REG - Totally PLC - Trading Update

TotallyAnnouncement

02/03/2023 07:00

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RNS Number : 5951R  Totally PLC  02 March 2023

The information contained within this announcement is deemed by the Company to
constitute inside information pursuant to Article 7 of EU Regulation 596/2014
as it forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 as amended.

2 March 2023

Totally plc

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

Trading Update

Totally plc (AIM: TLY), a leading provider of frontline healthcare services,
corporate fitness and wellbeing services across the UK and Ireland, today
provides a trading update for the twelve months ending 31 March 2023.

Totally continues to deliver strong revenue growth against the prior year and
in line with consensus market expectations.  The growth of NHS waiting lists
have been well-publicised and Totally has seen revenue for insourcing and
outsourcing services, which target the reduction of waiting lists, double in
the year to date.  In addition, the new contract awarded in January 2023 for
the delivery of NHS 111 resilience support delivers additional organic revenue
growth.  This contract went live during February 2023.

The Board of Totally remains very confident in the medium and longer-term
opportunities for the Company and believes the business is well positioned to
support the NHS as it continues to focus on the recovery and embedding of
sustainable services able to cope with continuing higher levels of demand.

The Company has however been impacted by the combined impact of high
inflation, national strikes, which increase pressure on services and
scheduling, and clinical workforce shortages which increase reliance on agency
staff for the delivery of urgent care services. Alongside delays in the
conclusion of tender processes and continuing legal discussions with one
commissioner on certain contracts (as previously announced by the Company in
January 2023), Totally now expects EBITDA for the twelve months ending 31
March 2023 to be c. £6.3 million which is below current consensus market
expectations.

Totally has, and continues to take, multiple actions to manage and control
costs whilst continuing to deliver essential services on behalf of the NHS. As
these actions are managed and executed, some impact on forecasts for the first
quarter of the next financial year is anticipated.

Cash at period end is expected to be c.£5.5 million and the Company intends
to maintain its dividend in line with previous expectations.

The Board remains confident in the prospects of the Company and expects
continued growth moving forward.

Wendy Lawrence, CEO of Totally, commented:

"We have seen revenue growth broadly in line with expectations as we continue
to operate in what are exceptionally challenging conditions which require
difficult decisions to be made in relation to the management of costs and
maintenance of essential NHS services.

"As unprecedented demand for healthcare services continues, we have been
impacted by the same challenges facing the NHS. National strikes are putting
more pressure on services and we have seen increased numbers of calls to 111
which need to be answered within existing performance targets. Workforce
shortages, driven by doctors and nurses leaving the sector following the
COVID-19 pandemic and clinical staff from abroad choosing not to come to the
UK following Brexit, have increased our reliance on agency staff for a period
of time which increases costs and complexity for rota fill.  This has been
exacerbated by higher cost inflation and changes in the staffing market.

"We continue to take a range of actions to manage costs and reduce our
reliance on agency staff and remain confident in the quality of our services,
our ability to deliver and the opportunities available for independent
providers in this sector.  The business is robust and well placed to take
advantage of increased opportunities and deliver profitable growth.

"Demand for support to help NHS services to recover, and deliver wellbeing
programmes to corporate clients, is higher than ever and we have faced
significant challenges before and have proven our ability to manage the
business carefully and position it for success. I am confident that we will do
this again."

 

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 / Piers Shimwell (Corporate Finance)

 Amrit Nahal (Sales & Corporate Broking)
 Canaccord Genuity Limited (Joint Corporate Broker)                        020 7523 8000

 Bobbie Hilliam
 Yellow Jersey PR                                                          020 3004 9512

 Sarah Hollins / Annabelle Wills / Jazmine Clemens

Notes to editors

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 and
elective care services, such as community dermatology clinics and first
contact practitioner. Totally also delivers additional clinical capacity
through insourcing and outsourcing arrangements to trusts and hospitals
tackling growing waiting lists. Our corporate customer services also play a
role in reducing reliance on healthcare by promoting healthy lifestyles and
physical and mental health.

Totally Urgent Care

Totally Urgent Care is made up of Vocare and Greenbrook Healthcare. Both
businesses have a strong heritage. Vocare was established in 1996 as Northern
Doctors Urgent Care to provide urgent care services in the North of England
and continues to deliver urgent treatment centres and GP Out of Hours services
across the North of England as well as national support for NHS 111.
Greenbrook was established in 2006 and cares for NHS patients across London
and the home-counties through the delivery of urgent treatment centres.

Totally Planned Care

Totally Planned Care is made up of About Health and Premier Physical
Healthcare. The businesses are focused on giving patients access to the right
care quickly, reducing pressure on other NHS services and, ultimately,
reducing waiting lists. 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, established in
2007, provides high quality physiotherapy and podiatry to NHS patients, often
within a community GP practice, and to the prison service.

Pioneer Healthcare

Pioneer Healthcare was established in 2007 and has grown under the direction
of three senior NHS consultants. Pioneer 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 can offer services through
insourcing and outsourcing agreements and through its Any Qualified Provider
status. Totally Healthcare, Totally's insourcing business, which was launched
in 2019 and previously made up Totally's insourcing division, was incorporated
into Pioneer in 2022 following its acquisition.

Energy Fitness Professionals ("EFP")

EFP is a corporate fitness provider established in 1990 to address a gap in
the market for workplace fitness, which has grown to offer a range of services
covering workplace wellbeing. EFP manages 58 gyms on behalf of its corporate
customers, with more than 11,500 members.

More information can be found at:

www.totallyplc.com (http://www.totallyplc.com/)

 

 

 

 

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