Trading Update
01/05/2025 07:00
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 Simon Stilwell, Chair Prasad Godbole, Chief Executive Officer (Interim) | 020 3866 3330 |
| Canaccord Genuity Limited (Nominated Adviser & Corporate Broker) Bobbie Hilliam / Harry Rees | 020 7523 8000 |