REG - Totally PLC - Results for the year ended 31 December 2014 <Origin Href="QuoteRef">TLY.L</Origin>

TotallyAnnouncement

16/07/2015 09:47

RNS Number : 4144P
Totally PLC
05 June 2015
5 June 2015
Totally PLC
("Totally", "the Company" or "the Group")
Results for the year ended 31 December 2014
The Board of Totally, the AIM quoted provider of innovative digital healthcare solutions, is pleased to announce its audited results for the year ended 31 December 2014.
Performance Overview
 Revenues from continuing operations 0.61m (2013: 0.88m)
 Gross profit from continuing operations 0.43 m (2013: 0.18m)
 Total EBITDA from continuing operations (0.43)m (2013: (0.69)m)
 Loss from continuing operations before tax (0.44)m (2013: (0.73)m)
 Cash utilised from operating activities (0.36)m (2013: (0.91)m)
 Basic loss per share (0.10)p (2013: (0.40)p per share)
For further information please contact:
Totally Plc
Tel: 020 3077 2202
Wendy Lawrence / Don Baladasan

Allenby Capital Limited (Nominated Adviser & Joint Broker)
Tel: 020 3328 5656
Nick Naylor/ Nick Athanas / Alex Brearley 

Optiva Securities Limited (Joint Broker)
Tel: 020 3137 1902
Christian Dennis / Jeremy King

Blytheweigh (Financial PR)
Tel: 020 7138 3204
Tim Blythe / Andrea Benton

Joint Statement from The Chairman and The Chief Executive
The Story of Totally Plc and its Vision
Totally is passionate about empowering people to make informed, better decisions about their own health and the healthcare services available to help them lead better, healthier, longer lives.
Totally Health offers tailored one-to-one heath coaching for people with long term conditions including COPD, diabetes, coronary heart disease, chronic heart failure and asthma. It currently works exclusively with the NHS and other healthcare organisations in the UK.
During 2014 Totally Health has continued to develop services to better support people to self-manage their conditions, as well as adding a range of services that we can provide to other healthcare organisations to prevent re-admissions to hospitals and reduce the pressures on A&E Departments.
Our services and programmes of support really do focus on improving people's lives and reducing reliance upon the unscheduled care system across the healthcare sector.
Long term conditions management
Totally Health's Long Term Condition Management Programme puts the patient right in the centre, at the heart of all discussions and decisions about how they live their lives to the maximum. How do we do this? By building strong trusted relationships, based upon sound clinical knowledge and expertise that fit into local healthcare systems. This will ensure the best available knowledge, information and care is provided to individuals, who are empowered to make decision about themselves and what's best for them, whilst avoiding reliance on emergency services and unscheduled care.
Our Clinical Health Coaches are highly trained, experienced health care professionals who have the time to ensure each person is treated as an individual. We work with the person as a whole, not a condition that they live with. We have transformed the lives of many individuals who are diagnosed with a Long Term Condition (LTC) and have to find a way to live with that condition and not let it determine what they can and cannot do.
By taking control and self managing their conditions, lives have been transformed without the need to spend hours in A&E or be admitted to hospital unnecessarily. The patients we work with have a much better understanding of their condition(s), their treatments and care plans. Most importantly they know when they need urgent care and what to do is those circumstances. We are working with Clinical Commissioning Groups and GP Practices across England to support people diagnosed with a Long Term Condition.
During 2014 more CCGs commissioned services from Totally Health and we continued to deliver bespoke programmes of care to their patients. We continued supporting people diagnosed with Chronic Obstructive Pulmonary Disease and added programmes for people diagnosed with Diabetes and Congestive Heart Disease. Our pioneering work with Leicester City CCG as part of the Leicester City TotalCare Programme was awarded two National Awards during November 2014. 
We began working with Leicester City in December 2012 and have just been awarded a further contract to continue supporting their COPD patients with our bespoke Clinical Health Coaching programme through to 31 March 2016. Over the period of the programme Totally will continue discussions with Leicester CCG regarding ways to work together beyond 31 March 2016.
2014 overview
During 2014 we continued to ensure that the work of Totally Health fitted exactly within UK Government policy and current thinking for how it lends support to people with Long Term Conditions, promotes self-care and relieves the growing demand and burden on A&E departments.
We began working with many new CCGs across the country including London and the North of England. We also added Diabetes and Congestive Heart Failure to our portfolio of services from which patients are already benefitting from improved self-care and reducing their reliance on unplanned NHS Services. We continue to work with NHS England, supporting their Shared Decision Making work and build out alliances with national charities such as the British Lung Foundation (BLF). We will be implementing our first bespoke project with the BLF and Somerset CCG during the summer of 2015.
We have also been encouraged by the feedback directly from patients that have worked with our health coaches and achieved some truly amazing changes to their lives by learning how to proactively manage their health conditions. Many have been saddened when removed from the programme by the NHS, to allow other patients to benefit from Totally Health's services, and have asked if they could continue working their health coach into the future.
This led us to undertake independent market research with a leading healthcare market research company during the latter parts of 2014. The research focused on how we could work directly with the public and if this would be a viable proposition for Totally Health.
Following on from this very positive independent market research Totally Health plans to launch a Direct to Consumer model across the UK during 2015 which will support people with a range of Long Term Conditions so that they may benefit now from services we know make a real difference to health and wellbeing.
During 2014 we continued to control our costs to ensure we remained competitive and able to respond to increased demand for our services. Through diligent financial management and use of our resources Totally broke even across the Group on a monthly basis in the last two months of 2014. This prudent approach to financial management has continued with a modest profit being shown in the first quarter of 2015. The improved financial performance and profitability on a monthly basis has been achieved while retaining our excellent team of clinicians and experienced managers.
And most of all we have delivered successful, innovative programmes with our clients which have already saved the NHS 000s and supported patients to live better, longer lives and avoid having to spend unnecessary time in hospital and A&E departments.
Update on Current Contracts
We attach below a summary of the status of our existing contracts with clinical commissioning groups. It is important to note that all of the programmes are bespoke and as such we work closely with all CCGs to ensure we reflect local care pathways, treatment choices and local services. Once we reach agreement to work with any new client, our reimplementation planning commences, the length of which varies in order to ensure that all parties are ready for the programme to begin. The table below provides a list of Totally Health's current clients and the status of each programme as at the date of this document. This is of course subject to change as discussions continue with clients.
Client
Forecast programme end
Current status of contract
Type
Leicester City CCG
31.3.16
Live
LTC
High Weald Lewes Havens CCG
31.3.15
Evaluation
Decision Support
Kingston CCG
5.5.15
Evaluation
LTC
Sutton CCG
30.6.15
Live 
LTC
Bedfordshire CCG
30.6.15
Live
LTC
Rochdale CCG
10.4.15
Evaluation
LTC
Guildford and Waverley CCG
31.7.15
Live
LTC
NHS England
31.12.15
Live
Support, Hosting and updates - Shared Decision Making 
Stockton & Hartlepool CCG
30.11.15
Live
LTC
Merton CCG
30.9.15
Live
LTC
Newham CCG
31.1.15
Ended
LTC
Waltham Forest CCG
20.4.15
Evaluation
LTC
British Lung Foundation & Somerset CCG
Awaiting confirmation of launch date
Pre implementation
LTC partnership/ Readmission avoidance
Dr. Michael Sinclair
Non-Executive Chairman
Wendy Lawrence
Chief Executive Officer
4 June 2015
Strategic Report on Totally Health
The company's principal activity is the provision of innovative solutions to the healthcare sector. Totally Health started business in 2012.
During 2014 Totally Health continued its focus on developing contracts with CCGs to provide Clinical Health Coaching for Long Term Conditions. This resulted in 11 new contracts wins and 5 contract extensions. Although Totally Health recognises CCGs and the NHS as an important route to market 2014 was spent developing other key routes to market.
One such route was through strategic partnerships with Third sector organisations. This work resulted in a contract in Q1 of 2015 with The British Lung Foundation. This was the result of several months' work and is a relationship both parties see as being pivotal in helping CCGs and patients manage COPD and improve the wellbeing of patients.
In addition to Clinical Health Coaching via the NHS Totally Health is in discussions with international health bodies and organisations to take its suite of products to overseas markets.
Totally Health continues to host and maintain the SDM Programme for NHS England and develop this important relationship while NHS England finalises its strategic direction for its SDM Programme. Totally Health continues to work with NHS England on this exciting programme and supporting the systems and PDAs used by patients across the country.
Totally Health also continued to grow and develop our team of experts. During the year we added to our team of clinicians and business development specialists and are confident that 2015 will bring many growth opportunities for the business.
Donald Baladasan
Director
4 June 2015
CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2014

2014
2013
Continuingoperations

000
000
Revenue

 609
878
Costofsales

(180)
(698)
Grossprofit

429
180
Administrativeexpenses

 (855)
(871)
Lossbeforeinterest,tax, and depreciation

(426)
(691)
Depreciation

(11)
(9)
Operatingloss

(437)
(700)
Shareissuecosts

-
(29)
Financecosts

(1)
(2)
Lossbeforetaxation
Incometax

(438)
-
(731)
-
Lossfortheyearfromcontinuingoperations

(438)
(731)
(Loss)/profit fortheyearfromdiscontinuedoperations

96
 (200)
Lossfortheyearattributabletotheequityshareholdersoftheparentcompany

(342)
(931)
Earningspershare

2014
Pence
2013
Pence
Basicanddiluted:
Continuingoperations

(0.13)
(0.32)
Discontinuedoperations

0.03
0.08
Total

(0.10)
(0.40)


CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2014

Share capital
000
Share premium account
000
Profitand lossaccount
000
Equityshare- holders'deficit
000
At1January2013
1,693
3,353
(5,508)
(462)
Totalcomprehensivelossfortheyear
-
-
(902)
(902)
Issueofsharecapital
680
494
?  (29)
 1,145
Creditonissueofwarrants
-
-
 -
-
At1January2014
2,373
3,847
(6,439)
(219)
Totalcomprehensivelossfortheyear
-
-
(342)
(342)
Issueofsharecapital
80
300
 -
380
Creditonissueofwarrants
-
-
42
42
At31December2014
2,453
4,147
(6,739)
(139)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AT 31 DECEMBER 2014


2014

2013


000
000
000
000
Noncurrentassets





Intangiblefixedassets

-

-

Property,plantandequipment

6

16




6

16
Currentassets





Tradeandotherreceivables

152

64

Cashandcashequivalents

190

173




342

237



348

253






Currentliabilities





Tradeandotherpayables


 (487)

 (472)
Financialliabilities


-

-



 (487)

 (472)
Netcurrentliabilities


(145)

(235)
Netliabilities


(139)

(219)
Shareholders'equity





Calledupsharecapital


2,453

2,373
Sharepremiumaccount


4,147

3,847
Retainedearnings


(6,739)

(6,439)
Equityshareholders'deficit


(139)

(219)
CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2014


2014
2013

000
000
Cashflowsfromoperatingactivities
Loss for the year

(342)
 (902)
Adjustments for:



Optionandwarrants charge

42
-
Amortisationanddepreciation

11
21
Profit on disposal of subsidiary

 -
(87)
Movements in working capital:



Movementinamountsrecoverableoncontracts

-
(154)
Movementintradeandotherreceivables

(88)
112
Movementintradeandotherpayables

 15
(209)
Netcashflowsfromoperatingactivities

(362)
 (911)
Cashflowfrominvestingactivities
Purchaseofproperty,plantandequipment

(1)
(15)
Cash repaid to the purchaser of subsidiary

 -
(57)
Cashreceivedfromdisposalofsubsidiarynetofcosts

-
  33
Netcashflowsfrominvestingactivities

 (1)
 39




Cashinflow/(outflow) beforefinancing

 (363)
 (950)
Cashflowfromfinancingactivities

Issue of share capital, net

 380
 1,073
Netcashflowsfromfinancingactivities

 380
 1,073
Netincrease incashandcashequivalents

 17
123
Cashandcashequivalentsatbeginningofyear

173
50
Cashandcashequivalentsatendofyear

 190
173
Edited Notes to the Financial Statements
General information
Totally PLC is a public limited company ("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 Unit 1 Lighterman House, 26-36 Wharfdale Road, London N1 9RY. The Company's Ordinary Shares are traded on the AlM Market of the London Stock Exchange ("AIM").
The Group's principal activities have been the provision of innovative solutions to the healthcare sector, provided by the subsidiary Totally Health. The Company's principal activity is to act as a holding company for its subsidiary.
Basis of preparation
The financial year represents the 365 days to 31 December 2014, and the prior financial year, 365 days to 31 December 2013. The financial statements are presented in sterling and all values are rounded to the nearest thousand pounds (000) except when otherwise indicated.
The accounting policies set out in the summary of significant accounting policies have been applied consistently to all periods presented in these financial statements.
The financial statements are prepared on a going concern basis which the Directors believe to be appropriate for the following reasons.
Totally Health continues to work with CCGs to develop their Long Terms Conditions strategy. This work has crystallised into contracts in2014 building on the contract wins in 2013. Many of these contracts are envisaged to be extended throughout 2015. The Group is actively developing projects with organisations other than the NHS to further broaden the market for its digital solutions. Furthermore the more the Group is in discussions to develop complementary technologies that can further reduce the financial burden on the NHS from long term conditions. The data, feedback from patients and analysis from current programs has given Totally confidence in its suite of products. On the basis of this research and the demand shown Totally is looking at developing a B2C model to supplement the offering available through the NHS.
The Directors are confident that current contracts will extend and new contracts won in 2015. This has been evidenced by new contract wins in 2014 and the extension of the Leicester contract in 2015.
The Directors believe that the trading forecasts are realistic and that revenues from future contracts will be achieved, and accordingly, the financial statements have been prepared on a going concern basis. However, due to the need to successfully convert the strong pipeline into contracts, there is an uncertainty which may cast doubt about the ability of the Group and the Company to continue as a going concern.
Summary of significant accounting policies
Basis of Consolidation
The Group's financial statements include the results of the Company and its subsidiary, all of which are prepared up to the same date as the parent company. Uniform accounting policies are adopted by all companies in the Group.
Subsidiaries
Subsidiaries are all entities over which the Group has the ability to exercise control and are accounted for as subsidiaries. The results of subsidiaries are included in the Group income statement from the date of acquisition until the date that such control ceases. Intercompany transactions and balances between Group companies are eliminated upon consolidation.
Revenue recognition - Innovative solutions for healthcare
Turnover is generated by providing clinical health coaching, supporting shared decision making services and software solutions to the healthcare sector. The revenue is generated through services that are provided on short term and long term contracts.
Profit is recognized on long-term contracts, if the final outcome can be assessed with reasonable certainty, by including in the income statement turnover and related costs as contract activity progresses. Turnover is calculated as that proportion of total contract value which costs to date bear to total expected costs for that contract.
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:
Computer equipment - 2 and 5 years
Fixtures and fittings - 2 and 5 years
Short leasehold property - 2 and 5 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 derecognised.
Impairment of non current assets
At each balance sheet date, the Company reviews amounts of its intangible fixed assets and property, plant and equipment to determine whether there is any indication that these assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset, which is the higher of its fair value less costs to sell and its value in use, is estimated in order to determine the extent of the impairment loss. Where the asset does not generate cash flows that are independent from other assets, the company estimates the recoverable amount of the cash-generating unit ("CGU") to which the asset belongs. For non current assets excluding goodwill, the CGU is deemed to be cash generating asset or the trading company whichever is the smaller CGU. For goodwill, the CGU is deemed to be the business acquired.
An impairment charge is recognised in the income statement in the period in which it occurs. Where an impairment loss subsequently reverses due to a change in its original estimate, the carrying amount of the asset is increased to the revised estimate of its recoverable amount. The increased amount cannot exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for the asset in prior periods.
Amounts recoverable on contracts
Amounts recoverable on contracts represent the costs of Totally Health contracts in progress at the balance sheet date, less progress billings to date.
Trade and other receivables
Trade receivables, which are generally received by the end of month following terms, are recognised and carried at the lower of their original invoiced value and recoverable amount. Provision is made when it is likely that the balance will not be recovered in full. Balances are written off when the probability of recovery is considered remote.
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. Bank overdrafts that are repayable on demand and form an integral part of cash management are included as components of cash and cash equivalents for the purposes of the cash flow statement.
Trade and other payables
Trade and other payables are recognized at original cost.
Foreign currencies 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 year 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
Leases are classified as finance leases when the terms of the lease transfer substantially all the risks and rewards of ownership to the Group. All other leases are classified as operating leases.
The Company has a short lease on its premises. This is accounted for as an 'operating lease' and the rental charges are charged to the income statement on a straight line basis over the life of the lease. Other operating leases are treated in the same manner.
Internally generated intangible assets - research and development expenditure
Expenditure on research activities is recognised as an expense in the period in which it is incurred. An internally-generated intangible asset arising from the Group's technology development is recognised only if all of the following conditions are met:
 An asset is created that can be identified;
 It is probable that the asset created will generate future economic benefits; and
 The development cost of the asset can be measured reliably.
Internally generated intangible assets are amortised on a straight-line basis over their useful economic lives. Where no internally-generated intangible asset can be recognized, development expenditure is recognized as an expense in the period in which it is incurred.
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 ('equity-settled transactions').The fair value of the employee services rendered is determined by reference to the fair value of the shares awarded or options granted, excluding the impact of any non-market vesting conditions. All share options are valued using an option-pricing model (Black-Scholes). 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.
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 year 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 year 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, effects 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.
Use of assumptions and estimates
The Company makes judgements, estimates and assumptions that effect the application of policies and reported amounts of assets and liabilities, income and expenses. The resulting accounting estimates calculated using these judgements and assumptions will, by definition, seldom equal the related actual results but are based on historical experience and expectations of future events. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision effects only that period, or in the period of revision and future periods if the revision effects both current and future periods.
The estimates and assumptions that have a significant effect on the amounts recognized in the financial statements are those related to establishing depreciation and amortization periods and the estimates in relation to future cash flows and discount rates utilised in the impairment testing of intangible fixed assets.
Change in accounting policies 
The following new standards and amendments to standards are mandatory for the first time for the financial year beginning 1st January 2014.
(a) New and amended standards adopted by the group:
 IFRS 9 - Financial Instruments was amended in November 2013. The standard currently has no effective date but early application is permitted.
 Amendment to IAS 32 (Dec 2011) - Offsetting Financial Liabilities.
 IFRS 10, IFRS 12 and IAS 27 (amended) - Investment Entities.
 Amendment to IAS 36 - Impairment of Assets.
 Amendment to IAS 39 - Novation of Derivatives and Continuation of Hedge Accounting.
None of these standards has had a significant impact on the financial statements of the Group.
(b) New standards, amendments and interpretations issued but not effective for the financial year beginning 1st January 2014 and not early adopted and which may be relevant to the group:
 IFRS 9 - Financial Instruments. Effective for annual periods beginning on or after Hanuary 2018, with earlier application permitted.
 IFRS 15 - Revenue from Contracts with Customers. Effective for annual periods beginning on or after January 2017, with earlier application permitted.
 Amendments to IAS 16 and IAS 38 - Clarification of Acceptable Methods of Depreciation and Amortisiation. Effective for annual periods beginning on or after January 2016m, with earlier application permitted.
 Amendments to IFRSs - Annual Improvements to IFRSs 2010-2013 Cycle. Effective for annual periods beginning on or after July 2014, with limited exceptions. Earlier application is permitted.
 Amendments to IFRSs - Annual Improvements to IFRSs 2011-2013 Cycle. Effective for annual periods beginning on or after July 2014, with earlier application permitted. 
Loss on operating activities before taxation

2014
000
2013
000
Loss on ordinary activities before and after taxation is stated after charging:


Auditors' remuneration for audit services
22
21
Auditors' remuneration for non-audit services - tax services
2
6
Share-based payments 
42
-
Impairment charge for provisions in relation to irrevocability of trade receivables
-
-
Operating lease charges - land and buildings
25
82
Depreciation
11
21
Amortisation
-
-
Auditors' remuneration includes fees of 2,000 (2013: 6,000) for the Company.
Annual Report & Accounts and Annual General Meeting
Copies of the Company's Annual Report and Accounts, for the 12 months ended 31 December 2014, will be posted to shareholders today, together with the Annual General Meeting ("AGM") notice and form of proxy. An electronic copy of the Annual Report and Accounts, the notice of AGM and the form of proxy will be available today on the Investor Relations section of the Company's website (www.totallyplc.com) in accordance with the AIM Rules for Companies.
In addition, the Board of Totally announces that the Company's AGM will be held at the offices of Totally, Lighterman House, 26-36 Wharfdale Road, London N1 9RY at 11.00 a.m. on 7 July 2015.

This information is provided by RNS
The company news service from the London Stock Exchange
  END
FR LLFSVRDIEIIE