REG - Totally PLC - Trading Update

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RNS Number : 9400G  Totally PLC  01 May 2025

 

This announcement contains inside information for the purposes of article 7 of
the Market Abuse Regulation (EU) 596/2014 (which forms part of domestic UK law
pursuant to the European Union (Withdrawal) Act 2018 ("UK MAR"). With the
publication of this announcement, this information is now considered to be in
the public domain.

 

Totally plc

 

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

 

Trading Update

Directorate Change

Historic Negligence Claim

 

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 on its financial performance for the year ended 31
March 2025 ("FY25") and its outlook for the period ahead. Totally also
announces today that Laurence Goldberg, Chief Financial Officer, has stepped
down from the board of Directors and provides disclosure on a historic
negligence claim.

 

Financial year ended 31 March 2025 and outlook

 

The Company announced on 14 February 2025 that it expected to report £85.0
million revenue and £3.5 million EBITDA for FY25. The board of directors of
Totally (the "Board" or the "Directors") can confirm its expectation of
financial performance has now reduced. This follows the negative impact of a
combination of factors including a slower than expected ramp up of a recent
contract win and reduced operating margins as higher margin contracts have
unwound, principally NHS111. The Company had indicated in its previous outlook
update that it may have been possible to redeploy people/costs associated with
this contract within the business, however, this has not been possible.

 

While the Board, with assistance from its advisers, continues to review the
Group's financial performance for FY25, its current estimates indicate an
EBITDA range of between £0m and £2.0m. In addition, exceptional costs during
the period are estimated to amount to £3.8m and there have been other cash
costs capitalised on the balance sheet of a further £0.8m. The exceptional
costs predominantly relate to the closing of the 111 contract with the NHS.

 

Following the above, the Board is in the process of undertaking a
comprehensive review of its current financial position and forecast outlook,
assisted by advisors where required. Following its initial analysis, the Board
believes there is likely to be an impairment of goodwill as part of this
exercise. This review remains ongoing.

 

The Directors of Totally believe the outlook for the underlying operations are
positive. The Company expects to announce further new contract wins over the
coming months. The Group is profitable on a monthly basis. Operationally, the
business also continues to perform strongly with customer satisfaction
remaining high. Nevertheless, the Directors recognise that the Group needs to
strengthen its balance sheet over the coming months so the Company has
commenced a strategic review intended to raise further funding to support and
rightsize its business and to protect the interests of all stakeholders (see
RNS titled "Launch of Strategic Review" announced separately today).

 

The Directors are also continuing to compile their latest forecasts for the
business alongside the new finance lead (see next section), and believe it is
prudent to withdraw market guidance for the financial year ending 31 March
2026 ("FY26") pending the outcome of this ongoing work. The Group's debt
facility remains at £2.5m.

 

Directorate Change

 

The Company can confirm that Mr Laurence Goldberg has resigned as a director
of the Company with immediate effect.

 

The Company has recruited an experienced board adviser with previous listed
public company experience who is now leading the Totally finance team and, in
conjunction with professional advisers as appropriate, is supporting the Board
with its strategic review in addition to other key workstreams.

 

Medical negligence claim

 

Legal proceedings may arise from time to time in the ordinary course of
Totally's business, including the accusation of potential clinical
negligence which may lead to claims. To mitigate this risk, and in line with
industry practice, the Board of Totally has sought to maintain sufficient
product and public liability insurance to comply with the requirements of the
NHS in England and Wales.

 

The Board has recently received new correspondence in relation to a medical
negligence claim relating to an incident that occurred in January 2018.
Historical advice to the Board was that this claim was one which the Board
believed (on advice) could be funded entirely by a claim on the Group's
insurances. As a result of the recent correspondence, the Board
now considers that there is a stronger probability that the size of the
liability may be more than the claim limit on the insurance policy then held
by the Group (being £10.0m and twice the amount then required by the NHS in
England and Wales). The Board notes that the process of medical negligence
claims is often both complex and likely to take significant time. The
Company is seeking to engage with all parties involved in the case and will
work with its professional advisors and its insurers to achieve a fair
outcome.

 

For further information please contact:

 

 Totally plc                                                           020 3866 3330

 Simon Stilwell, Chair

 Prasad Godbole, Chief Executive Officer (Interim)

 Canaccord Genuity Limited (Nominated Adviser & Corporate Broker)      020 7523 8000

 Bobbie Hilliam / Harry Rees

Notes to editors

 

About Totally

Totally is a leading provider of healthcare and wellbeing services across
the UK and Ireland, working in partnership with the NHS, other healthcare
providers and corporate customers to help address the challenges of increased
demand for healthcare services.

 

Totally helps healthcare commissioners and hospitals ensure patients can
access the most appropriate care quickly and efficiently by delivering quality
urgent care services, 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.

 

Elective care: Totally's elective care services are delivered by Pioneer
Healthcare, About Health and Premier Physical Healthcare.

 

·    Pioneer Healthcare was established in 2007 and delivers a wide range
of acute services to NHS patients, in partnership with independent healthcare
sector private hospitals across England, to help the NHS reduce waiting lists
whilst maintaining patient care and quality. Pioneer offer services through
insourcing and outsourcing agreements and through its Any Qualified Provider
status.

·    About Health has been delivering community-based specialist care with
a focus on delivering prompt assessment and treatment across the country since
2008.

·    Premier Physical Healthcare was established in 2007 and provides
physiotherapy and podiatry services to NHS patients, often within a community
GP practice, and to the prison service.

 

Corporate Wellbeing Services

 

Energy Fitness Professionals ("EFP"): EFP is a corporate fitness provider
established in 1990 to address a gap in the market for workplace fitness,
which has grown to offer a range of services covering workplace wellbeing. EFP
manages 62 gyms on behalf of its corporate customers, with more than 13,000
members.

 

For more information visit www.totallyplc.com
(https://can01.safelinks.protection.outlook.com/?url=http%3A%2F%2Fwww.totallyplc.com%2F&data=05%7C02%7Chrees%40cgf.com%7C7fbd6b6e36ed48269e2208dcb23a16cb%7C55a8d9e9da724987ac2851b3b5add15f%7C0%7C0%7C638581209791333600%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C0%7C%7C%7C&sdata=cBslxpTp%2FaUqCxst5g5dJ3C1ax5PxNWsYSvjYrXMWlk%3D&reserved=0)
 

 

 

 

 

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