REG - Totally PLC - Trading update

TotallyAnnouncement

25/04/2022 07:00

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RNS Number : 1311J  Totally PLC  25 April 2022

Certain information contained within this announcement is deemed by the
Company to constitute inside information as stipulated under the Market Abuse
Regulations (EU) No. 596/2014 as amended by Market Abuse (Amendment) (EU Exit)
Regulations 2019/310.  Upon the publication of this announcement, this inside
information is now considered to be in the public domain.

 

25 April 2022

Totally plc

("Totally", the "Company" or the "Group")

Trading update

The Board of Totally plc (AIM: TLY), a leading provider of frontline
healthcare services, corporate fitness and wellbeing services across
the UK and Ireland, today announces an update on trading for the 12-month
period ended 31 March 2022.

 

Outstanding trading performance

 

Based on unaudited draft numbers, the Group anticipates reporting EBITDA*, for
the year ended 31 March 2022, substantially ahead of consensus market
expectations of £5.4 million EBITDA and prior year of £5.0 million. This
strong trading performance across the Group was driven by enhanced demand
attributed to the impact of the global pandemic, which has increased demand
for services and led to significant growth in waiting lists which has been
regularly reported in the press. The Directors would like to put on record
their thanks for the services provided by everyone who works for and with the
Group.

 

As at 31 March 2022, the Company was in a healthy financial position with
£15.3 million of net cash (31 March 2021: £14.8 million) which is
particularly pleasing given that £7.4 million in cash has been utilised to
complete two significant acquisitions during the period, in line with the
Group's stated 'buy & build' strategy. The Company has no debt
financing**.  During the period the Company secured a £5.0 million rolling
credit facility, should it be required at any time in the future. To date,
this has not been utilised.

 

Partnering with healthcare commissioners and hospitals to respond to the
ongoing, increased demand for services

 

The removal of COVID-19 restrictions for the general population during the
year and the emergence of the several COVID-19 variants increased pressure
across all services, with demand at record levels.   This trend impacted
everyone working in the healthcare sector across the UK and Ireland. COVID-19
infection rates remain higher than ever, driving demand for NHS 111. A
population no longer constricted by social distancing rules, and embracing
their 'freedom' has increased demand for urgent treatment to unprecedented
highs.

Our experienced management team has worked closely with healthcare
commissioners throughout the year to enable us to respond to these challenges
and support patients seeking care.  Totally continues to work with our
partners to ensure that we can support healthcare delivery wherever demand for
services is increasing.

 

Totally continues to operate all services in line with guidance for healthcare
providers to protect our staff and service delivery. This means that all staff
must still use PPE (Personal Protective Equipment) and continue to test
regularly using LFTs (Lateral Flow Testing). Recruitment and retention of
staff has been a key challenge throughout the year and continues to be
challenging.  Nevertheless, Totally has maintained service delivery across
all its contracts and provided additional capacity to its commissioners and
other healthcare providers in response to growing demands upon healthcare
services.

 

Strong market position

 

Totally continues to make strong progress with its stated strategy of
delivering a range of quality healthcare services across the UK and Ireland in
partnership with the NHS and other healthcare providers. Over the course of
the 12-month period the Group was awarded new contracts totalling    c.
£59 million and contract extensions worth c. £72 million.  The new
contracts include:

 

·   New three-year contract with Kings College NHS Foundation Trust for a
new Urgent Treatment Centre at Denmark Hill worth c. £12 million;

·    New five-year contract for the provision of GP out of hours (OOH)
services in Staffordshire and Stoke valued at £45 million; and

·    Two new contracts for the delivery of NHS 111 online clinical
services in North East England and South-East London Clinical Assessment
Services (CAS) running for 3 months from January 2022 worth a total of £0.6
million.

 

Care Quality Commission (CQC) registered services continue to be rated as
"Good" for all services, including those within Pioneer Health Care Limited
("Pioneer"), which joined the Group in March 2022. Pioneer has recently seen
its services at Sloan Medical Centre in Sheffield rated as "Good" by the CQC
across all domains.

 

Update on the acquisition of Pioneer Health Care Limited

 

The acquisition of Pioneer in March 2022 provides a significant opportunity
for the Group as waiting lists for elective care continue to rise. Work to
bring Pioneer and Totally Healthcare together to create a single, established
provider of insourcing and outsourcing services (including Any Qualified
Provider opportunities) under the Pioneer brand has commenced.  The combined
business will leverage the strengths within each organisation and provide
resilient capacity to deliver much-demanded insourcing and outsourcing
services across a wide range of surgical and medical specialities
to NHS patients.

 

Since the acquisition was announced on 7 March 2022, we have made good
progress. A strong and hugely experienced leadership team is in place to take
forward the enlarged business.  The opportunity available to the combined
business is evident.  Pioneer has seen a stepped increase in the number of
enquiries from hospitals to assist with waiting list reduction. They have also
secured multiple contract extensions which include the expansion of the
medical specialties undertaken as well as an increase in the number of
hospitals from where services are delivered. Contract extensions cover the
whole of England but with a particular focus on the Midlands, Yorkshire and
North of England including a contract extension for spinal services to run
until 31 March 2024.

 

Since the acquisition Pioneer has also secured a new contract with the
Countess of Chester Hospital in Chester which includes Gynaecology, Oral
Maxillofacial Facial Surgery, Urology, Plastic Surgery and Ophthalmology
specialties.

 

Update on the acquisition of Energy Fitness Professionals Limited ("EFP")

 

The acquisition of EFP in December 2021 brings the opportunity to offer
diversification across existing contracts and enhance services targeting
workplace fitness and wellness, including physical and mental wellbeing
services. The acquisition also presents the opportunity for the Group to
deliver enhanced digital services, which complement the existing service
offerings of Totally and EFP, by harnessing the technical capabilities in both
businesses and further developing digital offerings.

 

EFP has a large portfolio of 'blue-chip,' clients, which include the Royal
Mail and QinetiQ, as well as Kingston University, and public sector services
including Ministry of Justice, HM Treasury and Network Rail.  EFP is
benefiting from increased demand for corporate fitness and wellbeing services,
which is further increased by leveraging existing relationships and
opportunities, as well as the breadth of services available for customers
across the Group.

 

Since the acquisition, EFP has mobilised two new contracts and work on the
development of digital services, which is key to future strategy, has been
initiated. It has also seen a strong increase in new opportunities and
enquiries from businesses as employers encourage their workforces to return to
work.

 

Financial Results for the 12-month period ended 31 March 2022

 

The Directors expect the Company to release its final results for the 12-month
period ended 31 March 2022 in July 2022 when our Annual Report and Accounts
is expected to also be available along with confirmation of the date for our
Annual General Meeting.

 

* EBITDA is defined as earnings before interest, tax, depreciation and
amortisation and excludes one-off exceptional items.

 

** Following the adoption of IFRS 16, the Company has reported operating lease
commitments as a debt on its balance sheet however these do not affect the day
to day working capital available to the Group.

 

For further information please contact:

 

 Totally plc                                                                 020 3866 3330
 Wendy Lawrence, Chief Executive

 Bob Holt, Chairman

                                                                             020 3328 5656

 Allenby Capital Limited (Nominated Adviser & Joint Corporate Broker)
 Nick Athanas / Liz Kirchner (Corporate Finance)

 Amrit Nahal (Sales & Corporate Broking)

                                                                             020 7523 8000

 Canaccord Genuity Limited (Joint Corporate Broker)
 Bobbie Hilliam/Alex Aylen

                                                                             020 3004 9512

 Yellow Jersey PR
 Sarah Hollins / Henry Wilkinson / Annabelle Wills

 

 

 

Notes to editors

 

Totally plc is a leading healthcare service provider in the UK and Ireland,
working in partnership with the NHS and other providers to deliver healthcare
services through its divisions of Urgent Care, Planned Care and Insourcing.

 

On 16 December 2021, Totally acquired Energy Fitness Professionals Limited, an
established corporate fitness provider with operations across the UK and a
focus on workplace wellbeing.

 

Totally 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.

 

Urgent Care

 

Totally offers a full range of urgent care services via its subsidiaries,
Vocare and Greenbrook Healthcare, two of the largest urgent care providers in
the UK, including:

 

· NHS 111 services

 

· Clinical Assessment services

 

· GP Out-of-Hours services

 

· Urgent Treatment Centres

 

www.vocare.org.uk

 

ww.greenbrook.nhs.uk

 

Planned Care

 

Totally delivers planned care services, which include community based
Out-Patient Services, Referral Management Services, Physiotherapy and Podiatry
Services. It provides these through its planned care subsidiaries, About
Health, Premier Physical Healthcare and Optimum Physiotherapy.

 

www.abouthealthgroup.com

 

www.premierphysicalhealthcare.co.uk

 

www.optimum-hcs.com

 

Insourcing and Outsourcing

 

Launched in October 2019, Totally Healthcare provides bespoke insourcing
solutions across multiple specialities to trusts and hospitals in the UK and
Ireland, reducing waiting lists by utilising their spare capacity outside of
normal working hours and at weekends.  On 7 March 2022, Totally announced the
acquisition of Pioneer Health Care Limited, an independent provider of
specialist NHS secondary care services.  Pioneer Healthcare and Totally
Healthcare are being brought together to create a single, established,
provider of insourcing and outsourcing services under the Pioneer brand.

 

www.totallyhealthcarelimited.com

 

www.pioneerhealthcare.co.uk

 

Energy Fitness Professionals Limited

 

An established corporate fitness provider with operations across the UK and a
focus on workplace wellbeing.

 

www.energy-fitpro.co.uk

 

More information on Totally plc can be found at the following link:
www.totallyplc.com.

 

 

 

 

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