Totally PLC Interim Results

RNS Number : 0777L

Totally PLC

06 November 2024

 

 

Totally plc

 

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

 

Interim results for the six months ended 30 September 2024

 

Good progress with new contracts secured and improved profitability

 

Totally plc (AIM: TLY), a leading provider of frontline healthcare services, corporate fitness and wellbeing services across the UK and Ireland, is pleased to announce its unaudited interim results for the six months ended 30 September 2024.

 

Financial highlights

•      Revenue in line with the Board's expectations at £41.7 million (H1 2024: £55.8 million; H2 2024: £50.9 million).

•      Gross margin consistent with the comparative half year at 17.3% (H1 2024: 17.4%).

•      Underlying EBITDA before exceptional items increased by 5% to £1.2 million (H124: £1.1 million). 

•      EBITDA before exceptional items as a percentage of revenue at 2.8% (H1 2024: 2.0%).

•      Improved profit performance delivering a break-even profit after tax (H1 2024: £1.9 million loss before tax). 

•     Gross cash of £1.4 million as at 30 September 2024 (30 September 2023: £1.7 million; 31 March 2024: £2.3 million).

•      Debt remains unchanged at £2.5 million.

•      RCF renewed for a further two years at £3.5 million, as announced on 31 October 2024.

 

Operational highlights

·      Six new contracts confirmed at a value of c.£7.5 million to be realised in the current financial year.

·      A further 14 contracts renewed at a total value of c. £19 million

·      Totally continues to support the NHS and healthcare providers across the UK and in the Republic of Ireland with the delivery of urgent and elective care services across multiple locations, ensuring that patients can access the appropriate care, when they need it.

·      New insourcing contract mobilised in the North of England, ensuring patients with long waits for elective procedures receive treatment as soon as possible.

·      Energy Fitness Professionals mobilised their largest contract to date at a value of £0.5 million.

·      All Care Quality Commission (CQC) registerable services continue to be rated as GOOD reflecting Totally's commitment to excellent patient care during continued pressure across the healthcare industry.

 

Chair's statement

 

I am pleased to announce Totally's trading results for the six months ended 30 September 2024.  The actions taken in the last financial year have led to an improved financial position versus that reported for the year ending 31 March 2024 with revenues in line with the guidance issued at the 2024-year end and improved margins.  The operating environment continues to be challenging, but we are beginning to see the benefits of those actions.  We focused on increasing the profitability of our contracts reflected by the delivery of EBITA slightly ahead of prior year despite reduced revenues.  I am also pleased to report a return to profitability with a modest profit before tax being reported.

 

During the first half of the year, we continued to tender for opportunities to run urgent care services on behalf of the NHS and to reduce elective care waiting lists through both insourcing and outsourcing.  Most significantly we won a new contract in the North of England to support patients with long waits for elective care.  This contract has been mobilised and patient and commissioner feedback is positive.  Performance across our urgent care services remains strong with an exceptional performance delivered on behalf of NHS England as part of the ongoing NHS 111 resilience contract. As we enter the seasonally busier winter months, these services will be important in ensuring patients can continue to access the support they need.

 

I would like to share my thanks with our hardworking teams, who continue to deliver essential services alongside their NHS colleagues, and to our shareholders, who have supported Totally plc as we turn the business back to profitability.   I believe that we are a stronger and more resilient organisation than we were a year ago, and have confidence that we can now respond positively to new opportunities and begin to grow the business once again.

 

Simon Stilwell

Chair

6 November 2024

 

 

Operational review

 

During the first half of the year, we have continued to realise the benefit of actions taken to respond to the difficult operating environment, increase accountability and improve performance and we are pleased to announce that we are on track to deliver against forecasts for the current financial year. 

 

Revenue in the first half of the year was lower than in previous quarters but in line with the Board's expectations at £41.2 million (H1 2024: £55.8 million; H2 2024: £50.9 million) and although profit realisation remains challenging due to continued wage pressures, profitability has improved.  EBITDA before exceptional items was resilient at £1.2 million (H1 2024: £1.1 million, H2 2024: £1.1 million) and we achieved a small profit before tax, a significant improvement from the previous period (H1 2024: £1.8 million loss before tax; H2 2024 £2.0 million loss before tax).  Cash at the end of September was £1.4 million (31 March 2024 £2.3 million) and we have now completed the renewal of the Revolving Credit Facility ("RCF") as announced on 31 October 2024, which has been renewed for a further two years at a level of £3.5 million reflecting the current size of the business.  Draw down against the RCF remains unchanged at £2.5 million.  We continue to manage costs proactively.

 

Following the election of the new government, we have seen a slight improvement in the market and the pipeline of new opportunities to review is healthy.  As part of the Autumn Budget 2024, the government allocated an extra £25.7 billion to the NHS over 2024 and 2025.  Some of this additional funding will target the delivery of an extra 40,000 elective appointments a week to help reduce waiting times and we anticipate further opportunities to arise as this funding, alongside increased clarity on targets for the coming year, becomes available. Further guidance and a new 10-year plan is expected in late Spring 2025.  The Board view this funding as positive for the prospects of the Company.

 

The Group has also reviewed other implications of the recent budget.  As part of its forecasting, the Board had anticipated some change in the national minimum wage. While the reduction in national insurance threshold was not anticipated, and given the changes only take effect from April 2025, the Group will endeavour to mitigate the impact of these including delivering further efficiencies, savings and some contractual mechanisms in the financial year.

 

 

The opportunity to work with the NHS remains attractive.  During the period we announced six new contract wins across elective care totalling c. £7.5 million including a new sizeable contract for the delivery of insourcing services in the North of England valued at c. £5 million, all of which will be recognised in the current financial year.  A further 14 contracts were renewed at a total value of c. £19 million.

 

In Corporate Wellbeing we mobilised the new contract to deliver services in the City and we are seeing existing customers investing in new trends within the market such as Paddle Courts.

 

The second half of the year is traditionally busier as we move into the winter season and we expect this year to be no different.  Record attendances at A&E across the NHS during September alongside an expected resurgence of Covid, flu and RSV (Respiratory syncytial virus) indicate an incredibly busy winter within healthcare.  The delivery of UTCs is a model which supports the reduction of waiting times by streaming patients to the most appropriate care and within UTCs managed by Totally, 93% of patients were transferred or discharged within four hours, ensuring patients receive the care they need as quickly as possible and supporting overall A&E KPI for the Trusts with which we work. Within NHS 111 we consistently outperformed the national service average and placed in the top three providers in the country for calls answered within 60 secs, abandonment rates, and for patients receiving a call back from a clinician within 20 mins.  During October 98.8% of patients' calls were answered within 60 seconds and 78.6% of patients requiring a clinician call back are receiving that call within 20 mins, versus a national average of 39.9%.

 

Focus also continues on the reduction of waiting lists and new contracts for insourcing and outsourcing will support this effort.  Overall, some 7.6 million patients await treatment with c. 280,000 people in England waiting more than 52 weeks to start routine hospital treatment at the end of August. The new contract for insourcing in the North of England is specifically targeting those with waits of more than 52 weeks.

 

Outlook

 

The healthcare market continues to face significant challenges but we have continued to focus on what we can control to ensure quality services for patients, value for money for commissioners, and appropriate returns for investors.

 

We are confident that our strong cost management culture and most robust organisation will deliver this year's market guidance.

 

The Board has increased confidence in the near to long term prospects of the business and we remain confident that the business is well-positioned for growth. We look forward to the publication of the Government's 10-year health plan for the NHS, due in Spring 2025 and believe that with correct funding, independent healthcare providers will be able to play a key role to play in tackling the challenges faced by the NHS, once and for all.

 

In the meantime, we continue to support NHS organisations to address their individual needs and take actions to improve patient access to services and provide high quality services for all commissioned services.

 

I would like to thank our team for their continued hard work and commitment.

 

Wendy Lawrence

Chief Executive Officer

6 November 2024

 

 

 

Investor presentation

 

Wendy Lawrence, Chief Executive Officer and Laurence Goldberg, Chief Financial Officer will provide a live presentation relating to the Company's interim results via the Investor Meet Company at 11.00 a.m. (UK) on Thursday, 7 November 2024.  The online presentation is open to all existing and potential shareholders and will consist of a presentation followed by a Q&A session. Questions can be submitted pre-event via the Investor Meet Company dashboard or at any time during the live presentation.

 

Investors can sign up to Investor Meet Company for free and add to meet Totally plc via:

https://www.investormeetcompany.com/totally-plc/register-investor   

 

Investors who already follow Totally plc on the Investor Meet Company platform will automatically be invited.

 

 

For further information please contact:

 

Totally plc Wendy Lawrence, Chief Executive Officer Simon Stilwell, Chair	020 3866 3330
Canaccord Genuity Limited (Nominated Adviser & Corporate Broker) Bobbie Hilliam / Harry Rees	020 7523 8000

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, such as NHS 111 and urgent treatment centres, 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 and have been delivering quality urgent care services including NHS 111, GP Out of Hours and Urgent Treatment centres on behalf of the NHS for more than 25 years and 15 years respectively.

 

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 

 

 

 

 

Interim Consolidated Income Statement

For the six months ended 30 September 2024

 

	Six Months ended 30 September 2024 (unaudited) £000	Six Months ended 30 September 2023 (unaudited) £000	Year ended 31 March 2024 (audited)  £000
Revenue	41,706	55,802	106,678
Cost of sales	(34,479)	(46,114)	(88,947)
Gross profit	7,227	9,688	17,731
Administrative expenses	(6,054)	(8,569)	(15,855)
Other income	-	-	387
EBITDA before exceptional items	1,173	1,119	2,263
Exceptional items	(42)	(475)	(874)
EBITDA	1,131	644	1,389
Depreciation and amortisation	(939)	(2,254)	(4,867)
Operating profit	192	(1,610)	(3,478)
Finance costs	(187)	(257)	(387)
Profit before tax	5	(1,867)	(3,865)
Income tax credit	-	-	731
Profit after tax	5	(1,867)	(3,134)

 

Earnings per share
Basic: Pence	0.00	(0.95)	(1.60)
Diluted: Pence	0.00	(0.95)	(1.60)

 

Adjusted Earnings per share
Basic: Pence	0.02	(0.50)	1.09
Diluted: Pence	0.02	(0.50)	1.09

 

All activities relate to continuing operations.

 

 

 

Interim Consolidated Statement of Changes in Equity

For the six months ended 30 September 2024

 

	Share capital     £000	Share  premium     £000	Retained earnings     £000	Equity Shareholders' funds   £000
At 1 April 2024 (Audited)	19,655	1,945	12,130	33,730
Comprehensive profit for the period (Unaudited)	-	-	5	5
At 30 September 2024 (Unaudited)	19,655	1,945	12,135	33,735
At 1 April 2023 (Audited)	19,610	1,945	15,510	37,065
Comprehensive loss for the period (Audited)	-	-	(3,134)	(3,134)
Issue of shares, net of share issue expenses (Audited)	45	-	-	45
Dividend payment (Audited)	-	-	(246)	(246)
At 31 March 2024 (Audited)	19,655	1,945	12,130	33,730
At 1 April 2023 (Audited)	19,610	1,945	15,510	37,065
Comprehensive loss for the period (Unaudited)	-	-	(1,867)	(1,867)
Issue of share capital, net of share issue expenses	45	-	-	45
At 30 September 2023 (Unaudited)	19,655	1,945	13,643	35,243

  

 

 

 

 

Interim Consolidated Statement of Financial Position

As at 30 September 2024

 

	30 September 2024 (unaudited) £000	30 September 2023 (unaudited) £000	31 March 2024   (audited) £000
Non-current assets
Intangible fixed assets	46,057	46,641	45,809
Property, plant and equipment	938	1,107	1,114
Right-of-use assets	2,003	2,689	2,308
Deferred tax	560	242	560
Total non-current assets	49,558	50,679	49,791
Current assets
Inventories	54	72	53
Trade and other receivables	9,669	16,609	11,147
Cash and cash equivalents	1,379	1,704	2,341
Total current assets	11,102	18,385	13,541
Total assets	60,660	69,064	63,332
Current liabilities
Trade and other payables	(21,633)	(26,753)	(24,061)
Borrowings	(2,500)	(2,500)	(2,500)
Lease liabilities	(595)	(508)	(578)
Contingent consideration	-	(528)	-
Total current liabilities	(24,728)	(30,289)	(27,139)
Non-current liabilities
Lease liabilities	(1,625)	(2,311)	(1,891)
Other payables	(12)	(209)	(12)
Deferred tax	(560)	(1,012)	(560)
Total non-current liabilities	(2,197)	(3,532)	(2,463)
Total liabilities	(26,925)	(33,821)	(29,602)
Net current liabilities	(13,626)	(11,904)	(13,598)
Net assets	33,735	35,243	33,730
Shareholders' Equity
Share capital	19,655	19,655	19,655
Share premium account	1,945	1,945	1,945
Retained earnings	12,135	13,643	12,130
Equity shareholders' funds	33,735	35,243	33,730

  

 

 

 

 

Interim Consolidated Cash Flow Statement

For the six months ended 30 September 2024

 

	Six Months ended 30 September 2024 (unaudited) £000	Six Months ended 30 September 2023 (unaudited) £000	Year ended 31 March 2024 (audited)              £000
Cash flow from operating activities:
Profit/(Loss) before tax	5	(1,867)	(3,865)
Adjustments for:
Amortisation and depreciation	939	2,254	4,867
Loss on disposal of non-current assets	-	-	(25)
Finance Income	-	-	(27)
Finance costs	187	257	414
Movements in working capital:
Movement in inventory	(1)	3	22
Movement in trade and other receivables	1,478	(2,929)	2,467
Movement in trade and other payables	(2,354)	(1,554)	(4,517)
Cash generated from/(used in) operations	254	(3,836)	(664)
Income tax received/(paid)	-	-	-
Net cash flows from operating activities	254	(3,836)	(664)
Cash flow from investing activities:
Purchase of property, plant and equipment	(108)	(224)	(636)
Disposal of property, plant and equipment	-	-	29
Additions of intangible assets	(578)	(114)	(1,013)
Contingent consideration	-	-	(312)
Net cash flows from investing activities	(686)	(338)	(1,932)
Cash (outflow)/inflow before financing	(432)	(4,174)	(2,596)
Cash flow from financing activities:
Issue of share capital	-	45	45
Dividends paid	-	-	(246)
Interest paid	(187)	(188)	(218)
Finance lease payments	(343)	(430)	(1,095)
Net cash flow from financing activities	(530)	(573)	(1,514)
Net decrease in cash and cash equivalents	(962)	(4,747)	(4,110)
Cash and cash equivalents at beginning of the period	2,341	6,451	6,451
Cash and cash equivalents at end of the period	1,379	1,704	2,341

 

 

 

 

 

 

Notes to the Interim Results

 

1. Basis of preparation

 

Totally plc is a public limited company incorporated in the United Kingdom under the Companies Act 2006 (registration number: 3870101). The Company's ordinary shares are admitted to trading on the AIM market of the London Stock Exchange ("AIM").

 

The Group's principal activities in the period under review have been the provision of innovative and consolidatory solutions to the healthcare sector, which are provided by the Group's wholly owned subsidiaries.

 

The consolidated financial statements have been prepared in accordance with UK-adopted International Accounting Standards and with the requirements of the Companies Act 2006 as applicable to companies reporting under those standards.  

 

The interim report and condensed financial statements have been prepared on the basis of the accounting policies, presentation and methods of computation as set out in the Group's March 2024 Annual Report and Accounts and on the basis of the principal accounting policies that the Group expects to apply in its financial statements for the year ending 31 March 2025.

 

The interim report and condensed financial statements do not comprise statutory accounts within the meaning of section 434 of the Companies Act 2006. These interim financial statements were approved by the Board of Directors on 5 November.  The results for the six months to 30 September 2024 and the comparative results for the six months to 30 September 2023 are unaudited. The amounts for the period ended 31 March 2024 are extracted from the audited statutory financial statements of the Group for that period.

 

The Directors have considered the financing needs for the Group for the period to 31 December 2025 taking into account the risks and uncertainties referred to in the 2024 Annual Report. This assessment considered reasonably plausible downsides and measured these against available cash resources and the recently renewed RCF. The directors have concluded that the Group is a going concern for the period to 31 December 2025, and that therefore the going concern basis of preparation continues to be appropriate. 

 

2. Earnings per share

 

Basic earnings per share is calculated by dividing the (loss)/profit attributable to equity holders of the Company by the weighted average number of ordinary shares in issue during the period. Diluted earnings per share takes into account the effects of share options in issue.

 

Adjusted earnings per share is calculated by dividing the pre-exceptional (loss)/profit before amortisation of intangible customer contracts & relationships and tax by the weighted average number of ordinary shares in issue during the period. 

 

 

 

 

 

Statutory Earnings per share		6 months ended 30 September 2024 £000 (Unaudited)	6 months ended 30 September 2023                           £000 (Unaudited)		Year ended 31 March 2024 £000 (Audited)
Profit/(Loss) (£000)		5	(1,867)		3,134
Weighted average number of shares used in basic earnings per share calculations ('000)		196,547	196,547		196,464
Potentially dilutive share options and contingent share consideration ('000)		-	144		15
Weighted average number of shares used in diluted earnings per share calculations ('000)		196,547	196,691		196,479
Basic earnings per share (Pence)		0.00	(0.95)		1.60
Diluted earnings per share (Pence)		0.00	(0.95)		1.60
Adjusted Earnings per share	6 months ended 30 September 2024 £000 (Unaudited)			6 months ended 30 September 2023                           £000 (Unaudited)			Year ended 31 March 2024 £000 (Audited)
Pre-exceptional profit before tax (£000)	47			(1,867)			2,346
Amortisation of intangible customer contracts & relationships	-			880			850
Adjusted profit (£000)	47			(987)			(2,141)
Weighted average number of shares used in diluted earnings per share calculations ('000)	196,547			196,547			196,464
Potentially dilutive share options and contingent share consideration ('000)	-			144			15
Weighted average number of shares used in diluted earnings per share calculations ('000)	196,547			196,691			196,479
Adjusted basic earnings per share (Pence)	0.02			(0.50)			(1.09)
Adjusted diluted earnings per share (Pence)	0.02			(0.50)			(1.09)

 

 

3. Dividends

 

No interim dividend proposed (H124: nil).

 

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