Totally Share Discussion Threads

[sikhthetech] 06/10/2017 14:44

Totally enters UK's growing urgent care market with Vocare acquisition

[sikhthetech] 06/10/2017 12:56

savage, I'm v happy with the small dilution and rest being paid out of current cash... leaving them with a lot of cash for more acquisitions, which is better than I hoped...


Crucially, services within the NHS are too fragmented... Regular news articles on the NHS and the need for change... The bed blocking, OOH services, lack of GP appts, GPs leaving the NHS... It needs an overhaul...

I think you'll find the BoD have a vast experience within the healthcare sector. both NHS and Private...


The other acquisitions have been successful, which says a lot about their 'add and build strategy'

Let's see...

[savagedstock] 06/10/2017 12:33

sikhthetech
fair enough, but 13% dilution and earnings negative means the jury is out...of teh BOD only Bob has been successful, and he is a non-exec

[sikhthetech] 06/10/2017 12:24

savage, time will tell if they have paid the right price or not...
The BoDs have been successful on their previous acquisitions and Bob was hugely successful with his strategy at Mears Plc, so I'm prepared to see what fy brings..

[savagedstock] 06/10/2017 12:15

sikhthetech
i did see those thanks, but that does not tell you anything really....return to profitability is what you would expect them to say...

and indeed if that was true, why is the purchase price only £11M? If there is nothing to worry, this could be the deal of a lifetime, but I am prepared to wait.

[sikhthetech] 06/10/2017 12:14

New Finance Director - she's from Care UK, one of UK's largest health and social care providers...

The BoD have contacts with Care UK, so I suspect that's probably why she was hired..

She's previously worked at Care UK and Erst Young..

[sikhthetech] 06/10/2017 12:08

savage,
"No financials whatsoever on Vocare in this statement - alarming if you ask me! "



They do mention recent trading and expenditure due to quality improvement initiatives...


"Vocare

The unaudited management accounts for the five months ended 31 August 2017 show that during this period Vocare made an operating loss of GBP786,000 on turnover of GBP27,408,000. Exceptional non-recurrent expenditure, largely relating to quality improvement initiatives, accounted for GBP325,000 of the loss. Trading losses before exceptional items were anticipated due to the seasonality of the business. The loss for the period has been funded by cash reserves within the Group. The Vocare management team anticipates a return to profitability in the remainder of the financial year."

[savagedstock] 06/10/2017 12:01

OK - maybe I am being thick
1. All this revenue generated - but what profit did Vocare make on it??? To sell a business generating £76.8 million of revenue for £11 million seems really really odd to me. Most businesses in this sector if they were any good would be sold at a multiple of sales, so this beggars belief
2. Not one director of Vocare is joining TLY board....what does that say about Vocare?? Oh hold on a minute...last bullet point of first page is instructive: so here is the quote:

Totally's management anticipate expediting the turnaround in Vocare's quality of service following recent inspections and reports published by the Care Quality Commission concerning inadequacies in certain of Vocare services

If you look at the CQC report it says Vocare fails on 3 of the 5 key tests: safe, Effective and Well-Led all require improvement. So TLY have paid £11M for a seriously (loss making) turnaround situation...and what experience do they actually have of achieving this? Not known and not told

3. TLY bring in a finance director who has been out of work since May 2017...no issue with that (the claim is there is relevant work experience at Care UK), but really? If you are going to do a turnaround, find a heavy hitter with proven skills...and get a CEO who can get this done...

4. No financials whatsoever on Vocare in this statement - alarming if you ask me! Why? Because you need to know what liabilities TLY have taken on. This is REALLY POOR from the NOMAD and creates a false market in the shares...Looking at Companies House, the last set of accounts ended March 2016, when they made £460K on turnover of £60M (yes really). So what does 2017 look like? Loss or profit? And so on....

[macthepak] 06/10/2017 11:43

This is a bad purchase.

All you will hear is Vocare has this many millions in revenue, this many patients and and covers these parts of the country.

The one thing you will not hear is that Vocare has a negative free cash flow. They are bleeding money!!

[sikhthetech] 06/10/2017 09:59

New FD, Lisa Barter.. Don to become non-exec director of enlarged group...


With effect from 24 October 2017 Lisa Barter will join the Board as Finance Director in conjunction with Don Baladasan (the Group's Existing Finance Director) moving to become a Non-Executive of the Enlarged Group.

Lisa Barter has been a chartered accountant for over 20 years and has extensive finance experience having spent the last 13 years working in finance in the independent healthcare sector. Prior to joining Totally in August 2017, Lisa was the Head of Divisional Finance for the healthcare division of Care UK and was employed by Care UK for over 10 years in a senior finance capacity. Care UK is England's largest independent provider of NHS services and has a diverse portfolio of healthcare services which include elective surgery treatment centres, provision of healthcare in UK prisons, urgent care centres as well as OOH and NHS 111 services. Lisa also played a key role as Financial Controller at Mercury Health Ltd during which time she established a team and implemented finance processes and systems prior to the company's acquisition by Care UK in 2007. The healthcare division of Care UK continued to grow to become a GBP380 million revenue business. Lisa started her finance career at Ernst & Young in 1990 where she qualified as a chartered accountant and she has also held roles as finance manager in both Hewlett Packard and Oracle.

[sikhthetech] 06/10/2017 09:41

Good mix of revenue sources...majority of revenue from OOH services...

"For the year ended 31 March 2017, the NHS 111 services provided by Vocare generated revenue of GBP21.8 million representing 28.4 per cent. of Vocare's overall revenue (year ended 31 March 2016 - GBP15.3 million)."

"For the year ended 31 March 2017, the GP Out-of-Hours services provided by Vocare generated revenue of GBP31.1 million representing 40.6 per cent. of Vocare's overall revenue (year ended 31 March 2016 - GBP30.0 million)."

"For the year ended 31 March 2017, urgent care centres provided by Vocare generated revenue of GBP16.5 million representing 21.4 per cent. of Vocare's overall revenue (year ended 31 March 2016 - GBP7.9 million)."

[sikhthetech] 06/10/2017 09:31

"Vocare has experienced substantial revenue growth with revenue growing from approximately GBP32.4 million in the financial year ended 31 March 2015 to approximately GBP76.8 million in the year ended 31 March 2017 (equivalent to 137 per cent. growth over the two financial years). This revenue growth has been driven by Vocare securing substantial new contracts covering both NHS 111 services and urgent care."

[sikhthetech] 06/10/2017 07:55

Excellent acquisition... adding Urgent Care to the existing businesses.... Also adds a £76m to revenue..I think it will be a very interesting day...

[cumbrian2] 06/10/2017 07:42

looks like a good acquisition today - suspension lifted. could be an interesting day!

[sikhthetech] 01/10/2017 12:38

Porky,
yes,

"Diversify"... so more opportunities to sell existing services as well...

"address some of the challenges the UK faces in terms of healthcare" - and these challenges are regularly in the news and mentioned by Political parties... Even on last week's Question Time, there was a debate about healthcare...

[porky8] 30/9/2017 21:43

Significant scale ..
We are confident that, when completed, the acquisition will add significant scale to the Group and diversify the services provided by the Group, as well as see us continue to deliver on our stated vision of building Totally as the pre-eminent provider of out of hospital services to help address some of the challenges the UK faces in terms of healthcare and in turn deliver shareholder value through the growth of the Group.

[sikhthetech] 29/9/2017 12:07

More acquisitions planned...

"<...> in addition to finalising our near-term acquisition, we continue to seek out and have a number of further opportunities in the pipeline as we continue to build a profitable platform for growth for the Group."

[sikhthetech] 29/9/2017 12:00

Looks like MyclinicalHealth hasn't really taken off as the BoD anticipated...

"Our existing businesses (Totally Health and My Clinical Coach), which were part of the Company prior to the formation of the new Board in November 2015 and subsequent buy and build growth strategy, performed below management expectations in the first half, but through the services they offer have been supportive of the growth in the acquired businesses ensuring streamlined costs and economies of scales to benefit the plc bottom line."

[sikhthetech] 29/9/2017 11:52

was hoping for takeover news.. Got H1 results....

looks like they are near completion - announcement due 1st half Oct...



"-- At an advanced stage of due diligence and finalising terms to complete an acquisition as announced 21 July 2017, which will constitute a reverse takeover under the AIM Rules - Totally to update market first half October 2017

"

[sikhthetech] 27/9/2017 18:59

Porky, it could be that arranging the finance took time and couldn't produce the document without the necessary info...
all speculation, we'll know soon enough... I hope it's worth the wait...

I agree with Edale, we might get the H1 results at the same time...

[porky8] 27/9/2017 16:34

Sikhthetech
Why do you think they suspended the shares ....... Im sure other companies carry on trading ......

[edale] 27/9/2017 09:25

Half year results were announced on 29th Sept last year so maybe a double RNS before the end of the week.

[sikhthetech] 26/9/2017 21:22

Porky, yes, leaving it very late...
They have exclusivity until this Sat...
It could be arranging finance options and producing documents that's taking time... although I would've hoped it was all done by now...


I suppose if it wasn't going ahead, they would have told us by now...

a big announcement but without a huge placing would be perfect... wouldn't be bothered by a smaller placing...

Let's hope we hear something tomorrow or Thurs...

[porky8] 26/9/2017 18:55

Sikhthetech
Bobs taking it to the wire ........ Likes to take his time ......
Big .. Big ..announcement ... Pleasssssse....