 2023
Earnings Basic earnings per share Diluted earnings per share Earnings Basic earnings per share Diluted earnings per share
£'000 £'000
Profit before exceptional items (2,260) (1.15)p (1.15)p 2,346 1.23p 1.22p
Effect of exceptional items (874) (0.45)p (0.45)p (562) (0.29)p (0.29)p
Profit attributable to owners of the parent (3,134) (1.60)p (1.60)p 1,784 0.94p 0.93p
2024 2023
000s 000s
Weighted average number of ordinary shares 196,464 190,836
Dilutive effect of shares from share options 15 3,238
Fully diluted weighted average number of ordinary shares 196,479 194,074
Basic earnings per share is calculated by dividing the profit 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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